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This chapter delves into the profound socio-economic impacts of the COVID-19 pandemic on the Mekong region countries—Cambodia, Lao PDR, Myanmar, and Vietnam. It explores how each country initially contained the virus, the severe economic downturns they experienced, and the varied policy responses implemented to mitigate these effects. The chapter also examines the pandemic's disproportionate impact on labor-intensive sectors like tourism, garments, and services, as well as the resilience shown by agricultural sectors in some contexts. It concludes with insights into the importance of strong public health systems, inclusive social protection, and diversified economies in building resilience against future global disruptions. The chapter also highlights the significance of rapid and widespread vaccination campaigns in facilitating economic recovery, as seen in Cambodia and Vietnam. Additionally, it underscores the need for targeted support for vulnerable communities, such as women and migrant workers, who bore the brunt of job losses and increased unpaid care burdens during the pandemic.
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Abstract
This chapter provides an overview of the COVID-19 pandemic, its socio-economic impacts, and policy responses in Cambodia, Lao PDR, Myanmar, and Vietnam (collectively referred to as CLMV). It presents how the pandemic affected key sectors and heightened existing vulnerabilities, particularly among women, migrant workers, and those in the informal sector. While the impacts varied across countries, common challenges emerged. This introductory chapter sets the stage and provides the rationale for the subsequent in-depth explorations of the socio-economic effects of the COVID-19 pandemic across CLMV countries.
1.1 Introduction
The COVID-19 outbreak that began in China in late 2019 rapidly escalated into a global crisis by early 2020. The World Health Organization (WHO) officially declared the outbreak as a pandemic in March 2020 as the virus spread to nearly every country (WHO, 2020a). By early 2022, approximately 300 million COVID-19 cases had been confirmed globally, resulting in over 5 million deaths (Our World in Data, 2025).
Governments around the world responded with various public health measures, including lockdowns, travel restrictions, school closures, and social distancing. These interventions, while necessary, had significant economic repercussions. Global GDP contracted by around 2.9% in 2020, the most severe downturn since the 1960s, and international trade significantly declined (World Bank, 2025; World Trade Organization [WTO], 2020). The service sector was especially hard hit worldwide, particularly tourism and hospitality, due to the collapse of international travel. While high-income countries could implement significant fiscal stimulus packages to mitigate the impacts, many developing countries struggled to respond effectively to the pandemic’s shock (United Nations Conference on Trade and Development [UNTAD], 2020).
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The countries of the Mekong region—Cambodia, the Lao People’s Democratic Republic (Lao PDR), Myanmar, and Vietnam (CLMV)—were significantly affected by the pandemic, experiencing negative socio-economic consequences. In the initial phase of the pandemic, CLMV achieved notable success in containing the virus, except for Myanmar. Rapid government interventions, from border closures to establishing quarantine centers and contact tracing, kept infection rates extremely low throughout 2020. Notably, Cambodia and Lao PDR reported zero COVID-19 deaths in 2020, while Vietnam, whose population size is much larger, recorded only 1456 cases and 35 deaths that year (WHO, 2021).1 In terms of health impact, the region was less severe compared to many others.
However, despite successfully averting a health crisis in 2020, the CLMV countries experienced significant adverse socio-economic effects of the pandemic due to global disruptions. Like in other countries, tourism collapsed across the Mekong countries due to lockdowns and border closures, and the industrial sector suffered from supply chain disruptions and a significant decrease in international trade activities. Cambodia’s GDP contracted by 3.6% in 2020, and Lao PDR’s economy stagnated (Fig. 1.1). Myanmar’s economy also turned negative in 2020, while Vietnam was the exception, maintaining positive growth at 2.9% (Fig. 1.1), although this was the country’s lowest growth rate in decades. These economic shocks reduced household incomes, increasing the poverty rate, especially for those engaged in the service sector and informal employment. For instance, according to the World Bank (2022a), Cambodia’s poverty rate increased in 2020 for the first time in years, interrupting its long-standing success in poverty alleviation.
