Vietnam’s top leader To Lam was re-appointed on Friday as head of the ruling Communist Party for another five-year term after a unanimous vote by its Central Committee, cementing his position as the country’s most powerful figure as he pushes for ambitious economic reforms.
All 180 members of the newly formed Central Committee backed Lam at the close of the party’s five-yearly congress, which sets leadership appointments and policy priorities in the one-party state.
Following his re-election, Lam pledged to build a governance system based on “integrity, talent, courage and competence,” with performance judged by concrete results.
CONSOLIDATING POWER AFTER RAPID RISE
Lam, 68, has been party chief only since mid-2024 but has moved swiftly to consolidate authority, drawing on his long tenure as state security minister. Officials familiar with the process said he worked early to secure support from rival party factions, including the influential military.
Concerns had emerged within the party over his push to promote large private conglomerates, potentially at the expense of state-owned enterprises. Ahead of the congress, Lam sought to reassure sceptics by reaffirming the “leading role” of state firms, including army-linked telecoms and defence group Viettel.
“He normally meticulously prepares for his moves,” said Le Hong Hiep, senior fellow at the ISEAS Yusof Ishak Institute, noting Lam’s careful political manoeuvring as he rose to the top of Vietnam’s system.
REFORMS BRING GROWTH AND BACKLASH
During his brief first term, Lam presided over strong economic growth supported by sweeping administrative reforms aimed at cutting red tape and speeding up decision-making.
Those changes, however, came at a social and political cost. Tens of thousands of civil servants lost their jobs, drawing criticism and raising concerns about governance capacity and internal discontent.
Despite the backlash, Lam has signalled he will press ahead with his reform agenda, which he says is essential to modernising the state and sustaining long-term growth.
AMBITION TO COMBINE TOP ROLES
Lam has also indicated his intention to become Vietnam’s president, a move that would combine the two most senior positions in the political system. A decision on the presidency is expected to be announced later.
Such a concentration of power would echo China’s leadership model under President Xi Jinping, though analysts caution it could strain Vietnam’s tradition of collective leadership and internal checks.
Lam, for his part, told congress delegates that maintaining party unity would be a central priority in his next term.
ECONOMIC VISION: DOUBLE-DIGIT GROWTH
Earlier this week, Lam pledged to deliver annual economic growth above 10% for the rest of the decade a target that far exceeds World Bank forecasts of about 6.5% growth in the near term.
He aims to transform Vietnam’s long-standing export- and low-cost labour-driven growth model by boosting innovation, efficiency and higher value-added production, with the goal of turning the country into a high-middle-income economy by 2030.
ANALYSIS: STABILITY WITH RISING EXECUTION RISKS
Lam’s re-election offers reassurance to foreign investors who prize Vietnam’s political stability, particularly as global supply chains remain under strain and multinational firms seek alternatives to China.
However, the scale and speed of Lam’s reforms combined with his apparent push to concentrate power introduce new risks. While centralised authority could accelerate decision-making and infrastructure rollout, it may also weaken internal checks and heighten the consequences of policy missteps.
The ambitious growth targets further raise questions about execution, especially as Vietnam grapples with financial risks, uneven productivity gains and the challenge of moving beyond its low-cost manufacturing model. Lam’s second term will test whether Vietnam can balance political consolidation with sustainable, inclusive growth.
With information from Reuters.
