Concerning the management of persons holding positions and representing state capital at enterprises

DECREE
ON THE MANAGEMENT OF PERSONS HOLDING OFFICIAL POSITIONS AND REPRESENTATIVES OF STATE CAPITAL IN ENTERPRISES
BASED ON THE GOVERNMENT ORGANIZATION LAW NO. 63/2025/QH15;

BASED ON THE ENTERPRISE LAW NO. 59/2020/QH14, AMENDED AND SUPPLEMENTED BY SEVERAL ARTICLES ACCORDING TO LAWS NO. 76/2025/QH15 AND NO. 03/2022/QH15;

BASED ON THE STATE CAPITAL MANAGEMENT AND INVESTMENT LAW AT ENTERPRISES NO. 68/2025/QH15;

ACCORDING TO THE PROPOSAL OF THE MINISTER OF HOME AFFAIRS;

THE GOVERNMENT ISSUES THIS DECREE ON THE MANAGEMENT OF PERSONS HOLDING OFFICIAL POSITIONS AND REPRESENTATIVES OF STATE CAPITAL IN ENTERPRISES.

CHAPTER I

GENERAL PROVISIONS
Article 1. Scope of Application

This Decree regulates the management and utilization of persons holding official positions at enterprises wholly owned by the State, state-appointed supervisors, and representatives of state capital in enterprises.

Article 2. Applicability

1. State-owned enterprises as defined under the Enterprise Law.

2. Enterprises where the State holds no more than 50% of the share capital or voting rights (hereinafter referred to as state-capital enterprises).

3. Persons holding official positions at enterprises wholly owned by the State (hereinafter referred to as managers of state-owned enterprises), including:

a) Chairman of the Board of Directors;

b) General Manager in enterprises not organized under the model of a Board of Directors;

c) Members of the Board of Directors;

d) General Manager or Director, except where a General Manager is hired,

4. State-appointed supervisors.

5. Representatives of state capital in enterprises where the State holds more than 50% of the share capital or voting rights; representatives of state capital in enterprises where the State holds no more than 50% of the share capital or voting rights (hereinafter referred to as state-capital representatives).

6. Other relevant agencies, organizations, and individuals.

Article 3. Interpretation of Terms

In this Decree, the following terms are understood as follows:

1. Personnel work includes:

a) Evaluation, planning, appointment, reappointment; transfer, resignation, dismissal; commendation, disciplinary action, and termination of official positions for managers of state-owned enterprises;

b) Evaluation, nomination, renomination, dismissal, termination as representatives of state capital, commendation, disciplinary action for representatives of state capital;

c) Temporary suspension from work, resignation, retirement.

2. The personnel advisory body is the organization responsible for personnel work under the competent authority.

3. A state-appointed supervisor is a position held by an individual within the management authority of the state asset owner's representative agency and appointed by such agency, working on a full-time or part-time basis.

Article 4. Principles Governing the Management of Managers of State-Owned Enterprises, Supervisors, and Representatives of State Capital

1. Ensuring the principle of the Party's unified leadership in personnel work and management.

2. Adhering strictly to legal provisions on enterprises, laws on state capital management and investment at enterprises, and related laws; where there are differences, implementing the specialized law provisions while ensuring compliance with the provisions of the competent authority.

3. Implementing the principle of democratic centralism, clearly defining collective responsibility and individual responsibility, particularly that of the head in personnel work; promoting decentralization and delegation to direct state asset owners.

4. Managers of state-owned enterprises, representatives of state capital, and supervisors are not civil servants, public officials, or staff members.

5. In cases where one person simultaneously holds multiple positions under the management authority of different levels, the examination and decision-making shall be conducted by the competent authority with the highest level of management authority.

5. In case one person simultaneously holds multiple positions subject to the management authority of different levels, the examination and decision shall be conducted by the authority with management authority over the highest position held.