Fig. 1.1
Growth Rate of GDP in Mekong Region countries, 2005–2023 Data source World Development Indicators (World Bank, 2025)
The year 2021 brought new challenges for CLMV as new COVID-19 variants, such as Delta, emerged. CLMV implemented various strict administrative and health measures to address this. Cambodia experienced its first large-scale outbreak that year, and Lao PDR also saw a surge in cases after successfully containing the virus in 2020 (Our World in Data, 2025). In Myanmar, the situation was more severe as the February 2021 military coup disrupted governance and public health services, limiting the pandemic response. Myanmar experienced a devasting COVID-19 wave in mid-2021, prompting calls for urgent humanitarian assistance (Norwegian Refugee Council, 2021; Wittekind, 2021). Vietnam also faced a major outbreak during the same period, leading to extended lockdowns in Ho Chi Minh City and other areas (Associated Press, 2021).
By late 2021, all four countries had launched nationwide vaccination campaigns. Cambodia and Vietnam were particularly successful in rapidly vaccinating a large share of their populations, which helped reduce mortality and paved the way for the reopening of their economies by the end of 2021 (Mom, 2021; United Nations Children’s Fund [UNICEF], 2022a). In contrast, vaccination rollouts in Lao PDR and Myanmar were slower, hindered by limited resources and political instability (Department of Foreign Affairs and Trade, 2022; Myanmar Now, 2021).
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By early 2022, all CLMV began a “living with COVID” approach, focusing on reopening borders and revitalizing their economies, although the socio-economic scars of the pandemic remained visible and persistent.
This introductory chapter aims to provide an overview of the COVID-19 pandemic’s socio-economic impacts, and policy responses in the CLMV countries. The remainder of this chapter is structured as follows: Section 1.2 outlines the case of Cambodia, emphasizing how the pandemic disrupted key economic sectors and livelihoods. Section 1.3 presents Lao PDR, exploring the pandemic’s effects on tourism sector and the broader economic challenges. Section 1.4 introduces Myanmar’s experience, presenting the dual burden of health and political crises. Section 1.5 discusses the socio-economic impact in Vietnam. Finally, Section 1.6 concludes the chapter by synthesizing key regional experiences from the four countries and providing context, setting the stage for more detailed country analyses that follow.
1.2 Cambodia and the COVID-19 Pandemic
1.2.1 Overview
Cambodia entered the COVID-19 pandemic following a few decades of robust economic growth. In January 2020, the country confirmed its first COVID-19 case and initially implemented proactive public health measures that helped prevent the virus from spreading. For most of 2020, Cambodia reported only sporadic cases and no confirmed COVID-19-related deaths (Our World in Data, 2025).
Authorities reacted quickly to early threats of community transmission. In March 2020, the Cambodian government closed schools, restricted public gatherings, and suspended travel from high-risk countries. The closure of schools began in Phnom Penh and Siem Reap on 14 March 2020 and were extended nationwide on 16 March 2020 (Va and Sen, 2020). Targeted containment efforts, including extensive testing, contact tracing, and localized quarantines, helped to manage isolated cluster outbreaks such as the “November Incident” in Phnom Penh (WHO, 2020b). As a result, Cambodia avoided the severe public health crises experienced by many other countries, maintaining relatively low infection and mortality rates throughout the year.
1.2.2 Socio-Economic Impacts
Despite Cambodia’s initial success in limiting the health impact of the pandemic, the socio-economic consequences were significant. With international travel suspended, the country’s tourism sector experienced a dramatic contraction. Foreign visitor arrivals fell by over 80% in 2020 (Chan, 2021), severely affecting hotels and restaurants. Key manufacturing industries, especially the garments, footwear, and textiles, which are among Cambodia’s largest export sectors, suffered from both external demand-side shocks and supply chain disruptions, leading to temporary factory closures and widespread job losses (Amarthalingam, 2021; Chor, 2020). Construction, another growth driver, also sharply contracted as projects were delayed or canceled. Overall, Cambodia’s GDP contracted by approximately 3.6% in 2020 (Fig. 1.1), marking the country’s most significant economic recession since the early 2000s.
