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 4:54 PM

The story of reconciliation and development in the genocide hit Rwanda

The genocide and civil war had rendered hundreds of thousand of people homeless and in utter misery. If the Tutsi’s were the primary victims of genocide, the Hutu’s too suffer in the ensuing civil war when Paul Kagame led Rwandan Patriotic Front defeated the government forces and took over Rwanda.

When the genocide stopped by August 1994, the the suspected perpetrators of crime were hounded by the new government forces. Thousands of Hutus left the country and sought refuge in the neighbouring countries. The legal system of Rwanda was in shambles and the vengeance was taking precedence over the quest of justice. Over a hundred thousand suspected genocidaires were put in prison but could not be properly tried due to a strained judicial system.  

Things however started to change from the year 2000, when Paul Kagame became Rwanda’s President. The biggest challenge for him was to rebuild a society that is economically and socially stable. The socio-economic transformation of Rwanda under Kagame is an inspiring story of reconciliation based on acceptance, repentance and forgiveness, the very foundation on which the edifice of Rwanda's reconciliation is standing firmly today.

The first step towards reconciliation started in 2002 when Rwanda introduced the community-based dispute resolution mechanism, Gacaca to try the genocide related crimes. Gacaca was traditionally used in Rwanda to resolve minor disputes. In its new incarnation, the objectives included not only delivering justice, but also strengthening reconciliation, and revealing the truth about the genocide.  

In the Gacaca court the local community elected the judges who then tried the defendants  in front of members of the local community. These community members  were asked to share whatever they knewabout the the role of defendant during the genocide. Gacaca courts functioned extensively during 2005 to 2012 and processed almost two million cases in this duration.

Though Gacaca courts were criticised by many human right organisations for putting speed over fairness in trial, it undoubtedly resulted in giving the opportunity for some genocide survivors to learn what had happened to their relatives. It helped many families of survivors and perpetrators living side by side with peace and contentment in many reconciliation villages, after the ‘perpetrators’ confessed their crimes and expressed repentance.

Taking inspiration from The Truth and Reconciliation Commission” of South Africa, Rwanda established a “National Unity and Reconciliation Commission” in 1999 with an objective to reconcile and unite the Rwandan citizens. This process used four specific tools. (1) Ingandos - to bring normal activities to a standstill in order to reflect on, and find solutions to national challenges, (2) Organising reconciliation summits, (3) Creation of a leadership academy for developing a new set of grassroot leaders, and (4) Frequent exchanges and consultations at inter-community level.

All these efforts along with that of many non-governmental organisations helped to greatly heal the deep wound of sectarian violence in Rwanda. According to the report published by the National Unity and Reconciliation Commission of Rwanda in 2016, over 92% of Rwandans feel that reconciliation is happening.  

Alongside the reconciliation process, the government of Rwanda started spending on health, education and other civic infrastructure which has paid a good dividend in last two decades.

Government expenditure on healthcare facilities per person has gone up sixfold from just $21 in 1995 to $125 in 2014) which contributed to the increase in Life expectancy at birth by 32 years between 1990 and 2016 while  reducing the infant mortality by half since 2000.

The focus on the education sector resulted in almost three quarters of girls and two-thirds of boys now completing primary schooling while literacy rates of adult males and females increased to 75% and 68% respectively.

Rwanda now ranks 6th out 149 countries in the global gender gap index and a high proportion of front-line political positions, including 61% of the parliamentary seats are occupied by women. Rwandan women possess the right to inherit property and can also pass citizenship to their children.

The newfound peace, stability and reconciliation in Rwanda gave a boost to the country’s economy which saw per capita GDP growth from $200 to almost $800 between 1994 and 2017. In 2018 the GDP grew at  8.6% and the county rated the second-best place to do business in Africa.

Rwanda today is a shining example that a country with a long and painful history of violent sectarianism, can achieve great success, if it takes every section of the population along on a path of peace, unity and reconciliation.

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