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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Iran, Turkey, Qatar Alliance: Will this mark a shift in MENA's Balance of power?
Qatar, Iran and Turkey have been forming an alliance—which impacts several countries—especially in the MENA (Middle East and North Africa) region. The move comes after Israel recently established its diplomatic relations with four Arab league countries, namely, United Arab Emirates (UAE), Bahrain, Morocco and Sudan. The article covers how this move can have an impact on the balance of power in the region.
Support for the Palestinian Cause
The three countries are critical of the Israel-Arab ties and support the Palestinian cause. Various Palestinian factions, including Hamas and Fatah as well, are shoring up ties with Turkey and other countries in the region that stand against normalization with Israel.
During his speech in the 75th United Nations General Assembly, Erdogan called out on Israel and proclaimed, “The occupation of Palestine is a bleeding wound.”
Since the Gaza attack, which killed 10 Turkish social activists aboard a ship by the Israeli commandos in international waters, the relationship between the two has only soured. After this incident, Turkey recalled its ambassador from Israel, downgrading the diplomatic status. Yet in 2016—after a few meetings—the relationship was restored. However, after another attack in Gaza in 2018, Turkey called back its ambassadors again and expelled the Israeli ambassador to Turkey. Since then they do not have full diplomatic status.
Following the attacks Erdogan—the president of Turkey—even called Israeli PM Benjamin Netanyahu “a terrorist.” The country has been openly supportive of the Palestinian cause, and has also sent aid for humanitarian relief to the Palestinians. Several Hamas leaders have been visiting, taking refuge, and even meeting with Erdogan.
On August 22, 2020, Hamas leader Ismail Haniyeh met Erdogan in Istanbul. Jibril Rajoub, secretary of Fatah’s Central Committee, as well arrived in Turkey on September 21, 2020 to meet with Haniyeh and his deputy Saleh al-Arouri and discuss ways to end the internal Palestinian division.
On the same day, Palestinian President Mahmoud Abbas phoned Erdogan and thanked him for his support for the Palestinian cause. The two have shared several calls since—discussing political developments and US pressure on the region to normalize ties with Israel and ways to face such pressure.
Turkey has tried to balance its relations with both Saudi Arabia and Iran, who happen to be arch rivals. But after the recent growing closeness with two of Saudi Arabia’s rival countries, Iran and Qatar, Turkey might end up straining its relations with Saudi Arabia.
Qatar-Saudi Arabia conflict
This diplomatic conflict is also known as the Second Arab Cold War (the first one being the Iran-Saudi Arabia Cold War). There is an ongoing struggle between the two countries to gain influence in the Gulf. Their relations strained especially after the emergence of Arab Spring. During that time, Qatar became in favour of the revolutionary wave, whereas Saudi Arabia was against it. Both the States are allies of the United States, but have a tussle in their ideologies. Both have avoided direct conflict with each other.
There are other issues between them which leads to further tussle-
1. Qatar broadcasts a news channel, Al Jazeera, which favours the Arab Spring.
2. Qatar has good relations with Iran, Saudi Arabia's rival.
3. Qatar also allegedly supported Muslim Brotherhood in the past. Which it denies.
The Qatar diplomatic crisis became worse in 2017. Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic relations and trade ties with Doha, and imposed a sea, land and air blockade on Qatar, claiming it supported “terrorism” and was too close to Iran. Yemen, the Maldives and Libya's eastern-based government also followed later. Qatar rejected the claims and said there was “no legitimate justification” for the severance of the relations.
How does this new alliance affect the other countries in the region?
The new alliance seems to lead into formations of two alliance groups or blocs in the region, with some countries siding with Iran, Qatar and Turkey and others with the Saudis and their allies. Another point to keep in mind is that Saudi Arabia is supported by the US, while two countries from the former alliance—Turkey and Iran—are supported by Russia. This will lead to further division among the Middle Eastern countries.
President Trump, Minister of Foreign Affairs of Bahrain, Israeli Prime Minister, and Minister of Foreign Affairs for the UAE Signing the Abraham Accords | Source: Trump White House Archives
This alliance can also affect the trade among these countries, and can severe the ties of many Middle Eastern countries. The biggest beneficiary is going to be Israel, which doesn’t have good relations with most of the Muslim world, except the ones which established diplomatic ties recently by signing the Abraham Accords.
In North Africa countries like Egypt and Morocco recognise Israel. However, most of the North African countries also supported the Arab Springs, which is against the ideas of Saudi Arabia. The Islamic holy land seriously seems to have less Arab allies when it comes to opposing the Arab Springs.
In fact, there can be impacts on trade and diplomatic ties with other countries outside the Middle East and North African region as well. Countries will have to balance their relations with both these groups.
How does it affect the Balance of power in the region?
In international relations, balance of power refers to the posture and policy of a nation or group of nations protecting itself against another nation or group of nations by matching its power with the power of the other side.
There has been a Cold War situation between Iran and Saudi Arabia as they are very (perhaps most) influential powers in the region. But Saudi Arabia is still more influential as a business as well as a soft power—it has a richer economy, oil exports, and most importantly, being the holy land where every Muslim comes for Hajj pilgrimage—it has Mecca and Medina. It is the land where the Prophet Muhammad first delivered his messages and teachings. Iran may try to compete in the economic part, but isn't equally as challenging in the religious part—although it is an important country for the Shia Muslims.
There have been arms embargo on Iran by the UN for arms race. Russia and China have been eager to supply Iran with advanced jets, tanks and missiles, which is quite alarming for its Gulf Arab neighbours, especially its primary adversaries like Saudi Arabia and the UAE.
On 14 September 2019, drones were used to attack the state-owned Saudi Aramco oil processing facilities at Abqaiq and Khurais in eastern Saudi Arabia. The Houthi movement in Yemen claimed responsibility, joining it to events surrounding the Saudi Arabian intervention in the Yemeni Civil War and stating that they used ten drones in the attack from Yemen. Saudi Arabian officials said that many more drones and cruise missiles were used for the attack and these originated from the north and east, and that they were of Iranian manufacture. The United States and Saudi Arabia have stated that Iran was behind the attack while France, Germany, and the United Kingdom jointly stated Iran bears responsibility for it. Iran has denied any involvement. The situation has only exacerbated the Persian Gulf crisis.
By forming this new alliance, supporting the Palestinian cause—with Qatar—even supporting the idea of Arab Springs; the Iran-Turkey-Qatar alliance has a new power with them. What remains to be seen is the other Middle Eastern country’s decision—whether they support this new alliance and the Palestinian cause or go for yet another fragile “peace-building” initiative in the already disturbed region.
