VietNamNet Bridge – A series of state owned economic groups and
general corporations report huge losses for the last many consecutive years,
but the chiefs of the enterprises still receive huge incomes.
“Why can state owned
conglomerates’ chiefs still can receive sky high incomes, even though their
enterprises repeatedly take loss?” was the question raised by Do Manh Hung,
Deputy Chair of the Social Affairs Committee to the Prime Minister Nguyen Tan
Dung.
In fact, this is the matter of
concern of not only Hung, but of many other people as well. The State Chief
Auditor--Dinh Tien Dung, said before the National Assembly that Petrolimex
incurred the loss of VND1,423 billion, but the chief of the enterprise still
received VND70 million a month in 2010 and
VND58 million in 2011.
Dung, in the replied document,
citing the current regulations on the salaries and wages for management
officers, said that most of the conglomerates have strictly followed the
regulations.
However, the Prime Minister
admitted that some state owned enterprises (SOEs) defined the salaries and
bonuses for the heads and their staffs not in accordance with the current
regulations. The Rubber Industry Group, PetroVietnam, the State Capital
Investment Corporation (SCIC) have been named when mentioning the violation of
the principles.
Dung said that since the
inspection by the State as the owner of enterprises has not been carried out
regularly, which has led to the fact that the violations could not be found
soon.
In other cases, some state owned
conglomerates took profit because they had to sell products at the prices below
the cost prices as requested by the State in an effort to intervene in the
market and to stabilize the prices. The conglomerates include Petrolimex, the
petroleum product distributor, and the Electricity of Vietnam (EVN).
Meanwhile, Dr. Le Dang Doanh,
former Head of the Central Institute for Economic Management (CIEM), now a
well-known independent economist, said the “high income for unprofitable
enterprises’ managers” shows the loopholes of the laws relating to the business
management.
Doanh noted that there has been
no legal regulation which says that if CEOs or Presidents will have to see
their salaries lowered if they cannot fulfill the business plans or take loss.
In other economies, according to
Doanh, clear provisions are always set up in labor contracts to clarify the
responsibility and the right of CEOs. The managers of enterprises would be
required to undertake some works and fulfill some tasks during their terms, or
they would be dismissed or receive lower salaries.
Meanwhile, such a regulation does
not exist in Vietnam. The decisions by the State to appoint personnel to the
posts of CEOs or Chair of the Board of Directors do not clarify the interests
the personnel would get and the responsibility they have to take when their
make profit or take loss.
“This is a weak spot in the state
management work,” Doanh said.
Dr. Nguyen Minh Phong from the
Hanoi Research Institute for the Socio-Economic Development, agreed, saying
that this showed the shortcomings in the state’s enterprise management.
He emphasized that in a market
economy, the pays to individuals must depend on their labor results.
Phong has called on to reconsider
the regulations on the appointment of personnel to the important posts at state
owned enterprises, especially big general corporations.
“It’s necessary to stipulate that
the saleries and bonuses to individuals depend on the enterprises’ business
results and their ability,” Phong said.
Compiled by C. V
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