Chapter II
AUTHORITY AND DUAL ROLE OF STATE OWNERSHIP REPRESENTATIVE AND INSPECTOR, AND STATE CAPITAL REPRESENTER
STATE-Owned Enterprise MANAGER, INSPECTOR,
STATE Capital REPRESENTER

Article 5. Authority of the Prime Minister

1. Provide comments on decisions by the state ownership representative regarding appointments, reappointments, transfers, dismissals, and resignations of members of the board of directors and company presidents in enterprises where the State holds a 100% equity stake, provided that such authority and responsibility are exercised as the state ownership representative and according to the list attached to this Decree.

2. In cases deemed necessary, request the state ownership representative to implement or direct the implementation of cadre work matters for enterprise managers in enterprises specified in paragraph 1 of Article 5 of this Decree.

Article 6. Authority of the State Ownership Representative

1. For enterprises as specified in paragraph 1 of Article 5 of this Decree:

a) Decide on cadre work matters as stipulated in points (a) and (c) of paragraph 1 of Article 3 of this Decree for members of the board of directors and company presidents; decisions regarding matters as stipulated in paragraph 1 of Article 5 of this Decree must obtain prior comments from the Prime Minister.

b) Decide on cadre work matters as stipulated in points (a) and (c) of paragraph 1 of Article 3 of this Decree for members of the board of directors;

c) Provide comments before decisions by the board of directors or company president regarding cadre work matters as stipulated in point (a) of paragraph 1 of Article 3 of this Decree for general managers and directors, except for planning authority;

d) Approve the General Manager and Director recruitment plan.

2. For enterprises where the State holds a 100% equity stake as exercised by the state ownership representative:

a) Decide on cadre work matters as stipulated in points (a) and (c) of paragraph 1 of Article 3 of this Decree for members of the board of directors, company presidents, and members of the board of directors;

b) Provide comments before decisions by the board of directors or company president regarding cadre work matters as stipulated in point (a) of paragraph 1 of Article 3 of this Decree for general managers and directors, except for planning authority; approve the General Manager and Director recruitment plan.

3. For enterprises with state capital:

a) Decide on cadre work matters as stipulated in points (b) and (c) of paragraph 1 of Article 3 of this Decree for representatives of state capital;

b) Provide comments before decisions by the representative of state capital at enterprises where the State holds more than 50% but less than 100% equity or total voting rights in the general meeting of shareholders, board meetings, and board of directors regarding matters as stipulated by law on managing and investing state capital in enterprises.

4. The state ownership representative shall establish standards, conditions, working terms, powers, and responsibilities for inspector positions consistent with relevant party regulations, laws, and international practices; ensure the quality, effectiveness, and efficiency of inspectors to support enterprise production and business operations and the function of the state ownership representative in supervising state capital invested in enterprises. The state ownership representative shall decide on appointments and other cadre work matters related to inspector positions.

Article 7. Authority of the Board of Members and Company President

1. For enterprises specified in paragraph 1 of Article 5 of this Decree:

a) Decide on matters related to cadre work as provided in points a, c of paragraph 1 of Article 3 of this Decree for General Manager, Director, and other positions or ranks under the management authority of the enterprise; except for content concerning planning, decisions must have the opinion of the state-owned asset representative body before being made.

b) Decide on hiring, termination of hire contracts; remuneration, bonuses, and other benefits.

2. For enterprises specified in paragraph 2 of Article 6 of this Decree

a) Decide on matters related to cadre work as provided in points a, c of paragraph 1 of Article 3 of this Decree for General Manager, Director, and other positions or ranks under the management authority of the enterprise; if decisions apply to General Manager, Director, they must report to the state-owned asset representative body before being made, except for planning authority.

b) Decide on signing hire contracts, termination of hire contracts, remuneration, bonuses, and other benefits (if any) for General Manager, Director.

Article 8. Concurrent Appointment for State-Owned Enterprise Managers, Supervisors, and State Capital Representatives

1. The concurrent appointment of other positions or ranks by state-owned enterprise managers is as follows:

a) The company president may concurrently serve as the general manager or director of their own company but shall not concurrently hold management positions in another company;

b) Except for members of the board of directors, other members of the board of directors may concurrently serve as the general manager or director of their own company or a non-member enterprise by decision of the state-owned asset representative body.

