Economic target in fine health despite flu fear

Head of the World Bank Vietnam Klaus Rohland, who said the flu may continue without human-to-human transmission so its impact on the economy would be limited, estimated a 0.1 per cent reduction of the GDP this year.
He said with the strong performance of the economy in the first six months of the year, Vietnam’s economy could reach a growth rate of about 8 per cent. However, that would still be 0.4 per cent lower than the government’s target.
A recently released report by the World Bank entitled “The Cost of Avian Influenza in Vietnam” stated that the net impact of the avian influenza outbreak could have a combined effect on poultry production, the production of eggs and the production of substitute livestock.
“While the SARS outbreak led to a dramatic decline in the number of tourist arrivals to Vietnam, the effect of avian influenza was much smaller,” the report stated.
“A late 2005 outbreak could have a more sizeable impact if fears about transmission from birds-to-humans become more widespread,” it added.
“But the impact could be smaller too, as other countries gradually start reporting cases of avian influenza, reducing the focus on Vietnam.”
World Bank lead economist Milan Brahmbhatt said the impact of avian flu on the economy would become more serious if human-to-human transmission occurs.
He added that some urgent measures the government should take include compensating farmers who have livestock infected with avian flu, together with reinforcing the surveillance system.
The report stated that Vietnam is now embarking on a much more determined fight against avian influenza, including devoting “$36 million to prevention and vaccination, while experiencing a $35 million loss in agricultural output.”
“Dealing with the influenza threat requires an approach that brings together agriculture, animal health, human health, and finance, along with the best technical help from international agencies who are currently mobilising to support the country’s initiatives,” Brahmbhatt said.
In the latest move, Prime Minister Phai Van Khai released instructions requiring local authorities and ministries to pay special attention to a possible outbreak of avian flu, in addition to outlining serious preventative measures.
Metro Cash & Carry Vietnam Ltd., one of the biggest wholesale and retail sale supermarkets, last week announced it will stop importing poultry from domestic suppliers while minimising the import of poultry from foreign suppliers from Australia, Argentina, and the United States.
“All the poultry imported from overseas will have to be certified by quarantine permits and have certificates from health agencies,” said James Scott, the company’s general director.
Metro Cash & Carry Vietnam is committed to its long-term operation in Vietnam and just established its sixth Metro outlet, which is expected to open in Danang by mid-December.