(Bloomberg) -- Vietnam President Vo Van Thuong resigned on Wednesday, according to a statement from the nation’s Communist Party, making him the latest senior official to step down amid widening probes into some of the country’s top leadership. 

Thuong “violated regulations on what party members cannot do” and “took responsibility as a leader in accordance with the party’s rules and the state’s laws,” according to the statement, which didn’t provide more details on what he was accused of doing. 

Thuong is the second president to step aside in just over a year, and his resignation marks the shortest presidency in Vietnam’s history. While the role is largely ceremonial, it is still the second most powerful position within the Communist Party’s political hierarchy. Party Chief Nguyen Phu Trong, the 79-year-old who backed Thuong’s bid for the presidency last year, is the nation’s top leader.

Vietnam’s National Assembly formally voted on and approved Thuong’s resignation during a special session Thursday morning, according to local media reports. Vice President Vo Thi Anh Xuan will be acting president until parliament selects a new one.

The 53-year-old Thuong was selected for the post by parliament in March 2023 after his predecessor resigned during a widening graft investigation. 

Thuong isn’t the only departure. Hoang Thi Thuy Lan, a member of the party’s Central Committee, was expelled from the party for violating regulations, according to the statement. Lan was arrested early this month for allegedly taking bribes, the government said in another statement.

The shakeup promises to renew speculation over Vietnam’s political succession, particularly after Party Chief Trong was hospitalized in January. It’s unclear who the party would put forward if there’s a changing of the guard ahead of the next party congress in 2026.

Investor Sentiment

Trading volumes on Vietnam’s main stock exchange have soared this week amid speculation Thuong could leave office. 

“Investors’ sentiment is fragile given mounting uncertainties” on policy direction, Hoang Viet Phuong, head of research and advisory at SSI Securities Corp., wrote in a note this week before the resignation was announced. 

Thuong’s departure comes as the government has ramped up efforts to weed out wrongdoing among senior leadership. Early this month, police arrested three senior provincial party officials for allegedly receiving bribes involving two property companies. 

Thuong had been a rising star in the Communist Party and was seen by analysts as a contender to potentially succeed Trong. Before that, he was the youngest permanent member of the Central Committee’s Secretariat and has had a front-row seat to the party’s foreign policy strategy, including being a part of high-profile meetings with US President Joe Biden and Chinese counterpart Xi Jinping.

Biden and Xi Meetings

During Thuong’s short stint as president, he pushed for a more inclusive approach to foreign investment and security partnerships, capitalizing on Vietnam’s appeal as a destination for companies considering diversifying regional investments outside of China.

In September, he met Biden in Hanoi, during which the two nations formally upgraded ties to a comprehensive strategic partnership. Thuong also personally extended an invitation to Russian President Vladimir Putin to visit Vietnam, and met with China’s Xi in December.

The government that Thuong helped oversee encouraged more shares sales to boost the stock market, and pushed to spur credit to support an economic expansion of 6% this year. Vietnam has also extended its campaign to tackle corruption across the economy, ensnaring hundreds of officials and company executives in the process.

--With assistance from Philip J. Heijmans and Ishika Mookerjee.

(Adds formal acceptance of resignation by National Assembly in fourth paragraph.)

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