We study the association between income convergence, regional disparities, and foreign direct investment (FDI) in Vietnam from 2003-2015. Three empirical questions are considered: (i) what is the role of spatial interactions among provinces in bringing them closer together in terms of income levels? (ii) does FDI capital in one province spread out the benefits to surrounding provinces, and if so, by how much? (iii) does the type of FDI capital matter in their contribution towards provincial income convergence? We find supporting evidence of income convergences among Vietnamese provinces and the role of spatial interactions and FDI spillover effects. High-tech FDI and industry FDI agglomerations contribute significantly more towards the convergence process than does the low-tech FDI and agglomerations formed by country of origin. Using retail trade in goods and services as a proxy for consumption per capita, we find similar pattern of consumption convergence.