2. The concurrent appointment of other positions or ranks by supervisors is as follows:

a) The head of the audit committee and supervisor shall not be an employee at another enterprise; shall not serve as a supervisor in a non-state-owned enterprise; and shall not be an employee of any enterprise;

b) An individual may concurrently hold the position of head of the audit committee and supervisor for no more than four state-owned enterprises.

3. The concurrent appointment of other positions or ranks by state capital representatives is as follows:

a) A full-time state capital representative shall work at only one enterprise;

b) A part-time state capital representative may participate in representing state capital in no more than three enterprises; the number of part-time representatives in any single enterprise shall not exceed 30% of the board of directors or board of supervisors membership;

c) A part-time state capital representative may participate as a representative at one or several other enterprises according to the regulations set forth in the bylaws; they shall not concurrently serve as a state capital representative in another enterprise under the state-owned asset representative body.

4. State-owned enterprise managers, state capital representatives, and supervisors shall not concurrently hold positions or ranks in their own enterprise and other enterprises contrary to the provisions of paragraphs 1, 2, and 3 of this Article.

Chapter III
IMPLEMENTATION OF STAFF WORK FOR STATE-Owned ENTERPRISE MANAGERS
SECTION 1

TERMINATION OF APPOINTMENT
Article 9. Term of Office

1. The term of office for managerial positions is five years from the effective date of the appointment decision, except where a shorter term is provided by specialized laws.

2. An individual may be appointed as Chairman of the Board of Directors, Board Member, or General Manager for no more than two terms at one enterprise, unless they have had continuous service of over fifteen years with that enterprise prior to their first appointment; in cases where service has been continuous with a subsidiary company, such service time can be cumulatively counted.

In the event that the term limit is reached but retirement age has not yet been attained, the competent authority may consider and decide on appropriate work assignments.

Article 10. Qualifications and Conditions for Appointment

1. Ensure compliance with general qualifications and conditions as stipulated by the Party and the State, and specific qualifications and conditions for the position or rank to be appointed as prescribed by the competent authority.

2. For personnel from within the enterprise, they must be planned for the position or a higher position. For personnel from outside the enterprise, they must also be planned for a position at least equivalent in level. In special cases, the decision is made by the competent authority.

If a new enterprise has not yet completed the planning process, the competent authority may consider and decide on appointments.

3. Have served in the current or a similar position for at least one year (12 months), with non-continuous service being eligible for cumulative consideration (only applicable to time served in a similar position).

If prior to appointment, there was a period of service that was determined as higher, equal, or lower than the proposed position, such time is counted towards the equivalent position service and can be cumulatively considered; this does not apply to cases where the position was vacated due to disciplinary action.

In special circumstances where the required service time has not been met or there has been no continuous service, the competent authority may consider and decide on appointments.

Ensure that personal records, background checks, asset declaration, and income statements are complete, clear, and verified by the competent authority.

5. Have received satisfactory performance evaluations in at least three of the most recent years. In cases where non-compliance is due to objective reasons related to enterprise performance, the competent authority may consider and decide on appointments based on the enterprise's development goals for each financial year.

6. Possess relevant work experience, professional knowledge, management experience, achievements, results, and specific products suitable for the position being appointed.

7. Age at appointment

a) For personnel first appointed to leadership or managerial positions, or those proposed for higher-level appointments, they must be of an age that allows them to serve the full term of office. The date for calculating age is determined by the competent authority; in special cases, the decision is made by the competent authority.

b) For personnel transferred or appointed to a new position at the same level or lower than their current position, the provisions of point (a) do not apply.

8. Be physically fit to fulfill assigned duties.

9. Not fall under any of the following circumstances:

a) Prohibited from holding office as per legal regulations;

b) Under disciplinary action;

c) Under investigation, prosecution, or trial;

d) Ineligible for appointment to higher positions according to the provisions of the competent authority.

d) Pertaining to cases where appointment to a higher position has not yet been considered in accordance with the provisions of the competent authority.

