One of Southeast Asia’s fastest-growing economies is facing a sudden change in political leadership.
Vietnam’s president has resigned.
The move adds uncertainty to a country that’s been attracting a great deal of foreign investment.
The government has given few details — releasing a statement that Vo Van Thuong has violated the rules of the Vietnamese Communist Party.
The president is not the primary leader in Vietnam, although the office is second among the four senior government roles.
There’s also the Prime Minister and the Chair of the National Assembly, but the focus of power is the general secretary of the Communist Party.
Thuong was only president for about a year—and his predecessor resigned after the Communist Party blamed him for wrongdoing by officials under his authority.
Despite the political turmoil, Vietnam has seen a relative surge in investment from overseas.
On Tuesday, the Prime Minister told an investor conference that foreign direct investment in the country increased by nearly a third in 2023 compared to a year earlier.
One factor driving that investment is a search for regional manufacturing alternatives outside China.
Apple has shifted some of its production from China to Vietnam.
Intel has invested one and a half billion dollars in assembly and testing facilities in the country.
And Nike now makes more of its footwear and apparel in Vietnam than in any other country.
