Unpacking Impact of COVID-19 on Vietnamese Firms: Evidence from a Novel Survey
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
Using a unique representative panel survey of Vietnamese enterprises in 2020, we find that the pandemic and associated government support package had a heterogenous impact across firms. The government support package, particularly tax cuts and deferrals, helped alleviate short term stress, but tight ineligibility criteria and cumbersome procedures impacted take-up. Econometric analysis suggests that the likelihood of accessing support was associated with firm size, with larger firms more likely to receive support compared to smaller firms, even after controlling for sector, firm ownership and financial health. Credit support was effective in alleviating liquidity constraints and allaying firm pessimism only for large firms. Interestingly, firms experiencing sales losses and those with lower pre-crisis productivity were more likely to resort to digitalization, suggesting that the pandemic could help narrow productivity gaps.
Series:
Working Paper No. 2022/201
Subject:
COVID-19 Credit Digitalization Health Labor Labor costs Money Production Productivity Technology
Frequency:
regular
English
Publication Date:
September 30, 2022
ISBN/ISSN:
9798400222375/1018-5941
Stock No:
WPIEA2022201
Pages:
30
Please address any questions about this title to publications@imf.org