Stronger Headwinds Bring New Challenges for the Government
With rising global health and economic concerns, Vietnam economy is expected to be significantly affected, even though the COVID 19 health crisis has been so far contained, with only 240 cases of infected people and no registered death as of early...
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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/698671589882858003/Stronger-Headwinds-Bring-New-Challenges-for-the-Government http://hdl.handle.net/10986/33780 |
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okr-10986-337802021-05-25T09:38:33Z Stronger Headwinds Bring New Challenges for the Government Morisset, Jacques CORONAVIRUS COVID-19 PANDEMIC RESPONSE FISCAL POLICY MONETARY POLICY ACCESS TO FINANCE SOCIAL PROTECTION ECONOMIC SHOCK ECONOMIC RECESSION VULNERABLE POPULATION TAXATION EMPLOYEE RETENTION EMPLOYMENT INFORMAL SECTOR With rising global health and economic concerns, Vietnam economy is expected to be significantly affected, even though the COVID 19 health crisis has been so far contained, with only 240 cases of infected people and no registered death as of early April. The World Bank’s GDP growth forecast for Vietnam has been cut by half compared to pre-crisis projections, with new forecast at 3.0 percent in 2020. Both the fiscal and external accounts are expected to deteriorate, creating a fiscal financing gap of approximately 5 billion dollars that will require new borrowings. The Government’s fiscal response, a combination of tax and social protection measures, is expected to attenuate the short-term economic costs associated to the COVID 19 pandemic, but the key challenges will be the rapid and effective implementation of the above measures and preparing the economy for the expected rebound when the health crisis is contained. Easing monetary and credit policies creates a welcome buffer to the affected businesses, but close monitoring is required as banks become increasingly exposed to the economic slowdown, affecting their asset quality, liability, and profitability over time. Potential areas for collaboration between the Government and the World Bank could include (i) macro and fiscal monitoring; (ii) implementation of social protection measures; and (iii) reforms to be implemented for optimizing the rebound of the economy. 2020-05-20T20:00:13Z 2020-05-20T20:00:13Z 2020-04 Policy Note http://documents.worldbank.org/curated/en/698671589882858003/Stronger-Headwinds-Bring-New-Challenges-for-the-Government http://hdl.handle.net/10986/33780 English COVID-19 Policy Response Notes;No. 3 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Policy Note East Asia and Pacific Vietnam |
| repository_type |
Digital Repository |
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Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
CORONAVIRUS COVID-19 PANDEMIC RESPONSE FISCAL POLICY MONETARY POLICY ACCESS TO FINANCE SOCIAL PROTECTION ECONOMIC SHOCK ECONOMIC RECESSION VULNERABLE POPULATION TAXATION EMPLOYEE RETENTION EMPLOYMENT INFORMAL SECTOR |
| spellingShingle |
CORONAVIRUS COVID-19 PANDEMIC RESPONSE FISCAL POLICY MONETARY POLICY ACCESS TO FINANCE SOCIAL PROTECTION ECONOMIC SHOCK ECONOMIC RECESSION VULNERABLE POPULATION TAXATION EMPLOYEE RETENTION EMPLOYMENT INFORMAL SECTOR Morisset, Jacques Stronger Headwinds Bring New Challenges for the Government |
| geographic_facet |
East Asia and Pacific Vietnam |
| relation |
COVID-19 Policy Response Notes;No. 3 |
| description |
With rising global health and economic
concerns, Vietnam economy is expected to be significantly
affected, even though the COVID 19 health crisis has been so
far contained, with only 240 cases of infected people and no
registered death as of early April. The World Bank’s GDP
growth forecast for Vietnam has been cut by half compared to
pre-crisis projections, with new forecast at 3.0 percent in
2020. Both the fiscal and external accounts are expected to
deteriorate, creating a fiscal financing gap of
approximately 5 billion dollars that will require new
borrowings. The Government’s fiscal response, a combination
of tax and social protection measures, is expected to
attenuate the short-term economic costs associated to the
COVID 19 pandemic, but the key challenges will be the rapid
and effective implementation of the above measures and
preparing the economy for the expected rebound when the
health crisis is contained. Easing monetary and credit
policies creates a welcome buffer to the affected
businesses, but close monitoring is required as banks become
increasingly exposed to the economic slowdown, affecting
their asset quality, liability, and profitability over time.
Potential areas for collaboration between the Government and
the World Bank could include (i) macro and fiscal
monitoring; (ii) implementation of social protection
measures; and (iii) reforms to be implemented for optimizing
the rebound of the economy. |
| format |
Policy Note |
| author |
Morisset, Jacques |
| author_facet |
Morisset, Jacques |
| author_sort |
Morisset, Jacques |
| title |
Stronger Headwinds Bring New Challenges for the Government |
| title_short |
Stronger Headwinds Bring New Challenges for the Government |
| title_full |
Stronger Headwinds Bring New Challenges for the Government |
| title_fullStr |
Stronger Headwinds Bring New Challenges for the Government |
| title_full_unstemmed |
Stronger Headwinds Bring New Challenges for the Government |
| title_sort |
stronger headwinds bring new challenges for the government |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/698671589882858003/Stronger-Headwinds-Bring-New-Challenges-for-the-Government http://hdl.handle.net/10986/33780 |
| _version_ |
1764479503018491904 |