CPV leadership faces reform’s challenges

By Ding Gang Source:Global Times Published: 2016-1-20 19:38:01

The Communist Party of Vietnam (CPV) Wednesday opened its 12th National Congress, which will last until January 28 to elect the new leadership of the party and the nation. Some Western reports simply described the election as a choice Vietnam has to make between China and the US.

But in reality, the contest between China and the US in Southeast Asia hasn't gone to the extent to compel countries in the region to take a side. The Sino-US relationship is not a zero-sum game in any cases. Approaching Washington doesn't necessarily mean drifting apart from Beijing.

Besides, the CPV employs a collective leadership. New generation of leaders now don't have the absolute authority of  their predecessors used to. Even though some members of the leadership take a harsh stance against China over the South China Sea disputes, the collective leadership would strike a balance. What's more, Vietnam has a lot of leeway to maneuver between China and the US.

In fact, the major challenges facing the CPV are not which side it should take with, but how to promote political and economic reforms in the country. In a changing Vietnam, a top priority for the CPV is to catch hold of changes, ensure the stable development of Vietnamese society and safeguard the leadership of the party.

Vietnam is ruled by a Communist party. In accordance with China's experiences, it is vital for national development that the sole ruling party of the nation has stable transition and continuously deepens reform and opening up with dynamic leadership.

The CPV now stands at such a decisive phase. Economically, Vietnam has had steady, sustained and rapid development in the past decade.

According to Bloomberg, Vietnam's economy is forecast to grow by 6.7 percent this year, the same as in 2015. Foreign investment has become an important driving force for Vietnam's development. The expansion of manufacturing characterized textiles and light industrial goods has given Vietnam products a certain position in the global production chain.

Being a member of the Trans-Pacific Partnership (TPP) will prompt Vietnam to conduct economic transition and political restructuring, and enhance economic and trade ties with developed countries like the US and Japan so as to broaden the market for Vietnam's products.

Heavily dependent on raw material exports such as rice and coffee, through reforms Vietnam's economy will turn to focus on manufacturing and then provide jobs for younger generations, creating a stable middle-class society.

Reforms will be filled with pressure and risk. They will pose challenges to the leadership and system of the CPV in two ways. The first one is reform of state-owned enterprises (SOE). It is estimated that 459 SOEs will turn into share-holding ones by the end of this year, making up 90 percent of the total number of reformed SOEs over the past five years.

The other one is necessary reforms required for the TPP. Apart from opening up some economic sectors and slashing taxes, the government has to allow workers to organize trade unions at their will, which involves political reform and social stability.

Reforms in the two domains will eventually test the political leadership and control of the CPV.

In the next few years, the CPV has to undertake bigger changes of society and public opinion, and meanwhile advance the reform more rapidly and strongly given the adverse factors such as joining TPP and sluggish world economy. The political and social changes will influence Vietnam's relationship with China.

Despite its similar political system to China's, Vietnam lags behind China in many fields, economic and political reforms in particular. If Vietnam can achieve its targets and prosper, it will provide a useful reference for China.

The author is a senior editor with People's Daily. dinggang@globaltimes.com.cn. Follow him on Twitter at @dinggangchina

Posted in: Columnists, Viewpoint

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