Covid-19 Factsheet Vietnam - Copyright 2020 Rubix. All rights reserved.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Covid-19 Factsheet Vietnam Copyright © 2020 Rubix. All rights reserved.
COVID-19 Factsheet
Vietnam
Country Specifications
Elements Details
Country Vietnam
Yes, Vietnam was under nationwide lockdown.
Whether the country is/was Currently, the country has reopened almost all
under Lockdown (LD)? nonessential services, due to no new community
transmission in over 6 weeks.
Start date - April 1st, 2020
Period of LD
End date - April 23rd, 2020
Page 1 of 14
Government Intervention
Elements Details
● Vietnam has begun issuing E-visas for
international visitors from July 1, 2020
○ Citizens of 80 different countries can
apply for a Vietnam E-visa including most
European Union (EU) countries,
Australia, Canada, India, Japan, the UK,
and the US
● Most social isolation measures have been lifted
● Schools, colleges, and other educational
Restrictions Imposed in the
institutions have reopened
Country
● Only those with diplomatic or official passports,
or coming from special economic projects are
allowed to enter the country under strict medical
surveillance
○ Skilled workers are allowed to enter the
country to seek work and investment
opportunities in July
(Reuters 2020) (Quy 2020)
Employment-related Measures:
● The Prime Minister requested the Vietnam
Social Insurance to suspend the payment of
social insurance for those who have been
affected by the COVID-19 pandemic until
December 2020 without interest charges for late
payment
Economic Stimulus Measures:
● The Ministry of Finance (MoF) has proposed to
increase the interest deductibility cap to 30% of
earnings before interest, tax, depreciation, and
amortisation (EBITDA)
● The proposed deadline for the implementation of
Support extended to the
compulsory e-invoicing has been extended to 1
Industries at risk by
July 2022
Government
● A VND 27 trillion stimulus package was released
in March, targeting households and small
businesses
● The country has announced a support package
of USD 2.6 billion for poor families and others
who have lost their livelihoods due to the
economic impact of the pandemic
Customs Measures:
● Some restrictions on the export of masks
have been implemented
● Authorities are considering the reduction of
customs duty and customs audits
Page 2 of 14Tax Measures:
Extensions for VAT payment
● A 5-month extension of the VAT payment
deadline shall be applied for VAT payable of
March, April, May, and June 2020
● A 5-month extension of the VAT payment
deadline shall be applied for VAT payable of the
first and second quarters of 2020
● The above 5-month payment extension shall be
applied from the day after the VAT payment
deadline
Extensions for Land Rental Payments
● The deadline of land rental payment for the first
reporting period of 2020 of taxpayers who rent
land directly from the government and pay land
rental on an annual basis will be extended
● The extension of the land rental payment must
be within 5 months from the statutory deadline
and no later than 31 October 2020
● The timeline for VAT and PIT payment of
business individuals, group of business
individuals, and household business individuals
will be extended to 15 December 2020
Support extended to the
Industries at risk by Personal Income Tax Measures
Government (continued) ● Starting from July 1, 2020, the government will
increase the minimum taxable income threshold
by 22%—to VND 11 million per month
● Individuals with an income of less than VND 11
million (USD 473) per month will be exempted
from paying personal income tax
● The threshold will increase by VND 4.4 million
(USD 189) for each dependent being claimed,
meaning that the standard for non-taxable
income will be raised to VND 15.4 million (USD
660) per month—with one dependent—and VND
19.8 million (USD 849) per month—with two
dependents
○ Qualified dependents are children below
18 years old or individuals who are over
18 years of age joining vocational
schools or universities and earning a low
income, which does not exceed VND 1
million (USD 43) per month
○ Other qualified dependents include
spouses or parents of taxpayers who are
unable to work, have a low income, or
are out of working age
Page 3 of 14Corporate Income Tax Measures
● Vietnam’s National Assembly has approved a
30% corporate income tax (CIT) cut for the 2020
Financial Year
● The reduction would be applicable for
companies, public enterprises, and other
organisations including SMEs
● The expected criteria for SMEs to be eligible for
this reduction include:
Support extended to the ○ Total revenue in 2020 does not exceed
Industries at risk by the VND 50 billion (USD 2.2 million)
Government (continued) threshold
○ The average number of employees
subject to social insurance during 2020 is
below 100 people
○ Total revenue in 2020 significantly
decreased—by approximately 30%—in
comparison to that of 2019
(Hoang 2020) (Ditty 2020) (Delteil 2020) (Shira 2020)
(Vu 2020) (Buckley 2020)
