Vietnam beat coronavirus. With its economy booming, can it face up to China?

In less than half a century Vietnam has risen from the ashes of war to being a regional economic powerhouse that even the coronavirus couldn’t stop

As its Communist Party meets to decide its future, the country is on the brink of realising its potential. First, it must tame corruption and navigate ties with China

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Published: 8:00am, 23 Jan 2021Updated: 3:10pm, 24 Jan 2021

Vietnam’s Party Congress beginning on Monday will elect the country’s next leaders and unveil its economic goals. Held amid a pandemic and uncertain geopolitical winds, the once in five years event is also widely seen as a coming-of-age moment for Vietnam, given its effective handling of the coronavirus and the strong growth of its economy in recent years.

While the case for the Southeast Asian country to be considered a rising middle power is growing, experts warn it faces challenges ahead, among them tackling bureaucratic inertia, corruption and nepotism and restructuring the economy.

A BRUTAL BATTLE FOR POWER

When the great and good of the Communist Party of Vietnam assemble for the weeklong 13th National Congress, it will be to take decisions that will reverberate far beyond the borders of this Southeast Asian country of nearly 100 million people.

Some 1,600 delegates from across the country will travel to Hanoi to attend the meeting, which lasts until February 2, to select a new leadership for one of the world’s fastest growing economies – and one that has increasingly found itself caught in the middle of the crossfire between the United States and China, its two biggest trade partners.

Beijing, Hanoi’s communist bedfellow, and Washington, its Cold War foe with whom ties are warming, will both be watching closely for an insight into the direction the country is taking. The US, in particular, has made no secret of its hope that it can draw Vietnam into its orbit by touting it as an alternative global manufacturing base to China.

Against this background, there are two key areas to watch. One is the leadership battle that will pitch two factions with different visions for the country against each other. The second is the five-year economic plan that Congress will be expected to approve.