Vietnam: With 10% growth promise, To Lam wins second term to rule export-dependent country

Key Highlights

• North Korea's Kim sacks vice premier during speech over 'incompetence'SWEEPING REFORMSDuring his brief prior stint as party chief since mid-2024, Lam presided over fast growth underpinned by sweeping reforms that won him strong support but also criticism, as tens of thousands of civil servants lost their jobs while he promoted faster decision-making and less red tape. Aware of the discontent stirred by those reforms, Lam moved early to secure support from rival factions within the party, including the powerful military, according to officials familiar with the process. As concerns mounted about his plans to bolster private conglomerates at the expense of state-owned firms, Lam issued a directive ahead of the party congress underscoring the “leading role” of state enterprises, which include army-controlled telecom and defence giant Viettel.“He normally meticulously prepares for his moves,” said Le Hong Hiep, senior fellow at the ISEAS Yusof Ishak Institute, noting that Lam, as state security minister, had manoeuvred deftly to reach the apex of Vietnam’s political system in 2024 when his late predecessor Nguyen Phu Trong was facing prolonged health issues. Quick ReadsView AllWill Shehbaz Sharif be forced to withdraw Pakistan from Trump’s Board of Peace?India and EU expected to announce conclusion of trade talks on TuesdayIn an address to the congress after his re-election, Lam, 68, said he would maintain party unity.
• He is also seeking to become Vietnam’s president, with a decision expected to be announced later. Lam’s re-election as party chief sends a reassuring message to foreign investors who value political stability, Hiep said. Hiep added, however, that Lam’s bid to combine the two top roles — a system resembling the model under Xi Jinping in neighbouring China — “could pose risks to Vietnam’s political system,” which has traditionally depended on collective leadership and internal checks. STORY CONTINUES BELOW THIS ADLAM TARGETS 10% ANNUAL ECONOMIC GROWTHEarlier this week, addressing congress delegates sitting in red-upholstered seats in a red-carpeted conference hall under a towering statue of party founder Ho Chi Minh, Lam promised annual growth above 10% through the decade - an ambitious target which differs from World Bank forecasts of an average 6.5% yearly expansion this year and next. Lam wants to achieve that by changing Vietnam’s growth mod.