Key Points
The most recentis PresidentVo Van Thuongs resignation onMarch 20, making him the latest senior official to step down amid widening probes into some of the countrys top leadership..
Companies looking to diversify their risk away from Chinaset up factories and poured in investments.This year started strongly, too, with a record influx of foreign funds of over $4.29 billion in January and February, marking an increase of 39%compared to the previous year..
But this anti-graft pushamong the partys officials has been a feature of the Communist regime, mirroring what China has been doing in recent years.Earlierthis month, policearrestedthree senior provincial party officials for allegedly receiving bribes..
The result, though, is an unnervingleadership vacuum at a time when one of the worlds fastest-growing economies isfacing a surprise decline in exports and concerns over inflation.The next National Congress isnt scheduled until 2026, which means that the nation once prized for its predictability is now facing a chaotic few years, unless a smooth path to succession is laid out..
The government needs to ensure that there is atransparent legal framework to continue its efforts to clean up graft in both the public and private sectors,to avoid any hint that these measures are a way to remove factions or political enemies from the partys rank and file..
