Digitalization and Social Protection: Macro and Micro Lessons for Vietnam
IMF Working Papers, September 16, 2022
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- Digitalization and Social Protection: Macro and Micro Lessons for Vietnam
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Bibliographic details
- Authors: Amr Hosny, Alexandre Sollaci
- Published: September 16, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400220029.001
Summary and central thesis
- The COVID-19 shock has underscored the importance of digital tools for enhancing the effectiveness and efficiency of social protection systems.
- Cross-country evidence suggests that digital IDs linked with bank and/or mobile money accounts can improve the delivery of social protection programs and better reach eligible beneficiaries.
- Using data from the Vietnam Household Living Standard Survey, the authors present micro simulations on the welfare gains of digital social protection during the pandemic.
- While digitalization offers opportunities, potential risks would need to be carefully managed.
- Vietnam is advancing on individual pieces of the digitalization puzzle, including full digital IDs and mobile money, and the next step is to put these pieces together.
Key findings (micro and macro)
- Digital IDs linked with bank and/or mobile money accounts can improve the delivery of social protection programs and better reach eligible beneficiaries.
- Micro simulations using the Vietnam Household Living Standard Survey demonstrate welfare gains of digital social protection during the pandemic.
- Digitalization enhances both effectiveness and efficiency of social protection systems in the context of COVID-19.
Risks and implementation considerations
- Potential risks associated with digitalization would need to be carefully managed.
- Although Vietnam has advanced on individual elements (full digital IDs; mobile money), successful reform requires integrating these elements—“put these pieces together.”
Policy implications and next steps
- Accelerate integration of full digital IDs with bank and/or mobile money accounts to improve social protection delivery.
- Use micro-level evidence (Vietnam Household Living Standard Survey) to calibrate digital social protection interventions and estimate welfare gains.
- Manage potential risks from digitalization proactively as implementation scales.
Subject and keywords (as listed)
- Subject: COVID-19, Digital financial services, Health, Income, Informal employment, Labor, Mobile banking, National accounts, Technology
- Keywords: Covid-19, Digital financial services, digitalization, digitalization puzzle, Global, government transfer, Income, Informal employment, micro lesson, Mobile banking, procurement payment, social protection, welfare gain
Source: IMF Working Paper "Digitalization and Social Protection: Macro and Micro Lessons for Vietnam" (September 16, 2022).
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- Working Paper