Effects of financial contagion in Vietnam during the pandemic crisis

Abstract

The article discusses the features of the spread of the COVID-19 pandemic in Vietnam in the context of the theory and methodology for identifying the effects of financial contagion. The Vietnamese economy in the 2000 demonstrated steady growth, which allowed minimizing many of the negative consequences of the pandemic. At the same time, the Vietnamese economy was exposed to financial contagion the effects of the transmission of negative shocks from other countries and the subsequent spread between sectors of the national economy. These effects during the pandemic have been empirically confirmed. For this purpose, special tests and an extensive information base on the stock market were used. The results showed that Vietnam was exposed to pandemic shock from China, but was not a transmitter of financial contagion for other Asian countries. In addition, the article fixes the risks of contagion at the sectoral level the most susceptible to contagion were industries such as trade, real estate and food.