Vietnam Abandons Zero-Covid Strategy In A Bid To Revive An Economy Ravaged By Pandemic And Months Of Harsh Lockdown

Vietnam is abandoning its “zero-Covid-19” approach, in an effort to revive an economy ravaged by the pandemic.

The country's communist regime finalised the new strategy to tackle the pandemic during a meeting between the National Steering Committee for Covid-19 Prevention and Control, and officials from several local governments.

Earlier this month, Prime Minister Pham Minh Chinh warned Vietnam could be facing a lengthy coronavirus battle and cannot rely on lockdown and quarantines indefinitely.

Vietnam's GDP plunged by by 6.17 percent in the third quarter of this year, as harsh lockdown rules and other Covid-19-related restrictions hurt the economy. The World Bank has estimated Vietnam's growth at 4.8 percent this year, expecting the economy to rebound in the last quarter.

Tough lockdown measures resulted in labour-intensive businesses, including suppliers for brands like Nike and Adidas, to suspend operations.

Vietnam, once touted as success story in efficient handling of the pandemic, has been to struggling to suppress the virus in the country's south

A brutal fourth Covid-19 wave with nearly 775,000 cases came as huge setback to the country as key economic hotspots including Hanoi, Ho Chi Minh City and many southern localities turned in to infection hotspots resulting in local authorities imposing strict social distancing rules to curb the spread of the novel coronavirus. The pandemic overwhelmed hospitals, putting standard medical treatment on the verge of collapse.

In the past three months, the Delta variant of the virus has infected 770,000 people and killed at least 19,000, according to the country's health ministry

Many factories in Saigon Hi-tech Park, including the Samsung Electronics CE Complex, were forced to shut down after Covid-19 clusters confirmed,

Saigon Hi-Tech Park houses several high technology enterprises and is located 15 km from downtown Ho Chi Minh City. With 85 companies and over 45,000 workers, the park produced nearly $21 billion worth of products.

High-tech companies that operate in this park include Japanese firm Nidec (with multiple factories under Nidec, Nidec Copal and Nidec Sankyo flagships, Intel (chip assembly & test plant) and Samsung Electronics

In July, Taiwan’s footwear maker Pouyuen Vietnam with over 56,000 staff was ordered to suspend operations by Ho Chi Min city authorities following an outbreak of Covid-19 cases.

Vietnam’s overall vaccination rate continues to remains low with only 9.3 percent of its 98 million people fully vaccinated.

Also Read: Vietnam: Devastating Covid-19 Wave Forces Hi-Tech Firms And Large Export Factories In Ho Chi Minh City To Suspend Operations