On 23rd January, the central committee of Vietnam unanimously reappointed the country’s top leader, To Lam, as the leader of the ruling Communist Party in the next five years, as he promised to make reforms in the country to boost growth in the export-driven economy.

“In an expected move, Lam, aged 68, was re-elected to the most powerful position of the one-party state by all 180 members of a newly formed committee at the end of a congress, which is held every five years to fix the major targets and make leadership decisions,” the party said.

Being considered a radical reformist, Lam informed the congress that he desires further reforms, even to the party that has been ruling with impunity over Vietnam for decades, so as to bring about a system that is founded on “integrity, talent, courage, and competence.”

Lam this week had vowed to the congress delegates in a red-carpeted conference hall beneath a towering statue of party founder Ho Chi Minh that annual growth would surpass 10 per cent in the decade, which was later adopted in a resolution by the party on Friday.

LAM 10% GROWTH GOAL, QUITE AMBITIOUS

Other investors and diplomats expressed the same sentiment, with Craig Martin, chairman of Dynam Capital, a fund that manages a fund in Vietnam, saying the target was rather ambitious, but applauding Lam on his openness to business.

The World Bank projects a mean 6.5 per cent annual growth within this year and next.

The yardstick stock market index in Vietnam increased by approximately 40 per cent in 2009 and is 5.5 per cent in 2010, albeit declining by 0.6 per cent on Friday.

Lam has been in charge of rapid expansion since he became party head in mid-2024, based on extensive reform and reduction of bureaucracy, which has won and lost him supporters and critics alike, as tens of thousands of civil servants have been laid off.

Knowing the dissatisfaction, Lam acted early to gain the support of the internal party squabbles, including the mighty military, as indicated by the officials who are conversant with the procedure.

With the anxieties growing over his intentions to increase the strength of privately owned conglomerates at state firms’ cost, Lam sent out a diktat before the party congress, highlighting the primary role of the state-owned enterprises, which feature an army-run telecommunication and defence giant, Viettel.

His fellow Le Hong Hiep, a senior fellow at the ISEAS Yusof Ishak Institute, said that, as a state security minister, “Lam had orchestrated moves to perfection to be at the top of the Vietnamese political hierarchy in 2024 when his ailing late predecessor Nguyen Phu Trong had been suffering long-term health problems.”

PRESIDENTIAL BID

On returning to the congress following his re-election, Lam indicated that he would keep the unity of the party. He is also trying to be the president of Vietnam, a position that is occupied by an army general, and the ruling on the same would be announced in the future.

The fact that Lam was re-elected as the chief of his party sends a positive message to foreign investors who assign importance to political stability (Hiep). His attempt to integrate the best in both positions as Xi Jinping did in neighbouring China may, however, bring danger to the political system of Vietnam that has always relied on collectivity and internal checks, he said.

Soon after Lam was elected into office, a congratulatory message was received by Xi, which talked of the two countries as a fraternity with a common future.

The members of the Politburo, which is the decision-making body of the party, were also appointed by the party.

First on the list, which is put on the government site, is Lam, 68, then the current head of parliament, Tran Thanh Man, and then the former central bank governor Le Minh Hung, who is considered a candidate to be prime minister.

Next on the list, however, is army general and Defence Minister Phan Van Giang, considered to be the second-most powerful individual in the country, and the incumbent Prime Minister Pham Minh Chinh and President Luong Cuong do not feature in the list.