VietNamNet Bridge – The official statistics by the Ministry of Labor, War Invalids and Social Affairs (MOLISA) showed that the managers of state owned enterprises (SOEs) earn tens of millions of dong a month. However, analysts believe that the actual figures are much higher.

According to Tran Viet Ngai, Chair of the Vietnam Energy Association, the senior foreign experts from Japan, the US or Germany working for the thermopower projects in Vietnam can receive up to $30,000 a month, or VND600 million. They can live in villas, stay in 5-star hotels, have private cars and secretaries.

A banker said the CEOs of big joint stock banks can get a pay of VND200 million a month. Private companies also pay high to senior executives to attract talents. Regional directors of the companies can earn up to $5,000, or VND100 million.

The annual income of billions of dong is no more a strange thing in Vietnam. Bosses are prepared to pay high to experienced executives who can bring big profits to their companies. And if the executives don’t fulfill their tasks, they will be dismissed.

The strange thing now in the wage mechanism in Vietnam is that the managers of SOEs which take loss or incur big debts can also earn multi-billions of dong a year.

The recent inspections taken by the State Auditing to big SOEs and state owned economic groups have found that the leaders of the SOEs can pocket big money.

The directors of the four public welfare companies in HCM City have become well known after the inspectors found their huge incomes. The director of the HCM City Urban Drainage Company, for example, earned VND2.6 billion a year, or over VND200 million a month. The Chair of the company and chief accountant receive VND1.6 billion a year for each.

At the HCM City Public Lighting Company, the general director received VND2.2 billion a year, the chair VND2.4 billion, deputy director VND1.9 billion and chief accountant VND1.7 billion.

Meanwhile, MOLISA’s survey shows lower salaries for SOEs’ managers. In 2011, a manager at SOEs received VND25-30 million a month, while President, General Director received VND30-35 million, and the lower rates of VND20-28 million were reserved for members of the board of directors and chief accountants.

At 32 holding companies of the state owned economic groups, the average pay to the leaders in 2011 was VND40 million. The salaries were higher for the leaders of the enterprises which have business advantages or enjoy the monopoly in the national economy can earn up to VND70 million.

As such, the salaries paid to the leaders of the SOEs are between VND480 million and VND840 million a year. This means that the salaries the directors of the public welfare companies paid to themselves were 5-6 times, or even 10 times higher than the average rate.

The information about the unreasonably high salaries received by the directors of the public welfare companies in HCM City has raised the anger among people.

However, they have been told that not only the leaders of the four companies, but the managers of numerous SOEs can also pocket billions of dong a year.  And they receive billions of dong even when they cannot fulfill the business plan or incur big losses.

Sources said that the big SOEs in the oil and gas, textile and garment, rubber and food sectors pay their CEOs and Presidents over VND100 million a month, or over VND1 billion a year.

US$1 = VND21,000

Pham Huyen