The Vietnamese legislative body accepted the resignation of its chairman, Vuong Dinh Hue, according to a statement released on Thursday. This announcement follows a heightened anti-corruption effort led by the Communist Party that governs the country. Hue’s exit had already been made public in the previous week by the party’s central committee.
His departure alongside the late March resignation of president Vo Van Thuong, leaves two of the country’s four major leadership positions vacant. This situation potentially instigates questions surrounding Vietnam’s political stability, however, foreign investments remain uninterrupted for the time being.
The retired chairman Hue (67) and the ex-president Thuong (53) have both been openly chastised for unspecified transgressions and failings. These accusations surfaced following corruption scandals that implicated individuals closely associated with them. Thuong’s predessor also resigned midway through his tenure the previous year. Neither of the officials offered a public response to these charges.
These leadership exits are believed to be a ripple effect of the comprehensive “blazing furnace” anti-bribery campaign initiated in 2016 by the party’s increasingly advanced-in-years general secretary, Nguyen Phu Trong. The past two years have seen a surge in the campaign’s severity, in anticipation of the party’s quinquennial congress and a 2026 top-post reshuffle.
State media reported that Tran Thanh Man, Hue’s deputy, has been appointed as an temporary replacement. Man (58), an economics PhD holder and a member of the influential politburo, steps in at a time when five of its 18 statutory members have resigned, each related to the anti-bribery initiative.
As the former parliamentary head, Hue was considered a potential contender for the general secretary role, the most influential position in Vietnam. Alongside the party leader, president and prime minister, he was part of the country’s four governing “pillars”.
Scheduled to commence on May 20th, the National Assembly will convene for a standard, month-long session during which a new president and parliamentary chair could be appointed, following their identification by the Communist Party.
Foreign investors, who significantly contribute to Vietnam’s economy, associate their involvement with the country’s political stability. Even in the currently shifting political landscape, their sentiment has largely remained unaffected. This resilience was highlighted in a post-resignation survey from the European Chamber of Commerce in March which indicated rising business confidence.
According to the statistical office in Vietnam, foreign investment pledges dipped marginally in March, dropping to $1.9 billion, but saw a rebound in April, climbing to $3.1 billion, largely due to investments from China and Hong Kong. A foreign advisor based in Vietnam, who chose to remain anonymous due to the sensitivity of the subject, mentioned that the consequences of political instability might take time to surface and be difficult to quantify.
Investors frequently express concerns about the potential negative impact on administrative procedures and reforms due to political instability and the escalation of the anti-corruption campaign. However, they do not challenge the Communist Party’s authority. Some investors perceive the fight against corruption as beneficial for business, although the campaign’s outcomes remain ambiguous.
It’s worth noting that corruption is still prevalent in Vietnam. Based on a study co-sponsored by the United Nations Development Programme in 2023 and disclosed in March, as many as 80 per cent of the residents surveyed in certain Vietnamese provinces admitted to giving bribes to access public health services, while it’s still quite common to offer “bribes for job opportunities in the public sector”. (Reuters)