The negative impacts of the pandemic quickly translated into broader social challenges. By the end of 2021, many households had fallen into vulnerable situations due to the loss of employment, especially among informal workers and those in service-based industries. The World Bank (2021a) indicated that more than 710,000 households had become eligible for the government’s emergency cash transfers during the pandemic, reflecting the widening scale of economic hardship. Prior to the COVID-19 pandemic, Cambodia’s national poverty rate was estimated at 9.6% in 2020, but the projection was revised to 14.7% due to the pandemic shocks (United Nations Development Programme [UNDP], 2021a). Consequently, Cambodia faced significant policy challenges in mitigating the economic shock and expanding support to vulnerable and poor populations.
Cambodia’s economy resumed growth in 2021, with higher growth rates recorded in 2022 and 2023 (Fig. 1.1). Nonetheless, the sectoral recovery was uneven. Tourism, for example, remained far below pre-pandemic levels through 2022 (World Bank, 2022b). Many micro-businesses and workers in the informal sector continued to face difficulties; approximately 88% of Cambodia’s workforce was engaged in informal employment as of 2019, and the pandemic exposed their vulnerabilities (UNDP, 2023). Additionally, Cambodia’s over-reliance on a narrow range of economic sectors—garments, tourism, and construction—heightened its exposure to external shocks (World Bank, 2021a).
Chap. 2 of this book examines the impact of COVID-19 on Cambodia’s export sector. Although overall exports contracted in 2020, certain subsectors demonstrated resilience. Agricultural commodities (such as rice and rubber) and some light manufacturing products rebounded relatively quickly, partially offsetting losses in the garment sector. Conversely, service exports, notably those linked to tourism, suffered an unparalleled decline during the pandemic and did not recover within the same timeframe.
In rural areas, the agricultural sector offered a partial buffer against the crisis, particularly as many laid-off urban workers returned to their home villages. However, the sector also faced challenges from disrupted supply chains and higher input costs. Focusing on the case of cassava farmers, Chap. 3 of this book finds that although prices for cassava remained relatively stable or slightly rose during the pandemic, farming households still experienced income drops on average by 8.5%, primarily because input costs (like fertilizer) rose and labor productivity declined. In the five provinces studied, cultivation expenses for cassava increased by 9.3% over this period, reducing profitability. This result illustrates how even sectors less directly constrained by lockdowns were not immune to the broader economic ripple effects of the crisis.
At the firm level, Cambodian businesses—especially small and medium enterprises (SMEs)—faced numerous challenges during the pandemic. Chap. 4 of this book presents findings from a firm survey conducted in 2022. Many firms reported that they experienced drops in revenues and profits between 2019 and 2021, while their expenses rose. Many businesses, particularly in services, reduced their hours; however, large-scale layoffs were avoided by government interventions and firm efforts to mitigate the pandemic’s impact. Major challenges included limited access to finance and underdeveloped digital infrastructure. Some enterprises did adopt new technologies or online sales during the pandemic, but uptake remained uneven.
1.2.3 Policy Response
Cambodia’s policy response to COVID-19 comprised both public health and economic measures. On the health front, the government implemented widespread testing, contact tracing, and quarantine enforcement. When needed, it imposed mobility restrictions, including inter-provincial travel bans and temporary lockdowns of high-risk zones (Taing, 2020; Prak, 2021).
Economically, the government implemented a series of various interventions aimed at stabilizing the most affected sectors and populations. These included tax and credit relief for tourism, garments, and aviation sectors, as well as the launch of nationwide cash transfer programs targeting vulnerable households. Starting in mid-2020, monthly payments were provided to hundreds of thousands of low-income households identified through the national IDPoor registry, helping them cope with the pandemic’s adverse effects (World Bank, 2021b).2 Wage subsidies were arranged for furloughed workers in the garment and tourism sectors, with affected workers receiving a portion of their usual wages paid by the government. Additionally, enterprises obtained tax deferrals and access to credit to stay afloat. The National Bank of Cambodia complemented these efforts by easing monetary policy, cutting interest rates, and encouraging banks to reschedule loans for borrowers facing hardship (World Bank, 2020).