Article 11. Proposal for Appointment

1. The leadership collective of the enterprise convenes to discuss, decide, or submit to a competent authority the proposal for appointment, determining the number, source of personnel, and proposed work assignments for the appointed individuals.

2. Within thirty (30) working days from the date of approval on the proposal for appointment, the competent authority must complete the personnel process in accordance with regulations. In case the appointment is not completed within the aforementioned period, an explanation and reasons must be provided, reported to the competent authority that decided on the proposal for appointment.

Article 12. Procedure and Process for Appointing Local Personnel

1. Principle of Implementation

The appointment process for local personnel consists of four steps; meeting. The board members, company chairman, based on the membership composition as stipulated by the state-owned enterprise representative body, decide on the form of the meeting—directly, online, or a combination of direct and online—to suit the characteristics of the institution, organization, or unit; determine whether to hold a vote in an online or combined online and direct meeting format, ensuring accuracy and confidentiality as per regulations.

The voting ratio for recommendations at steps 1, 2, and 4 is calculated based on the total number of invitees; the voting ratio for step 3 is calculated based on the total number of invitees present at the meeting.

Personnel recommendation ballots for steps 2, 3, and 4 are issued by the meeting organizing committee with a seal from the institution, organization, or unit; the content of the meeting and the results of the vote at these steps are recorded in minutes; the number of recommendation ballots is prepared according to the number of invitees and distributed based on the number of attendees; voters may sign their names or not. Representatives from the organizational advisory body who attend but do not vote (except where they are part of the voting members).

In cases where one person attends with two different positions, only one ballot is cast and counted as one individual in the list of invitees.

If a person was invited but absent due to an unforeseen circumstance, they are not included in the total number of invitees.

The personnel advisory body reports to the enterprise's competent party committee, board chairman, or company chairman for review and decision on the list of invitees at meetings; cases where individuals were absent due to unforeseen circumstances.

2. Step 1: Leadership Collective Meeting

The leadership collective meeting performs the following tasks:

a) Discuss, review, and unify on the structure, number, standards, conditions, and process of personnel.

Based on the review: the appointment proposal approved by the competent authority; business requirements; local personnel in the planning, including equivalent or higher positions;

b) Review evaluation results and comments for each planned individual (including those with equivalent or higher positions);

c) Approve a list of individuals meeting the standards and conditions.

Fill out recommendation ballots based on the list of individuals meeting the criteria by marking the ballot. Each member recommends one person per position; an individual who receives over 50% of the total votes cast is selected. If no individual reaches more than 50% of the recommended votes, all individuals with at least 30% of the recommended votes are recommended to the next step. If no individual achieves 30% or more votes, the process stops and a report is made to the competent authority for review and guidance.

The results of the discussion and proposals are recorded in minutes.

The results of the vote and the list of recommendations are announced at the meeting.

3. Step 2: Expanded Leadership Collective Meeting

The expanded leadership collective meeting performs the following tasks:

a) Discuss the results of step 1 recommendations:

b) Fill out recommendation ballots by marking them.

Each member recommends one person per position from the list recommended in step 1; an individual who receives over 50% of the total votes cast is selected. If no individual reaches more than 50% of the recommended votes, all individuals with at least 30% of the recommended votes are recommended to the next step. If no individual achieves 30% or more votes, the process stops and a report is made to the competent authority for review and guidance.

The results of the vote are announced at the meeting.

4. Step 3: Core Leadership Collective Meeting

The core leadership collective meeting fills out recommendation ballots by marking them based on the list recommended in step 2.

Principle of recommendation and selection: Each member recommends one person per position from the list recommended in step 2; an individual who receives over 50% of the total votes cast present is selected. If no individual achieves more than 50% of the votes, the process stops and a report is made to the competent authority for review and guidance. The results of the vote are not announced at the meeting.

5. Step 4: Leadership Collective Meeting

The leadership collective meeting performs the following tasks:

a) Discuss the results of voting in step 3.

