Vietnam's President Lam takes party chief duties as Trong focuses on health

By Phuong Nguyen and Francesco Guarascio

HANOI (Reuters) - Vietnam's President To Lam has taken over the duties of Communist Party chief Nguyen Phu Trong who is focusing on an unspecified health treatment, the party said on Thursday.

The extraordinary move comes after months of speculation that Trong's health was weakening. The party did not clarify what treatment he is receiving and a spokesperson for the ministry of foreign affairs had no additional information to share when asked at a regular media briefing.

Lam, a former head of internal security, has been widely seen as a top candidate to replace Trong when his term ends in 2026. The party's powerful Politburo has tasked him with temporarily presiding over "the work of the Party Central Committee, the Politburo and the Secretariat," according to a statement from the party's central office.

"Looking at the current state, Lam has the highest chance to become the acting party chief until 2026," said Nguyen Khac Giang, expert on Vietnam at Singapore-based think tank ISEAS-Yusof Ishak Institute.

For Lam to be officially appointed as acting party chief, a new Politburo decision will be needed.

In its statement on Thursday, the Politburo called on the party, the army and the people "to have absolute confidence in the leadership of the party".

Though Vietnam officially has no paramount ruler, the party chief holds the most powerful position in the Communist-ruled nation. Trong, 80, has been in the post since 2011.

CORRUPTION CRACKDOWN

Trong, a Marxist-Leninist ideologue, has since 2017 unleashed what many see as a China-style crackdown on corruption known as "blazing furnace". But in recent months, he has appeared fragile in public events and missed several top-level meetings.

In a surprise move, the Politburo awarded Trong on Thursday the Gold Star medal, the country's highest honour for public officials.

Lam was elected president in May after several top leaders quit amid accusations of unspecified wrongdoing.

Lam, a key player in the crackdown, promised after his election to "resolutely and persistently continue the fight against corruption", despite its negative impact on public investment.

"Whoever takes over from Trong to become the next party chief, it is essential to keep his anti-corruption campaign legacy to have the authority in front of other political elites, keep the system's stability and gain favour from others," said Giang.

Vietnam's main stock market edged up 0.5% after the announcement.

A Hanoi-based senior Western diplomat said he saw Lam's expanded powers as good for stability.

But the diplomat, who declined to be identified, added: "We'll need to see if this has an impact on economic, foreign and domestic policies and in which direction."

(Reporting by Phuong Nguyen and Francesco Guarascio; additional reporting by Mai Nguyen; Editing by Martin Petty and Edwina Gibbs)