In a recent development, Vietnam's Vice President has been appointed as the acting president following the resignation of the previous president after just a year in office. The resignation has raised concerns among foreign investors about political instability in the country, which is a key manufacturing hub and a significant player in the global U.S.-China competition.
The acting president, a 54-year-old who assumed the vice presidency in 2021, will be serving in this role for the second time. The former president resigned due to unspecified violations that were deemed detrimental to the party and the state's reputation. This move underscores the ongoing anti-corruption campaign within the Communist Party.
The succession process within the party is expected to be complex and may extend until the National Congress in 2026, where the successor to the current party chief will be determined. The outgoing president's departure highlights the impact of the anti-corruption efforts led by the current party chief, who has been in power since 2011.
The presidency, although largely ceremonial, holds significance in the political hierarchy and is a stepping stone to higher leadership positions within the party. The recent resignation came amidst investigations into corruption allegations involving a real estate firm and tax evasion amounting to millions of dollars.
Vietnam's efforts to balance its relationships with China and the U.S. while attracting businesses looking to diversify their supply chains have been affected by the ongoing anti-corruption campaign. The drive has led to increased power for enforcement agencies and has been both a tool for consolidating leadership authority and a means for purging political rivals.
Analysts have cautioned that the anti-corruption measures have created uncertainty for foreign investors, impacting the country's business environment. Recent postponements of high-profile visits to Vietnam have further fueled speculation about potential political changes in the country.
