HCMC – Deputy Prime Minister Pham Thi Thanh Tra has directed authorities to pilot a mechanism allowing state-owned enterprises (SOE) to hire chief executive officers (CEO), instead of appointing them through the existing personnel planning system.
Her instruction came at a February 25 meeting on a draft Government decree governing executives and state capital representatives at SOEs, reported local media.
The draft should include a separate provision for hiring CEOs on a pilot basis. This mechanism would allow more flexible criteria, without rigid requirements on seniority, tenure, or inclusion in official personnel plans, as long as candidates demonstrate management capability and deliver measurable results.
She also called for granting SOEsreal authority once powers are delegated. Excessive approval layers should be avoided to ensure companies can operate proactively.
The draft decree should also reform annual performance reviews. Enterprises should be allowed to apply key performance indicators or other modern evaluation methods instead of administrative assessments.
The deputy prime minister requested tighter controls to ensure transparency, prevent conflicts of interest, and oversee the use of authority. Clear rules should also protect executives from liability in cases where risks arise from objective factors, to encourage innovation.
Vietnam had 671 SOEs as of 2025. They account for 0.23% of all businesses nationwide but hold assets exceeding VND4 quadrillion. They contributed 27.2% of total state budget revenue in 2024.
State-run banks held total assets of VND9.36 quadrillion, representing about 50% of the country’s total credit market.
Tra emphasized that the decree aims to shift management from administrative control toward development-oriented governance and modern corporate standards. By 2030, all state business groups and corporations are expected to adopt governance principles aligned with OECD standards.
The decree will also clarify the authority of the prime minister, state ownership agencies, and enterprises in appointing and supervising key leadership positions, particularly chairperson and CEO. It will define urgent cases where appointments, dismissals, or disciplinary actions are required to ensure flexibility.
The Ministry of Home Affairs has been assigned to finalize the draft decree under an expedited process and submit it to the Government in March.
