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 4:52 PM

Persecution of Uighur Muslims in China and the silence of Muslim Countries

Uighur are natives of  Xinjiang province of China who are Muslims and regard themselves as culturally and ethnically close to Central Asian nations. Xinjiang province has been under the control of China since it was annexed in 1949 and many Uighurs still identify their homeland by its previous name, East Turkestan. There are around 11 million Uighurs in Xinjiang and China claims that Uighurs hold extremist views that are a threat to national security.

In 2017, the Xinjiang government passed a law prohibiting men from growing long beards and women from wearing veils and dozens of mosques were also demolished.

As per the report of UN Committee on the Elimination of Racial Descrimination, the Chinese government has detained at least one million Uighurs in the detention camps in Xinjiang, China. After denying the existence of the camps for a long time, when the photos of the camps emerged, the Chinese government called them “re-education centres'' for Uighurs though the former detainees said they were detained, interrogated and beaten because of their religion, and not “re-educated.”

In July 2019 to the U.N. Human Right Council, 22 countries, mainly European countries, responded to “disturbing reports of large scale arbitrary detentions of Uighurs” and condemned the Chinese leadership.

Four days later, 37 countries, defended China’s “remarkable achievements in the field of human rights” by protecting the country from “terrorism, separatism and religious extremism.” The list of the 37 countries also included Muslim-majority countries like Saudi Arabia, Pakistan, Egypt, Qatar etc.

At the end of October 2019, 23 countries including France, the United Kingdom, United States denounced the repression of the Uighurs at the UN Committee on Social, Humanitarian and Cultural Affairs. Nevertheless, Beijing won the support of 54 countries, who praised the Communist Party’s management of Xinjiang.

In February 2019, Saudi Arabia showed their “respect” for Xi Jinping, the Chinese leader before they signed major commercial contracts with China. Egypt wants Beijing to finance its infrastructure and hence allowed the Chinese police to interrogate Uighur exiles on its soil in 2017. Pakistan, who has talked about the mistreatment of Rohingyas, has been silent on Uighurs since the Chinese Belt and Road Initiative is going on in the country.

Even Iran, who issues occasional criticism wants support from China and hence keeps the criticism coded. “There is a lot of sympathy for the Uighurs in Turkey, but the reality is that Erdogan needs China as an ally for economic reasons and to counteract the West’s diplomatic pressure on issues like Syria,” said Rémi Castets, a political scientist.

In 2017, the Organisation of Islamic Cooperation responded very differently to the Rohingya Crisis (Myanmar’s military crackdown on the country’s Rohingyas), where countries like Saudi Arabia, Iran and Turkey defended the rights of the Muslim minority group in Myanmar and actively condemned the treatment of Rohingyas in the UN Human Rights Council in Geneva.  

The question here arises is that contrary to the sentiments of their citizens, why do Muslim states stay silent over China’s abuse of the Uighurs?

Sophie Richardson, the director of China at Human Rights Watch, has a short and simple answer — there is less solidarity for Uighur than Rohingyas or Palestinians because China has managed to win these countries’ support due to its economic might.

Only time will tell how long these countries will continue to give preference to the economic interests over the anti-China sentiments of the citizens.

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