## Digitalization and Social Protection: Macro and Micro Lessons for Vietnam

_IMF Working Papers, September 16, 2022_

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**Canonical URL:** [Digitalization and Social Protection: Macro and Micro Lessons for Vietnam](https://www.imf.org/en/publications/wp/issues/2022/09/15/digitalization-and-social-protection-macro-and-micro-lessons-for-vietnam-523399)

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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

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### 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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_Source: https://www.imf.org/en/publications/wp/issues/2022/09/15/digitalization-and-social-protection-macro-and-micro-lessons-for-vietnam-523399_