Browse

You are looking at 1 - 1 of 1 items for :

  • Type: Journal Issue x
  • Public Economics x
  • Public aspects of medicine x
  • Infectious & contagious diseases x
  • Finance, Public; Accounting x
  • Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill x
  • Communicable diseases x
  • Corporate Finance and Governance: Government Policy and Regulation x
  • Finance and accounting x
  • IMF Working Papers x
  • Fiscal sector x
  • Diseases: Contagious x
  • Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems x
Clear All Modify Search
Anh Thi Ngoc Nguyen and Ms. Yuanyan S Zhang
The paper uses firm-level data to assess the financial health of the Vietnamese non-financial corporate sector on the eve of pandemic. Our analysis finds that smaller domestic firms were particularly vulnerable even by regional comparison. A sensitivity analysis suggests that the COVID-19 shock will have a substantial impact on firms’ profitability, liquidity and even solvency, particularly in the hardest hit sectors that are dominated by SMEs and account for a sizeable employment share, but large firms are not immune to the crisis. Risks of default can propagate more broadly through upstream and downstream linkages to industries not directly impacted, with stresses potentially translating into an increase in corporate bankruptcies and bank fragility. Policy measures taken in the immediate aftermath of the crisis have helped alleviate liquidity pressures, but the nature of policy support may have to pivot to support the recovery.