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THE ECONOMIC IMPACT OF THE AGRI-FOOD SECTOR IN VIETNAM
2021
JunPhoto/S
TABLE OF CONTENTS
Executive summary 2
Introduction 8
The structure of this report 8
How we frame our analysis 8
The Agri-food sector’s impact in Vietnam 12
The total economic footprint of the Vietnamese
agri-food sector 12
The Economic impact of the agri-food sector in detail 13
Trade in agri-food products 15
Impact of COVID-19 on the Vietnamese agri-food sector 16
Outlook for the agri-food sector 18
Mixed outlook for the agri-food sector in
Southeast Asia 18
The Economic Recovery Matrix 18
Fiscal policy risks for the agri-food sector 20
Assessing the fiscal policy risks to the Asian
agri-food sector 20
New excise taxes pose a risk to the agri-food
sector’s recovery 22
EXECUTIVE SUMMARY
Throughout a tumultuous year for the Vietnamese economy, in which travel, logistics, trade, and business operations have been tested in unprecedented ways, the agri-food value chain has demonstrated its resilience. It has placed food on the table at stable prices, provided an income and employment for a huge proportion of the country’s workforce, and created opportunities for businesses at each stage of the value chain.
From farm to fork, the Vietnamese agri-food sector holds an unparalleled position in the economy and plays a pivotal role in its future economic development. Its performance is critical to household wellbeing and it is an economic powerhouse, responsible for millions of jobs, as well as being a major
contributor to total economic output and government tax receipts.
Looking beyond the coronavirus pandemic, there are many challenges facing the agri-food sector that will have
repercussions for the wider economy. These include major risks to food supply and demand. They also include fiscal policy risks, that could result from governments adjusting their spending and taxation policies to recover from the economic impact of COVID-19 on public f
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