~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2001]

Reformer takes helm in Vietnam

Under the watchful gaze of a gilded bust of Ho Chi Minh and images of Karl Marx and Vladimir Lenin, one of the world's last ruling Communist parties will officially overhaul its top leadership in Vietnam this weekend. Senior party leaders confirmed yesterday that Le Kha Phieu, one of the most powerful men in Vietnam, will be replaced as head of the ruling Communist Party by Nong Duc Manh, the reform-minded chairman of the National Assembly, who is also widely believed to be an illegitimate son of Ho Chi Minh.

Mr. Phieu, 70, a former chief political commissar in the armed forces, had been at the helm of Vietnam's Communist Party for only three years. But he had come under sharp criticism for a muddled and ineffective leadership style and he was accused of mishandling Vietnam's stagnant economy. He had also failed to stem widespread corruption inside the party. Mr. Manh, 60, is a forestry engineer by training and a member of the country's ethnic Tay minority. He becomes the first member of a minority group to hold power in Vietnam. As chairman of the National Assembly since 1992, Mr. Manh has developed a reputation as a consensus-seeker who has been untouched by corruption. For years, he has also been rumoured to be the illegitimate son of Ho Chi Minh, Vietnam's revolutionary leader -- a suggestion he has never specifically denied.

The dramatic leadership change marks a generational watershed in Vietnamese politics and comes amidst bitter infighting within the party. Hanoi has been awash with rumours of a pending leadership shuffle for months. Nothing came of them until a closed-door meeting this week of a new 150-member Central Committee, at which Mr. Manh was elected party leader in advance of a national party congress that opened on Thursday. More than 1,000 Communist members are at the congress, which is held every five years and is expected to set long term political and economic goals for Vietnam. In addition to selecting a new Central Committee, Vietnam's leaders have also voted in a new 15-member politburo -- reduced from the previous 18-man body.

Eleven previous members retained their seats on the politburo and four new members have been added. In yet another sign of sweeping generational change, three of Vietnam's elder statesmen, Do Muoi, Le Duc Anh and Vo Van Kiet, are reported to be poised to lose their official posts as party advisors. "Now that the [party] congress has finished its term, we are all withdrawing," Mr. Muoi, who held Vietnam's top job from 1991 to 1997, told reporters yesterday. The retiring Mr. Phieu said yesterday he is willing to step down for a younger man. "I think I have reached the age and if the conditions are right, then the conditions should be created for a younger person," he told foreign reporters in Hanoi.

Phan Van Khai, Vietnam's Prime Minister, who reportedly threatened to resign over the slow pace of change, will remain at his post, as will Tran Duc Luong, the President. The shakeup has not been reported in Vietnam's government-controlled news media. But formal party votes to endorse the changes are expected today, with official announcements anticipated tomorrow. Mr. Manh comes to power just as economic reforms have generated growing discontent about rural poverty and official corruption. There is a worsening divide between Vietnam's big cities and the countryside, which has alienated peasant workers, the party's traditional bedrock of support.

There has also been growing disenchantment among Vietnam's 54 ethnic minorities, after violent protests among the mainly Christian peoples of the Central Highlands prompted an army crackdown in early February. Conservatives in the party politburo are believed to have backed Mr. Manh as leader partly because they hope he can ease tensions among minorities. Few expect his appointment to signal a drastic change in direction. Vietnam has pursued a policy of gradual economic reform for the past 15 years, and that process is expected to continue.

Nevertheless, Mr. Manh is expected to move more quickly to reform Vietnam's massive bureaucracy and to overhaul the country's legal system. Vietnam recently adopted a plan with the World Bank and International Monetary Fund in which it promised to reduce trade restrictions and improve the state banking system in exchange for loans. Carl Thayer, a Vietnam specialist at the Asia-Pacific Center for Security Studies in Hawaii, said Mr. Manh's promotion should help establish a legal basis to speed reforms. "It looks very positive so far," he said. "Hopefully we can expect a stronger legal basis for reform and less arbitrary rule."

By Peter Goodspeed - The National Post (Canada) - April 21, 2001.


Official says Vietnam will accelerate its economic reforms

HANOI - Vietnam plans to speed up its free-market reforms following this week's Communist Party national congress, an official said Thursday. The reforms, launched 15 years ago to pull the country out of famine and stagnation, have allowed private enterprise to take a much wider role. But officials have hesitated in opening the economy more to the outside world, particularly after seeing the effects of Asia's recent currency crisis. A keynote political report at the four-day congress, however, warned that Vietnam faces the danger of being left behind economically by its Asian neighbours.

"I believe the speed of reforms will be faster because the situation requires us to develop faster now," said Deputy Prime Minister Nguyen Manh Cam. Delegates at the four-day congress are expected to officially approve a decision by the party Central Committee to replace the party's conservative leader, Le Kha Phieu, with Nong Duc Manh, a moderate seen as more open to economic reform. Cam said Vietnam understood there were both positive and negative aspects to globalization, and the government's goal is to minimize the negative. Vietnam's minister for planning and investment, Tran Xuan Gia, said Vietnam's still-limited level of globalization would allow it to meet its high 7.5 per cent growth target for this year despite a slowdown in world economic growth. "Vietnam's economy has opened up, but the level of opening and its dependence on the outside is not strong enough to make Vietnam subject to rapid damage from outside effects," Gia said.

He said the government will encourage domestic-led growth and also develop other policies to counter the international slowdown. He said those policies have yet to be decided. The government says Vietnam's gross domestic product expanded 6.7 per cent in 2000, up from 4.8 per cent in 1999. However, the Asian Development Bank said Thursday it believes the GDP grew 6.1 per cent last year and predicted it would expand only 6.4 per cent this year. Gia, who has led the planning ministry for several years, is expected to step down at the end of the current congress. He is blamed by many party members for Vietnam's failure to implement policies needed to attract greater foreign and local investment.

The Associated Press - April 21, 2001.