VIETNAM: President Resigns Following Communist Party Anti-Corruption Purge

Vietnamese President Nguyen Xuan Phuc has handed in his resignation to the central committee of Vietnam's governing Communist Party following a corruption investigation that has claimed the positions of two deputy prime ministers. Phuc is the highest-ranking party official to have been hit with charges that officials under his command violated rules and committed wrongdoings, and his exit represents an unprecedented event in Vietnam's post-war history.

• Vietnam has been seen as an attractive destination for EM investors in Asia, partly helped by a political system that while opaque was viewed as stable. This sort of unexpected and seemingly knee-jerk political action could be seen as a disincentive to foreign investors.
• The National Assembly meets on Wednesday according to Reuters, and will be required to approve Phuc's resignation before it then votes on a successor (who will be chosen by the powerful central committee).
• Under Vietnam's communist system, there is no official paramount leader, with the president, PM, Communist Party secretary, and chair of the National Assembly forming the 'four pillars' of leadership. Nevertheless, while the President has the power to appoint the PM and represents the country internationally, it is the General Secretary of the Communist Party Nguyen Phu Trong that is seen as the primary political power.