In 2021, a “February 20” breach of quarantine led to Cambodia’s first large-scale outbreak. Daily case numbers surged into hundreds and then thousands, prompting the imposition of strict lockdowns, particularly in Phnom Penh (Hunt, 2021). “Red zone” neighborhoods were placed under full restrictions, with residents temporarily prohibited from leaving their homes (Prak, 2021). The economic impact of this lockdown was significant, especially for informal workers and small businesses operating in urban areas.
However, the government’s vaccination campaign significantly altered the trajectory of the pandemic. By mid-2021, Cambodia had secured millions of vaccine doses, primarily Sinovac and Sinopharm through Chinese bilateral donations, alongside AstraZeneca through the COVAX facility (United Nations [UN], 2021). Cambodia’s goal of vaccinating ten million people by the end of 2021 was largely met. By late 2021, over 80% of the country’s 17 million population had been fully vaccinated, one of the highest coverage rates in the world at that time (Freedman & Menon, 2022). As a result, although COVID-19 infections continued, Cambodia was able to significantly reduce severe cases and fatalities, allowing the government to reopen the economy by the fourth quarter of 2021 (Mom, 2021).
The combination of Cambodia’s targeted social assistance measures and rapid vaccination rollout played a crucial role in mitigating the pandemic’s worst effects and set the stage for the country’s economic recovery.
1.3 Lao PDR and the COVID-19 Pandemic
1.3.1 Overview
Lao PDR, a landlocked country with a population of approximately seven million, maintained low COVID-19 infection rates during the first year of the pandemic (Our World in Data, 2025). Following the confirmation of its first case in March 2020, the government introduced a series of containment measures. These included the closure of international borders, suspension of commercial air travel, and a nationwide lockdown beginning in April 2020 (UN, 2020a). As a result, the country reported fewer than 50 confirmed COVID-19 cases and no death throughout 2020 (Our World in Data, 2025).
However, controlling the pandemic had caused significant socio-economic costs. Border closures adversely affected the tourism sector, which accounted for about 9% of the country’s GDP and supported over 300,000 jobs before the pandemic (Ministry of Information, Culture and Tourism [MoICT] & UNDP, 2021). Tourism-dependent cities such as Luang Prabang and Vientiane experienced an abrupt near-total collapse in international tourist arrivals. The outbreak forced many businesses in accommodations, entertainment, and transport to cease or scale-back operations.
As the new variants emerged across Southeast Asia in mid-2021, Lao PDR recorded a surge in community transmission. By late 2021, there were over 200,000 cumulative cases, with over 600 deaths (WHO, 2022). This outbreak marked a turning point from the previous containment success, causing severe socio-economic impacts.
1.3.2 Socio-Economic Impacts
The COVID-19 pandemic had significant socio-economic effects on Lao PDR. After a remarkable economic growth rate of 7.2% annually on average between 2011 and 2019, the pandemic caused this to slow to just 0.5% in 2020 (Fig. 1.1). A modest economic recovery was observed in the following years, with GDP growth rates reaching 2.5% in 2021 and 2.7% in 2022 (Fig. 1.1). For 2023, it improved to 3.7%, which was driven by a rebound in services, tourism, and logistics sectors (World Bank, 2024).
According to the UNDP. (2020a), border closures led to a sharp decline in remittances from Lao migrant workers in Thailand, reducing an important income source for many low-income families.
Tourism was also severely affected by the pandemic. Based on an analysis using the Lao Labor Force Survey, Chap. 5 of this book finds that 39.5% of tourism-sector workers experienced employment disruptions due to COVID-19, nearly double the rate observed in non-tourism sectors. Among those affected, 88.8% reported reduced working hours, temporary leave, or complete job loss. The income impact was also disproportionately severe. The average monthly wage loss among tourism workers was higher and longer, compared to workers in other sectors. The study also indicates that the effects were more pronounced among women and rural residents, who were more likely to be employed in tourism-related roles.
In Chap. 5, the analysis also confirms that the accommodation and restaurant sectors lost approximately 87.9% of their value-added during the pandemic, while the transportation sector saw a smaller but nontrivial decline. The aggregate value-added in the broader tourism sector fell by 34.2%.
