The Vietnamese Communist Party accepted President Vo Van Thuong’s resignation on Wednesday, the federal government said in an announcement citing “shortcomings,” an indication of political turmoil that might damage foreign investors’ confidence within the country.
The government said in an announcement that Thuong had violated party rules, adding that these “shortcomings have had a negative impact on public opinion, affecting the popularity of the party, the state and himself personally.”
The Central Party Committee, the best decision-making body in Communist Party-ruled Vietnam, approved Thuong’s resignation only a 12 months after his election.
The president’s role is especially ceremonial, but is considered one of the 4 most vital political positions within the Southeast Asian country.
How will Vietnam’s improved partnership with the US impact its relations with China and Russia?
How will Vietnam’s improved partnership with the US impact its relations with China and Russia?
The committee’s meeting was preceded by a rare meeting of Vietnam’s parliament scheduled for Thursday, during which MPs are expected to substantiate the party’s decisions.
All major changes within the leadership of the one-party state have recently been linked to a widespread “burning furnace” anti-corruption campaign that goals to stamp out widespread corruption, but critics also suspect it of being a tool of political conflict.
Thuong, 53, resigned days after Vietnamese police announced a decade ago the arrest for alleged corruption of the previous head of Quang Ngai province in central Vietnam, who served when Thuong was party chief there.
Thuong was widely believed to be near Secretary-General Nguyen Phu Trong, Vietnam’s strongest figure and the chief architect of the anti-corruption campaign.
Last 12 months, when former President Nguyen Xuan Phuc resigned after the party accused him of “violations and misconduct” by officials he controlled, it took lawmakers a month and a half to nominate Thuong as his successor.
The current political crisis could also be resolved with a fast election of a brand new president, but there stays a risk that repeated reshuffles in top management positions will harm business sentiment in a rustic that is basically depending on foreign investment.
The Ho Chi Minh City Stock Exchange, the country’s predominant stock exchange, lost almost 3 percent in the primary hours of trading on Monday after news of the president’s imminent resignation began to flow into.
According to the Mirae Asset Securities brokerage, net sales by foreign investors in the primary two days of the week amounted to about $80 million.
“Thuong’s removal may result in a further slowdown in political and administrative decisions as officials become more concerned about the progress of the anti-corruption campaign,” said a Vietnam-based adviser to foreign corporations, noting, nevertheless, that Vietnam’s position on key policies won’t change.
