[STBI] Effects of Government Responses and Policies to Market Quality during Covid-19 Pandemic in Vietnam

Topic: The Effects of Government Responses and Policies to Market Quality: Do They Really Matter during Covid-19 Pandemic in Vietnam?

Presenter: Dr Vo Hong Duc, the CBER – Research Centre in Business, Economics & Resources, Ho Chi Minh City Open University
Time: 11:00 – Thursday, 15 April, 2021

Venue: Room B1- 1001, Campus B, 279 Nguyen Tri Phuong, District 10, Ho Chi Minh City

Language: Vietnamese

Abstract:
During the Covid-19 pandemic, the Vietnamese government has actively implemented various policies and responses to achieve dual objectives: (i) to minimize the loss of life; and (ii) to support economic growth. This paper examines the likely impacts of various economic policies and responses adopted by the Vietnamese government on the stock market quality. Unlike other papers, we focus exclusively on market quality during the pandemic and use intraday data. We find that the policies appear to positively affect the market quality, except for closing-school policy (negative effect) and international travel (no effect). The policy of opening up the economy early and the test trace approach do appear to provide positive effects to market quality. In addition, we also find that the higher number of confirmed cases will lead to a reduction in market quality via a higher spread and smaller quotation size. Regarding the government responses, the stricter the government actions in stringency, containment and health, economic support, or overall government response, the higher the market quality. In other words, the stock market appreciates the Vietnamese government’s efforts to fight against the COVID-19. We argue that the government should sustain the policies until the vaccine is widely available to support the stock market quality.

About the presenter:
Dr Duc Vo is an experienced practitioner and senior University lecturer in applied economics and finance. He was awarded a Doctor of Philosophy in Financial Economics in 2008 by the University of Western Australia (UWA), has been appointed as an advisor for the Financial Markets and Services Research Centre at Edith Cowan University, Australia.

Dr Vo has been working full time at the executive role for the Australian public sectors since 2008. He is currently the Head and the Executive Director of the CBER – Research Centre in Business, Economics & Resources, Ho Chi Minh City Open University.

Findings from his research have been published in over 100 articles in high-quality international journals include Renewable Energy; Journal of Economic Surveys; Journal of Intellectual Capital; North American Journal of Economics and Finance; Applied Economics; Environmental Science and Pollution Research; International Journal of Finance and Economics; Economic Systems; Journal of Asian Economics; Journal of the Asia Pacific Economy; Economics Letters; Borsa Istanbul Review; Journal of Emerging Markets; Annals of Financial Economics; Economics Bulletin; Emerging Markets Finance and Trade; Economic Papers; PLoS One and many others.

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