VIETNAM AND COVID-19: IMPACT ON THE PRIVATE SECTOR

Abstract

The COVID-19 pandemic of early 2020 caused a global contraction in economic demand and supply that saw hundreds of millions of worker around the global stood down or only able to access reduced hours of work (ILO 2020). Vietnam has contained COVID-19 through aggressive and proactive preventive action. In the context of the national response to the immediate health and economic crisis, the report provides an analysis of the pandemic on the private sector in Vietnam. The main data source is from an online employee survey
undertaken in May 2020, during the height of the lockdown and administed by The Vietnam Business Coalition for Women’s Empowerment (VBCWE) and Investing in Women (IW). The sample is composed of 600 individuals (300 men and 300 women), between 18 and 60 years of age, working in companies with 200 employees and more. In general, the survey result demonstrated the general and gender-specific short-term impact of COVID-19 on private sector employees in terms of work, household dynamic and mental health. COVID-19 has had a major impact on employment in Vietnam, despite the health crisis being well contained. 7 out of 10 families lost income as a result of COVID-19, and only 40% of employees could report that COVID-19 had no impact on their job. The majority had their hours and pay reduced or received a pay cut, and some employees took unpaid leave or were suspended. Despite this, nearly 70% of employees considered that they were able to be equally productive during the crisis. Domestic duties and childcare increased for everyone, but women were disproportionately affected. Worryingly, 50% of respondents said COVID-19 had a negative impact on their mental well-being and 34% said COVID-19 had a negative impact on their physical wellbeing.