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 4:49 PM

Has Canada’s stand on Israel-Palestine conflict cost it the UNSC Seat

On the 17th of June, 2020, Canada lost its bid for a temporary seat in the UN Security Council, the only UN body which can put binding resolutions on the member countries.. In the competition were Norway and Ireland, which won by 130 and 128 votes respectively where the votes required to secure a seat were 128. Canada, however, fell short by 20 votes.

It is a jolt to Canadian Prime Minister Justin Trudeau who had declared “Canada is back” to the world stage after the conservative government. He had personally campaigned for the seat but Canada received even fewer votes than what it received in 2010 under the conservative government of Stephen Harper. That is why Bessma Momani, a senior fellow at the Centre of International Governance and Innovation, calls it “embarrassing” and a “bit of a wake-up call.”

There have been many mixed reactions within Canada on the reason for the loss as well as the significance of this loss.

A professor at the Munk School of Global Affairs at U of T, Jance Stein, talks about how Canada in UNSC would have got trapped in the crossfire between US-Canada clashes. Andrew MacDougall, the ex-director of communications with the former PM Harper, says “UNSC hasn’t been relevant to global peace and security for more than 15 years”, implying that UNSC seat is not worth much.

There have been many reasons ascribed to the loss, the first and foremost being Canada’s staunch support of Israel. Canada has voted 116 times against UN resolutions for Palestinian rights, against Israel’s occupation, since 2000. It has also not opposed Israel’s planned annexation of the Jordan valley. “Just Peace Advocates” in association with over a hundred non-governmental organizations sent a signed letter to UN members countries, urging them to consider Canada’s votes against Palestinian refugees and illegal settlements while deciding on their votes for UNSC seat. It also pointed out how Canada considers Israel’s illegal territories as a part of it in trade, which is directly against UNSC Resolution 2334 which calls on member states to distinguish between Israel and its new territories occupied in 1967. As majority of the countries in UN show support for the Palestinian cause of a separate state and the well being of the war-wreckin Palestinian citizens, Canada’s unwavering support for Israel might have contributed to its defeat in winning UNSC seat.

Tamara Lorincz, a member of the Canadian Foreign Policy Institute pointed towards a more fundamental issue with Canadian foriegn policy management. He talked about how Canada hasn’t drafted a foreign policy to explain its stances on important global issues, hasn’t set aside enough funds for overseas development aid, has exported weapons to countries like Saudi Arabia, has snubbed negotiations on a treaty against nuclear weapons and many other shortcomings which make it undeserving of the seat.

This development, however, is beneficial for the Palestinians, since Canada would have supported Israel in the UNSC and opposed all such resolutions which may favour Palestinians and are critical to Israel. This loss may also force Canada to give a serious rethink to its Israel First policy. According to a poll by EKOS Research Associates, three in four Canadians want their government to oppose Israel’s annexation plans and 42% of them wanted sanctions against the country. There is also a campaign in Canada which calls on the Prime Minister “to fundamentally reassess Canadian foreign policy.”

It is too early to predict whether the loss of the UNSC seat will trigger some introspection in the foriegn policy circles of Canada or it will be business as usual.

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