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 5:04 PM

Kosovo and Serbia- A never ending saga of conflict

Kosovo is a small landlocked country in the Western Balkans with a majority of ethnic Albanians and Muslims. The country formerly was a part of Serbia but declared independence in 2008. While Kosovo’s independence has been recognized by nearly a hundred nations including the US, countries like Russia and China along with a few European Union nations have sided with Serbia against Kosovo.

Kosovo and Serbia have been at crossroads for a long time. Kosovo used to be a Serbian province under the communist-run Yugoslavia. However, the dissolution of Yugoslavia and the move by Serbian leader Slobodan Milošević to bring Kosovo directly under Belgrade’s administration fuelled war between the two regions.

The situation worsened with the violence in the Bosnian War ensuing from 1992-95 which was termed as “ethnic cleansing” of Muslims. By 1996, the Kosovo Liberation Army (KLA), a paramilitary group had been formed in response to the campaign of Milošević. The situation remained tense with Serbian Police killing nearly 50 people of a KLA member’s family in 1998.

Violence continued to escalate from both sides as international calls for putting an end to the violence grew. "We are not going to stand by and watch the Serbian authorities do in Kosovo what they can no longer get away with doing in Bosnia," US Secretary of State Madeleine Albright reportedly said. The UN banned the sale of arms and ammunition to Serbia as NATO began to plan an intervention in 1998.

However, the situation escalated to a worse in the "Račak Massacre" of 1999, wherein Serbian special police killed 45 ethnic Albanians. The NATO then initiated a 77-day air campaign which ended with the withdrawal of the Serbian army and the paramilitary force of Kosovo. Kosovo became a self-governed territory post the NATO campaign under the United Nations.

Despite several efforts from the European Union and the UN, the two countries have failed to arrive at a common ground till date. Kosovo declared independence in 2008 but Serbia does not acknowledge it despite having no formal control in the region.

In 2016, the countries yet again saw each other at crossroads when Kosovo sought to attain 80% shares of the Trepca mining and metallurgical complex in the northern region which is dominated by Serbs. The dispute became so pressing that it became one of the agendas for the UN Security Council.

In early 2017, Belgrade, the capital of Serbia, issued an international arrest warrant for former Kosover guerrillas including Ramush Haradinaj who served as a commander in the 1998-99 war against Serbian rule. He also briefly served as Prime Minister of Kosovo in 2004 and 2005.

As Kosovo asked the EU to press Serbia for dropping the charges, government and opposition leaders called for an end to the EU-mediated talks between Serbia and Kosovo. Serbia’s move to give the nod for Haradinaj’s extradition from France where he was being detained was met by Kosovo’s move to cancel Serbian President’s visit to a mainly ethnic Serb town in Kosovo on the eve of Christmas Day.

The gunning down of Oliver Ivanović, an ethnic-Serb politician in northern Kosovo in 2018 was yet another setback for the worsening ties between the two countries. Then Serbian President Aleksandar Vucic termed it an “act of terrorism”.

Late in 2018, Serbia blocked Kosovo’s bid to join Interpol, a move that saw Kosovo raise customs duties on Serbian imports by 100%.

In May 2019, Kosovo carried out a large anti-corruption and anti-smuggling drill wherein it detained nearly 23 people including two UN personnel and fired tear gas as well as live ammunition as per a few reports. The entire drill was concentrated in a Serb-dominated region in the North.

Serbian president Aleksandar Vucic reacted by saying that he wants to "preserve peace and stability", but that Serbia "will be fully ready to protect its people at the shortest notice". The European Union, the United Nations Interim Administration Mission in Kosovo (UNMIK) and KFOR (the NATO-led international military presence) all called for the two countries to maintain peace. However, the situation remains critical.

With Serbia being under pressure from international peacekeepers, it’s highly unlikely that it will intervene through its military forces. However, its influence in the Northern region of Kosovo means that both the countries will have to work towards maintaining amicable ties with each other as Kosovo hopes to become a UN member and a fully functional state.

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