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Friday, July 24, 2020

Can Vietnam leverage its COVID-19 success for economic growth?

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Inshiya Nalawala

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Article Contributor(s)

Inshiya Nalawala

Article Title

Can Vietnam leverage its COVID-19 success for economic growth?

Publisher

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 4:58 PM

Why the neighbours are furious with Hungary’s pre-World-War 1 map display

In the first week of May, 2020 the Prime Minister of Hungary, Victor Orban, conveyed his best wishes to the students appearing in history examinations. He may or may not have anticipated that his facebook post would create such fierce reactions in the neighbouring countries.

The controversial image, posted on Facebook, showed European countries of Croatia, Serbia, Romania, Slovakia and Slovenia within the borders of Hungary These countries came into existence when Austro-Hungarian state lost the World-War and signed the Treaty of Trianon in June, 1920 which envisaged the breakup of the empire.

Zoran Milanovic, the President of Croatia, was quick to respond to the post which persuaded the students of his country against posting such maps of Croatia which might ‘irritate’ the neighbours. “In our closets and archives there are numerous historical maps and maps that show our homeland much bigger than it is today … Don’t share them and put them on your profiles” he said.

On the other hand, Ludovic Orban, Prime Minister of Romania, retorted in a very ironic manner. “The sparrow dreams of the dough” he said, referring to a Romanian proverb which means that Victor was just trying to put Transylvania, now in Romania, back in the Hungarian territory.

It is important to note that Romania is home to a large group of ethnic Hungarians and the loss of Transylvania is still a highly poignant matter for Hungary.

Daniel Bartha, from the Budapest-based Centre for Euro-Atlantic Integration and Democracy (CEID) thinks that there probably was no dual meaning rendered by Orban’s post. He said, “If there was a message in this, it was not intended to send it to other countries but it was a message to Romania… it is kind of a response to the ongoing clashes with Romania over the minority rights of Hungarian people living in Romania.”

Borut Pahor, Prime Minister of Slovenia said. "It is understandable and right that the recurring postings of maps which could be understood as an expression of territorial claims are met with rejection and concern by the democratic public and politics, including me as the president of the republic" .

Sebian Member of Parliament, Aleksandra Jerkov, called upon Aleksandar Vucic, President of Serbia, to lodge a protest against Orban regarding this issue.

It is worth mentioning that such controversial maps were displayed earlier as well by Victor Orban. In June, 2019, Orban’s office tweeted a picture of a similar map to celebrate Hungarian Day of National Unity, the day on which the Treaty of Trianon was signed. In December 2019, a Facebook photo posted by Orban showed a meeting of his party in progress under the same map.

The use of controversial map by Victor Orban fits perfectly well in his time tested strategy of using ultra nationalistic symbolism for solidifying his support base and continue to rule Hungry with an iron fist.