Vietnam remains under the authoritarian rule of the Communist Party, which continues to suppress dissent and restrict civil liberties. After the death of Nguyen Phu Trong, To Lam took over party leadership in 2024 and briefly held both the position of general secretary and state president, further concentrating power. Repression against academics, activists, and civil society increased, while digital controls expanded. The anti-corruption campaign led to high-profile resignations, yet systemic corruption persists.
The economy remains characterized by party influence. In 2024, economic growth can mainly be attributed to the service sector. FDI inflows hit a record high, though registered FDI declined slightly. Labour market conditions improved, but inequality remains high, and marginalized groups benefit little from economic expansion.
The leadership pursues administrative reforms aimed at improving efficiency but relies heavily on an anti-corruption campaign that creates uncertainty and economic losses. Internationally, Vietnam balances relations between the United States and China while strengthening its engagement in ASEAN and regional trade agreements.
