Comprehensive Report: COVID-19 Impact on Vietnam's Economy in Q3 2021

This report provides a detailed analysis of the impact of the COVID-19 pandemic on Vietnam's economy during the third quarter of 2021. It begins with an introduction to COVID-19 and its global impact, followed by statistics on the damage caused in both the world and Vietnam. The core of the report examines the effects on key economic sectors, including agriculture, forestry, and fisheries; the construction industry; and the service sector. The analysis highlights the challenges faced by each sector, such as supply chain disruptions, decreased demand, and the impact of social distancing measures. The report uses statistical data to illustrate the extent of the economic downturn and concludes by summarizing the overall impact, including the first-ever negative GDP recorded in Vietnam since 2000, and anticipates continued challenges in the fourth quarter and 2022. The report draws on data from various sources, including the WHO, the General Statistics Office of Vietnam, and other governmental reports to support its findings.

Name: Duong Kieu Trang ID: BH00220
Assignment: Impacts of COVID-19 pandemic to economy
Contents
Impact of COVID-19 pandemic to Viet Nam.......................................................................1
in the third quarter of 2021...................................................................................................1
I. Introduction.....................................................................................................................1
1.1. What is covid 19?.......................................................................................................1
1.2. Statistic about damage of covid 19 in the world........................................................1
1.3. Statistic about damage of covid 19 in Viet Nam.......................................................1
II. Impact of COVID-19 pandemic to Viet Nam in the third quarter of 2021 about
sectors of the economy............................................................................................................2
2.1. Agriculture, forestry and fishery sector.........................................................................2
2.2. Construction industry sector..........................................................................................4
2.3. Service sector.................................................................................................................4
IV. Conclusion.........................................................................................................................5
Impact of COVID-19 pandemic to Viet Nam
in the third quarter of 2021
I. Introduction
1.1. What is covid 19?
COVID-19 (coronavirus disease 2019) is a disease caused by the SARS-CoV-2 virus,
which was discovered in Wuhan, China, in December 2019. The disease is extremely
contagious and has quickly spread over the world.
Covid-19 disease usually causes respiratory symptoms, we can feel like cold, flu, or lung
inflammation. Covid-19 have the ability to attack not only the lung and respiratory system
but also other body parts
 Most people who infect with this disease just have mild symptoms but the
symptom of some people can be severe.
 Some people, both people who have mild symptoms and have no symptoms, can
develop post-COVID syndrome - or "Physical problems after COVID-19".
 The elder or people with certain medical background conditions are at increased
risk for serious symptoms.
 Now the world has developed a vaccine for covid 19. But before there, a lot of
people in the world have died by this disease.
1.2. Statistic about damage of covid 19 in the world

It is difficult to fully statistical the damage caused by Covid-19. Globally, as of 5:06pm
CET, 24 January 2022, there have been 349.641.119 confirmed cases of COVID-19,
including 5.592.266 deaths, reported to WHO. As of 23 January 2022, a total of
9.620.105.525 vaccine doses have been administered. (WHO Coronavirus (COVID-19)
Dashboard, 2022). In 2020 and 2021, the COVID-19 pandemic has caused damage 10.300
billion USD of global economy quantity. (COVID-19 causes the world economy to lose
more than 10 trillion USD in 2020 - 2021, 2022). More than 1 billion children are at risk of
falling behind due to school closures aimed at containing the spread of COVID-19. Studying
at home for a long time makes it difficult for children to absorb knowledge, which increases
the risk of depression in adolescents.
1.3. Statistic about damage of covid 19 in Viet Nam
Since the first case being reported in January 23, Vietnam has 2,17 milion confirmed
cases with 37,01037 (Diễn biến dịch COVID-19 mới nhất, 2022). Unprecedented actions
implemented by the Vietnamese government to reduce infection rates, ranging from social
isolation to business closures, have had a considerable impact on the economy, particularly
in terms of employment. According to the General Statistics Office (GSO), due to the
detrimental impact of COVID-19, as many as 119,800 enterprises departed the market in
2021, up 17.8% year-on-year due to stringent blockades and prolonged social
distancing estrangement, especially in the third quarter. On average, nearly 10,000
businesses withdrew from the market a month as they failed to survive the COVID-19
storm. The fourth outbreak of the Covid-19 pandemic has put heavy pressure on all facets of
the Vietnamese economy in general and the labour market in particular.
II. Impact of COVID-19 pandemic to Viet Nam in the third quarter
of 2021 about sectors of the economy
In 2021, a new fast-spreading variant of the Covid-19 pandemic, which broke out at the
end of April and has resulted in dangerous and complicated developments in many
provinces, particularly those with key economic zones, has seriously impacted people's
health and disrupted production and business operations.
In this situation, with strong ditermination of Vietnamese, political system, business
communiti and anti-pandemic force has been promoting solidarity, mobilizing resources to
repel the epidemic and take care of people’s health and efforts to maintain production and
business activities. The results achieved by sectors in the third quarter of 2021 are as
follows:
2.1. Agriculture, forestry and fishery sector
Agricultural production for 9 months of 2021 takes place in favorable weather
conditions, so farming and ranching yields are at a good level. However, due to the
complicated development of the Covid-19 pandemic, many localities prolonged social
distancing estrangement affecting the supply chain of production - processing - consumption
of agricultural, forestry, and fishery products. In the third quarter of 2021, the agricultural,
forestry, and fishing industry increased at a slow pace (+1.04%).
The country's winter-spring rice yield this year reached 68.6 quintals/hectare, an increase of
2.2 quintals/hectare compared to the winter-spring crop of 2020; production reached 20.63
million tons, an increase of 755.1 thousand tons because This year, the farmer has been
gradually replacing conventional paddy kinds with new paddy varieties with significant

