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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March 7, 2021 10:10 AM

Bengal Elections: Will there be a transfer of power or TMC’s will rule continue?

As the assembly elections in West Bengal are getting closer, the competition between the Bharatiya Janata Party (BJP) and Trinamool Congress (TMC) is getting more intense. This election and its result will  be historic. Whole nation is looking forward to the Bengal Elections keenly.

Recently, there was a lot of hue and cry by the BJP when some people allegedly tried to attack the BJP party president JP Nadda's convoy near Diamond harbour in West Bengal. While the BJP labelled the attack as a “sponsored violence”, CM Mamata Banerjee called it a “drama” staged by the BJP to gain media attention. But apart from all this, there are other things which make this election important.

Other than the BJP and the ruling TMC, there are other players as well – Left Front, led by CPI(M), Congress Party, AIMIM.

The situation of the Left Front and the Congress

Rally of Congress and Left Alliance | Source: IBTimes

In the 2019 Lok Sabha elections, the Left Front did not win a single parliamentary seat. Also, except the Jadavpur constituency, it lost all its deposits in all the seats. The Indian National Congress, which is its alliance partner, did not fare well as well and managed to get two seats only. In the upcoming 2021 assembly elections, the two parties have again joined hands, and this time, it’s not just about the electoral victory, but also about maintaining their relevance in the state.

The Left Front, which used to be a major party in the state and ruled for decades, is now seeing an existential crisis. Their first aim is to retain themselves as the main opposition party of West Bengal. Mamata Banerjee’s thumping victory in the 2011 elections marked the end of the Left rule in West Bengal. In the 2016 Assembly Elections, Trinamool Congress had a landslide victory, whereas the BJP got only two seats. But now, the BJP is emerging as the main opposition to TMC, which should be a matter of concern for the Left Front which is losing ground. In an article by The Quint, CPI(M) leader Shatarup Ghosh said, “Of course the BJP is our main opposition—not just in West Bengal but also nationally. They are ideologically and politically completely opposed to us. But that being said, we are not ready to give an inch to Mamata Banerjee either. The TMC needs to go, but they can’t be replaced by the BJP. That is our position”. The Left also alleges that TMC violence against them increased especially after 2016. “At this point, because we couldn’t function in full strength, there was a void in the space of the opposition. The BJP came in at that point and said that they’re running the centre, have CBI, ED and other machinery and can help fight the TMC in a way that the Left can’t. Those who wanted to vote against TMC, therefore, naturally went to them”, he adds.

The Indian National Congress has ruled West Bengal first from 1947–62, and then again from 1972–77. After that, Congress has not performed well in the elections here.

Rise of AIMIM in West Bengal

Asaduddin Owaisi, the face of AIMIM | Source: Wikimedia

All India Majlis-e-Ittehad Ul Muslimeen– better known as AIMIM, has seen a rise recently outside their home state, after winning 5 seats in the Bihar elections. Party President Asaduddin Owaisi held a meeting with AIMIM West Bengal party functionaries for taking their views with regards to the upcoming elections and political situation in the state, calling it a “fruitful” meeting.

On AIMIM focusing on Bengal Elections, TMC MP Saugata Roy took a jibe at the party’s chief and called him “an assistant of the BJP, who is being used by the latter to split non-BJP votes”.

A Muslim voter in Bengal | Source: Wikimedia

Muslim votes are crucial for the TMC. AIMIM senior leader Syed Asim Waqar tweeted, telling Mamata Banerjee’s party that their enemy is the same, the BJP. Aurangabad MP and AIMIM Maharashtra President Imtiaz Jaleel tweeted: "Bihar tou jhaaki hai...WB, UP baaki hai" (Bihar is just the beginning, West Bengal and Uttar Pradesh are remaining). Other than this, party chief Owaisi recently said that it has been the consistent stand of the party that it would not contest elections in Assam and Kerala, as AIUDF and the Indian Union Muslim League are present in the two states. These points clearly show which states the party is aiming for.

AIMIM rallies had also gathered large crowds in Bihar. It won 5 seats in the Seemanchal region of Bihar, which borders West Bengal. It is also trying to emerge as the voice of the Muslims in states like West Bengal and UP. AIMIM was part of the Grand Secular Democratic Front, that had two UP based parties—Bahujan Samaj Party(BSP) and the Suheldev Bhartiya Samaj Party (SBSP)—besides Samajwadi Janta Dal and Rashtriya Lok Samta Party (RLSP). Owaisi's party was the best performer among all of them, other than that only BSP managed to get one seat.

Muslims in West Bengal

Muslims form about 27% of the West Bengal state population, but still remain underrepresented. They account for only 6% of government jobs. Although their representation has been better under the TMC, they still need improvement in the representation for the betterment of their community.

BJP and TMC

CM Mamata Banerjee (L) and PM Narendra Modi (R) meeting | Source: Wikimedia

Recently, TMC MLA Suvendu Adhikari—along with 23 others—joined BJP, at Home Minister Amit Shah's Midnapore rally, as a major blow to Mamata Banerjee and the TMC. Shah alleged that Mamata Banerjee has changed her party’s slogan from “Maa, Maati, Manush” (Mother, Earth, Humanity) to “extortion, corruption and pandering to the nephew”, targeting Banerjee’s nephew and MP Abhishek Banerjee.

The BJP increased its seats from 2 to 18 in West Bengal in the 2019, which came as a surprise. Almost 57% of Hindu votes went to the BJP, and 32% to TMC. The party is trying to woo Hindus and also the Hindi-speaking population of West Bengal. Recently, BJP-supported Hindutva organisations such as the VHP, Bajrang Dal and the RSS, which had only a little presence in the state, have become more assertive, as was seen through their armed processions for Ram Navami.

Suvendu Adhikari, TMC leader who recently joined BJP | Source: মঞ্জুর আলম খান via Wikimedia

To keep a check on the saffron party’s rise, the Mamata government made sure to announce new schemes and that the previously implemented policies remain fresh in the minds of the people. Recently, the TMC released its 'report card' on the work they have done and the promises kept. They have mentioned the 'Sabujsathi' scheme in it, which, according to the Mamata government, has been fulfilled. In this scheme, bicycles were to be distributed among approximately 40 lakh students from classes 9th to 12th studying in govt run and govt aided schools in West Bengal. The scheme was launched in September 2015. A scheme called “Swasth Saathi” was launched recently by the West Bengal government, as the BJP attacked the government by saying it did not implement the Ayushman Bharat scheme of the central government.

Even after opposition from newly emerging parties in the state, like the BJP and AIMIM, other than that from the already existing parties, the Left Front and the Congress, the TMC is trying to remain optimistic about their third term. Who’s winning? Only time—and the people of West Bengal—will tell.

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