Vietnam warns of economic calamity at ASEAN summit

HANOI: South East Asian leaders warned the virus pandemic had swept away years of economic gains and was hindering negotiations over the flashpoint South China Sea as they met online for a delayed summit.

Vietnam, the current chair of the Association of Southeast Asian Nations (ASEAN), had wanted to use the summit to inject momentum into talks on a sprawling China-backed trade pact. But the immediate focus for the 10-member bloc was 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 emphasized the “serious consequences” of the pandemic for economic development among ASEAN’S 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.

There is also increasing angst that the fallout from the virus has provided cover for new Chinese plays in the South China Sea, the resource-rich waterway Beijing claims most of but is also contested by Vietnam, the Philippines, Malaysia and Taiwan.

In a draft statement seen by AFP, ASEAN leaders noted concerns over “land reclamations, recent developments and serious incidents” in the South China Sea.

Philippines President Rodrigo Duterte—using strong language for a leader that is seen as having pivoted toward China from its traditional ally the United States— urged all parties “to refrain from escalating tensions and abide by responsibilities under international law”.—AFP