Ho Chi Minh City considers hiring outsiders to lead state-owned companies

Ho Chi Minh City is preparing a new way to choose leaders for public institutions and state-owned companies: look beyond the usual personnel pipeline and hire people with proven results.

The city is collecting opinions on a draft resolution covering heads of public service units, chairpersons and members of enterprise boards, and general directors and directors of state-owned companies. The proposal would shift selection away from a system centered mainly on career planning, formal standards and appointment procedures. Instead, it would give greater weight to management ability, notable achievements and measurable output.

The drafting agency said the city’s public institutions and state-owned companies operate across demanding fields, including specialized healthcare, higher education, research, urban infrastructure, logistics, finance, construction and tourism. It argued that appointments based on rank, seniority and planned personnel pools can make it harder to attract strong candidates from the private sector or international experts.

The central government already introduced a pilot mechanism for hiring general directors and directors under Decree 181/2026. Implementation has remained limited, however, because of unresolved issues involving compensation, responsibility for state capital and assets, and protections for officials willing to take risks and act decisively. Ho Chi Minh City’s draft would extend the hiring mechanism to a wider group of enterprise leaders and to heads of public service units.

Candidates would need relevant experience, outstanding achievements and credibility in their fields. They would not necessarily have to meet every standard for the position or follow the general appointment process. The city would prioritize science, technology, innovation and areas where local talent cannot meet demand, while excluding defense and national security. It also wants more flexible pay tied to performance indicators, addressing what officials describe as a major disadvantage in competing with multinational corporations and large private companies for top executives.