return icon Vietnamnet.vn

How high are the incomes of managers in state-owned conglomerates?

VietNamNet Bridge - The managers of state-owned economic groups and general corporations are reported to receive VND0.5 billion a year. But their real incomes are much higher.

VietNamNet Bridge - The managers of state-owned economic groups and general corporations are reported to receive VND0.5 billion a year. But their real incomes are much higher.


{keywords}

According to the Ministry of Industry and Trade (MOIT), in 2014, the salaries paid to high-ranking executives at state-owned enterprises (SOEs) put under the ministry’s management were between VND38 million and VND74 million a month.

The report released in mid-June 2016 showed that pay for managers of state-owned economic groups in 2015 was nearly the same. 

At the Vietnam Coal and Minerals Industry Group (Vinacomin), for example, Le Minh Chuan, chair of the board of directors, received VND52.2 million a month, while Dang Thanh Hai, general director, got VND50.7 million.

As for Vietnam Airlines, the nation’s flag air carrier, the CEO expected to receive VND32 million a month, and if the business goes well, he would receive 50 percent higher, or VND50 million.

Are the salaries high or low? They are very high if compared with the current pay mechanism set up for SOEs and state’s agencies, and low if compared with the pay offered to executive officers at other enterprises from other economic sectors.

The managers of state-owned economic groups and general corporations are reported to receive VND0.5 billion a year. But their real incomes are much higher.
The salary of a head division head of a technology firm in Hanoi with turnover of tens of millions of dollars a year may be even higher than the salary of a chair of an SOE with revenue of hundreds of trillions of dong and profit of trillions of dong a year.

Navigos Search, a well-known job recruitment firm, in April 2016 advertised salaries of between VND100 million and VND145 million a month for high-ranking personnel in the sectors of health care, service, trade and banking.

Vinacomin has reported revenue of VND106.86 trillion for 2015 and the profit of VND600 billion. Meanwhile, Vietnam Airlines had revenue of VND70 trillion and pre-tax profit of VND1.4 trillion. However, the income of the corporations’ managers did not increase.

“It is so funny that local newspapers commented our salaries are too high,” the director of a state-owned conglomerate said.

He went on to say that the managers of state-owned conglomerates which can earn revenue of billions of dollars and employ tens of thousands of workers earn less money than medium-ranking officers at joint stock companies which only have revenue of tens of millions of dollars.

However, the director admitted “the real income is not low, and income is different from salary”. 

The pay to managers of equitized SOEs is much higher than that for SOE managers. The leaders of Vinamilk, for example, can earn VND400 million a month, or nearly VND5 billion a year. Besides, they also have opportunities to receive bonus shares every year.


Tri Thuc Tre


MORE NEWS

Revoking licenses of petrol distributors will not affect fuel supply

Although petrol distributors are allowed to buy products from more than one wholesaler, when supply interruptions occur, the distributor system has often not ensured a sufficient supply for filling stations.

Beauty contests heat up in first days of the Year of the Cat

Pham Kim Dung, a representative of the company that founded Hoa hau Quoc gia Vietnam (Miss National Vietnam) beauty pageant, said beauty queens need to make every effort to prove their talent as so many contests now exist.

Vietnam looks forward to catfish orders from China, the US

In January 2023, catfish exports brought $106.8 million to Vietnam, a 50 percent fall compared with the same period last year. However, Vietnamese farmers and exporters now see positive signs from the US and China.

High rates hurting businesses, hamper economic recovery

High interest rates have been hurting businesses' ability to invest in ramping up production capacity, said industry insiders and economists.

Chinese black-credit websites cheating Vietnamese out of money

Many websites have been created to trick people into transferring money to them.

Record number of Vietnamese runners qualify for Boston 2023

Nine of them are from Hanoi and HCM City, the two largest running communities in Vietnam, while the other is Dao Han, who currently lives in Florida, the US.

Vietnam’s transport sector seeking recovery and reboot

While making good recovery during 2022, Vietnam’s transport sector is betting on new policies and plans to increase private investment to obtain its ambitious goals.

Strong FDI flow into Vietnam's electronics industry to boost exports

The increased inflow of investment from foreign investors into Vietnam’s electronics industry is expected to create a positive outlook for the country’s exports of computers, electronic products, and components in the time to come.

Vietnamese professor honoured with prestigious IUPAC award

Vietnamese Professor Nguyen Thi Kim Thanh has received “the Distinguished Women in Chemistry or Chemical Engineering Awards” by the International Union of Pure and Applied Chemistry (IUPAC) in 2023.

Hanoi targets GRDP per capita of 36,000 USD by 2045

Hanoi is set to become a globally-connected city with high living standards and quality of life, according to a new plan that aims to raise the Gross Regional Domestic Product (GRDP) per capita to 36,000 USD by 2045.

Vietnamese security expert honored by US wireless carrier

Ngo Minh Hieu, a white-hat hacker, has been honored by many US technology corporations.

Many real estate firms declared bankruptcy in 2022

The number of real estate firms declaring bankruptcy and dissolution in 2022 increased by 38.7 percent over 2021, according to the Ministry of Construction’s (MOC) recent report.

Electricity prices must be reasonable: PM

Prime Minister Pham Minh Chinh recently chaired a conference on domestic consumption and exports in 2023.

Vietnamese aviation market predicted to fully recover by year-end

The Vietnamese aviation market is forecast to fully recover by the end of this year, according to a global outlook for the aviation industry released by the International Air Transport Association (IATA) recently.

Many Japanese firms plan expansion in Vietnam: JETRO poll

Sixty percent of Japanese investors in Asia-Pacific polled in a 2022 survey by the Japan External Trade Organization (JETRO) said they plan to expand operations in Vietnam within the next two years.
back_to_top