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COVER STORY

PHOTO: VIET TUAN
But while Vietnam was ill-prepared for
GETTING BACK the April Covid-19 outbreak, with low test-
ing and vaccination rates, authorities
ON ITS FEET reacted quickly to launch a national vac-
cination effort. Between early July and
mid-December, over 75 per cent of the
population received one jab and over 55
Vietnam’s economic recovery is likely to accelerate in 2022 as GDP per cent were fully vaccinated. This allowed
growth rises to 5.5 per cent from 2.6 per cent in 2021, according to the government to switch from a “No-
the World Bank’s latest “Taking Stock” report. Covid-19” policy, with strict lockdowns
and serious economic pain to save lives, to
a “Living with Covid-19” policy, where the
economy could be reopened while health
wo years into the Covid-19 crisis, an Vietnam was also severely affected by precautions continue. The April outbreak
uneven global recovery continues but the protracted April outbreak of Covid-19 caused significant pain for workers, house-
T its momentum has been hamstrung that derailed its economic recovery in the holds, and businesses.
by various uncertainties and risks, the World third quarter of 2021. The government’s It also exacerbated conditions in the
Bank (WB)’s “Taking Stock” economic update “No-Covid-19” approach was overwhelmed labor market, which had not fully recovered
for Vietnam notes. The global economy is by the April outbreak, which in turn led from the onset of the pandemic in April.
estimated to have grown 5.5 per cent in 2021 to lengthy shutdowns and steep economic Lockdowns in the third quarter of 2021
and is projected at 4.2 per cent in 2022. costs. Vietnam is no longer ahead of the affected about 28.2 million workers, with
Growth also rebounded in the US, the EU, curve compared to its neighbors in dealing 2.5 million jobs lost and an increase in
and China in 2021, but they are settling with the impact of Covid-19 on its economy, unemployment to a record 3.7 per cent. An
back towards their long-term growth trends as it was in 2020. In a year of economic average worker earned 12.6 per cent less in
and their respective authorities are starting rebound in most comparator countries, real terms in the third quarter than they
to unwind accommodating fiscal and mon- Vietnam grappled with lengthy shutdowns did a year previously. Informal workers,
etary policy, especially considering rising of major economic centers of the country household businesses, and women were
inflation risks. This has heightened uncer- - Ho Chi Minh City and Hanoi and sur- especially vulnerable to the shock. At the
tainty about the impact of such policy tight- rounding areas - which led to its GDP sectoral level, services sector workers were
ening on the global recovery, which is already contracting over 6 per cent in the third hit hardest given the social distancing restric-
grappling with ongoing Covid-19 flare ups quarter. Consequently, GDP was estimated tions. In the manufacturing sector, job losses,
and varying degrees of access to vaccinations to have increased by 2.58 per cent for 2021 furloughs, and reduced working hours or
and capacity to vaccinate across countries, as a whole; about 4.2 percentage points salaries, while helpful to keep firms afloat
continuing supply constraints, and narrowing lower than the WB’s annual projection and ensure future employment, affected
policy space in many countries. made in December 2020. workers’ incomes. At the regional level, the

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