Submit Your Work

Support the
Free-Press

English | Hindi | Urdu

Bring the
World Closer

Friday, July 24, 2020

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

This article is by

Inshiya Nalawala

Share this article

Download as PDF

Cite this Article

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

URL

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.

Support us to bring the world closer

To keep our content accessible we don't charge anything from our readers and rely on donations to continue working. Your support is critical in keeping Global Views 360 independent and helps us to present a well-rounded world view on different international issues for you. Every contribution, however big or small, is valuable for us to keep on delivering in future as well.

Share this article

Read More

February 4, 2021 4:50 PM

What is at stake when an Arctic town hit record high temperature

The Russian Arctic region of Siberia has front row tickets to an approaching climate change rollercoaster ride as it experiences soaring temperatures.

The mercury climbed to 38⁰C (100.4F) in Verkhoyansk, Siberia in June 2020 creating the new record of highest temperature in the arctic region and beating Fort Yukon, Alaska, which recorded 37.8⁰C in June 1915. The forecast for the coming weeks was also a whopping 10⁰C higher than last year. This region is also known for experiencing the coldest temperatures, reaching as low as minus 60⁰C during winters.

Concerned scientists claim that the Arctic is heating with double the speed of global average. “Such heat-waves aren't necessarily new to Siberia, but that climate change is increasing their severity and length,” says Sergei Semyonov of the Yu. A. Izrael Institute of Global Climate and Ecology in Moscow.

The heat waves are occurring due to a ‘heat dome’ effect in the Arctic region. This phenomenon happens when the Air is pushed and compressed, creating a very high mass of air into one location. This heavy air prevents clouds from forming, keeping the weather sunny, and pushes warm temperatures down to the surface which creates a virtual dome in which heat is trapped for a long duration.

This has led to devastating consequences for the environment of the arctic region. The forest areas of Sakha Republic, Russian Federation are witnessing rampant Wildfires. In Siberia, a major diesel oil spill incident happened due to the melting of Permafrost and caused contamination in the Ambarnaya River.

Permafrost serves as a foundation for almost the entire Northern Hemisphere’s landmass and is also responsible for trapping twice the amount of carbon found in the atmosphere. This is a cause of concern, not only for the Arctic, but for the entire globe as it would amount to release of more carbon dioxide in the atmosphere.

Global warming is further fuelling the increase in temperatures of the frigid regions. May 2020 was reportedly the warmest month, according to the climate report of Copernicus Climate Change Service. As a result, snow in these areas melted earlier than it was supposed to. In 2012 as well, around 97% of the ice sheets in Greenland turned to slush due to extensive warming and in 2016, the warm climate in Norway resulted in rainfall instead of snowfall.

From these observations, it would be fitting to state that our planet is undergoing ‘Polar Amplification’, meaning, quicker warming of the poles. Snow cover helps in reflecting the sunlight back in the atmosphere. However, with the gradual warming of Earth, the amount of snow is declining and more heat is being captured instead of being reflected. Melting of snow and icy bodies contributes to sea level rise, increasing the probability of floods in low lying coastal areas.

These events are indicative of the degrading health of our planet which to a large extent are caused by our reckless actions. If we persist with business as usual, the survival of the human race may be as endangered as that of the Siberian tigers.