Commentary: Two presidents ousted in one year - what is Vietnam’s political outlook?

SINGAPORE: The Central Committee of the Communist Party of Vietnam made an announcement on Wednesday (Mar 20) that it had accepted President Vo Van Thuong’s resignation from all official and party positions.

On Thursday, Vietnam’s National Assembly convened an extraordinary session to officially vote on his resignation, just one year into his presidency. Thuong is understood to be involved in a bribery scandal related to local real estate developer Phuc Son, which is currently being prosecuted on different corruption charges.

Unofficial but reliable sources have indicated that during the time he was still serving as Party Secretary of Quang Ngai Province (2011 to 2014), one of Thuong’s relatives received 60 billion dong (US$2.4 million) from Phuc Son, allegedly for Thuong to build his ancestral shrine.

Thuong’s resignation marks the beginning of a new phase of political uncertainty in Vietnam. Since the Party’s 13th National Congress in early 2021, there have been numerous high-profile dismissals and prosecutions, including four Politburo members (including Thuong and his predecessor Nguyen Xuan Phuc), a deputy prime minister, two ministers, and over a dozen provincial leaders.

The swift replacement of presidents is particularly noteworthy, as Phuc was also removed from office after less than two years in early 2023.

Like Phuc’s, Thuong’s departure will not result in significant policy shifts. But it has raised concerns among investors. Many of these investors were drawn to Vietnam precisely because of its relatively stable political climate compared to other countries in the region. However, the news of Thuong’s pending departure has added to their unease.

To make matters worse, General Secretary Nguyen Phu