Friday, July 24, 2020

Can Vietnam leverage its COVID-19 success for economic growth?

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Inshiya Nalawala

Article Title

Can Vietnam leverage its COVID-19 success for economic growth?

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Global Views 360

Publication Date

July 24, 2020

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A policeman helping a rider fix their mask

A policeman helping a rider fix their mask | Source: Đài Truyền Thanh TPST via Wikimedia

While the entire world is battling with COVID-19, Vietnam, in a country of over 100 million recorded just 330 cases as of early June 2020 and zero death in May 2020.

A professor at Nagasaki University’s Institute of Tropical Medicine Vietnam Research Station said that "Vietnam has no special test kits or drugs to treat the disease, but the government decided to do what it had to do at an early stage and put that plan straight into practice."

Vietnam was quick in its action. As soon as the first case was confirmed, the government had called upon measures for serious quarantine, implemented strict border control measures, and curbed unnecessary local movement. Close to a million people were isolated to halt the spread of further infections.

The strict measures helped Vietnam to quickly control the COVID situation and put the focus back on the economy. The mainstay of Vietnam's economy, garment export and tourism witnessed steep fall resulting in loss of employment to over 3.5 million people in the first half of 2020. Still Vietnam’s economy has expanded by 0.36% over last year in the same period unlike other countries in the region where it contracted as compared to last year. The annual GDP growth for Vietnam in 2020 is expected to be around 2.7% to 3% which again is the best in the region.

Vietnam , today is the safest country in the region to travel, work, or stay amidst the worldwide COVID pandemic. It is being favourably considered as an alternative destination by many companies who are looking to cut down their reliance on China in their supply chain.  The Free Trade Agreement (FTA) between the European Union and Vietnam which will be operational in August, may help Vietnam grow its exports.

Apart from export led growth, the tourism sector may also grow significantly as the other major tourist destinations in the region, Singapore and Thailand, are still battling with the pandemic, while Vietnam has successfully overcome the same.

The government is also looking to support the local business by slashing the corporate income tax to 30 percent which increased the liquidity for some sectors of economy. Special tax benefits and deferred tax payments(in some cases) are also in  line for small and medium enterprises (SMEs) which constitutes almost 97% of all the businesses in Vietnam. All these measures are expected to lead to a 7% GDP growth for Vietnam in 2021.

The miraculous recovery from the pandemic, government incentives to industry, and the willingness of many companies to relocate from China present such a perfect mix of opportunities for Vietnam to leap ahead and become the fastest-growing economies in SouthAsia. What remains is to see how fast and how effectively the country is able to act while this window of opportunity is open.

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February 4, 2021 5:12 PM

Vaccine Nationalism: The Ethical Conundrum in the age of Global Pandemic

O People! Make way for the latest horrendous development of the infamous year 2020. We have straight out of the oven, the freshest item on the menu of ethical conundrums “Vaccine Nationalism”.

It seems like the cure is as dangerous as people dying of the COVID-19. Currently, according to the WHO, six vaccines have reached phase 3 trials, while 25 vaccines are in the clinical evaluation phase and 139 in pre-clinical evaluation.

COVID-19 Vaccine Nationalism | Marian Kamensky via Cartoon Movement

When the pandemic hit different parts of the world, the first response of the humans was to attack supermarkets and hoard loads of groceries (yes, toilet papers too). Vaccine Nationalism is just analogous to hoarding toilet papers, except, it’s just a phenomenon that occurs when rich countries pay for vaccines in advance and hoard them. Don’t worry politicians are not doing what they did not promise: remember ‘America first?’ and ‘India first?’

A global initiative by WHO – ACT (Access to COVID-19 Tools) Accelerator- aims at a cumulative process of R&D, manufacturing, regulatory, purchasing and procurement needed to fight against COVID-19. Unfortunately, the USA, Russia, India, and China did not receive the initiative with much-needed enthusiasm. The WHO also came up with another program called COVAX facility, that aims to provide 2 billion doses of vaccine by the end of the next year for middle and low-income countries.

Source: Brandon Reynolds via BusinessDay

The US compared its operation ‘Warp speed’ to the oxygen masks dropping during the flights. Russia tried to jump ahead, attempting to create a Sputnik moment. Russian President announced Russia curated the first COVID-19 vaccine called Sputnik V. The vaccines are still under trials and need much more necessary testing to work. Safe to say, Russia’s plan backfired earning them international scorn.

Vaccine nationalism will lead to global dysfunction. Rich countries will benefit as they can bid for the vaccine at high prices. Such high prices will lead to a disaster for the low-income countries, adding to their already deficient health care. These desperate countries will have no choice but to buy vaccines driving their economies in an even worse condition. Additionally, a single country having a vaccine will not help the problem in any way at all. Some nations have already gambled their chances of acquiring vaccines by speaking against other countries.

The unethical practice of Vaccine Nationalism is not at all unexpected. A bid against humanity is not entirely new. Similar responses were noted in 2009 when the world H1N1 flu crisis hit. Australia came up with a vaccine and sold 6,00,00 doses to the USA, blocking the exports to other countries. Once the effect of flu started diminishing, rich countries donated the vaccines to low-income nations. A similar situation happened in 2014 when the EBOLA crisis hit.

Politics aside, scientists are staying out of it and trying to work together for greater good. Instead of publishing research papers they are working collaboratively throughout the world. We must not forget that finding a cure or a significant role can earn a lot of scientists, assets, reputation, and promotions. Some lure away and are suspicious of sharing their work as well.

Rabindranath Tagore’s Portrait | Source: Wikimedia

When the search for a vaccine against such deadly disease mutates into a naked display of Vaccine Nationalism, Indian Nobel Laureate Rabindranath Tagore’s view on nationalism becomes an antidote. He believed in an idea of nationalism without borders. Tagore once described in a letter to his friend AM Bose that “the value of patriotism can never be greater than the value of humanity.”

It is a human tendency to compete and nature supports the fittest. How fit is it though to use strong nations’ ability to bully other unequipped nations? How generous is it to help others when they don’t even need help anymore? How ethical and moral is to block vaccine procurement for other countries for monetary and economic benefits?

These are some of the questions lost in the drumbeats of Vaccine Nationalism which is echoing across the continents. It's high time that concerned citizens should demand answers from their respective government to come clean on the real motive behind the call for developing a vaccine for global pandemic in a silo, when it actually needs global cooperation.

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