Some adaptive strategies did emerge during the pandemic. As documented in Chap. 6 of this book, the COVID-19 crisis increased the adoption of e-commerce in Lao PDR, particularly among small-scale businesses. Many turned to platforms such as Facebook, WhatsApp, and Instagram to sell their products. Despite this surge, most e-commerce activities remained informal and unregulated. Key structural constraints, such as limited internet infrastructure, low levels of digital literacy, and the absence of consumer protection frameworks, also impeded the scalability and long-term sustainability of this emerging sector.
1.3.3 Policy Response
Lao PDR implemented various measures to mitigate the economic and social impacts of the COVID-19 pandemic. On the fiscal side, in early 2020, the country’s government granted tax relief to ease the financial burden of microenterprises and low-income workers. Personal income tax was temporarily waived for employees earning relatively low monthly wages, while microenterprises were exempt from profit tax from April to June 2020 (Medina, 2020).
From the monetary side, the Bank of the Lao PDR (the country’s central bank) reduced its policy interest rates and lowered banks’ reserve requirement ratio to maintain liquidity and support credit flow (International Monetary Fund [IMF], 2021). These measures were aimed at enhancing SMEs that were severely affected by the pandemic.
Recognizing the disproportionate impact on low-income and vulnerable populations, especially those working in informal sector, Lao PDR, with support from the UN and development partners, expanded its social protection and conducted emergency cash transfers to affected populations (UN, 2020a).
Lao PDR also commenced a vaccination campaign in early 2021, which prioritized frontline health workers, the elderly, people with comorbidities, and workers stationed at border crossing points and quarantine facilities (UNICEF, 2022b). By late 2022, around 78% of the country’s seven million population had completed their primary vaccinations, a significant achievement that enabled border reopening and gradual economic recovery (WHO, 2023).
Vaccine supply was secured through a combination of bilateral and multilateral initiatives, including COVAX. International partners such as WHO, UNICEF, and Gavi also provided essential support through financial, logistical, and technical assistance (UNICEF, 2022b).
1.4 Myanmar and the COVID-19 Pandemic
1.4.1 Overview
Myanmar confirmed its first COVID-19 case in late March 2020 (Our World in Data, 2025). Political conflicts worsened the country’s public health crisis following the military coup in February 2021. Together, these shocks undermined the government’s capacity to respond, eroded public trust, and created a governance and service delivery gaps (Center for Policy Impact in Global Health [CPIGH], 2020).
Initially, Myanmar’s pandemic response showed some effectiveness. By late 2020, the country had expanded testing facilities and promoted public health awareness, with support from international organizations such as the WHO and the UNDP (CPIGH, 2020; UNDP, 2020b). However, limited healthcare infrastructure and chronic underinvestment in the health system left the country vulnerable. A surge in late 2020 overwhelmed health services and exposed capacity constraints (Win, 2020; Frontier Myanmar, 2020).
Following the military coup, health services collapsed due to the Civil Disobedience Movement (CDM), in which thousands of healthcare workers refused to work under military administration (Physicians for Human Rights [PHR], 2022). By the end of 2021, Myanmar had officially recorded over 500,000 COVID-19 cases and more than 19,000 deaths (Our World in Data, 2025).
1.4.2 Socio-Economic Impacts
The socio-economic effects of the pandemic in Myanmar were severe, compounded by the political conflicts. An estimated additional 12 million people were pushed into poverty in early 2022, resulting in almost half of the country’s 53 million population living below the poverty line (UNDP, 2021b).
The garment industry, an important sector of the country, was particularly affected. As presented in Chap. 7 of this book, employment in the garment sector declined by 26% from December 2019 to June 2020, while total wage payments declined by 23%. These disruptions disproportionately affected women, who represented the majority of garment workers, exacerbating pre-existing gender disparities. More than half of women in the survey reported that they experienced an increase in unpaid domestic work responsibilities during the pandemic.
The same survey also documented that 73% of dismissed garment workers and 83% of footwear and bag workers received severance payments, but these were insufficient to meet their basic needs. Many respondents reported resorting to high-interest-rate loans to cover essential expenses such as food and rent, highlighting the resilience of Myanmar’s social protection systems.
