Vietnam continues with gradual reopening despite looming threat of Omicron variant

Hanoi

DESPITE a worrying spike in new daily Covid-19 infections and amid growing fears over the new Omicron variant, Vietnam's government is pushing ahead with its gradual plans to reopen the tourism-reliant economy as much as possible over the next few months.

The country's health authorities reported 14,591 new cases on Monday (Dec 6), the highest number in a single day since Sep 3. The 7-day rolling average was 13,830 new cases on Dec 1, higher than the peak of the last wave in September.

While there have been no cases of Covid-19 from Omicron so far, the government has already advised healthcare providers to step up their vigilance in monitoring for the new strain.

Many other countries around the world have banned travellers from several southern African countries where Omicron was originally identified, but Vietnam has not yet decided on joining the list.

If the Ministry of Transport goes ahead to issue a travel restriction, it could deal another blow to Vietnam's struggling aviation and hospitality sectors, which have been hit hard by the pandemic.

International flights have slowly resumed in recent weeks, and there are fears that more travel bans could derail the reopening efforts. Many players in the industry are on tenterhooks as the Transport Ministry weighs up its options.

Deputy Transport Minister Dong Ngoc Nguyen told reporters last week: "With Omicron detected in many countries, we are reviewing and working with other countries to resume more international flights as soon as possible."

The discovery and impending arrival of Omicron comes at a tumultuous time for Vietnam.

Just last month, the country welcomed back its first international tourists in nearly 2 years to selected locations and with strict Covid-19 measures in place. The government is planning to have a broader reopening in early-2022.

But the beleaguered tourism industry is not alone; businesses across the board are feeling the heat as well.

Simon Fraser, the executive director of the Australian Chamber of Commerce in Vietnam, said many of the chamber's members are anxious about Omicron and how severely it could hit.

"We don't understand much about it nor how it may impact the current environment in Vietnam, and the work that's being done for recovery," he said. "It's really the unknown that most people are most worried over."

Vietnam's financial markets have also reacted to the ongoing uncertainty. Shares plunged last Friday as the global spread of Omicron dampened investor sentiment.

The benchmark VN-Index improved with a 2.35 per cent surge on Tuesday, with the biggest single-day gain in 5 months due to a record number of new investors.

But there is little sign that the widespread lockdowns that crippled the economy for much of 2020 and the early part of 2021 could return.

Many sectors are still reeling from the lockdowns, with manufacturers grappling with labour shortages and high shipping costs, and exporters struggling to clear production backlogs.

Phong Thanh Nguyen, deputy head of the Central Economic Commission, told a forum on Sunday that the pandemic has so far cost the nation 847 trillion dong (S$50.2 billion).

Several quarters have urged the government to introduce another stimulus package to boost Vietnam's economic recovery.