The Business Performance of Listed Firms in Vietnam Across the Phases of the COVID-19 Pandemic

ABSTRACT: This study examines the variation in business performance of listed firms in Vietnam across three phases of the COVID-19 pandemic: the pre-pandemic period (2017–2019), the pandemic period (2020–2021), and the post-pandemic period (2022–2024). Using a dataset of 1,887 firm-year observations and performance indicators including return on assets (ROA) and return on equity (ROE), the study employs non-parametric tests, namely the Kruskal–Wallis and Wilcoxon rank-sum tests, due to the non-normal distribution of the data. The empirical results reveal statistically significant differences in firm performance across the three periods. Notably, the findings indicate a lagged effect of the pandemic, whereby business performance did not experience an immediate and substantial decline during the outbreak phase (DURING), but instead deteriorated most markedly in the post-pandemic phase (POST). This phenomenon can be attributed to firms’ initial resilience and government support policies, which helped maintain temporary stability in the early stage of the crisis. However, as prolonged disruptions in supply chains, rising input costs, and accumulated debt pressures intensified over time, financial performance exhibited a more pronounced decline in the medium term. Based on these findings, the study provides important implications for financial risk management, particularly regarding capital structure, and underscores the need for more sustained and long-term policy support to facilitate economic recovery.

KEYWORDS: Business performance; COVID-19; Listed firms; Non-parametric tests; Lagged effects