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Why China is getting a boost from Vietnam’s ‘blazing furnace’ anti-graft drive

The drive is shifting economic prosperity closer to the border, and that is opening a new north-south divide.

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A Vietnamese flag flies atop the State Bank building on November 23, 2017.

A Vietnamese flag flies atop the State Bank building. The anti-corruption drive, termed a "blazing furnace", is running hot and there are concerns among investors that Vietnam is not all that politically stable.

PHOTO: REUTERS

Shuli Ren

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Vietnam’s anti-corruption drive, which the ruling Communist Party chief Nguyen Phu Trong likened to a “blazing furnace”, is running hot.

This year alone, two of the four pillars of power, including the

chairman of the Parliament

and

the country’s president

, left their posts amid graft allegations. Last month, Truong My Lan, a real estate tycoon and Vietnam’s richest woman, was

sentenced to death for her role

in a US$12 billion (S$16.2 billion) fraud case that involved Saigon Commercial Bank, one of the nation’s largest lenders. Eighty-five others were sentenced on charges ranging from bribery to abuse of power.

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