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 5:10 PM

How is Nigeria fighting Boko Haram

It was in the 2000s that Nigeria first faced the threat of Boko Haram, the affiliate of Islamic State in Africa. As President Muhammadu Buhari completes five years of being in power, which he got primarily for his plank of defeating Boko Haram, the battle still continues.

Buhari won the presidential election in 2015 against then President Goodluck Jonathan by touting his military background as an asset in defeating Boko Haram, which his predecessor was not able to do. While in his first few months as President he did show results by pushing Boko Haram out of some territories, the Nigerian military was unable to maintain the momentum as Boko Haram struck back with new tactics.

General Muhammadu Buhari, President, Nigeria | Source: Chatham House via Wikimedia

There is widespread distrust towards government officials and Buhari’s popularity has also eroded massively. The citizens are making their dissatisfaction known through anti government demonstrations. Meanwhile the administration seems busy playing blame games and guessing at where things are going wrong in the military’s efforts to contain the violence.

In June 2020, Nigeria saw one of its deadliest attacks in recent times, a hard turn from claims by the military in April that a Boko Haram leader appeared ready to surrender “based on body language.”

Boko Haram which means "Western education is prohibited" in the local Hausa dialect, first began in 2002 under Muhammad Yusuf. They called shunning the western influence in the social sphere and called  for the enforcement of sharia even among non-Muslims. Its leader Mohammad Yusuf was killed in police custody in 2009. However the government authorities failed to utilise this opportunity and showed slackness in rehabilitating the group members, who moved underground, regrouped under new leadership, and continuing to terrorise even larger areas.

Image of Boko Haram terrorists | AK Rockefeller via Flickr

Many factors have been considered in piecing together what led to the creation of Boko Haram and how its existence has been sustained, ranging from support from ISIS, ability to internationalize as a group, and possible assistance from Libya.

The US and Europe have been seen as reluctant to extend any real aid, perhaps due to Nigeria’s oil reserves and a desire to keep African countries destabilised to maintain their neo-colonial stronghold in the region. Internally, corruption and laxity in action of troops has often been cited as big hurdles in controlling the situation.

Two Boko Haram vehicles destroyed. | Source: M. Kindzeka via Wikimedia

As for solutions, many have turned their focus towards rebuilding communities in the aftermath of thousands of people being murdered and displaced due to the ongoing violence. Not just civilian casualties, but a disastrous lack of necessities such as food, water and electricity is leading to a humanitarian crisis in the area falling in the conflict zone between Boko Haram and the military.

President Buhari currently seems slow to admit that Boko Haram cannot be “defeated on the battlefield alone.” Apart from improving the military’s response he must also take measures for alleviating poverty, destroying corruption and ‘de-radicalisation’ of those recruited into Boko Haram.

Some localised efforts are being taken to stabilise the situation by empowering communities to resolve conflicts, improving civil infrastructure, and reintegrating reformed militants.

However, localised efforts are short-term in nature, and their stability and success is greatly determined by the government which understands that more than killing the attackers, trust and active participation of its citizens is needed to resolve this conflict

The impact of Boko Haram on the people of Nigeria has been multifold, and the arsenal to ‘defeat’ Boko Haram must be expanded and redefined.

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