Vietnam reshuffles leaders, but policy seen consistent

HANOI (Reuters) - A third of the ruling Communist Party's 15-man Politburo in Vietnam stepped down at a five-yearly congress on Tuesday, part of a reshuffle that will bring new, younger faces into the ageing leadership.

At the first meeting of a newly elected Central Committee, Nguyen Phu Trong, an ideologue who heads parliament, was elected to the party's top post, general secretary, a source with knowledge of the vote said on condition of anonymity.

Prime Minister Nguyen Tan Dung was also re-elected to the Politburo, the source said, in a sign he is likely to have a second term as Vietnam grapples with volatile inflation, a depreciating currency and declining foreign exchange reserves.

The changes to the elite Politburo, to be officially announced on Wednesday, are unlikely to bring imminent or bold policy shifts, although policymakers say they see the need for more economic stability after years of rapid growth.

Prime Minister Dung is a known quantity among investors, but Jacob Ramsay, who follows Vietnam for consultancy Control Risks, said there was an urgent need to adjust economic policies.

"A continuation of current policies could lead Vietnam's economy to a brick wall at some point," he said.