Despite these challenges, Chap. 8 of this book documents resilience within Myanmar’s maize value chain. Maize exports increased significantly, driven by rising demand for livestock feed in China and Thailand, positioning Myanmar as a key supplier in the region. However, the sector faced challenges such as non-tariff barriers, logistical delays, and reliance on informal trade routes.
1.4.3 Policy Response
Myanmar’s initial response to the pandemic in 2020 included the COVID-19 Economic Relief Plan (CERP) and the COVID-19 Contingency Fund, focusing on health measures, social protection, and economic stimulus (CPIGH, 2020). It provided low-interest loans to affected businesses and deferred income and commercial taxes for targeted sectors (United Nations Economic and Social Commission for Asia and the Pacific UNESCAP, 2021).
However, implementation challenges in Myanmar’s social protection systems were significant. According to the International Labour Organization (ILO, 2021), formal social protection mechanisms, such as those managed by the Social Security Board (SSB), covered only a small share of the population. Overwhelmed by demand, the SSB struggled to provide adequate support. Other initiatives such as the Myan Ku Fund, established under SMART Myanmar project, helped to fill some gaps by providing emergency cash support to displaced workers who lost jobs due to the pandemic (SMART Myanmar, 2021).
The military coup in February 2021 significantly undermined Myanmar’s pandemic response capacity. The CDM movement led to the closure of hospitals and disruption of the vaccine rollout. As a result, Myanmar faced a severe wave of COVID-19 infections from July to September 2021, during which many people died without sufficient access to medical services (PHR, PHR, 2022).
Myanmar’s COVID-19 vaccination efforts resumed through bilateral donations and humanitarian support from multiple countries, alongside the Association of the Southeast Asian Nations (ASEAN) and the Red Cross (Xiaoyu, 2021; Global New Light of Myanmar, 2022). By December 2022, approximately 61% of the population was fully vaccinated, and 65% had received at least one dose (Institute for Health Metrics and Evaluation [IHME], 2022). Nonetheless, vaccination coverage in Myanmar was lower compared to neighboring countries such as Cambodia and Vietnam during the same period.
1.5 Vietnam and the COVID-19 Pandemic
1.5.1 Overview
Vietnam confirmed its first COVID-19 case in January 2020 (Our World in Data, 2025) and initially gained global praise for its effective containment strategy. Through rapid contact tracing, quarantines, mass testing, and widespread mask usage, Vietnam effectively suppressed the virus during its early stages (Our World in Data, 2021). By the end of 2020, the country had recorded only 1465 confirmed cases and 35 deaths (Our World in Data, 2021).
However, in 2021, Vietnam experienced a severe COVID-19 outbreak, driven by the new variants. By the end of that year, the country recorded over 1.7 million confirmed infections and more than 32,000 deaths (Our World in Data, 2025), causing widespread socio-economic disruptions.
In response, Vietnam has shifted to a “living with COVID” strategy in late 2021. This approach was characterized by an active vaccination campaign and gradual reopening of the country (IMF, 2022).
1.5.2 Socio-Economic Impacts
After achieving an annual economic growth rate of 6.6% between 2011 and 2019, Vietnam’s growth rate dropped to 2.9% in 2020 and 2.6% in 2021 (Fig. 1.1). Nevertheless, from 2022, the country’s economy began to rebound (World Bank, 2023).
The pandemic adversely affected Vietnam’s services and export-oriented sectors. Tourism revenues plunged 76% between 2019 and 2021 (Loan, 2022). Approximately 95% of travel companies suspended operations, while hotel occupancy rates dropped to as low as 5% in 2020 (VietnamNet, 2020).
Vietnam’s textile and garment industry also suffered. In 2020, the sector’s exports significantly decreased due to disruptions in supply chains and the implementation of social distancing measures within the country (Nguyen and Vu, 2021). Additionally, the sector faced significant employment challenges. With over three million people working across nearly 7000 firms in the sector, many of them experienced job losses due to the pandemic’s effects (Nguyen and Vu, 2021; Business and Human Rights Resource Centre, n.d.).