Based on discussion: opinions and evaluations from the competent party committee; verification, conclusions regarding new issues with individuals (if any);

b) Fill out ballots for personnel by marking them.

An individual who receives over 50% of the total votes cast is selected for recommendation and appointment. If two individuals have equal highest votes at 50%, the head evaluates, selects the proposed individual, and reports all differing opinions to the competent authority for review and decision. In case the head position is vacant, a report is made to the competent authority for review and decision.

The results of the vote are announced at the meeting.

The head of the institution or organization issues the appointment decision within their authority or submits it to a higher authority for review and decision.

The results of the ballot shall be announced at the meeting.

The head of the agency or organization shall make the appointment decision within their authority or submit it for consideration and decision by the competent authority.

6. The entity representing the owner shall issue regulations on the composition of collective leadership meetings (steps 1 and 4), expanded collective leadership meetings (step 2), and key collective leadership meetings (step 3); principles for determining local human resource sources, and human resources from other places in cases where an entity has a structured organization based on proposals by the Board of Members or the Company President, ensuring compliance with Party regulations and the specific characteristics of the agency, organization, or unit.

Article 13. Procedure and process for appointing personnel from external sources

1. For personnel identified by competent authorities for transfer and appointment from external sources outside the enterprise, the competent authority shall direct the implementation of the following steps:

Step 1: Exchange views with the leadership collective of the enterprise regarding the proposed appointment.

Step 2: Exchange opinions (in writing) with the leadership collective of the agency, organization, or unit where the personnel are currently working on the transfer and appointment proposal; obtain evaluations, comments from local authorities, agencies, units, and personnel files in accordance with regulations.

Meet with the personnel to discuss job requirements.

Step 3: Evaluate the personnel and report to the competent authority for examination and decision-making.

2. For cases where personnel are proposed by the Board of Members or the Company President for transfer and appointment from external sources, the personnel advisory body shall implement steps in accordance with the provisions of paragraph 1 of this Article, reporting to the competent authority for examination and decision-making.

Article 14. Procedure and process for appointing personnel within the decision-making authority of the Prime Minister

1. For local human resources, the following steps shall be followed:

a) The leadership collective of the enterprise discusses and proposes staffing needs, submitting to the entity representing the owner;

b) The entity representing the owner submits to the Prime Minister for approval on the principle, quantity, source, and proposed work assignments of personnel to be appointed, simultaneously sending to the Ministry of Home Affairs for review;

c) The Ministry of Home Affairs reviews and reports to the Prime Minister for examination and decision-making on the appointment principle;

d) Within 30 working days from the date of the Prime Minister's approval document on the appointment proposal, the Board of Members or Company President must complete the appointment process in accordance with the provisions of Article 12 of this Decree. The representative of the owner entity and the reviewing body participate in each step of the appointment process;

d) The entity representing the owner submits to the Prime Minister, simultaneously sending a report and the appointment file to the Ministry of Home Affairs for review;

e) The Ministry of Home Affairs reviews standards, conditions, and implementation of the process, reporting to the Prime Minister for examination and decision-making according to the cadre management authority of the competent authority.

2. For personnel from external sources:

a) The entity representing the owner submits to the Prime Minister for approval on the transfer and appointment proposal, simultaneously sending a report and the appointment file to the Ministry of Home Affairs for review;

b) The Ministry of Home Affairs reviews and reports to the Prime Minister for examination and decision-making;

c) Within 30 working days from the date of the Prime Minister's approval document on the transfer and appointment proposal, the entity representing the owner shall take the lead in implementing the personnel appointment process in accordance with regulations; in cases of arising difficulties or complexities, report to the Prime Minister;

d) The entity representing the owner submits to the Prime Minister, simultaneously sending a report and the appointment file to the Ministry of Home Affairs for review;

e) The Ministry of Home Affairs reviews standards, conditions, and implementation of the process, reporting to the Prime Minister for examination and decision-making according to the cadre management authority of the competent authority.