Page 4 of 14Elements Details
● The State Bank of Vietnam (SBV) cut its
refinancing interest rate to 4.5% per annum,
rediscount rate to 3%, the overnight interest
rate to 5.5%, and interest rate via open market
operations (OMO) to 3%
● The SBV also lowered the interest rate cap to
4.25% annually for deposits with maturities of
one month to less than six months
● The SBV has issued guidelines to commercial
banks to reschedule loans, reduce/exempt
interest, and provide loan forbearance
● Banks have registered a credit package of VND
300 trillion (3.8% of the GDP) at lower interest
rates and supported up to 740,000 customers
with outstanding loans of about VND 1,660
trillion by rescheduling repayment, exempting
and reducing interest on existing debts, and
extending new loans
● The SBV has also encouraged other financial
institutions to exempt and reduce fees
● Affected firms are eligible to concessional loans
from the Vietnam Social Policy Bank (VSPB)
with no interest for making salary payment to
their workers who temporarily stopped working
○ The total loan value is estimated at VND
Change in Monetary Policy
16.2 trillion (around 0.2% of the GDP)
● The SBV instructed Credit Institutions (CIs) to
actively reduce bonus and salary, cut other
operating costs, adjust business plans in a
timely manner, and use the saved resources to
reduce interest
● The SBV has issued a circular on refinancing the
VSPB up to VND 16 trillion at a 0% interest rate
for customers directly affected by the pandemic
and for businesses to pay salaries and wages
for furloughed staff
● The SBV has adjusted credit growth quotas for
several commercial banks to provide loans for
customers, particularly priority fields that aid the
country’s economic recovery process
● Lenders have rescheduled debt payment
deadlines for nearly 260,000 customers, with
outstanding loans of VND 180 trillion
(IMF Editors 2020) (Yen 2020)
Page 5 of 14● The government introduced a financial support
package of VND 271 trillion (3.6% of the GDP),
with measures including:
○ Deferring payment of VAT and CIT tax
obligations and land rental fees by 5
months
○ Deferring PIT payment to year-end (the
estimated amount of payments deferred
is VND 180 trillion, or 2.4% of the GDP)
○ Deferring excise tax on domestically
produced cars
○ Lowering land rental
○ Cutting or exempting various fees and
charges
○ Raising PIT deduction
● Other fiscal policy-related measures include:
Change in Fiscal Policy
○ Tax exemptions for medical equipment
○ Lower business registration
fees—one-year exemption of business
registration tax for newly established
household businesses
○ Streamlined tax and custom audit and
inspection at firms
○ Allowing firms and workers to defer
contributions to the pension fund and
survivorship fund without interest penalty
for up to 12 months
● The government is targeting a 100%
disbursement of public investment capital valued
at VND 686 trillion (9% of the GDP)
(IMF Editors 2020)
Page 6 of 14Elements Details
Health and Safety Measures:
● By the end of January, Vietnam had issued its
National Response Plan for the pandemic and
established a National Steering Committee on
Epidemic Prevention
● Vietnam immediately introduced strict
containment measures including:
○ Airport health screenings
○ Social distancing
○ Travel bans on foreign visitors
○ A quarantine period for international
arrivals
○ School closures
○ The strict enforcement of the wearing of
masks at public venues
○ Hand sanitisers required in public areas,
workplaces, and residential buildings
● Vietnam used extensive contact tracing,
isolation, and quarantining
● Nearly 450,000 people have been
quarantined—either at hospitals or state-run
facilities or through self-isolation
● Treatment and quarantine in hospitals were
provided free of charge for Vietnamese citizens
Measures taken by the
● Details on symptoms, protective measures, and
Government to mitigate Impact
testing sites were communicated through
of COVID – 19
numerous mediums, including:
○ Mass media
○ Government websites
○ Public grass-root organisations
○ Posts at hospitals, offices, residential
buildings, and markets
○ Via text messages on mobile phones
○ Voice messages before a phone call
○ Contact tracing apps (in some big cities)
● Regulations and policies on travel, working, and
commercial activities are being constantly
updated and sent to the public
● In March, the Vietnam Academy of Science and
Technology used real-time RT-PCR to develop
cost and time-efficient testing kits—Cost was
less than USD 21 per kit and the testing time
was 80 minutes from receiving a sample
● Vietnam created 120 testing sites across the
country
Page 7 of 14● When community transmission was detected in
a region, the government reacted quickly with
contact tracing, community-level lockdowns, and
widespread local testing to ensure that no cases
were missed
● Government-run quarantine centres provided
three meals a day, sleeping facilities, and basic
toiletries
● In mid-April, a Vietnamese cybersecurity firm
