Vietnam’s State-owned Enterprises Under Scrutiny for Executive Compensation
The Ministry of Labour, Invalids, and Social Affairs’ Inspectorate has released Inspection Conclusion No. 209/KL-TTr, revealing the results of their investigation into Dong Nai Rubber Company (Donaruco), a subsidiary of Vietnam Rubber Group (VRG). The inspection period covered January 1, 2022, to June 30, 2024, and uncovered issues with the company’s compliance with labor regulations.
One key finding was that Donaruco’s executive compensation was not linked to their individual contributions to the company’s performance and management. Additionally, the company failed to include the Company Union Executive Committee in deciding executive salaries, which is a violation of labor laws regarding state-owned enterprises.
State-owned enterprises in Vietnam have come under scrutiny for their executive compensation practices. Despite being partially state-owned, these companies have been granting substantial salaries and bonuses to their leadership, as evidenced by their recent disclosures on the stock exchange.
One notable example is Vietnam Maritime Corporation (VIMC), where key executives have seen their incomes rise in the first half of the year. Mr. Nguyen Canh Tinh, a member of the Board of Directors and General Director, earned 1.06 billion VND in the first six months, a 177 million VND increase from the previous year. Other members, such as Mr. Nguyen Dinh Chung and Mr. Le Anh Son, also witnessed substantial increases in their compensation.
Source: VIMC
Vietnam Airlines (HVN) is another state-owned enterprise with a large number of subsidiaries and affiliates. Their disclosures show that Chairman Dang Ngoc Hoa earned nearly 572 million VND in the first six months, an increase of 60 million VND from the previous year. The General Director, Le Hong Ha, earned a similar amount, while the six Deputy General Directors each received 408 million VND, a decrease from the previous year.
Source: HVN
Donaruco is one of VRG’s 99 subsidiaries, and their financial reports show that the VRG Chairman, Tran Cong Kha, earned over 371 million VND in the first half of the year, a slight increase from the previous year. The six members of the Board of Directors also saw a slight increase in their total compensation.
Source: GVR
Vinafood II, a state-owned food corporation, paid their five-member Board of Directors and five-member Inspection Committee a total of 1.04 billion VND in the first half of the year. The Chairman, Nguyen Huy Hung, earned 288 million VND, a 50 million VND increase from the previous year. The Inspection Committee saw similar increases, with the Chairman earning nearly 205 million VND. The Board of Directors also approved a total of 1.13 billion VND in salaries for the six-member Executive Board.
Source: Vinafood II
Song Da Corporation (SJG), with over 3,200 employees and numerous subsidiaries and affiliates, has reduced executive compensation by 45% compared to the previous year. The Chairman, Tran Van Tuan, remains the highest-paid executive, earning over 735 million VND in the first six months. The Inspection Committee also saw a slight decrease in their total compensation.
The Ministry of Labour, Invalids, and Social Affairs’ inspection of Donaruco has brought attention to the executive compensation practices of state-owned enterprises in Vietnam. While these companies are partially state-owned, their executive compensation packages have been generous, and in some cases, increasing. As these enterprises are accountable to the public, further scrutiny and transparency are necessary to ensure responsible use of resources.
The Ministry of Labour, Invalids, and Social Affairs’ Inspectorate has released Inspection Conclusion No. 209/KL-TTr, revealing the results of their investigation into Dong Nai Rubber Company (Donaruco), a subsidiary of Vietnam Rubber Group (VRG). The inspection period covered January 1, 2022, to June 30, 2024, and uncovered issues with the company’s compliance with labor regulations.
State-owned enterprises in Vietnam have come under scrutiny for their executive compensation practices. Despite being partially state-owned, these companies have been granting substantial salaries and bonuses to their leadership, as evidenced by their recent disclosures on the stock exchange.
One notable example is Vietnam Maritime Corporation (VIMC), where key executives have seen their incomes rise in the first half of the year. Mr. Nguyen Canh Tinh, a member of the Board of Directors and General Director, earned 1.06 billion VND in the first six months, a 177 million VND increase from the previous year. Other members, such as Mr. Nguyen Dinh Chung and Mr. Le Anh Son, also witnessed substantial increases in their compensation.
Source: VIMC
Vietnam Airlines (HVN) is another state-owned enterprise with a large number of subsidiaries and affiliates. Their disclosures show that Chairman Dang Ngoc Hoa earned nearly 572 million VND in the first six months, an increase of 60 million VND from the previous year. The General Director, Le Hong Ha, earned a similar amount, while the six Deputy General Directors each received 408 million VND, a decrease from the previous year.
Source: HVN
Donaruco is one of VRG’s 99 subsidiaries, and their financial reports show that the VRG Chairman, Tran Cong Kha, earned over 371 million VND in the first half of the year, a slight increase from the previous year. The six members of the Board of Directors also saw a slight increase in their total compensation.
Source: GVR
Vinafood II, a state-owned food corporation, paid their five-member Board of Directors and five-member Inspection Committee a total of 1.04 billion VND in the first half of the year. The Chairman, Nguyen Huy Hung, earned 288 million VND, a 50 million VND increase from the previous year. The Inspection Committee saw similar increases, with the Chairman earning nearly 205 million VND. The six-member Executive Board also saw a significant increase in their total compensation.
Source: Vinafood II
Song Da Corporation (SJG), with its large workforce and numerous affiliates, has reduced executive compensation compared to the previous year. Chairman Tran Van Tuan remains the highest-paid executive, but his compensation has decreased slightly. The Inspection Committee has also seen a reduction in their total compensation, with the addition of a new member this year.