Article 15. Appointment in Other Cases

1. In the case of merger, consolidation, division, reorganization, or change in business entity form:

a) Where the current position or rank held is equivalent to or lower than the proposed position or rank to be assumed, the representative body of the owner shall decide or submit for decision by competent authority to transfer the position or rank according to the new position or rank at the new business entity without following the procedures and formalities prescribed in this Decree. The term of office is calculated from the date of appointment under the old position.

In cases where the current position or rank held by a state-owned enterprise manager is lower than the proposed position or rank to be assumed, the appointment shall be carried out according to the appointment procedures for personnel from other sources;

b) For the position of supervisor, the representative body of the owner shall consider transferring to a new position that is appropriate.

2. The representative body of the owner directly takes the lead in implementing the appointment process in the following cases:

a) Appointment of state-owned enterprise managers at newly established business entities;

b) Cases where internal leadership within the enterprise lacks unity, and many individuals violate discipline;

c) Cases due to natural disasters, accidents, or other force majeure reasons where the business entity no longer has leaders or managers.

3. In cases where a state-owned enterprise has not fully established the positions of Chairman of the Board, Chairman of the Company, General Manager, and Manager, competent authorities shall consider and decide on delegating the powers of these leadership and management positions to deputies of such positions or members of the Board until decisions are made for the aforementioned positions; the delegation period does not exceed 12 months from the date when the delegation decision becomes effective, and it is not counted as part of the term of office if subsequently appointed. The person delegated shall fully exercise the rights and duties of the position and rank delegated.

Article 16. Appointment Files

1. Proposal report, meeting minutes, summary results of voting with voting minutes at each step.

2. Personal resume as per regulations filled out by the individual with a color photograph measuring 4 x 6 cm, confirmed and stamped by the competent authority managing personnel.

3. Evaluation and comments over the past three years from the leadership collective of the agency or unit according to the hierarchical management of personnel:

a) Moral character, lifestyle, organizational discipline, internal unity;

b) Work capability and results in fulfilling assigned responsibilities and duties, including specific products, work achievements, limitations, shortcomings, and violations during the course of work (if any);

c) Reputation and potential for development.

4. Comments from the grassroots party branch or party committee where employed.

5. Evaluation comments from the local party committee regarding oneself and family members.

6. Self-assessment and evaluation over the past three years of work.

7. Conclusion on political standards by competent authority as per regulations.

8. Declaration of assets and income according to regulations.

9. Copies of academic credentials and certificates (with verification from the competent authority managing records or from a competent authority) in accordance with the criteria for the position or rank being appointed. In cases where the credential is issued by an overseas educational institution or an institution within the country in collaboration with an overseas entity, it shall be recognized according to legal provisions.

10. Health certificate issued by a qualified medical facility.

Where components of the appointment file as stipulated in this Article have already been approved and exist in the national database, they may be used to replace the corresponding paper documents.

The components of the file specified in paragraphs 1, 2, 3, 4, 5, 6, 8, and 10 (including electronic copies) of this Article shall not exceed six months from the date of examination.

Where implementation of planning, appointment, reappointment, recommendation for candidacy or other personnel matters at different times within a six-month period from the submission of the initial application to the same competent authority is decided, the initial file may be used for subsequent personnel processes, except where new content arises or additional components are required as per regulations.

Where there is reappointment and extension of term in office, there is no need to have the components specified in paragraphs 7 and 9 of this Article if no new content arises.

Part 2
REEMPLOYMENT

Article 17. Time and Term for Reappointment

1. When the term of appointment as provided by regulations expires, the competent authority shall examine and decide whether to reappoint or not reappoint the person managing a state-owned enterprise.

Not later than 90 working days before the expiration date of the appointment term, the competent authority must notify the person under examination for reappointment to prepare the reappointment dossier as per regulations. In case the reappointment process has not been carried out in accordance with the provisions of paragraph 3 of this Article or although the process has been carried out but is incomplete due to objective reasons, the appointing authority shall issue a written notification to inform the enterprise and individual.

