Home DestinationsSoutheast Asia Could Vietnam be a rare winner from the covid-19 pandemic?

Could Vietnam be a rare winner from the covid-19 pandemic?

by Asia Insider
  • The structures that control epidemics are the same ones that control public expressions of dissent,” they write.
  • Hundreds of people have been fined for causing “unnecessary panic” or undermining the “national unifying cause” through their social media posts, Global Voices reports.

The big picture: Like China, Vietnam has since the late 1980s paired political repression with economic liberalization.

  • It brought extreme poverty down from above 50% to near-zero in that time, and over the last decade has seen the second-fastest economic growth in the world, behind China.
  • The pandemic has punctured most other formerly fast-growing economies in the developing world, but not Vietnam’s.

    • Vietnam has had some luck, says Jacques Morisset, the World Bank’s Program Leader for Vietnam. Demand for its chief commodity export, rice, has only grown during the pandemic.
    • The government also started from a strong position — in sound fiscal health and with emergency funds ready to be tapped.
    • When the pandemic struck, it acted “with a combination of foresight and pragmatism” and “no sense of panic,” says Morriset.

    Where things stand: Vietnam’s economy is benefiting on at least two fronts: it was one of the first in the world to re-open with few restrictions, and it was already enjoying a flood of investment as companies like Apple shifted manufacturing to hedge against over-reliance on China.

    • Vietnam is also expediting some major infrastructure projects as part of its coronavirus stimulus, the FT reports.
    • One sector that has been hit is tourism, which accounts for 9% of GDP. The government plans to resume flights soon, but only for countries that have had no new cases for 30 days.

    The bottom line: This pandemic’s success stories include authoritarian states like Vietnam as well as democracies like Australia, Germany and South Korea.

    They’re aligned not by style of governance but early, competent action — and a bit of luck.

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