Poverty and distributional impacts of the COVID-19 pandemic: The Case of Textile and Garment, and the Hospitality Sectors in Vietnam


The Covid pandemic has impacted many aspects of societies in countries worldwide. The pandemic in Vietnam was well controlled until the second quarter of 2021, with a low number of infections. During the period from the first quarter of 2020 to the first quarter of 2021, Vietnam experienced three outbreaks, but the number of infections was low and well controlled in localities where community transmission occurred. However, the fourth wave of the pandemic broke out strongly in Bac Giang, Bac Ninh, Hanoi, Ho Chi Minh City, and the southern and central provinces of Vietnam from the beginning of May 2021 and continued to develop complicatedly.

Before the second quarter of 2021, although the number of infections was low, the pandemic affected many industries due to changes in consumer behaviors and mobility restrictions.Therefore, this could affect the activities of different players in the economy. The effects include reduced demand in some industries and increased costs due to mobility restrictions.

These impacts would affect the incomes of different groups of the economy, thereby affecting poverty and inequality within and between groups. This report will assess the impact of the pandemic on income, poverty, and inequality since the first quarter of 2020, when first cases of infection were detected in Viet Nam.

IDRC report

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