ASM AW NguyenNgocMinh BH00343
ASM AW NguyenNgocMinh BH00343
ASM AW NguyenNgocMinh BH00343
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Contents
1. Introduction.......................................................................................3
2. The impacts of the COVID-19............................................................3
2.1 Overview of COVID-19...................................................................3
2.2 Vietnam’s economy before COVID-19...........................................4
2.3 Negative impact.............................................................................5
2.3.1 The impacts of COVID-19 to the GDP Growth.........................5
2.3.2 The impacts of COVID-19 to the inflation................................6
2.3.3 The impacts of COVID-19 to the importing and exporting
goods…………………………………………………………………..7
2.4 Positive impact...............................................................................9
Deliver services..................................................................................9
Game Streaming..............................................................................11
3. Conclusion........................................................................................15
References.............................................................................................16
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1. Introduction
The outbreak of Covid-19 has brought to the world an unprecedented status of
economy, and is expected to have a significant impact to the Vietnam’s economic
development of 2020. According to a July 2020 report by the Vietnamese General
Statistics Office (GSO), 30.8 million individuals across the whole country were
directly and seriously harmed by COVID-19. The service sector was hardest hit by
COVID-19, accounting for 72% of affected employees, followed by manufacturing
and construction at 67.8%; agriculture, forestry, and fishery accounted for 25.1%
of affected workers. These epidemic effects resulted the highest of the
unemployment rate in Vietnam in ten years. Furthermore, the economy of
worldwide has also been impacted due to the indefinite lockdown in various
countries, equally the negative effects to the Vietnam’s economy, because of the
trading market has locked down. The research of the COVID-19 is significant to
the human being and must be concerned, not only does it support to overcome
the situation, but also a means to improve the Vietnam’s economic development.
Therefore, I am choosing this topic.
Vietnam
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6
GDP Growth (Annual %)
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Vietnam
According to the World Bank Data, the economy of Vietnam in the COVID-19
pandemic has a history of gradual growth every year and has been mostly
constant for the past ten years. Due to the 23% inflation in 2011, the economy's
growth rate dropped to 5.5% in 2012. Along with the growth, inflation was
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decreased to 7% in November 2012. In 2014, the economy's growth rate
increased to 6.4%. With an estimated GDP growth rate of 7.4% in 2019, the
Vietnamese economy experienced achievement. The main drivers of economic
growth in 2019 were the processing and manufacturing sector (up 11.29%) and
market service sectors, such as transportation and warehousing (up 9.12%);
wholesale and retail sales (up 8.82%); financial, banking, and insurance activities
(up 8.62%)
The world economy entered a severe recession, causing Vietnam's economy, with
its high degree of openness and deep international integration, to suffer from a
variety of consequences that have had a significant influence on all economic
sectors. - social, resulting in disruption of supply chains and trade flows,
stagnation of production, business, and service activities; has directly impacted
the import and export industries, air transport, tourism, accommodation services,
catering, health care, education, labor, and employment; many businesses went
bankrupt, dissolved, suspended operations, or downsized; GDP increased by
3.82% in the first quarter of 2020, the lowest level in the last ten years.
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the value of seafood exports to China declined by 57.21% over the same period in
February 2020; vegetables and fruits decreased by 24.79%; cashew nuts
decreased by 69.26%; coffee decreased by 14.34%; tea decreased by 78.39% etc.
Vietnam's GDP growth rate in 2021 was 2.58%, lower than the 2.91% growth rate
in 2020 and also below than the 6.5% target. This is also the lowest increase in
recent years.
Vietnam
8
6
GDP Growth (Annual %)
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Vietnam
Inflation rate
4
3.5
2.5
1.5
0.5
0
2016 2017 2018 2019 2020 2021
Inflation rate
Export and import turnover remained positive, demonstrating the efforts of the
government, ministries, and branches in developing solutions to deal with the
Covid-19 pandemic situation, ensuring growth while maintaining the effectiveness
of epidemic prevention and control, owing largely to the efforts of the business
community. Covid-19 is a problem to the Vietnamese economy in general, and to
the import-export industry in particular. And the results obtained in 2020
demonstrate that the resistance of import and export activities to the negative
and widespread effects of the Covid-19 outbreak is extremely impressive. This
creates a solid platform for Vietnam's import and export activity to grow in the
next years.
For starters, the trade surplus was maintained for the fifth straight year,
contributing significantly to economic growth and macroeconomic stability.
However, the government's management of monetary and exchange rate policy is
put under strain by the increasingly large and fast growing surplus (the trade
surplus is about 20 billion USD in 2020, up 84% from 2019).
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Secondly, the supporting industry is still in its early stages of development, unable
to generate products of adequate quality and size to participate in the supply
chain of products and components for export firms. As a result, firms must import
a wide range of raw materials, semi-finished goods, components, and equipment
to support production and export activities, particularly from China, which creates
issues when the supply chain is disrupted. Indeed, when the Covid-19 epidemic
came out in China at the end of the first quarter, the export of various
Vietnamese products faced difficulties due to a lack of input supplies.
