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To browse Academia. Skip to main content. You're using an out-of-date version of Internet Explorer. Log In Sign Up. Alexander Vuving. This version was obtained electronically direct from the publisher on condition that copyright is not infringed.

Vuving The Evolution of Vietnamese Politics The state of Vietnamese politics since the reunification of the country in has been evolving as the triumph, crisis, and course correction of first a totalitarian state and then a rent-seeking state.

During the period from to , the triumphant Communist Party of Vietnam CPV imposed a totalitarian state that planned everything and forced its programmes on the population. The totalitarian state, however, failed miserably to motivate people to work and soon plunged into a severe crisis.

The death of party chief Le Duan and the election of Truong Chinh as general secretary of the CPV in paved the way for a sweeping correction of the totalitarian state. Doi moi mainly consisted of the gradual introduction of the free market and the selective loosening of totalitarian politics.

By the mids, this hybrid had succeeded in bringing the country out of the grave economic crisis and putting it on a rapid growth path, while maintaining CPV rule and breaking out of international isolation.

As this triple success made doi moi a long-term principle of Vietnamese politics, the hybrid also changed the nature of the Vietnamese state. Vuving is Professor at the Daniel K.

Vuving state focuses on extracting payments from society. Dung pursued an economic policy that relied on high investment and state-owned conglomerates. In early , months ahead of the global financial turmoil that started the same year, Vietnam fell into a prolonged period of economic slowdown. At the 12th National Congress of the CPV in January , Dung was forced to retired, while Trong was granted an exception to stay in power despite exceeding the age limit.

Where will this path lead? As all land in the country belongs to the communist state, leaders of local government and state-owned companies are virtually owners of the best real estate, which they can take from one user and sell to another, while pocketing the large difference in the buying and selling prices of land.

Absent any effective mechanism of punishment, many government officials often favour their family members and cronies in their decisions. Also, businesspeople with good connections to policymakers can easily influence policies. During his premiership, Dung built a private empire with two major wings in the industrial and financial sectors, along with multiple tentacles in the provinces, the police and the military.

One of his key allies in the industrial wing was Dinh La Thang, who was chief executive and chairman of PetroVietnam, the national oil and gas company, from to , and Minister of Transportation from to Thang became a Politburo member at the 12th CPV Congress, but was arrested on 8 December and, after an unusually rapid process, sentenced to thirty years in prison. Ha had been under investigation for years, but the final decision to prosecute him was not made until the summer of In one instance, with the support of then state bank governor Nguyen Van Binh currently a Politburo member and head of the Party Central Economics Department , Ha and Nguyen Duc Kien chairman of the then- largest private bank, Asia Commercial Bank lent billions of dollars to Tram Be, whose Southern Bank was technically in default, in order to gain a majority of shares and then take over the best-performing Sacombank.

Sacombank was then chaired by Dang Van Thanh, a close friend of the then deputy prime minister and current prime minister Nguyen Xuan Phuc. While Kien was jailed back in , Be was arrested only in late July For their responsibilities in the deal, Minister of Information and Communication Truong Minh Tuan lost his seat in July , while his predecessor, Nguyen Bac Son, a former secretary of former president Le Duc Anh a Dung ally , was stripped of his former title.

The two would be arrested in February Vuving including not only the culprits but also those who were actually against the deal but were pressured to sign supporting documents, such as then CEO of MobiFone Cao Duy Hai and then minister of planning and investment Bui Quang Vinh. At the same time, however, more senior officials who had approved the deal, including Dung and President Tran Dai Quang who was former minister of public security , remained untouched. Vu fled to Singapore but was extradited to Vietnam in January These men would be brought to court on 30 July and charged for corruption.

Tan was the intelligence chief from to and a deputy minister of public security from to , while Thanh had served as a deputy minister of public security from until his dismissal in August Their major wrongdoings were related to the mismanagement of lands in downtown Saigon, Nha Be and Thu Thiem, where huge differences in land prices can be created with a single administrative decision.

Their massive land grab at Thu Thiem, a district selected more than two decades ago for development into an international financial hub, was the cause of one of the largest popular agitations in the year. However, Lan has so far avoided investigation. A Battle on Two Fronts Although much intensified than before, the anti-graft drive still remains limited in strength. Vuving to dismiss him altogether. A reform advocate, Hao has pioneered a publishing house promoting liberal thought. In August his publishing house received the first party inspection, but the second was not made until October , after the 12th CPV Congress.

The third and fourth inspections took place in Meanwhile, the public remained largely discontented with the quality of governance and the continued strength of the rent-seeking apparatus. Increasingly disgruntled, people have resorted to more vigorous whistle- blowing, petitioning, protests and civil disobedience.

In one innovative form of protest, truckers started to pay for tolls with small change when they felt they were charged unfair tolls, inducing the operators to lift tolls to mitigate traffic jams. This, and the ease of inflating toll prices, made the BOT roads into a goldmine for corrupt businesses and an excellent pool of kickbacks for leaders in the transportation ministry to use as bribes to powerful people.

With the help of transportation officers like Thang and Nguyen Van The, who is currently the minister of transportation, family members and close associates of many party, military and police leaders such as former party chief Nong Duc Manh, former CPV Central Inspection Committee chair Ngo Van Du, former minister of defence Thanh, and President Quang have gained the best of the toll roads.

Meanwhile, protests continue to persist at several toll gates: there are occasions when drivers and local residents peacefully took over the gates, while in some instances truckers have simply knocked the barriers down.

