THE country’s Prime Minister warned that the virus pandemic has swept away years of economic gains as South-East Asian leaders met online for a summit.
The current Chair of Asean also wants to use the summit to inject momentum into talks on a sprawling China-backed trade pact.
The immediate focus for the 10-member bloc is the crippling cost of the coronavirus, which has ravaged the economies of tourism and export-reliant countries such as Thailand and Vietnam.
“It has swept away the successes of recent years ... threatening the lives of millions of people,” Vietnam’s Prime Minister Nguyen Xuan Phuc said in a sobering opening address.
He emphasised the “serious consequences” of the pandemic for economic development among Asean members.
Asean General Secretary Lim Jock Hoi confirmed the bleak outlook, warning the region’s economy is expected to contract for the first time in 22 years.
Thailand is bracing for particularly rough news – its central bank now forecasts its economy to shrink by an unprecedented 8.1%.
Vietnam, which has won praise for containing the virus early, is still set to see at least 2% chipped off its GDP in 2020.
It hopes the summit will see progress on a trade agreement known as the Regional Comprehensive Economic Partnership, which is being pushed by China.
A deal, which would loop in half the world’s population and a third of its GDP, has been hampered by India’s refusal to join over access to its market for cheap goods from China.
Phuc admitted that “strategic problems between big countries had become clear and had deepened”.
“While the world is trying its best to fight the pandemic, there were irresponsible acts, violating international laws, that affected the security and stability of some regions including ours,” he said.
Vietnam expert Carl Thayer, an academic at the University of New South Wales, believes the past few months have been “business as usual” for China.
But he noted that negotiations on a so-called Code of Conduct for the South China Sea had stalled because of the virus. — AFP
The current Chair of Asean also wants to use the summit to inject momentum into talks on a sprawling China-backed trade pact.
The immediate focus for the 10-member bloc is the crippling cost of the coronavirus, which has ravaged the economies of tourism and export-reliant countries such as Thailand and Vietnam.
“It has swept away the successes of recent years ... threatening the lives of millions of people,” Vietnam’s Prime Minister Nguyen Xuan Phuc said in a sobering opening address.
He emphasised the “serious consequences” of the pandemic for economic development among Asean members.
Asean General Secretary Lim Jock Hoi confirmed the bleak outlook, warning the region’s economy is expected to contract for the first time in 22 years.
Thailand is bracing for particularly rough news – its central bank now forecasts its economy to shrink by an unprecedented 8.1%.
Vietnam, which has won praise for containing the virus early, is still set to see at least 2% chipped off its GDP in 2020.
It hopes the summit will see progress on a trade agreement known as the Regional Comprehensive Economic Partnership, which is being pushed by China.
A deal, which would loop in half the world’s population and a third of its GDP, has been hampered by India’s refusal to join over access to its market for cheap goods from China.
Phuc admitted that “strategic problems between big countries had become clear and had deepened”.
“While the world is trying its best to fight the pandemic, there were irresponsible acts, violating international laws, that affected the security and stability of some regions including ours,” he said.
Vietnam expert Carl Thayer, an academic at the University of New South Wales, believes the past few months have been “business as usual” for China.
But he noted that negotiations on a so-called Code of Conduct for the South China Sea had stalled because of the virus. — AFP
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