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Vietnam's Communist Party congress selects leaders and sets bold economic goals

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Vietnam's ruling party convenes to shape future leadership and policy

The Communist Party of Vietnam has begun its five-yearly congress in Hanoi, where 1,600 delegates will decide on the country's next top leaders and outline economic priorities for the coming half-decade.

Key decisions at the congress

The week-long gathering, which concludes on January 25, will finalize the selection of the party's highest-ranking officials, including the general secretary-the most powerful position in Vietnam's one-party system. Current general secretary To Lam, 68, is widely expected to retain his role after taking office in August 2024 following the death of his predecessor, Nguyen Phu Trong.

The congress will also approve policy documents guiding Vietnam's economic and foreign policy trajectory for the next five years. Among the central challenges is maintaining the country's rapid growth, which has averaged over 6% annually for decades, while navigating external pressures such as U.S. trade tariffs.

Economic ambitions and challenges

Vietnam's leadership has set an ambitious target of 10% economic growth by 2026, a steep climb from current levels. Observers note that achieving this goal will be difficult but critical for the Communist Party's legitimacy, which hinges on delivering sustained prosperity.

The country remains a major manufacturing hub in Southeast Asia, attracting foreign investment as companies diversify supply chains away from China. However, corruption scandals have destabilized political leadership in recent years, with the last two presidents removed from office amid graft allegations. Additionally, Vietnam faces ongoing trade tensions with the U.S., including a 20% tariff on its exports imposed under former President Donald Trump.

Despite these hurdles, official data shows Vietnamese exports to the U.S. surged 28% to record levels, underscoring the resilience of its export-driven economy.

Leadership selection process

The congress will elect a new Central Committee of approximately 200 members, who will then choose 17 to 19 members for the Politburo-the party's top decision-making body. The Politburo, in turn, will select the general secretary and other senior leaders in a tightly controlled, non-competitive process. The Vietnamese public has no direct role in these selections, and approvals are typically near-unanimous.

To Lam, a former police official, has positioned himself as a reformist leader, vowing to transform Vietnam into an upper-income, technology-driven economy by 2045. Since taking office, he has pushed for administrative reforms, private-sector growth, and expanded the authority of the public security ministry, which he once led.

Potential consolidation of power

Reports from Reuters and Bloomberg suggest To Lam may seek to merge the roles of general secretary and president into a single position for the next term. While he briefly held both roles from May to August 2024, and his predecessor did so from 2018 to 2021, such arrangements have historically been temporary. A formal merger would further centralize authority under his leadership.

The timeline for forming Vietnam's new government has been accelerated this year. Legislative elections are scheduled for March 15, with the new National Assembly set to convene in April to formally appoint senior leaders.

What to expect next

The congress will conclude on January 25 with the announcement of the new leadership lineup. To Lam is expected to deliver the closing speech, outlining the party's vision for the next five years. Analysts will be watching closely to see whether he secures another term as general secretary and whether his proposed reforms gain traction amid economic and geopolitical uncertainties.

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