Exploring the use of foreign CEOs in state-owned enterprise leadership roles

During a conference on June 15, Prime Minister Pham Minh Chinh urged state-owned enterprises to focus on innovation and optimization in production, technology, management, and human resources. The Prime Minister emphasized the importance of innovating the work of cadres and human resources as a key aspect of improvement. He noted that current remuneration and responsibility handling mechanisms at state-owned enterprises lack incentives associated with market mechanisms and often lead to low efficiency and limited capacity in business management.

To address these shortcomings, the Prime Minister proposed that state-owned enterprises consider pilot plans to hire foreign executives and leaders who are not party members. He also highlighted the need to establish appropriate compensation and salary mechanisms to attract high-quality human resources. Minister of Planning and Investment Nguyen Chi Dung previously emphasized the importance of providing autonomy to state-owned enterprises and encouraging employees, especially at management levels, to innovate and maximize their potential.

In addition to these workforce-related initiatives, the Prime Minister assigned responsibilities to various government agencies to propose appropriate staff and organizational structures specific to state-owned enterprises. The Ministry of Finance was tasked with studying the draft Law on Management and Investment of State Capital at Enterprises to increase decentralization and enforcement capacity. The goal is to boost the revenue and profits of state-owned enterprises, with a focus on accelerating investment progress and completing long-standing projects.

Looking ahead to 2024, the Prime Minister stressed the importance of state-owned enterprises in driving economic development and stability. He called on these enterprises to lead investment and development initiatives and become regional and global leaders in their respective industries. Government leaders also assigned specific tasks to sectors like energy, food, public utilities, and infrastructure development to support economic growth and social welfare.

Overall, the Prime Minister emphasized the need for state-owned enterprises to overcome limitations and weaknesses, innovate in workforce management, and drive economic progress in Vietnam. By restructuring, resolving longstanding issues, and promoting investment and development, these enterprises can solidify their roles as key players in the country’s economic landscape.