International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 10, Issue 8 (August 2023), Pages: 209-214

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 Original Research Paper

Assessing the impact of the COVID-19 pandemic on the performance of the Vietnam stock exchange: An empirical analysis

 Author(s): 

 Pham Thanh Dat 1, Pham Dan Khanh 2, *, Vu Duy Minh 1, Nguyen Thanh Trung 1

 Affiliation(s):

 1School of Banking and Finance, National Economics University, Hanoi, Vietnam
 2School of Advanced Educational Program, National Economics University, Hanoi, Vietnam

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0003-0170-8636

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2023.08.024

 Abstract:

The emergence of COVID-19 in Wuhan, China, in December 2019 led to a global crisis with profound implications for public health and the global economy. This study investigates the ramifications of the pandemic on the Vietnam Stock Exchange, recognizing its interconnectedness with global financial markets. Despite the considerable speculation surrounding the pandemic's influence on economic and financial systems worldwide, limited empirical research has been conducted on its specific impact on the Vietnam Stock Exchange. Employing historical data spanning from January 30, 2020, to April 27, 2022, sourced from a secondary dataset, this research empirically explores the performance of the Vietnam Stock Exchange during the COVID-19 pandemic period compared to a normal period. The findings reveal a significant decline in stock returns and heightened volatility during the pandemic, signaling adverse effects on the exchange's performance. Furthermore, the study applies Quadratic GARCH (QGARCH) and Exponential GARCH (EGARCH) models, incorporating a dummy variable, to scrutinize stock returns. The results corroborate the pandemic's negative impact on stock returns in Vietnam. This research underscores the importance of implementing strategic political and economic policies, including maintaining a stable political environment, promoting indigenous enterprises, diversifying the economy, and adopting a flexible exchange rate regime. These measures are recommended to enhance the resilience of the financial market and attract new investors to the Ho Chi Minh Stock Exchange.

 © 2023 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Vietnam stock exchange, Stock returns, Volatility, GARCH models, Financial market

 Article History: Received 27 March 2023, Received in revised form 20 July 2023, Accepted 26 July 2023

 Acknowledgment 

This research is funded by the National Economics University, Hanoi, Vietnam.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Dat PT, Khanh PD, Minh VD, and Trung NT (2023). Assessing the impact of the COVID-19 pandemic on the performance of the Vietnam stock exchange: An empirical analysis. International Journal of Advanced and Applied Sciences, 10(8): 209-214

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 Figures

 Fig. 1 Fig. 2

 Tables

 Table 1 Table 2 Table 3 Table 4 

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