The BGA Vietnam Team, led by Managing Director Nguyen Viet Ha, wrote an update to clients on the biannual plenum of the Central Committee of the Communist Party of Vietnam.

Context

  • The Central Committee of the Communist Party of Vietnam — the highest decision-making body of the Communist Party of Vietnam — held its biannual plenum in Hanoi from October 2-8. Nearly 200 delegates, including Politburo members, Cabinet members and provincial leaders, gathered to deliberate the country’s socioeconomic development and budgeting plans for 2023-2024. They also dismissed some local leaders who were allegedly involved in corruption and discussed candidacy for the party’s National Congress in 2026.
  • The delegates aligned on the need to reform the salaries of officials and state workers starting July 1, 2024. A budget of $20.5 billion was reportedly allocated for 2024-2026, but the government may need to increase state revenue through new taxes and collection methods to sustain the reform initiative.

Significance

  • Vietnam’s anti-corruption campaign continues to be emphasized at the plenum, suggesting a potential expansion of investigations. Earlier, some observers speculated that Central Economic Committee Chairman Tran Tuan Anh would be dismissed given his low votes of confidence in the last plenum. Others suggested a candidate would be selected to replace late Deputy Prime Minister Le Van Thanh. Neither of those rumors came true. Nevertheless, Central Committee on Foreign Affairs Chairman Le Hoai Trung, who was appointed to the Secretariat this plenum, could replace former Deputy Prime Minister Pham Binh Minh.
  • The Central Committee dismissed three local leaders from the party due to their involvement in corruption cases that are under investigation. They include the former Chairman of Thanh Hoa Provincial People’s Committee Nguyen Dinh Xung (2015-2020), Ben Tre province Party Secretary Le Duc Tho and former Quang Ninh province Party Secretary Nguyen Van Doc (2015-2020). Doc was the successor of Prime Minister Pham Minh Chinh when he was the party secretary of Quang Ninh province from 2011-2015. The Central Committee also dismissed Standing Deputy Party Secretary Dieu K’re of Dak Nong province from the committee due to misconduct.

Implications

  • The Central Committee endorsed adjustments to Vietnam’s 2023-2024 socioeconomic indicators. Notably, 2023 gross domestic product growth has been revised from 6.5 percent to 5 percent, and the consumer price index has been reduced from 4.5 percent to 3.5 percent. Although Vietnam’s economic growth will fall short of expectations, Communist Party General Secretary Nguyen Phu Trong in his closing remarks at the plenum said the country is still “a bright spot in the dark picture of the global economy.” Looking ahead to 2024, the government’s priorities will be improving the quality of growth, boosting employment, increasing the income of local laborers, maintaining a healthy macroeconomy and balancing between economic growth and social welfare. Economic growth is expected to rebound to 6-6.5 percent in 2024.
  • The Central Committee has endorsed an initial list of candidates for the coming term (2026-2031). The candidates will need to be monitored, examined, supervised and trained before they are included in the final list, on which National Congress members will vote in January 2026. It is not uncommon for some candidates to be disqualified and removed from the initial list. In the subsequent stages, the Central Committee will select candidates for membership in the Politburo, the Secretariat and Vietnam’s four top leadership positions: the party general secretary, state president, National Assembly chair and prime minister.

We will continue to keep you updated on developments in Vietnam as they occur. If you have any comments or questions, please contact BGA Vietnam Managing Director Ha Nguyen at vietha@bowergroupasia.com.

Best regards,

BGA Vietnam Team

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Managing Director

Ha is a highly respected Vietnamese lawyer, with special expertise in financial transactions, mergers and acquisitions, as well as general business, trade and investment-related issues. Before joining BGA as managing director for Vietnam, Ha managed the Vietnam operations of BrooksBowerAsia for three years. She built and led the Vietnam team and serviced clients in various sectors ranging from energy and ICT to healthcare, logistics and consumer production. Ha practiced law in Vietnam in the 1990s, providing legal advice and consulting services to Fortune 500 clients. She also participated in drafting a number of laws and regulations, including the Foreign Investment ... Read More