The impact of Covid-19 on income, poverty and inequality in Vietnam

People registering for Covid-19 rapid testing in Hanoi, Viet Nam

The Covid-19 pandemic hit Vietnam hard, causing a surge in poverty and economic hardship. The first case was detected in January 2020 and quickly spread across the country, leading the government to restrict travel and close schools. Key industries, from trade to hospitality, have been seriously impacted, with many families losing vital sources of income, including remittances sent home by migrant populations. In response, Vietnam has introduced Resolution No. 42 to support affected employers and employees, small household businesses, and those in need. An analysis was performed by PEP researchers using microsimulation techniques to determine the effectiveness of fiscal policies employed by the Government of Vietnam to inform its Covid-19 response. They found that continuing the current social assistance program or supplementing it with additional resources is the most promising policy response to the Covid-19 pandemic. Find out more about the research methods, findings and policy recommendations in the following PEP publications:

Research team
Viet Nam
Project code


Logo global affairs canada
Logo Hewlett Foundation
Logo Co-Impact
Logo IDRC - CRDI Canada
Logo Mastercard Foundation