economic value. In the third quarter and September, the entire country planted 876.3
thousand hectares of maize, equaling 98.4% of the same period last year, 90 thousand
hectares of sweet potatoes, equaling 89.2%; 171.3 thousand hectares of peanuts, equaling
98.2%; 37.2 thousand hectares of soybeans, equaling 90.9%; 997.8 thousand hectares of
vegetables and beans, equal to 00.5%. (Huyen, 2021)
According to the data table below, Cattle raising was largely stable, and the Lumpy Skin
Disease was gradually reduced, although there was still a high danger of recurrence. The
Covid-19 epidemic impacted pig and poultry farming; many wholesale and traditional
markets were temporarily closed; production costs increased; circulation was disrupted;
market demand decreased due to closed restaurants; tourism stagnated; small livestock
establishments struggled to consume. the amount of livestock in the barn was high,
increasing the risk of losses.
About forestry, The phenomenon of deforestation is still going strong, the deforested
forest area was 728 ha, an increase of 8.3%. The estimated focused newly planted forest area
reached 176.2 thousand hectares in the first nine months of 2021, up 2.8 percent from the
same period last year (in the third quarter reached 65.8 thousand hectares, up 2.3 percent).
(Huyen, 2021). This is a minus point for forestry of 3rd quarter and December.
Fishery output was estimated at 6,377.3 thousand tons in the first nine months of 2021,
down 0.2 percent from the same period last year (in the third quarter, it was 2,281.4

thousand tons, down 5,2 percent), including fish at 4,612.5 thousand tons, down 1.2 percent;
shrimp at 810 thousand tons, up 3.4 percent; and other aquatic products at 954.8 thousand
tons, up 1.5 percent. (Huyen, 2021). So, implement social distancing has hindered the
production and distribution of seafood products to other countries.
During the pandemic, the agriculture, forestry, and fishery sectors have played of a
pedestal in the economy; rice productivity has increased, livestock production has steadily
increased, and the export turnover of some agricultural products in the first nine months of
2021 has been quite good when compared to the same period last year.
2.2. Construction industry sector
Due to the ongoing Covid-19 epidemic, industrial production in the third quarter of
2021 experienced numerous challenges, particularly in areas with big industrial zones that
had to apply protracted social isolation. Specifically, the added value1 of the industry in the
third quarter decreased by 3.5% compared to the same period in 2020 (Huyen, 2021).
Happily, Production index in the first 9 months of 2021 of some key industries in grade II
industries increased sharply compared to the same period last year:
(BÁO CÁO TÌNH HÌNH KINH TẾ - XÃ HỘI QUÝ III VÀ 9 THÁNG NĂM 2021, 2021)
2.3. Service sector
Due to the lengthy period of social alienation, the service industry witnessed a record
decrease in the third quarter of 2021. (down 9.28 percent ). Accommodation and food
service fell by 54.8 percent (20 provinces and centrally-run cities implemented social
distancing under Directive 16, accounting for 63 percent of the service industry nationwide);
transportation and warehousing fell by 21.1 percent; and wholesale and retail fell by nearly
20 percent. However, a number of industries experienced positive growth in the third quarter
of 2021, particularly the health sector and social assistance activities, which increased by

38.7% due to the focus on fighting the epidemic; financial, banking, and insurance activities
increased by 7.1 percent due to good credit growth; and manufacturing, which increased by
7.1 percent. (Ha, 2021)
In September, the Covid-19 epidemic was initially controlled in some locations method,
many productions, business, and service activities are allowed to operate come back. Total
retail sales of consumer goods and services in September increased over the same period last
year.
International visitors to our country in the third quarter of 2021 reached 26.3 thousand
arrivals, down 40.3% over the same period last year as Vietnam continues to implement
measures to Measures to prevent and control the Covid-19 epidemic, international tourism
has not been opened yet, so the number of tourists come mainly from foreign experts and
technical workers working on projects in Vietnam. In the first 9 months of 2021,
international visitors to our country reached 114.5 thousand turns of people, down 97% over
the same period last year.
(BÁO CÁO TÌNH HÌNH KINH TẾ - XÃ HỘI QUÝ III VÀ 9 THÁNG NĂM 2021, 2021)
IV. Conclusion
While most western countries suffered an excruciating 2020, Vietnam’s 2021 was
harsh with the pandemic hitting Vietnam’s GDP hard. In Q3 2021, Vietnam recorded its
first-ever negative GDP, since 2000 affecting businesses and its people significantly.
Sustained pressure from new variation ( Delta) COVID-19 outbreaks and supply chain
disruption are likely to continue to have an impact into the 4th quarter and 2022
Source :
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<https://covid19.who.int/> [Accessed 25 January 2022].
Mof.gov.vn. 2022. COVID-19 causes the world economy to lose more than 10 trillion USD
in 2020 - 2021. [online] Available at:

<https://mof.gov.vn/webcenter/portal/btcvn/pages_r/l/tin-bo-tai-chinh?
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Ministry of health. 2022. Diễn biến dịch COVID-19 mới nhất. [online] Available at:
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Huyen, N., 2021. Thông cáo báo chí tình hình kinh tế - xã hội quý III và 9 tháng năm 2021.
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lieu-va-so-lieu-thong-ke/2021/09/thong-cao-bao-chi-tinh-hinh-kinh-te-xa-hoi-quy-iii-va-9-
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Huyen, N., 2021. Chỉ số sản xuất công nghiệp tháng 9 năm 2021. [online] General Statistics
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[ebook] Ha Noi: BỘ KẾ HOẠCH VÀ ĐẦU TƯ, p.9. Available at:
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[1] The term "value-added" describes the economic enhancement a company gives its
products or services before offering them to customers