Vietnam is trying to attract foreign investment, and its recent unprecedented move to target corruption at the highest levels will be high on the agenda at the 10th Party Congress. And the task of stamping out corruption offers the Congress a new mandate and more control to dictate the shape of Vietnam's social and economic landscape.


Vietnam's 10th Party Congress begins April 18 in Hanoi. The Congress, which sets socio-economic targets for the next five years, will produce guidelines for boosting Vietnam's economy and making the Southeast Asian nation a more visible player internationally. As Vietnam looks to overhaul its international image, it will begin with the Communist Party of Vietnam.

In its effort to build a reputation as a responsible economic player and attract more foreign direct investment (FDI), the Communist Party has begun a campaign against corruption, even targeting its own leaders -- a novel move for the heretofore insulated Party. Rumors of President Tran Duc Luong and Prime Minister Phan Van Khai's stepping down appeared in the media prior to the conference. The rumors imply that the Congress is moving beyond being a mere mouthpiece of the Communist Party into becoming a legitimate forum to address how to advance Vietnam's politics and economics.

One of the new plans that will be proposed at the Congress is changing the retirement age for officials from 70 to 65 -- a technique perfected by the Chinese. This would force the retirement of not only both Phan and Tran, but also of the Party's general secretary, Nong Duc Manh, a popular reformer. Thus, it looks like the Party Congress will clear the slate before beginning the monumental task of cracking down on corruption and strengthening its legal infrastructure necessary to attract foreign investment -- in the process displaying its new teeth in its drive to promote Vietnam's economy.

As global attention focuses on China's growing economy, Vietnam is slowly learning to flex its economic muscles, perhaps eventually making it a formidable competitor to China for FDI. At present, the United States is the largest foreign investor in Vietnam. Washington attained this position in 2004 with disbursed capital of $531 million, though the real figure is actually higher because many U.S. companies invest in Vietnam through branches in third countries.

Vietnam's economic development gives it the potential to be the next hot spot for FDI, especially given its young, literate labor force and its low labor costs. Microsoft Corp. Chairman Bill Gates traveled there last week to scope out the investment scene, and Intel Corp. recently chose Vietnam over China for a test-and-assembly plant. Corruption remains an obstacle for potential investors, however. Although corruption is a given in the region, Vietnam wants to set itself apart by tackling corruption, thereby offering additional incentive to investors. And by continuing to be proactive in the fight against corruption and reinstating a new government with this as its mandate, the Party Congress will demonstrate its own new strength.