In January 2026, Vietnam’s Party Congress re-elected To Lam as General Secretary. He first became General Secretary in 2024, following a career at the Ministry of Security, where he oversaw a sweeping anti-corruption campaign dubbed “Blazing Furnace.” The campaign led to the arrest and prosecution of hundreds of corrupt party officials, but critics complained it also resulted in a mass exodus of government officials who resigned for fear of being caught up in corruption investigations. As of 2025, Vietnam is ranked in 88th place on Transparency International’s Corruption Perception Index (out of 180 countries, with South Sudan ranking last place at 180th). Regardless, the campaign underpinned Lam's rise to the upper echelons of power. In a break with tradition, the Party Congress announced in 2026 that Lam would remain party head and also assume the position of president. The dual roles have allowed Lam to consolidate more control than any Vietnamese leader in decades. He is using this unprecedented power to launch a series of reforms aimed at overhauling the country’s bureaucracy and making the country more business-friendly. Lam has promised that Vietnam could become a rich, developed country by 2045.
Foreign investors have responded by increasing foreign direct investment (FDI) into Vietnam. The World Bank forecasts the country’s GDP will grow by 6.5 percent in 2026, buttressed by steady FDI inflows of around $25 billion. The US Consulate General in Ho Chi Minh City said US companies have more than 900 investment projects valued at US$7.6 billion in that city alone. However, Singapore, South Korea and China remain the largest sources of FDI into Vietnam. To Lam’s meeting with Xi Jinping on April 15 in Beijing, and his meetings with South Korean President Lee Jae Myung in April reflect this focus on growing FDI. Lam appears adept at navigating relationships between Vietnam’s historic “best frenemy” China, and US allies Japan and South Korea, which Hanoi needs for investment and, of late, to ensure access to crude oil amid the global supply disruption. Japanese Prime Minister Takaichi Sanae is visiting Vietnam in May, just after the Japan External Trade Organisation (JETRO) signed a Memorandum of Understanding to increase investment in the country.
While FDI is on the rise, investors have been wary of becoming entangled in land disputes, a typical problem in a country the size of New Mexico with a population of roughly 100 million. Such land disputes have previously led to protests and deadly clashes in Vietnam. Under Vietnam's 2024 Land Law, disputes may now be resolved through Vietnamese Commercial Arbitration Centers or at the People’s Court. However, land often finds its way into the hands of government officials who are able to leverage their influence to acquire property. Vietnamese property developers were also a target of the Blazing Furnace campaign. In 2024, property tycoon Truong My Lan was sentenced to death for fraudulently taking out USD 44 billion in loans. In 2026 the government began to auction yachts and luxury assets to compensate for losses.
Mindful of General Secretary To Lam's track record for vigorous enforcement of corruption laws, investors are well advised to undertake robust due diligence to assess its exposure to political corruption risks and illegal land grabs for its existing portfolios as well as potential new investments.
"The signing of this MoU marks an important step in deepening the economic relationship between Japan and Vietnam," said Hirano Kenichi, vice president of JETRO. As Japanese firms continue to accelerate their overseas operations, Vietnam has emerged as one of their top destinations," Kenichi added
https://vir.com.vn/jetro-signs-investment-deal-with-ho-chi-minh-city-148540.html
