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Unpacking Impact of COVID-19 on Vietnamese Firms: Evidence from a Novel Survey
Author:
Ms. Era Dabla-Norris
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Anh Thi Ngoc Nguyen 0000000404811396 https://isni.org/isni/0000000404811396 International Monetary Fund

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Ms. Yuanyan S Zhang
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Thuy Dinh Pham
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Nga Huong Phi
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Duong Thuy Nguyen
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Tuan Danh Duong
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Series:
IMF Working Papers
Volume/Issue:
Volume 2022: Issue 201
Language:
English
Publication Date:
30 Sep 2022
DOI:
https://doi.org/10.5089/9798400222375.001
ISBN:
9798400222375
ISSN:
1018-5941
Pages:
30
Keywords:
COVID-19; policy support; firms’ coping strategies; digitalization; coping strategy; government support package; credit support; firm pessimism; self-coping strategy; Credit; Labor costs; Productivity; Europe; Global
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2022: Issue 201