Vietnam looks to rein in public fat cats amid growing backlash

By Thu Hang, Thanh Nien News

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A man counts Vietnamese bank-notes outside a bank in Hanoi, Vietnam May 7, 2015. Photo: Reuters

The labor ministry has announced a draft bill aiming to limit the salary payable to executives at state-controlled firms at VND100 million (US$4,590) per month.
The bill will target board members, CEOs, directors, deputy directors and chief accountants at companies that are at least 51 percent owned by the state. 
Their salaries will match the profits they can generate for the firms, ranging from VND40 million to VND100 million. 
A statement from the ministry said it drafted the bill after learning about the public discontent over excessive salaries of leaders at large state-owned firms, irrespective of their performances. 
In many cases, the salaries are too different from the money paid to other employees in the same companies and many times higher than the average payment in the local labor market.
A survey by the ministry at 345 small and medium enterprises with state funds has found the managers receive 2.5 times the payment of their workers.
But the difference is 14 times at some large firms, where the managers still pocket around $2,000 a month even when their firms are making losses, it found.

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