The Impact of Covid-19 on Income, Poverty and Inequality in Vietnam

Abstract

The Covid-19 outbreak has had significant human and economic impacts for Vietnam, as it has for many other countries, with a large number of people having sunk down into extreme poverty. The Covid-19 pandemic slowed global GDP and increased global poverty, with the poorest countries feeling the greatest impact.

Vietnam’s first detected case of Covid-19 was reported in Ho Chi Minh City on 23 January 2020, and infections spread quickly across the entire country. The Government restricted international travel, suspended visas for foreigners entering Vietnam, and closed all schools between February and April 2020.

Key sectors of Vietnam’s economy have faced serious challenges, from trade to hospitality, and global lockdowns and economic slowdowns have affected vital sources of income for many families, such as the remittances sent home by international and internal migrants. Migrant families, in particular, may be severely affected by the Covid-19 pandemic.