Vietnam to elect top leadership, set economic course for next five years

Vietnam’s next batch of leaders and new economic planning will be determined in the coming days as the Communist Party begins its Party Congress today.During the eight-day event, which is held every five years in the capital, more than 1,500 Communist Party of Vietnam (CPV) delegates will elect a new Central Committee that will in turn select the country’s top four seats of power in the single-party state.The priorities for the congress include “building a clean, strong party, developing national power and socialism, pushing for a comprehensive reform, protecting the country, ensuring peace and stability, and striving to turn Vietnam into a basic modern industrial country,” said Dinh The Huynh, a member of the Politburo.As the country awaits political transition, key economic figures looking promising. GDP grew 6.7% in 2015, the highest rise since 2008 and inflation was 0.6% in 2015, the lowest level in the past 15 years.The nation also negotiated several important economic agreements including the Trans Pacific Partnership (TPP) with the US and 10 other Pacific Rim countries.“One of the major challenges for Vietnam will be to implement its obligations under the Trans Pacific Partnership once the TPP is approved by the National Assembly and ratified by the US Congress,” said Carl Thayer, emeritus professor at the University of New South Wales. “Other major challenges include reform of the banking system, continued privatization of state-owned enterprises, and clearing Vietnam’s public debt,” Thayer added.Vo Tri Thanh, deputy director of the Central Institute for Economic Management, said the new leadership would be faced with the challenge of reforming political and economic institutions to accommodate the nation’s rising economic status. “The most pressing task this congress must tackle will be reforming (political) institutions, and re-structuring the economy,” he said, adding that agriculture, services and tourism also need reform. The party is to target maintaining annual economic growth at 6.5-7% on average between 2016 and 2020. At the end of that period the average GDP per capita will reach 3,200-3,500 dollars from 2,109 dollars last year. It also wants to bring urban unemployment rate under 4% from 10% now. The party plans that by 2020, 95% of urban residents and 90% of rural residents will have access to clean water.