Vietnam cleans house - New officials good for economy

June 28,2006

On June 26th, the National Assembly of Vietnam, the country's top legislature, began a high-level housecleaning: first by electing Nguyen Phu Trong as the Chief of the Assembly, and the next day electing Nguyen Minh Triet as President and Nguyen Tan Dung as Prime Minister. Dung immediately recommended replacement of 6 Cabinet members. This change has been expected since April, and is partly to reduce government corruption.

The new officials are young: Dung is 56, Trong is 62, and Triet is 63. Both Dung and Triet are also from the more Westernized south, and have experience dealing with global businesses.

What Vietnam's new government means:
Vietnam has had an average 7% annual GDP growth for the last nine years. It is poised to join the WTO later this year, and will host the APEC Summit in Hanoi in November. The U.S. Trade and Development Agency has awarded a $602,00 grant to Vietnam Customs to increase trade efficiency. The U.S. Congress is also currently considering granting Permanent Normal Trading Relations status to Vietnam.

Expect Vietnam to continue its growth with this election of anti-corruption professionals who will engender continued confidence and investment from its global trading partners.

Action steps:
Review with your advisor the amount of Vietnamese companies in your Southeast Asia mutual funds.

Source: Thanh Nien News web site; Communist Party of Vietnam online newsletter; Vietnamnet Bridge web site.

Like this article? Sign up for your free weekly email newsletter.