2. A person managing a state-owned enterprise who has reached the end of their appointment term and still has at least 24 months of service as of the retirement date if the appointment term is five years or at least 18 months of service as of the retirement date if the appointment term is three years must undergo the reappointment examination process; if reappointed, the term of appointment shall be calculated until the prescribed retirement age.

3. Cases where the reappointment examination process has not been carried out

a) Belongs to one of the cases specified in paragraph 9 of this Decree;

b) There is information exchange by competent authorities regarding personal responsibility in ongoing investigations, inspections, or audits but no final conclusion has been reached or there are requests from competent authorities for examination and handling of personal responsibility but no final conclusion has been made;

c) Currently undergoing inpatient treatment for three months or more at medical facilities or currently on maternity leave;

d) Belongs to a case where reappointment is not examined as per the provisions of the competent authority.

4. The decision for reappointment or extension of term must be issued no later than one working day before the expiration date of the appointment term.

In case a person managing a state-owned enterprise has reached the end of their appointment term without receiving a decision on reappointment or extension, they shall not perform the responsibilities, duties, and authority of the current position. The performance of these responsibilities, duties, and authority is to be determined by the appointing competent authority.

5. A person managing a state-owned enterprise who has reached the end of their appointment term but is currently serving a disciplinary decision that does not fall under the scope of consideration for exemption from duty or resignation as per Party regulations and laws, the appointing competent authority shall consider and decide on reappointment or extension of the leadership or management position based on task requirements, standards, and conditions.

Article 18. Conditions for Reappointment

1. A person managing a state-owned enterprise has fulfilled their duties during the term of appointment and still meets the qualification criteria and can meet future duty requirements.

2. The enterprise has a need.

3. They have sufficient health to fulfill assigned tasks.

4. They do not belong to cases where reappointment is not examined as per Article 17, paragraph 3 of this Decree. In case the enterprise is undergoing an inspection or audit, the competent authority shall consult with the inspecting or auditing body regarding the proposed appointees before making a decision.

5. If a person managing a state-owned enterprise is not reappointed, the competent authority shall consider and decide on alternative work assignments; they shall not be assigned to positions of equivalent or higher rank.

Article 19. Procedure and Process for Reappointment

1. The manager of a state-owned enterprise shall prepare an self-assessment report on the performance of duties and responsibilities during their tenure, submit it to the competent authority responsible for appointment, and simultaneously send it to the personnel advisory body within fifteen days from the date they receive notification from the competent authority.

2. Within thirty days from receiving the self-assessment report submitted by the person under consideration for reappointment, the competent authority shall proceed with the following procedures:

a) Organize a key staff meeting to seek opinions on the reappointment: Implement the procedures and order specified in Clause 4 of Article 12 of this Decree.

b) The competent authority directly evaluates and recommends the reappointment of personnel.

c) The leadership collective discusses and decides on the matter.

The person recommended for reappointment must achieve a majority of more than 50% of the votes cast at the key staff meeting, and more than 50% of the total number of people present at the leadership collective meeting; in case of a 50% vote, the head shall decide; if less than 50%, report to the competent authority for decision.

d) Obtain written feedback from the competent authority.

d) Based on the voting results and any written feedback (if applicable), the competent authority decides on reappointment.

Article 20. Extension of Term in Office

1. The manager of a state-owned enterprise shall prepare an self-assessment report on the performance of duties and responsibilities during their tenure, submit it to the competent authority responsible for appointment, and simultaneously send it to the personnel advisory body within fifteen days from the date they receive notification from the competent authority.

2. Within forty-five days from receiving the self-assessment report submitted by the person under consideration for reappointment, the competent authority shall proceed with the following procedures:

a) The leadership collective discusses and examines; if the state-owned enterprise manager is still healthy, has prestige, and meets the job requirements, they unanimously vote in secret.

Personnel recommended for extension of term must achieve more than 50% of the total number of members of the leadership collective who agree; in case of a 50% vote, the head shall decide; if less than 50%, report to the competent authority for decision.

b) Obtain written feedback from the competent authority.

c) Based on the voting results and any written feedback (if applicable), the competent authority decides on extending the term in office.

