Foreign experts earn 1 billion VND/month, Vietnamese staff only earn 30 million?

Unprecedented high salary

From August 1, Ho Chi Minh City officially piloted a number of specific mechanisms and policies for city development according to Resolution No. 98/2023/QH15. Among the pilots that the National Assembly allowed the Ho Chi Minh City government to implement is a salary policy for government officials and scientists .

To encourage the development of science and technology, the Ho Chi Minh City People's Council was assigned by the National Assembly to decide on income levels for experts, scientists, and people with special talents in the city.

In the process of implementing this new salary policy, the Department of Science and Technology of Ho Chi Minh City has developed a draft "Regulations on criteria, subjects, conditions, and levels of salary, wages, welfare regimes, and other preferential policies for leadership positions in public science and technology organizations and remuneration for performing tasks".

In the draft, the Department of Science and Technology of Ho Chi Minh City proposed a salary of 60-120 million VND/month for the heads of public science and technology organizations established by the Ho Chi Minh City People's Committee. In addition, the deputy heads of these organizations will also receive a salary of 50-100 million VND/month.

This is an unprecedentedly high salary in the salary system of public units in Ho Chi Minh City. In current state-owned science and technology organizations, the average total income of scientists is only about 30-40 million VND/month.

Chuyên gia nước ngoài lương 1 tỷ đồng/tháng, nhân sự Việt chỉ 30 triệu? - 1 — Ho Chi Minh City hopes that high salaries will help the city attract talented people and scientists of international stature (Illustration: Pham Nguyen).

According to Ms. Nguyen Thi Thu Suong, acting Head of the Science Management Department of the city's Department of Science and Technology, the proposal of such high salaries aims to attract talented people and international scientists to help the city have effective and quality research.

Ho Chi Minh City hopes that with these high-caliber scientists, the city will be able to build a number of internationally recognized leading research units, leading the way in promoting the economy through scientific research results.

It is common for private companies to pay hundreds of millions of dong in salary.

According to Ms. Nguyen Thi Thu Suong, the remuneration proposed in this draft is large for the average income of Vietnamese people, but for foreign experts and overseas Vietnamese, it is only moderate.

For top experts, a salary of billions of VND/month is not uncommon. Incomes of billions of VND/month also appear in the position of general director of many real estate, finance, insurance companies... The personnel holding these positions are all top experts in the industry.

In early 2023, Navigos Group, a unit specializing in providing high-level human resources in Vietnam, announced the 2023 salary survey report. Based on the recruitment salary of partners, this unit's statistics on salary levels in each industry show that: a salary of hundreds of millions of VND/month for the position of general director of large enterprises is not uncommon.

According to this report, the highest salary recorded in 2022 is the position of general director of the insurance industry with a figure of up to 40,000 USD/month (about 940 million VND).

Mr. Tran Anh Tuan, Vice President of the Ho Chi Minh City Vocational Education Association, has 40 years of experience working in the labor industry, so he has a good understanding of the remuneration regime for employees in the state and non-state sectors.

According to Mr. Tuan, private and foreign-invested enterprises pay salaries based on work efficiency and profits that employees bring to the unit. Therefore, a salary of hundreds of millions of VND is nothing for top managers, they even pay salaries of billions of VND/month. However, the payment of salaries in state-owned units has clear regulations and it is very difficult to spend beyond the limit.

Regarding the proposal to pay a salary of up to 120 million VND/month for the head of a public science and technology organization in Ho Chi Minh City, Mr. Tran Anh Tuan suggested that there must be a clear definition of titles, specific standards for each job position, evaluation criteria based on work efficiency... According to Mr. Tuan, clear regulations will help this policy be implemented publicly, transparently and fairly.

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