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 4:51 PM

How Dharavi, Asia’s biggest slum, fought against COVID-19

Imagine a place where 8-10 people live in 100 square feet structures. A place which squeezes close to 6,50,000 people, 5,000 small factories, and about 15,000 single-room workshops in just 2.5 square kilometer area. Welcome to  Dharavi, the biggest slum of Asia situated in the heart of fashion, entertainment, and commercial capital of India, Mumbai.

When the first COVID-19 case was discovered in Dharavi, it caused massive panic among the citizens as well as officials. Social distancing is virtually impossible to achieve in Dharavi, which is a maze of narrow congested lanes with tenements on either side of it and where 80% of the population use community toilets.

With their fingers crossed, people were speculating about Dharavi turning into a graveyard. These fears turned out to be misplaced and three months later Dharavi won praise from the WHO for effectively restricting the spread of coronavirus. According to the official data, the COVID-19 case doubling rate improved greatly, from 18 days in April, to 43 days in May, to 108 days in June, and 480 days in July.

Mr. Kiran Dighavkar, Assistant Commissioner of the top civic body of Mumbai, Brihanmumbai Municipal Corporation (BMC) said that their undertaking of an aggressive strategy of 4T’s - Tracing, Tracking, Testing & Treating, is the key to Dharavi’s successful fightback against the pandemic. The fightback plan was aptly coined "Mission Dharavi".

Extensive screening and testing of residents was done to detect the symptoms for coronavirus in "fever camp" which were set up by medical workers in different parts of the slum everyday. Many buildings such as schools, wedding halls, and sports complexes were overtaken by the civic authorities and were repurposed as quarantine facilities. A 200-bed hospital was also set up in record 14 days.

The BMC commissioner, I S Chahal said “Proactive screening helped in early detection, timely treatment and recovery.” Close to six hundred thousand people were screened, 14,000 people tested and 13,000 quarantined in nearby institutions, schools, marriage halls, and sports complexes. Furthermore, continuous monitoring of people’s movement using drones helped reinforce containment measures and scaled progress swiftly.

To further strengthen the measure, locals of the community emerged as “COVID Yodhas” (warriors) to address the concerns, a senior official said.  Many well endowed citizens and NGO’s provided Free meals, ration, PPE gear, oxygen cylinders, gloves, masks, medicines, and ventilators to residents and doctors.th July

On 8th July 2020 Dharavi recorded a total of 2,335 COVID-19 out of which 1,735 patients have recovered and there are only 352 active cases at present. Only 82 deaths were recorded in Dharavi till 8th July as against more than 4500 in the whole of Mumbai.

This phenomenal success has given the world a yet simple and effective technique in curbing the spread of the deadly virus. World Health Organization (WHO) chief Tedros Adhanom Ghebreyesus, in a virtual press conference in Geneva, acknowledging the efforts of various nations and Dharavi to contain the virus, said that “There are many examples from around the world that have shown that even if the outbreak is very intense, it can still be brought back under control”. Further, he added, “And some of these examples are Italy, Spain, and South Korea, and even in Dharavi -- a densely packed area in the megacity of Mumbai -- a strong focus on community engagement and the basics of testing, tracing, isolating and treating all those that are sick is key to breaking the chains of transmission and suppressing the virus.”

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