Joe Nguyen is stepping down as director of Washington state’s Department of Commerce and is expected to be named the next leader of the Seattle Metropolitan Chamber of Commerce.
Nguyen told Commerce employees on Tuesday that he is leaving but didn’t disclose his new position. He said he didn’t anticipate departing “until sometime in January.”
“Although I can’t tell you where I’m going just yet, I will be working in Seattle, closer to home,” he wrote in an agencywide email. “Sometimes opportunity knocks, even when you haven’t invited anyone to your door. Recently I was offered an opportunity outside of Commerce that I have accepted because it was the right thing to do for my family.”
The chamber, an independent business organisation with 2,600 members, plans an announcement Monday concerning its chief executive officer position. A spokesperson declined further comment.
Rumours of Nguyen’s selection had begun circulating online and amongst business lobbyists in recent days. Nguyen did not return multiple phone calls for comment.
The chamber CEO job has been open since Rachel Smith left as the organisation’s president and CEO to become president of the Washington Roundtable.
Nguyen, a White Center Democrat, was in his second term in the state Senate representing the 34th Legislative District when Governor Bob Ferguson named him to the high-ranking post. He is the first member of Ferguson’s executive cabinet to quit, though others have retired.
Nguyen led an agency with a $7.9 billion budget that administers more than 100 programmes in the areas of housing, energy, community and economic development, local government, and business services. One of its largest portfolios is promoting development of affordable housing, a top priority of Ferguson’s.
In his email to employees, Nguyen wrote he was “honoured” that Ferguson “put his faith in me nearly a year ago and I thank him for that trust.” He said he did not know if Ferguson would install an interim leader or hire a new director straightaway.
In a statement, Ferguson praised the outgoing director and didn’t say how he plans to replace him.
“I spoke with Joe, and it’s clear he received an offer he couldn’t refuse,” Ferguson said. “I deeply appreciate Joe’s work this past year. Joe always has an open invitation to join my administration in the future.”
Nguyen’s departure after less than a year represents a significant blow to Ferguson’s administration. Cabinet directors typically serve for years, not months, and losing a key figure this early suggests either the chamber made an exceptional offer or Nguyen’s fit with the Commerce role wasn’t what either party expected.
The “right thing to do for my family” explanation Nguyen provided in his email suggests financial considerations played a role. Cabinet positions pay well by public sector standards, but chamber CEO positions often come with compensation packages significantly higher than state government salaries.
The Commerce director position carries enormous responsibility across housing, energy, and economic development, all areas Ferguson has identified as priorities. Finding a replacement with the experience and political acumen to navigate these complex portfolios won’t be easy.
The Seattle Metropolitan Chamber of Commerce represents the region’s business community, advocating for policies that support economic growth and opposing regulations businesses view as burdensome. The organisation often clashes with progressive lawmakers over issues like taxation, labour regulations, and environmental requirements.
Nguyen moving from state government to leading a business advocacy organisation represents a significant shift in roles. As Commerce director, he worked within the constraints of state policy and the governor’s priorities. As chamber CEO, he’ll be advocating for business interests that sometimes conflict with state government positions.
The Washington Roundtable that Rachel Smith left the chamber to lead represents an even more influential business organisation, comprising CEOs of the state’s largest companies. Smith’s move created the vacancy Nguyen is reportedly filling.
The 34th Legislative District Nguyen represented in the Senate covers parts of West Seattle, Burien, Vashon Island, and White Center. His departure from the Commerce position doesn’t create a Senate vacancy since he’d already left that seat to join Ferguson’s cabinet.
The $7.9 billion Commerce budget represents substantial resources flowing through programmes touching nearly every corner of Washington’s economy. A director leaving after less than a year creates continuity concerns for programmes and funding commitments already underway.
Ferguson’s comment that Nguyen “always has an open invitation to join my administration in the future” sounds gracious but also suggests the governor wasn’t thrilled about losing his Commerce director so quickly. The phrasing acknowledges the departure whilst keeping the door open.
The January departure timing means Nguyen will leave mid-fiscal year and potentially mid-legislative session, creating additional complexity for his replacement who will need to hit the ground running on budget negotiations and policy implementation.
