Vietnam’s Communist Party has confirmed the resignation of President Vo Van Thuong, aged 53, citing alleged violations of party rules.
Thuong’s departure, occurring just over a year into his tenure, signals political unrest that could impact foreign investor confidence in the country.
According to reports by NBC News, the government stated that Thuong’s actions had adversely affected public opinion, tarnishing the reputation of the Party, State, and himself personally. The Central Party Committee, the top decision-making body in Communist Party-ruled Vietnam, approved Thuong’s resignation.
While the specifics of Thuong’s shortcomings were not disclosed, recent leadership changes in the one-party state have been linked to the “blazing furnace” anti-bribery campaign, aimed at curbing corruption but criticized by some as a tool for political maneuvering.
Foreign investors and diplomats have expressed concerns over the campaign’s impact on decision-making and bureaucratic processes, with some attributing delays to its implementation.
Thuong quit his office days after Vietnamese police announced the arrest for alleged corruption a decade ago of a former head of central Vietnam’s Quang Ngai province, who served while Thuong was party chief there.
Thuong had also served as a senior party official of economic hub Ho Chi Minh City, which has been rocked by a multi-billion-dollar long-running financial scam, for which a large trial is currently underway.
He was widely regarded as being close to aging General Secretary Nguyen Phu Trong, Vietnam’s most powerful figure and the main architect of the anti-graft campaign.
In 2023 when former president Nguyen Xuan Phuc quit after the party blamed him for “violations and wrongdoing” by officials under his control, it took one month and a half for lawmakers to appoint Thuong as his successor.
While the swift election of a new president may resolve the current political crisis, concerns linger about its impact on business sentiment.
Recent market reactions, including a 3% drop in the Ho Chi Minh City stock exchange on Monday due news circulating about the imminent resignation of the president.
Foreign investors’ net sales in the first two days of the week amounted to about $80 million, according to Mirae Asset Securities, a broker.
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A Vietnam-based adviser to foreign corporates said that Thuong’s “removal could see policy and administrative decisions slow further as officials are more anxious about the arc of the anti-corruption campaign,” noting however that Vietnam’s position on key policies would not change.
Florian Feyerabend, representing Germany’s Konrad Adenauer Foundation in Vietnam, emphasized the stability of Vietnam’s political system but noted potential implications for investment decisions.
Despite uncertainties, He noted that “the overall political system of governance remains stable,” and Vietnam’s foreign policy aimed at maintaining good relations with both the United States and China is expected to remain unchanged. #Vietnam President Resign
Credit: NBC News.
