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 4:57 PM

How COVID-19 devastated African Safari industry

With COVID-19 wrecking the economies of superpowers like the US and China, Africa is no exception. The continent of Africa is bestowed with rich biodiversity which attracts millions of tourists every year. But due to the pandemic, the safari industry of Africa is in a freefall.

The countries which are visited more often by the international tourists for their remarkable safari experiences include Botswana, Kenya, Namibia, Rwanda, South Africa, Tanzania, Uganda and Zambia. These contribute more than 12 billion US dollars to the economy, according to the United Nations World Tourism Organization (UNWTO).

The tourism industry is one of the most impacted economic sectors due to lockdowns being imposed all over the world. The magnitude of loss came into light when Safaribookings.com, a website for booking safari tours in Africa, ran its fourth monthly survey. The bookings this year declined by a massive 75%. “We don’t have bookings, and we don’t have money to pay salaries for staff, office rental etc. Things are really bad” says a Kenyan safari vehicle operator. Thousands of the people depending on services related to industry lost the livelihood due to this downturn..

Khimbini Hlongwane, the proprietor of a small tour business in Kruger National Park of South Africa, is devastated as he had invested all his savings to purchase a new minibus for his visitors. “It hasn’t moved since the day we bought it,” he says.  Leon Plutsick, who owns a lodge in Manyeleti private game reserve adjacent to the Kruger National Park says that he is barely surviving on the remaining meagre reserves. What used to be a lodge packed with tourists, is now replaced by Baboons. A tour guide and father of four, Sipho Nkosi, who earns a decent amount of 550 rand per tour, finds himself and his family in troubled waters. “We’d saved some money. But it's running out, so we’ll start starving” he says.

Not only the local communities but also the prolific wildlife of Africa is bearing the brunt of the pandemic. Tourist funds play a key role in conservation projects. Jackson Looseyia, a conservationist and lodge owner at Maasai Mara says, “In conservation terms, it is a crisis. We have no money coming in whatsoever, and the future is so bleak”.

Many of the families dependent on ecotourism see no option but to turn towards poaching as a means of survival. This further poses a threat to the species. Dickson Kaelo, CEO of Kenya Wildlife Conservancies Association says, “Due to the high rates of unemployment, commercial bushmeat has become rampant in some areas. Recently there were even cases of giraffes killed for commercial purposes”. At least six black rhinos, who might face extinction soon, were killed by poachers in Okavango Delta, Botswana, in the month of March. Efforts are being taken to evacuate the remaining rhinos and shift them to safer places.

The Tourism Business Council of South Africa is urging the government to reopen the national parks and sanctuaries for the public, latest by September. However, the South African government states that the tourism industry is not likely to reopen before 2021.

Kenya, Namibia and Rwanda are not open for tourists. Zambia is permitting tourists but with an obligatory two-week quarantine. Tanzania has imposed no such requirements. However, tourists will think twice before going on any international trips as we have not yet won the fight against coronavirus.

All this has left the people associated with the ecotourism sector in Africa in a dark tunnel with seemingly no end at the moment.

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