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Friday, July 24, 2020

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

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Inshiya Nalawala

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Article Contributor(s)

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 4:47 PM

Kitchen Garden: An unusual arsenal in Kenya’s fight against malnutrition

Vegetable gardens have been in vogue since long across the world as a hobby to source some fresh vegetables for household consumption. However in Kenya, the government and citizens both have moved towards taking it to the next level.

Hassani Oyo, a musician and resident of Nairobi, Kenya, has started vertical bag gardening in the backyard of his home to grow exotic vegetables like cabbage, spinach and kale for his own use as well as for sales to his neighbours and local vegetable vendors. This low cost method of gardening uses minimal farming space and very less water.

Another gardening story emerges from Busia County in western Kenya. where a local community-based organization, Sustainable Income Generating Investment (SINGI) is promoting the use of Kitchen Gardens. SINGI in partnership with other organizations are actively involved in training farmer groups about healthy agricultural practices and sharpening their production skills.

Roselida Orodi, the chairperson of Esikoma Ushirika Farmers Self Help Group states that, “Most households produce enough vegetables for domestic consumption with a surplus which is usually sold to the local market and beyond”. The biggest advantage is that these vegetables are able to withstand high temperatures. During summer, when the demand increases, they are usually sold for higher prices to earn good profits.

Jessica Muhonje of Singingire vegetable farmers group, says that she sells vegetables worth 15 U.S dollars per day. With indigenous vegetables gaining popularity, she adds that, “People flock to my homestead to purchase the vegetables”.

Kenyan government has also launched the “One Million Kitchen Gardens Plan” for households across the country. Brainchild of Agriculture Chief Administrative Secretary, Anne Nyaga, the program aims to use kitchen gardens as a tool to achieve food security, fight malnutrition, and to deal with the food crisis caused by the Covid-19 pandemic. In the initial phase kitchen garden kits were provided to 15,000 households of Makueni county. “We would like to put emphasis on a balanced diet through these kits so that we can be able to boost our immunity and create an immunity that is able to fight COVID-19 and other diseases” says Anne Nyaga. She also adds, “The government is launching a campaign to establish kitchen vegetable gardens, we have issued guidelines to support both rural and urban dwellers with technologies for setting up within the resources available”.

These success stories inspire many others to join the kitchen garden bandwagon in Kenya. Setting up a kitchen garden is not tough, according to Mr. Oscar Ludelu, a landscaper and horticulturist. However, a few factors, like cost and what type of garden one needs is to be kept in mind before starting a kitchen garden.