Chap. 9 of this book reveals that 35.9% of households experienced job losses and underemployment, with female-headed households more severely affected. Even after the country reopened in 2022, female-headed households in the sample continued to face employment disruptions, unlike their male-headed counterparts, highlighting a gendered disparity in labor market recovery.
Chap. 10 of this book provides findings from surveys with returning migrant women (aged 18–35) in Central Vietnam. The data showed that they faced significant challenges in employment stability, discrimination, and psychological distress. Those with limited education and skills were especially vulnerable, and inadequate access to social support intensified their hardship during the pandemic.
1.5.3 Policy Response
Vietnam’s early containment strategy in 2020 included aggressive lockdowns, quarantine enforcement, and extensive contact tracing, leading to initial success in mitigating the spread of the virus (Our World in Data, 2021).
When the Delta variant emerged in 2021, it triggered a new wave, Vietnam implemented extensive city-wide lockdowns and accelerated its vaccination campaign, particularly in major cities like Ho Chi Minh City and Hanoi (Associated Press, 2021). By 2022, with vaccination coverage rising and COVID-19 cases stabilized, Vietnam adopted a phased reopening strategy (IMF, 2022; Lahiff et al., 2022).
To mitigate economic hardship, the Vietnamese government implemented a relief package program in April 2020. The package provided cash transfers to vulnerable groups, including informal workers who lost jobs, and offered low-interest credit to firms (UN, 2020b). However, surveys indicate various challenges in implementing the program, including complicated application procedures and limited access by informal workers, reducing the package’s effectiveness (UN, 2020b).
In mid-2021, during the peak of a new wave of the pandemic, Vietnam rolled out a second relief package (Samuel, 2021). It included temporary reductions in occupational accident insurance premiums, suspension of social insurance contributions, and financial assistance for training and vocational skill enhancement. The government also subsidized partial wage payments to workers on unpaid leave or with suspended contracts (Samuel, 2021).
Vietnam’s early vaccination campaign encountered several significant delays. By May 2021, three months after launching its COVID-19 vaccination campaign, less than 1% of the population had received a first dose and only 0.3% a second dose (WHO, 2021). This slow rollout was due to limited vaccine access and logistical challenges.
To address this, Vietnam established the COVID-19 Vaccine Fund and secured additional supplies through both the COVAX program and bilateral agreements. As a result, by December 2021, Vietnam achieved 70% of the population was fully vaccinated, and this rose to 77% by March 2022 (WHO, 2021), enabling the country to reopen its economy.
1.6 Final Remarks
The COVID-19 pandemic revealed both shared and divergent experiences across CLMV countries. While Vietnam managed a relatively fast recovery, Cambodia and Lao PDR suffered their first major economic contractions in decades, and Myanmar endured a dual crisis of political instability and public health collapse.
Across all countries, labor-intensive sectors, such as garment, tourism, and services, were severely affected. Migrant workers and women bore the brunt of job losses and increased unpaid care burdens. Meanwhile, agriculture offered relative stability in some contexts, with Cambodia’s cassava and Myanmar’s maize sectors demonstrating adaptability and resilience.
Despite constraints, countries that implemented rapid and widespread vaccination campaigns, such as Cambodia and Vietnam, were better positioned for recovery. The crisis highlighted the importance of strong public health systems, inclusive social protection, and diversified trade strategies.
The COVID-19 crisis demonstrates that resilience includes preparedness, adaptability, and equity. For the CLMV countries, this means investing in more inclusive safety nets, strengthening public health systems, supporting vulnerable communities such as women, migrant workers, and the informal sector, and diversifying economies to avoid dependence on a few industries. As future global disruptions become increasingly likely, building systems that protect livelihoods must remain at the core of policy and development strategies.
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In 2020, Vietnam’s total population was approximately 98 million, while Cambodia, Lao PDR, and Myanmar had populations of 16.7 million, 7.3 million, and 53 million, respectively (World Bank, 2025).
Launched in 2006, Cambodia’s IDPoor program identifies poor households using socio-economic data gathered through regular surveys, serving as a key tool in the country’s poverty reduction initiatives. More details can be found at https://www.idpoor.gov.kh
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