Vietnam : Potential Policies Responses to the COVID-19 Epidemic
Because of the growing economic costs associated with the coronavirus epidemic, many Governments announced a set of new policy measures aimed at mitigating the potential impacts. This note aims to support the Vietnamese Government in its effort to...
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| Format: | Policy Note |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/525351589879488061/Vietnam-Potential-Policies-Responses-to-the-COVID-19-Epidemic http://hdl.handle.net/10986/33779 |
| Summary: | Because of the growing economic costs
associated with the coronavirus epidemic, many Governments
announced a set of new policy measures aimed at mitigating
the potential impacts. This note aims to support the
Vietnamese Government in its effort to design and implement
the most cost-effective package of policy responses. Based
on lessons from international experience and on our existing
dialogue with the authorities, the recommendation is to
adopt a three-step strategy. The first step will focus on
supporting the most affected sectors through the combination
of targeted tax and financial measures as well as assistance
to the most vulnerable firms and employees. The second step
will complement the above measures through the accelerated
implementation of the public investment program, which will
become more effective on the aggregate demand when most
restrictions on people’s mobility will have been removed.
The third step is to take opportunity of the current crisis,
by encouraging priority reforms in the development of a
digital economy and the further integration of the
Vietnamese economy in global value chains by taking
advantage of the diversification needs by multinationals
that may want to go away from China. |
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