Lam vows faster growth as he seeks to extend his hold on Vietnam

By Francesco Guarascio

HANOI, Jan 20 (Reuters) – In an address to the Communist Party congress that will decide his political future, Vietnam’s top leader To Lam on Tuesday pledged annual economic growth of more than 10% for the remainder of the decade, despite global headwinds.

The weeklong congress, which convenes every five years and kicked off on Monday in Hanoi, will select the party chief, the most powerful position in the single-party country, and set economic goals up to 2030.

The congress is taking place in a time of “many overlapping difficulties and challenges, from natural disasters, storms and floods to epidemics, security risks, fierce strategic competition, and major disruptions in energy and food supply chains,” Lam told the nearly 1,600 delegates to the congress at the start of his speech.

Lam, a former head of state security, is seeking to retain his role as party chief and possibly take on the state presidency. He has promised greater governmental reforms after he launched the bureaucracy’s most significant overhaul in decades during his brief tenure as party chief.

A party document submitted to the congress that was reviewed by Reuters set Vietnam’s annual growth goal at no less than 10% until 2030, above a missed target of 6.5% to 7.0% for the first half of the decade.

Lam is widely viewed as a risk-taker who has been praised by foreign investors for his ambitious reforms, though he has stirred criticism as tens of thousands of civil servants have lost their jobs.

He has also strengthened state security, giving police more powers to vet laws and control businesses, while ramping up a rivalry with the army, which oversees its own vast economic interests.

LAM PLEDGES LESS RED TAPE, MORE TRADE

Under strict security arrangements, Lam delivered a 40-minute speech in a red-carpeted hall where delegates sat on red-upholstered seats facing a towering statue of party founder Ho Chi Minh – under the images of Karl Marx and Vladimir Lenin.

He was preceded by President Luong Cuong, an army general, who spoke for about 10 minutes. It may have been his final opening speech at a congress if Lam is successful in taking over his job.

Lam, 68, said Vietnam needs to cut red tape and expand global trade to protect its independence and national interests.

The 20% tariffs imposed on Vietnam in August by the Trump administration have not restrained the growth of Vietnamese exports to the U.S., leading to a record trade surplus with Washington last year.

But Vietnam is seeking to boost trade ties with other partners, as the impact of U.S. duties will likely be felt in the coming months.

INFRASTRUCTURE SPLURGE TO GO ON

Vietnam’s party chief promised to continue the fight against corruption, although during his tenure the anti-graft drive launched by his predecessor Nguyen Phu Trong has abated as Lam sought to speed up project approvals to boost growth.

“Infrastructure must be developed to adapt to climate change and ensure strong regional, inter-regional, and global connectivity,” Lam said.

He has presided over a splurge in infrastructure projects, which have supported economic growth, though that has also raised concerns about favouritism and waste.

Vietnam wants to build new rail links to China and is planning to build a nationwide high-speed train network with an estimated cost of nearly $70 billion. It is also constructing new airports close to major cities, even though existing international terminals lack rail links to urban centres.

As minister of public security, Lam – a lover of classical music – oversaw approval of a large new opera house, Hanoi’s second, which opened in 2023. A third, designed by Italian architect Renzo Piano, is under construction.

(Reporting by Khanh Vu and Phuong Nguyen; Writing by Francesco Guarascio; Editing by Martin Petty and Thomas Derpinghaus)