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Vietnam Adds U.S.-Educated Official to Party’s Politburo

Vietnamese Deputy Prime Minister Nguyen Thien Nhan, received a degree in cybernetics from a university in the former East Germany in 1979, and was a professor before entering politics. He was a participant in the Fulbright Vietnamese student program, with Oregon his host university. Photographer: Tomohiro Ohsumi/Bloomberg
Vietnamese Deputy Prime Minister Nguyen Thien Nhan, received a degree in cybernetics from a university in the former East Germany in 1979, and was a professor before entering politics. He was a participant in the Fulbright Vietnamese student program, with Oregon his host university. Photographer: Tomohiro Ohsumi/Bloomberg

May 13 (Bloomberg) -- Vietnam’s Communist Party added a U.S.-educated official who studied on a Fulbright scholarship to its highest decision-making body in an unprecedented move as the nation seeks to revive investor confidence.

Nguyen Thien Nhan, 59, a deputy prime minister who got a master’s degree in public administration from the University of Oregon, was picked at a party meeting to join the Politburo, the Communist Party said in a statement May 11. Nhan was vice-chairman of Ho Chi Minh City’s main governing body when Intel Corp. decided to locate a $1 billion plant in the city.

“I’ve gone on road trips with him to the U.S. where he would run his own PowerPoint presentations for potential investors, and his whole approach was just world class,” said Fred Burke, Ho Chi Minh City-based managing director of the law firm Baker & McKenzie (Vietnam) Ltd., who has known Nhan for more than a decade. “He is from a new generation that has had significant international exposure.”

The Communist Party is seeking to boost an economy hampered by slow credit growth due to concern over the health of the banking system and state-owned companies. The party began a shift toward a free-market economy in 1986, and Vietnam opened a stock exchange in 2000 and joined the World Trade Organization in 2007.

“For a younger generation of leaders, making choices such as cutting down the state sector is not going to be as difficult as it was for their predecessors,” said Zachary Abuza, a professor of political science at Simmons College in Boston, who specializes in Southeast Asia. “The leadership in Vietnam is really stuck between the state and market.”

Second Female

The Ho Chi Minh City Stock Exchange’s VN Index rose 0.6 percent today to reach a one-month high. Vietnam is one of 12 Asia-Pacific countries negotiating to enter the Trans-Pacific Partnership trade accord. The International Monetary Fund last month cut its economic growth forecasts for Vietnam to 5.2 percent for this year and next.

Nguyen Thi Kim Ngan, 59, a National Assembly deputy chairwoman, was also promoted to the Politburo to become the second female member. The Politburo had 14 members before the May 11 additions, according to the Communist Party’s news website.

Many of Vietnam’s leaders came of age during the war years and were educated within the country or in former Soviet-bloc nations. In a May 10 statement, Vietnam’s Foreign Affairs Ministry said that “up to now, there have been no Politburo members who graduated from U.S. schools.”

Fulbright Scholar

Nhan, also a former education minister, hails from the Mekong Delta. He received a degree in cybernetics from a university in the former East Germany in 1979, and was a professor before entering politics. Nhan participated in the Fulbright Vietnamese student program, with Oregon his host university, according to a posting on the U.S. State Department’s website.

While Nhan’s worldliness makes him an asset to the Politburo, his international experience did not “breathe new life into the education sector” when he served as minister, said Jonathan London, assistant professor at the City University of Hong Kong’s Department of Asian and International Studies.

“A familiar face to Westerners isn’t enough,” London said. “At the end of the day, people who do business in Vietnam and states who engage with Vietnam are looking for real breakthrough reforms.”

PM Candidate

Nhan’s elevation could make him a candidate for prime minister during the political cycle that will accompany the next party congress, according to Carlyle Thayer, an emeritus professor at the Australian Defense Force Academy in Canberra. The last congress was held in January 2011, and meetings are typically held every five years.

“Nhan’s primary skill is seen as dealing with the West,” said Thayer. “This is someone who has a great network of international contacts.”

The Communist Party’s Central Committee also elected Tran Quoc Vuong, its chief administrator, to join the Secretariat, according to the Vietnam News Agency.

The Politburo is Vietnam’s most important political institution, according to Abuza from Simmons College.

“They don’t always micromanage policy, but they set the parameters in which policies can be implemented,” Abuza said. “If it’s an important decision, they are the only ones who can make it.”

To contact Bloomberg News staff for this story: Jason Folkmanis in Ho Chi Minh City at folkmanis@bloomberg.net; K. Oanh Ha in Hanoi at oha3@bloomberg.net

To contact the editor responsible for this story: Rosalind Mathieson at rmathieson3@bloomberg.net

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