released a Bluetooth-enabled mobile app that
notifies users if they have been within
approximately 6 feet of a confirmed case within
14 days
● The Ministry of Health issued national
Guidelines for Infection Prevention and Control
for COVID-19, with comprehensive guidance to
hospitals regarding:
Measures taken by the ○ The admission and isolation of confirmed
Government to mitigate Impact or suspected COVID-19 cases
of COVID – 19 (continued) ○ The establishment of isolation areas in
hospitals
○ The use of personal protective
equipment (PPE)
○ The cleaning and disinfection of
environmental surfaces
○ Waste management
○ Screening
○ The collection, preservation, packing,
and transport of patient samples
○ The prevention of laboratory-acquired
infection of COVID-19
○ Handling the remains of confirmed or
suspected COVID-19 cases
○ COVID-19 prevention for family members
and visitors
(Gulde-Wolf 2020) (Pollack 2020)
Page 8 of 14Industries Impacted
Elements Details
Essential and Reopened Services:
● Karaoke parlours, discos, and nightclubs
● Domestic tourist locations
● Schools and other educational institutions
● Entertainment facilities, cinemas, and concert
halls
● Restaurants, cafes, pubs, bars, and street food
stalls
● Hotels and resorts
● Healthcare services
● Grocery stores and supermarkets
● Banking and financial services
● Electric and power services
● Post and courier services
● Information and broadcast services
● Telecommunication services
● Water services
● Defence and security
● Spas, beauty salons, and barbershops
● Other non-essential businesses
E-commerce Industry:
● Retailers in Vietnam reported that orders by
phone and apps have increased tenfold
Industries Allowed to Operate ● An online retail app saw over 43 million visits
per month due to the pandemic
● Vietnam’s online retailers saw a spike of 680%
in demand for hand sanitisers and a 610%
increase in face mask sales
● Online sales for gym equipment saw an
increase of approximately 116% in March
● Gaming console sales have increased by
almost 60%
Food Processing Industry:
● Vietnam exported shrimp worth USD 244.2
million in April—a 5.8% increase from a year
ago
● Shrimp exports have increased by 29%
year-on-year to USD 872.8 million
● Shrimp exports to the United States saw a
year-on-year increase of 14% to USD 43.2
million in April and increased by 17% to USD
1587 million in value
(Lockhart 2020) (Reuters 2020) (Ng 2020) (Samuel
2020) (Collective 2020) (Dao 2020)
Page 9 of 14Tourism Industry:
● International arrivals in May were down by
98%
● A travel company reported a year-on-year drop
of 80% in customer numbers in February and
90% in March, resulting in a USD 21.1 million
fall in monthly revenues
● Thousands of tourism operators have closed
● Vietnam’s tourism industry is facing an
expected loss of between USD 5.9 billion to
USD 7 billion by the end of July
Garment and Textile Industry:
● The pandemic forced 15% of all manufacturing
companies to cut production, specifically the
garment and textile industries
● The garment and textile industry lost an
estimated US 508 million in June 2020
● Exports of garments totalled USD 7.03 billion,
a 1.4% year-on-year reduction compared to
2019, and 34% lower than the expected
growth of the industry
Industries Severely Affected
● Textile industry experts estimate that the
industry could take an additional USD 500
million hit in the coming months
Aviation Industry:
● Vietnamese airlines have reported that the
initial damage of the pandemic is estimated to
be around USD 1.3 billion
● 10,000 employees of Vietnam Airlines had to
take unpaid leave
● Several airlines have reported that the damage
of closing routes is over USD 1 billion
Other:
● Automotive industry
● Restaurant industry
● Sports and leisure
● Construction industry
● Retail industry
● Hospitality
(Marques 2020) (Duong 2020) (Nguyen 2020)
Page 10 of 14Works Cited
Gulde-Wolf, Anne-Marie, and Era Dabla-Norris. “Vietnam's Success in Containing COVID-19
Offers Roadmap for Other Developing Countries.” IMF, 29 June 2020,
www.imf.org/en/News/Articles/2020/06/29/na062920-vietnams-success-in-containing-covi
d19-offers-roadmap-for-other-developing-countries.
Buckley, Joe. “The Role of Labour Activism in Vietnam's Coronavirus Success.” Equal Times, 2
July 2020, www.equaltimes.org/the-role-of-labour-activism-in.
Collective, Tech. “Exploring the Impact of COVID-19 on ECommerce in Vietnam.” Tech
Collective, 22 May 2020,
techcollectivesea.com/2020/05/27/exploring-the-impact-of-covid-19-on-ecommerce-in-viet
nam/.
Dao, Toan. “Vietnam's Shrimp Sector Thriving Thanks to Swift COVID-19 Containment.”
SeafoodSource Official Media, 16 June 2020,
www.seafoodsource.com/news/aquaculture/vietnam-s-shrimp-sector-thriving-thanks-to-swi
ft-covid-19-containment.
Delteil, Bruce, et al. “Emerging from the Pandemic, Vietnam Must Position Itself for Recovery.”
McKinsey & Company, 1 July 2020,
www.mckinsey.com/featured-insights/asia-pacific/emerging-from-the-pandemic-vietnam-m
ust-position-itself-for-recovery.
