The Vietnamese government has introduced new regulations governing salaries, bonuses, and financial management in state-owned enterprises (SOEs), capping the maximum salary for board chairpersons at 80 million VND (approximately USD 3,150) per month.

The policy, outlined in Decree No. 44/2025, also stipulates that the salaries of general directors and directors cannot exceed ten times the average salary of employees in the same enterprise.

The decree sets clear principles for labor and wage management in SOEs, emphasizing:

Salaries, bonuses, and remuneration must be linked to job responsibilities, labor productivity, and business performance.

Wage policies should be competitive enough to attract and retain high-tech talent in priority sectors identified by the government.

The government will manage SOE wages through the state ownership representative agency, ensuring alignment with national economic policies.

For enterprises where the state holds over 50% of charter capital or voting shares, salary decisions will be made through the state’s capital representative, who will participate in board meetings and shareholder decisions.

Separation of board and executive srialaes

The decree also mandates a clear distinction between the salaries of board members and executive management to ensure transparency. Executive compensation will be determined using one of two methods:

Average salary-based wage fund – calculated based on employee salary levels.

Stable wage rate method – applicable only to businesses with a stable operational history matching the designated wage period.

Companies involved in multiple business sectors can choose the most appropriate method based on their industry and financial indicators.

SOEs will establish internal salary policies, ensuring that employee wages are based on:

Job position and responsibilities.

Labor productivity and individual contributions to business performance.

For executive management, salaries will be determined based on:

Job title and level of responsibility.

Business performance metrics.

The salary of a general director or director (excluding those hired under labor contracts) must not exceed ten times the average worker’s salary.

Additionally, the decree provides a structured basic salary framework for board members and auditors working full-time in SOEs. Enterprises will use their annual business targets to calculate salary plans for these positions.

The new regulations aim to create a transparent, performance-based salary system in state-owned enterprises while ensuring financial sustainability. By capping salaries and linking them to market conditions, the government seeks to balance competitive compensation with fiscal responsibility.

Vu Diep