Overview

• President Vo Van Thuong's resignation, after just one year in office, has sent shockwaves through Vietnam, highlighting the Communist Party's sweeping anti-corruption campaign.
• Vice President Vo Thi Anh Xuan steps in as acting president, with a permanent successor unlikely to be selected soon, raising questions about the country's political future.
• The anti-corruption purge, described as a 'blazing furnace,' has ensnared top politicians and tycoons, including the recent proposal of a death sentence for a major property tycoon involved in a US$12 billion bank fraud.
• Foreign investors grow wary as the political upheaval and the anti-corruption drive slow bureaucratic processes and create uncertainty about Vietnam's economic policies.
• Vietnam's strategic importance is underscored by last year's state visits from both US President Joe Biden and Chinese President Xi Jinping, despite current political challenges.