The Covid-19 pandemic has a positive impact on some citizens in the world, many
countries in the world impose lockdowns or restrictions on community activities
so that all activities ranging from work, school, shopping, to other activities
become more at home, it makes us become spending more time with family,
people in various circles are also competing to donate to help people in need. This
is social solidarity that is unconsciously embedded in society.
Importantly, the COVID-19 pandemic has affected the business growth in various
sectors, big enterprises and several important businesses with former developed
has lost billion of their profits and even gone bankrupt, but several small and
medium businesses take this as an opportunity to growth in a period of crisis.
Sean Ludwig has written a journal about twenty small business thriving during
COVID-19, below are various sectors that has a sucessfully growth in the
pandemic.
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Deliver services
With many consumers are frightened to leave their home and being advised by
the government to shelter in during the COVID-19 pandemic, many delivery
services company has stepped up to make sure consumer goods can be delivered
anywhere in states to homes and businesses. Many big companies of delivery has
been greatly beneficiary with high demand of delivering.
The F&B industry plays a significant role in daily life of the citizens. According to
National Restaurants Association, when the COVID-19 started, many restaurants
worldwide lost a billion of dollar, and even faced business closures, the industry
of F&B has lost approximately $240 billion by 2020. Brewer and Shebby has
answered by their research, restaurants that remained in business found it
essential to adapt to recent changes in the industry and offer online food delivery
(OFD) services for their survival. According to Statista, Food delivering is young
but a fast growing industry in Vietnam, since the COVID-19 is concerned, the
lockdown ordered by the government, dining out is no longer an option.
Therefore, online food delivery stepped up and make sure the citizens can order
food at home.
GrabFood, held a 45 percent share of the market in 2022, fellow Singapore tech
giant Sea Group recently acquired the Vietnamese app Now, rebranded it into
ShopeeFood and inherited a 41 percent. In the same year, the rest of the market
was shared between two unicorn startups, South Korea’s Baemin and Indonesia’s
Gojek. Meanwhile, Loship, a homegrown delivery startup, has recently joined the
race
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Grab Food Shopee Food
Unicorn Starup (Baemin, Gojek) Loship
Table 5: Revenue of the food delivery market in Vietnam from 2016 to 2021
22.23
13.89
10.05
6.04
3.09
0.93
Game Streaming
Play games while online streaming is considered top one entertainment platform
in COVID-19 pandemic. The lockdown command by the government has affected
entertaining industry, various entertainment plaforms are restricted. In other
words, The sector of online entertainment has been growing significantly,
especially video games. One could say that livestreaming in general and game
streaming in particular are at their peak. Up to 80% of the community observed
that they watched gaming creators more frequently throughout the outbreak,
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according to Appota's report. Only traditional sports are watched and played for
longer by the average audience of 3 hours per day.
Table 6: Twitch annual revenue from 2016 to 2021. Twitch generated approximately $2.6 billion
revenue in 2021, a 41% year-on-year increase
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3000
2500
2000
1500
1000
500
0
2016 2017 2018 2019 2020 2021
$million
Under the direction of the Government and the Prime Minister, the Ministry of
Finance has closely coordinated with ministries and sectors to closely monitor the
development of the epidemic, analyze and forecast trends, identify the situation. ,
assess the impact of the epidemic on the economy to develop response scenarios.
On that basis, the Ministry of Finance has proactively proposed fiscal solutions to
support businesses and people to overcome difficulties caused by the impact of
the Covid-19 epidemic.
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3.1 Capital support
Right from the time when the epidemic has not been affected as severely as
today, the Prime Minister issued Directive 11/CT-TTg dated March 4, 2020 on
urgent tasks and solutions to remove difficulties for production and business.
ensuring social security to cope with the Covid-19 epidemic. Accordingly, the
Government assigned the State Bank of Vietnam to direct credit institutions to
balance, fully and promptly meet capital needs for production and business,
speed up administrative reform, withdraw shorten the loan application
processing time, improve the customer's ability to access loans; promptly apply
support measures such as restructuring the repayment term, considering loan
interest exemption and reduction, keeping the debt group unchanged, reducing
fees, etc. For customers facing difficulties due to the impact of the Covid-19
epidemic (first of all, a credit support package of about VND 250 trillion).
The Ministry of Industry and Trade has taken measures to boost exports, diversify
export and import markets and find new markets. At the same time, inspect and
strictly handle cases of smuggling, commercial fraud, speculation in goods,
causing artificial scarcity, fake goods and imitation goods on the market.
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To promptly remove difficulties for taxpayers damaged by the Covid-19 epidemic,
contributing to helping taxpayers stabilize production and business, overcome
difficulties; The General Department of Taxation has issued Official Letter
897/TCT-QLN dated March 3, 2020 on tax payment extension and exemption of
late payment interest due to the impact of the Covid-19 epidemic.
4. Conclusion
During the COVID-19 period, Vietnam's economic condition changed significantly,
despite the fact that the pandemic had a negative impact on economic growth,
inflation, job losses, reduced incomes, and other factors. Import, export, and
international trade markets are experiencing difficulties, and COVID-19 might be
viewed as a huge challenge for Vietnam's economy. However, a few companies
and sectors saw this as an opportunity and thrived during the pandemic. In other
words, this is the COVID-19 pandemic's positive spot.
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