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New regulations drafted to facilitate CEOs hiring
The Ministry of Labour, War Invalids and Social Affairs (MoLISA) is working on draft regulations on hiring chief executive officers (CEOs), which will allow businesses to decide the salary for the position.
The regulations are expected to remove a major hindrance for enterprises, particularly State-owned, in CEO recruitment, which is facing difficulties due to a cap on salaries.
The Government’s decree on wages issued in 2007 set a ceiling of 25 milllion VND per month for CEOs of profitable enterprises.
However, many foreign companies pay Vietnamese CEOs salaries up to six times the ceiling level.
Hoang Minh Hao, Vice Head of the MoLISA’s Wages and Salary Department, said there were other barriers to the hiring of CEOs, including the lack of regulations on CEOs’ power, responsibilities and qualifications as well as procedures for their appointment.
The Government earlier also gave permission for five State-owned economic groups to pilot the hire of CEOs.
These groups included the Vietnam Motor Industry Corporation (Vinamotor), the Vietnam Construction Glass and Ceramics Corporation (Viglacera), the Vietnam Electric Equipment Corporation, the Vietnam Shipbuilding Industry Corporation (Vinashin), and the Song Hong Construction Corporation.
However, only Vinamotor has so far hired a CEO with a monthly salary of 2,000 USD from this July.
VNA
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