The Impact of COVID-19 on Stock Market Returns in Vietnam

Dao Van Hung, Nguyen Thi Minh Hue and Vu Thuy Duong
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Dao Van Hung: Department of Finance and Investment, Academy of Policy and Development, Hanoi 13219, Vietnam
Nguyen Thi Minh Hue: School of Banking and Finance, National Economics University, Hanoi 11616, Vietnam
Vu Thuy Duong: K8, International Bachelor Degree Program, National Economics University, Hanoi 11616, Vietnam

JRFM, 2021, vol. 14, issue 9, 1-16

Abstract: This paper studies the impacts of COVID-19 on the performance of the Vietnamese Stock Market—a rapidly growing emerging market in a country that has to date successfully controlled the disease outbreak. The study uses a random-effect model (REM) on panel data of stock returns of 733 listed companies on both HOSE (the Ho Chi Minh Stock Exchange) and HNX (the Hanoi Stock Exchange) from 2 January 2020 to 13 December 2020. The study shows that the number of daily COVID-19 confirmed cases in Vietnam has a negative impact on stock returns of listed companies in the market. The impacts were more severe for the pre-lockdown and second-wave period, compared to impact for the lockdown period. The impacts also differed across sectors, with the financial sector being the most affected. With significant government control and influence over the bank-dominated financial system, the financial sector was expected to absorb some of the negative shocks hitting the real sector. Such expectations were reflected in the stock market movement during the pandemic.

Keywords: COVID-19; Vietnam; stock market; pre-lockdown; lockdown; second-wave; stock return; stock performance (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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