The Prime Minister of Vietnam, Pham Minh Chinh, has suggested state-owned enterprises–SOEs–should consider foreigners for executive positions. In order to do this, he has said that they should consider better remuneration packages and higher salaries.
In the past the leaders of SOEs have always been members of the Communist Party of Vietnam which has significantly reduced the talent pool from which to draw–there are currently only a little over 5 million members of the party or around 5 percent of the population.
This also leaves these positions open to being filled through political jostling and networking often connected to seniority and an individual’s position within the party more broadly, rather than merit and qualifications.
Furthermore, as government employees, wages in leadership positions in state-owned enterprises tend to be much lower than in private enterprises.
In 2018, when Vietnam’s airline industry was flying high, the three members of the Board of Directors that were drawing a salary at majority state-owned Vietnam Airlines were receiving about VND 151 million or about US$6,000 a month. For comparison, members of the Board of Directors at privately-owned Vietjet were receiving VND 230 million or about US$9,000 a month.
This may also contribute to limited talent available to take on these positions.
Taking all of this into account, this suggestion from the Prime Minister has broad merit. That said, this would require a sizable shift in the current hiring process at these state owned enterprises–these processes are well embedded in their current structure and may take quite a bit of work to change.
See also: Average Salary in Vietnam 2024: Executive Salaries