From 9 to 11 June, a hundred thousand Vietnamese took to the streets at several locations throughout the country to oppose the two draft laws on special administrative-economic zones and cybersecurity, with the largest gathering comprising factory workers in Ho Chi Minh City. While the demonstrations were generally peaceful in most cities, protesters stormed government buildings, burned vehicles and fought with police in Binh Thuan province. By November , more than protesters had been imprisoned.

Agitation over the bills had been brewing for more than a week on social media before the protests broke out on the streets, even after the National Assembly postponed the passage of the Special Zone Act. Feeling intense pressure from the population, the Politburo decided, at the very last minute, to postpone the vote in the parliament on the bill, previously scheduled for 9 June. Although the law did not specify any particular country, it was widely believed that China, with its deep pockets and close proximity, would dominate investments in these special zones and turn them into de facto Chinese territories.

Leadership Selection Although the 12th CPV Congress put an end to the primacy of rent-seekers at the top echelons, it did not terminate the dominance of rent-seekers in the system. This cadre continues to remain largely intact despite the spectacular anti-corruption campaign of the last two years. Only three members have so far been removed from the strong CPV Central Committee two others died. During , the party introduced new schemes for leadership selection. It established a new cadre strategy at the Seventh Plenum of the Central Committee in May, and, in a new practice, screened new candidates for the next Central Committee at the extraordinary Ninth Plenum in December.

In the new schemes of leadership selection, more powers are devolved to the lower levels, with the procedures made more transparent and apparently more democratic, but the controlling role remains in the hands of the incumbent leadership.

These two options however fell off the table in , the midterm year. On 21 September, Quang passed away after having fallen sick periodically since July The traditional separation of the two top positions in the party-state hence ceased to exist on 23 October, when the National Assembly elected Trong as state president.

While unusual, this is not the first time that a CPV leader has worn both hats. From to and during the latter half of , Ho Chi Minh and Truong Chinh were respectively party chief—cum—head of state. What is unprecedented, though, is that Trong is the first party chief to sit on both the Central Military Commission and the Central Party Commission for Public Security, the two party bodies that lead the military, police and security forces Trong joined the Central Party Commission for Public Security on 21 September While Xi is willing to take risks, Trong is extremely risk-averse.

A front-runner for the top job at the next party congress, Chinh has reason to hope for inheriting the dual hat when Trong retires in a little over two years. Based on a consensus formed during the last decades, the government vowed to advance substantial reform in the areas of institutions, infrastructure and human resources, as these were viewed as the key drivers but also the major bottlenecks of the economy.

The result, however, was a mere 13 per cent, with only 30 per cent of the eliminated requirements being of real significance. Expensive but shoddy roads continued to make headlines. Increased demand for air transportation and chronic traffic jams in the southern vicinity of the airport required an extension of the airport to the north, where land reserved for national defence has been leased by the military to a private company for a golf course. Under pressure from the public, the Ministry of Defence agreed to return the golf course land to the airport whenever the government so demands.

There was a plan in the summer to promote Nha to deputy prime minister but it never materialized because scandals of fraud, violence and corruption in the education field made public opinion turn against him. The year marked the first time that a domestic private company, Vingroup, appeared among the top ten largest companies in Vietnam.

Vingroup ranked sixth, while Samsung Electronics retained the top spot for the second year running. The government has been torn between two tendencies: one supports new modes of business created by the digital economy, the other sticks to the old way and prefers control and overregulation.

The battle between the two views see-sawed throughout the year, which ended with Grab losing its case, partially due to its evasion of rules and taxes, although the new welcoming attitude to the digital economy appears to prevail, also partially, in the new regulation. A successful entrepreneur, Hung brought in a new thinking on almost everything. He viewed the fourth industrial revolution as essentially a revolution of policy rather than one of technology, thus emphasizing the need for flexible and adaptive policies.

ICOR is incremental capital output ratio, which measures the inefficiency of investment. GDP figures are based on the supply side and might be about 3 percentage points less if based on the demand side. TFP figures may be inflated by around 10 percentage points.

In , the Trump administration launched a trade war against China, effectively starting a new period characterized by U. What makes Vietnamese government officials reluctant to accept the offer of Chinese aid money is the double worry about a debt trap and the ire of the public. Unlike in many other countries that have endorsed BRI, nearly all major infrastructure projects using Chinese money in Vietnam are dated from the pre- period.

However, it was opposed by most leading experts and unleashed strong waves of protest. In late August , when the State Bank of Vietnam allowed the use of Chinese renminbi as a medium of exchange in the provinces bordering China, it provoked a large controversy among the public as well as in the parliament. It seems apparent that some modus vivendi was reached with China during the annual meeting of the China-Vietnam Steering Committee for Bilateral Relations on 16 September.

This visit was unprecedented in that it broke the previous rule of having a U. In the summer, Vietnamese military participated for the first time in the U. The years —18 have also witnessed at least thirteen U.

Navy ship visits to Vietnam, despite the rule of one visit per year for any foreign country. Mai also suggested cooperation on revising the law to comply with international labour standards. Vuving TPP in at the invitation of the United States in the hope that it would provide a huge market for Vietnamese goods, external pressure for economic reform and a geopolitical counterweight to China. The asymmetry of trade with China and the American turn towards protectionism has pushed Vietnam farther on the free trade path.

Trong also said that defence and security were the top priority in relations with these two countries.



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