BANGKOK – Vietnam's president has resigned in the latest episode of the ruling Communist Party's “burning furnace” anti-corruption campaign, with Vice President Vo Thi Anh Xuan appointed acting president.
Xuan's appointment as acting president will be the second time he has been appointed acting president, having taken office when his predecessor, Vo Van Thuong, resigned in early 2023. The turmoil in top leadership has cast doubt on Vietnam's political stability as the fast-growing economy plays an increasingly important role in global supply chains. .
Vietnam relies heavily on exports and foreign investment, but leaders are tightening the party's grip on power and cracking down on opposition and widespread corruption. Analysts say the leadership change, pinned to the anti-corruption movement, also stems from conflicts within the ruling party.
political turmoil in Vietnam
Tuong is the second president in two years to step down, but his role is largely ceremonial. The most powerful post is held by Communist Party Secretary-General Nguyen Phu Trong.
Xuan's appointment as acting president until parliament elects a new president is a rare example of a woman being promoted to a top political post in a Southeast Asian country.
State media announced Tuong's resignation, saying his violations had “left a negative stain on the Communist Party's reputation.” His resignation came days after the former head of Vietnam's central Quang Ngai province was arrested on corruption charges. Mr. Tuong is a former party leader in the province.
Mr. Tuong is a protégé of Mr. Trong, 79, who has been party leader since 2011, and it is unclear how the change will affect Vietnam's future leadership.
Who is the acting president of Vietnam?
Xuan, 54, has been serving as vice president since 2021. The former high school teacher is Vietnam's first female president, but she served as acting president for six weeks last year after Nguyen Xuan Phuc resigned amid a Vietnam-related scandal. Response to the novel coronavirus pandemic.
Vietnamese state media reported that Xuan studied chemical education and holds a master's degree in public administration. She initially rose to the ranks of her party as a leader of the women's union in southern Vietnam's An Giang province.
Official media have provided little detailed information about Xuan.
What is the likely impact of this personnel change?
Vietnam's economy has boomed over the past decade due to an influx of foreign investment, making the country a preferred alternative to China as relations between China and the United States deteriorate.
A rush of foreign investment, especially in the manufacturing of high-tech products such as smartphones and computers, has raised hopes that this will become another “Asian Tiger” economy. Almost half of Vietnam's manufacturing industry involves multinational companies, so investor trust is crucial.
Analysts say the anti-corruption campaign has made some progress in cracking down on illegal fees and other costs at domestic companies. However, it also triggered a series of scandals and heightened political uncertainty. Due to the slowdown in exports, the economic growth rate fell from 8% last year to 5.1% in 2022.
Vietnam's leaders also significantly narrowed the scope of dissent in the country, jailing clean energy experts and environmental activists. Meanwhile, the anti-corruption campaign, which Chong described as a “flaming furnace”, has benefited thousands of businessmen and government officials. Real estate tycoon Truong My Lan faces the death penalty for allegedly embezzling $12.5 billion. Lan's trial began in Ho Chi Minh City earlier this month. This is the largest financial fraud case in Vietnam's history, amounting to nearly 3% of Vietnam's gross domestic product (GDP) in 2022.
What's next?
Vietnam's leaders next plan to convene a Communist Party congress in early 2026. Until then, experts say there could be further turmoil as rivals to replace Chung vie for supremacy.
The anti-corruption drive has also made Vietnam's bureaucracy more cautious, with “public servants anxious about being investigated and avoiding responsibility,” according to a report by Singapore's ISEAS-Yusof Ishak Institute. That's what it means. Government spending is also slowing for similar reasons, state media reported.
“Even after a new president is elected, political infighting is likely to continue until 2026 unless a clear succession plan is announced for Mr. Chong,” said Yusof Ishak, senior fellow at ISEAS and Vietnam Research Institute in Singapore. said program coordinator Le Hong Hiep. said in the report.
“In the meantime, investors and Vietnamese partners will have to endure the country's new political realities,” he said.
—Associate Press writer Aniruddha Ghosal in Hanoi, Vietnam contributed to this report.