Ditty, John. “Vietnam.” KPMG, KPMG, 13 Apr. 2020,
home.kpmg/xx/en/home/insights/2020/04/vietnam-government-and-institution-measures-in
-response-to-covid.html.
Duong, Minh Cuong, et al. “The Impacts of COVID-19 on Vietnam and Ways to Move Forward.”
Page 11 of 14East Asia Forum, 10 June 2020,
www.eastasiaforum.org/2020/06/09/the-impacts-of-covid-19-on-vietnam-and-ways-to-mov
e-forward/.
Hoang, Thuy Duong. “Vietnam: Tax Developments in Response to COVID-19.” KPMG, KPMG,
23 Apr. 2020,
home.kpmg/xx/en/home/insights/2020/04/vietnam-tax-developments-in-response-to-covid-
19.html.
IMF Editors. “Policy Responses to COVID19.” IMF, 30 June 2020,
www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#M.
Lockhart , Katie. “Life after Lockdown in Vietnam: This Is What It's like When an Entire Country
Reopens.” CNN, Cable News Network, 15 May 2020,
edition.cnn.com/travel/article/life-after-lockdown-vietnam-domestic-travel/index.html.
Marques, Clara Ferreira. “Vietnam Tourism Reopening May Set Model for the World.”
Bloomberg.com, Bloomberg, 7 June 2020,
www.bloomberg.com/opinion/articles/2020-06-07/vietnam-tourism-reopening-may-set-mo
del-for-the-world.
Ng, Josee. “Nightlife Venues Such As Karaoke Spots, Bars, Pubs & Clubs Reopen, Announces PM
Nguyen Xuan Phuc.” TheSmartLocal Vietnam - Leading Travel and Lifestyle Portal, 5 July
2020, thesmartlocal.com/vietnam/nightlife-venues-reopen/.
Nguyen, Jason Q, et al. “Vietnam's Textile and Garment Industry Hit Hard by COVID-19.” East
Asia Forum, 19 May 2020,
www.eastasiaforum.org/2020/05/19/vietnams-textile-and-garment-industry-hit-hard-by-cov
id-19/.
Pollack, Todd, et al. “Emerging COVID-19 Success Story: Vietnam's Commitment to
Page 12 of 14Containment.” Our World in Data, 30 June 2020,
ourworldindata.org/covid-exemplar-vietnam.
Quy, Nguyen, and Viet Tuan. “Karaoke Parlors, Disco Bars Set to Reopen in Vietnam - VnExpress
International.” VnExpress International – Latest News, Business, Travel and Analysis from
Vietnam, VnExpress International, 2 July 2020,
e.vnexpress.net/news/news/karaoke-parlors-disco-bars-set-to-reopen-in-vietnam-4112862.h
tml.
Reuters. “Vietnam Reopens Schools after Easing Coronavirus Curbs.” The Hindu, The Hindu, 11
May 2020,
www.thehindu.com/news/international/vietnam-reopens-schools-after-easing-coronavirus-c
urbs/article31555357.ece.
Reuters. “With Coronavirus under Control, Vietnam and New Zealand See Different Travel
Trends.” India Today, 26 June 2020,
www.indiatoday.in/lifestyle/travel/story/with-coronavirus-under-control-vietnam-and-new-
zealand-see-different-travel-trends-1692821-2020-06-26.
Samuel, Pritesh. “How Vietnam Successfully Contained-COVID-19.” Vietnam Briefing News, 5
May 2020,
www.vietnam-briefing.com/news/how-vietnam-sucessfully-contained-covid-19.html/.
Shira, Dezan. “Vietnam Increases Personal Income Tax Deduction for 2020.” Vietnam Briefing
News, 12 June 2020,
www.vietnam-briefing.com/news/vietnam-increases-personal-income-tax-deduction-2020.h
tml/.
Vu, Thang. “Vietnam Proposes Corporate Income Tax Cut to Boost Economy.” Vietnam Briefing
Page 13 of 14News, 18 June 2020,
www.vietnam-briefing.com/news/vietnam-proposes-corporate-income-tax-cut-boost-econo
my-covid-19.html/.
Yen, Hai. “Vietnam Credit Growth Hits 3.26% in Jan-Jun.” Hanoitimes.vn, Hanoi Times, 3 July
2020, hanoitimes.vn/vietnam-credit-growth-hits-326-in-jan-jun-313015.html.
Page 14 of 14Rubix Data Sciences Pvt. Ltd. D-424 Neelkanth Business Park Vidyavihar (W), Mumbai – 400 086, India Phone: +91-22-49744274 Email: info@rubixds.com Website: www.rubixdatasciences.com Copyright © 2020 Rubix. All rights reserved.
You can also read
