ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Vietnam president's ouster may hamper business, analysts say

Communist Party's corruption purge could clean up economy -- or stem innovation

Vietnam's then-President Nguyen Xuan Phuc attends the APEC Economic Leaders' Meeting in Bangkok on Nov. 19. Experts fear the economy may slow following the sudden dismissal of the president.   © Reuters

HO CHI MINH CITY -- As Vietnam purges political and business leaders in an anti-graft campaign that peaked with a rare presidential ouster last week, a key question has arisen: How will this affect the global factory hub?

Some predict business as usual, saying the Communist Party's rule-by-consensus principle and lack of a personality cult set it apart from President Xi Jinping's China and allow economic continuity. Others believe the internecine politics are pushing security-minded forces to the fore, at the expense of those friendly to foreign investors, and that the space for debate and innovation is shrinking. Which of these proves right will affect a fast-growing economy that has become indispensable to the supply chains of producers from Apple to IKEA.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more