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?

Publisher

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 4:40 PM

Gaza under Israeli blockade — Its Impact on COVID-19

The Gaza Strip has faced massive destruction due to Israeli-led blockade since 2007. Israel controls all the entry and exit points of Gaza which it uses to restrict the movement of goods and people between Gaza and the outside world, effectively turning it into the “largest open-air prison” in the world. Gaza, as a result of the humanitarian crisis since the last 13 years is now one of the most densely populated yet the poorest spaces in the world. This has adversely impacted the delivery of public services, including healthcare service in Gaza strip. According to the head of the International Committee of the Red Cross (ICRC) sub-delegation to Gaza, Ignacio Casares, the health system in Gaza “is already overstretched, already at its limit,”. Daily power cuts and irregular electricity supply add on to this which forces Doctors to rely on generators during emergencies. This horrible condition was documented earlier as well in a 2017 UN Report which stated that the Gaza Strip would be “unlivable” by 2020. 

The 13 years long blockade has forced the government as well as people living in Gaza to manage the harsh conditions with the meagre resource at their disposal.  The WHO  had pointed out in a report last year that all the patients and their companions were required to apply for Israeli permits to exit the Gaza Strip for accessing the hospitals in the West Bank, including East Jerusalem, and Israel,". "Access has been particularly problematic in 2019, with the patient permit approval rate declining”. 

People in Gaza strip are now battling the COVID-19 pandemic also with the help of simple whatever meagre resources at their disposal. The healthcare and other authorities understood that they would not be able to provide the hospitalization if the pandemic broke out, so they took some immediate steps to contain the COVID-19 from the early stage. The places of large public gathering like street markets, shops, shopping malls, wedding halls were ordered to lock down by State authorities. A senior official with the Hamas movement said at a news conference that officials were considering imposing a curfew. Using the traditional methods, the authorities built more than 1000 quarantine rooms in the Gaza Strip. Palestinian Ministry of Health states that quarantine centres are established in three places: Rafah, Deir Al-Balah, and Khan Younis. More than 1000 people who came from the Israel and Egypt borders were quarantined in schools, hotels, and hospitals. 

With the increase in the number of cases, society started displaying anxiety and fear but it was overcome by mutual cooperation. The State of Palestine and its citizens has proved that the constraints cannot become an obstacle in dealing with the pandemic.

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