Political strife may hit business sentiment in Vietnam

Significance

The government statement announcing the news alluded to “violations” and “shortcomings” that adversely affected public opinion and the CPV’s reputation. Thuong became president on March 2, 2023, just over six weeks after Nguyen Xuan Phuc resigned from the post, held responsible for corruption under his watch.

Impacts

• Hanoi will continue to pursue a carefully balanced foreign policy amid domestic political upheavals.
• The authorities could impose further restrictions on the activities of civil society groups.
• Problems with infrastructure and power supply could impact ease of doing business, especially in northern provinces.