Vietnam’s Communist Party has accepted the resignation of Chairman Vo Van Hang, the government said on Wednesday, a sign of political unrest that could damage foreign investors’ confidence in the country.
Bloomberg | Bloomberg | Getty Images
Vietnam’s Communist Party has accepted the resignation of Chairman Vo Van Hang, the government said on Wednesday, a sign of political unrest that could damage foreign investors’ confidence in the country.
The government said in a statement that Thuong had violated party rules, adding that these “shortcomings had a negative impact on public opinion and affected the party, the country and his personal reputation”.
The Central Committee, the highest decision-making body of the Communist Party of Vietnam, approved Thuong’s resignation about a year after his election.
The president serves primarily in a ceremonial role but is one of the four major political offices in the Southeast Asian country.
Calls to the Blue House on Wednesday went unanswered.
before committee meeting special meeting Vietnam’s rubber-stamp parliament is scheduled to convene on Thursday, where delegates are expected to confirm the party’s decision.
The government statement did not elaborate on Thuong’s shortcomings, but recent major leadership changes in the one-party state have been linked to a broad “fiery furnace” anti-bribery campaign.Its purpose is to eliminate Corruption is widespread But it is also suspected by critics to be a tool for political infighting.
Foreign investors and diplomats have repeatedly accused the campaign of slowing down decision-making in a country already struggling with a cumbersome bureaucracy.
Thuong, 53, who served as party secretary of central Vietnam’s Quang Ngai province, resigned just days after Vietnamese police announced the arrest of a former governor of Quang Ngai province in central Vietnam on suspicion of corruption a decade ago.
He also served as a top party official in the economic hub of Ho Chi Minh City, which has been rocked by a long-standing multi-billion dollar financial scam and is currently undergoing a massive trial. Currently in progress.
Thuong is widely believed to have close ties to Vietnam’s most powerful figure, the elderly General Secretary Nguyen Phu Trong, the main architect of the anti-corruption campaign.
Last year, after former President Nguyen Xuan Phuc resigned The party accused him It took lawmakers a month and a half to appoint Thuong as his successor due to “illegal and inappropriate conduct” by officials under his control.
The current political crisis is likely to be resolved with the swift election of a new president, but repeated reshuffles in top leadership could damage business confidence in a country that relies heavily on foreign investment.
The Ho Chi Minh City Stock Exchange, the country’s main exchange, fell nearly 3% in the opening hours on Monday after news began to circulate that the president was resigning.
Net selling by foreign investors in the first two days of the week was about $80 million, according to broker Mirae Asset Securities.
A foreign business consultant in Vietnam said that “Thuong’s removal may lead to further slowdown in policy and administrative decision-making as officials become more anxious about the progress of the anti-corruption campaign,” but noted that Vietnam’s stance on key policies will not Change.
Investors, who mostly praise political stability, may not accept the premature departure of two presidents within about a year.
Florian Feyerabend, representative of the German think tank Konrad Adenauer Foundation in Vietnam, said recent developments raised questions about the “predictability, reliability and inner workings of systems on which investment decisions depend.” “The problem.
But he pointed out that “the overall political governance system remains stable” and Vietnam’s foreign policy aimed at maintaining good relations with the United States and China will not change.
About The Author
