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Deputy PM Pham Thi Thanh Tra

Tra on February 25 chaired a meeting with ministries and branches regarding the drafting of a Decree on managing title holders, positions, and state capital representatives at enterprises.

She emphasized that Politburo Resolution 79 on state economic development set the requirement for a fundamental renewal of management thinking, aiming toward modern governance and enhancing the efficiency and competitiveness of SOEs.

She stated the requirement to continue strong reform of administrative procedures and promote decentralization and the delegation of power to enhance the autonomy and self-responsibility of SOEs.

However, she also noted that decentralization must be linked with a clear and transparent distinction of appointment authority between the Prime Minister, the owner's representative agency, and the enterprise, ensuring no overlap or accountability gaps.

The Deputy Prime Minister raised issues regarding two key titles: the chairman of the board of members and the general director. These are positions with a decisive role in strategic planning and the organization and management of production and business activities.

In addition to a clear decentralization mechanism, the document needs to specify cases of "necessity and urgency" for competent authorities to consider and decide on appointments, dismissals, removals, and related personnel processes. This regulation aims to ensure flexibility in management, meeting development requirements in each period.

An important issue that Deputy Prime Minister Pham Thi Thanh Tra requested to be carefully researched is the pilot specific mechanism for hiring, recruiting, and appointing directors and general directors at some SOEs.

She suggested designing a separate clause on the pilot mechanism with a specific scope, address, and clear duration to evaluate and draw lessons before replication. When implementing specific hiring and recruitment mechanisms, rigid requirements for planning, seniority, and time in office as per general regulations may not be applied, provided that the selected person has management capacity and specific achievements or products.

Regarding annual evaluation and classification, the Deputy Prime Minister requested innovation centered on efficiency, allowing enterprises to apply modern evaluation tools such as KPIs or other advanced methods, rather than mechanically applying administrative evaluation mechanisms.

The new draft Decree must also supplement mechanisms for strict power control and supervision, ensuring openness, transparency, and the prevention of conflicts of interest.

Notably, the Deputy Prime Minister emphasized that the spirit of Resolution 79 is to encourage a dynamic, creative, and "dare-to-think, dare-to-do" enterprise management team.

She requested the Ministry of Home Affairs and other ministries and sectors to research mechanisms to protect enterprise managers who dare to think, dare to do, and dare to take responsibility for the common good.


Tran Thuong