A woman gets financial support from the Government's financial relief package aimed to help vulnerable people overcome difficulties caused by COVID-19. —VNA/VNS Photo

Vietnam is widely acknowledged to have had one of the world’s most successful responses to COVID-19. It moved rapidly with containment; targeted testing, tracking and quarantine; and public communications. It also included measures to limit increases in poverty and inequality, a plan on providing financial relief of US$2.7 billion for 20 million vulnerable people, and paying workers whose contracts were suspended a monthly allowance of VND1.8 million.

Vietnam is to be congratulated on its recent progress in several areas of policy to fight inequality. Compared to other countries in ASEAN, Vietnam’s performance is better in terms of health and social protection spending, collecting high levels of tax, and promoting women’s labour rights, according to the report.

Nevertheless, the findings also show the need to reinforce Vietnamese people-centred policies to fight inequality in the following ways: increasing the CIT rate and reducing corporate tax incentives; increasing spending for public services including education, health, and social protection; and increasing its minimum wage to a living wage, making progress towards universal social protection coverage and access, especially workers in informal and vulnerable employment.

It is also suggested to move ahead with its adoption of laws allowing independent workers’ representative organisations in accordance with ILO conventions and creating an enabling institutional environment for fairer public policy, with citizens and civil society empowered to participate and provide feedback; and monitor and reduce inequality as part of poverty reduction.

The index ranks 158 governments on their policies on public services, tax and workers’ rights, three areas pivotal to reducing inequality and weathering the COVID-19 storm.

The analysis reveals that very low spending on public healthcare, weak social safety nets and poor labour rights meant the majority of the world’s countries were woefully ill-equipped to deal with COVID-19.

The CRII shows that only 26 out of 158 countries were spending the recommended 15 per cent of their budgets on health prior to the pandemic, and in 103 countries at least one in three workers lacked basic labour rights and protections, like sick pay, when the virus struck. 

The index highlights that no country in the world was doing enough to tackle inequality prior to the pandemic and while COVID-19 has been a wake-up call for some, many countries are still failing to act. This is helping to fuel the crisis and has increased the vulnerability of people living in poverty, especially women.

Women, who generally earn less, save less and hold insecure jobs, have been particularly hard hit by the lockdowns introduced in response to the pandemic while unpaid care work and gender-based violence have increased dramatically. Nearly half of the world’s countries do not have adequate legislation on sexual assault and 10 countries have no laws on equal pay or gender discrimination.  VNS

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