Article 21. Reappointment and Extension of Term in Office Records

The records for reappointment and extension of term in office shall be prepared in accordance with the provisions of Article 16 of this Decree; the provisions specified in Clauses 3 and 6 of Article 16 of this Decree are implemented during the tenure.

Chapter IV

Appointment and Reappointment of State-Owned Enterprise Representatives for Share Capital

Section 1
STATE-OWNED ENTERPRISE REPRESENTATIVE FOR SHARE CAPITAL

Article 22. Term of Service as a Representative for Share Capital

1. The term of service as a representative for share capital is up to five years but not exceeding the term of office of a member of the board of members or a member of the board of directors. In cases where a state-owned enterprise representative for share capital is appointed by an asset owner's representative body to fill a management position during their term, the term as a representative for share capital shall be the remaining duration of that term according to the regulations in the Articles.

2. Where a state-owned enterprise representative for share capital is appointed to represent share capital at another enterprise, the term of service as a representative for share capital commences from the date when the decision appointing the representative for share capital at the new enterprise becomes effective.

3. In cases where there is a change in management position due to a change in the name of the enterprise, the term of service as a representative for share capital shall commence from the date when the decision appointing the representative for share capital according to the old position becomes effective.

Article 23. Conditions for Appointment as Representative of State Capital

1. Ensure general standards as stipulated by the Party, laws, and specific standards as provided in the regulations and provisions of the competent authority.

2. Have a verified personal file and background check, including a declaration of assets and income as required.

3. Be of sufficient age (calculated in months) to serve throughout the term of a member of the Board of Directors or a member of the Supervisory Board.

4. Be physically fit to fulfill assigned duties.

5. Not fall under any of the circumstances specified in paragraph 9 of Article 10 of this Decree. In cases where an entity is undergoing inspection, the competent authority shall consult with the inspecting body on personnel matters before appointing a representative for state capital.

Article 24. Procedures and Process for Appointment as Representative of State Capital

1. Based on the value of state capital, the scale of the enterprise, and in accordance with the conditions and standards for representatives of state capital, the personnel advisory body proposes the principle, number, structure, and specific candidates to be appointed as representatives of state capital, including information such as: full name; date, month, year of birth; place of origin; date of joining the Party (if applicable); professional qualification; political theoretical level (if applicable); management position; current workplace.

2. The entity representing the owner's rights shall undertake the following tasks:

a) Meet with the candidates who are proposed to be appointed as representatives of state capital; the proposed candidate commits to adhering to the principles, resolutions, and instructions of the entity representing the owner's rights and fulfilling the roles, responsibilities, and obligations of a representative of state capital if appointed;

b) Exchange views and obtain feedback from the leadership collective at the current workplace regarding the principle of appointing representatives of state capital; verify the background of the candidate.

3. Obtain written opinions from the competent authority.

4. The entity representing the owner's rights shall examine, conclude on any issues arising (if any), discuss, and decide on the appointment of a representative of state capital.

Article 25. Appointment File for Representative of State Capital

The file for appointment or reappointment of representatives of state capital is conducted in accordance with the corresponding provisions as stipulated in Articles 16 and 21 of this Decree.

Section 2
REAPPOINTMENT OF REPRESENTATIVE OF STATE CAPITAL

Article 26. Conditions for Reappointment of Representative of State Capital

1. The representative of state capital may be reappointed if they meet the following conditions:

a) Evaluated as having completed their duties within the term of service as a representative of state capital;

b) Meet the conditions for appointment as a representative of state capital as provided in paragraphs 1, 2, and 4 and paragraph 5 of Article 23 of this Decree.

2. In cases where the representative of state capital does not meet the age requirement to serve until the end of the term of a member of the Board of Directors or a member of the Supervisory Board of an enterprise, the period for reappointment as a representative of state capital shall be calculated up to the date when they reach the retirement age as stipulated.

Article 27. Procedures and Process for Reappointment of Representative of State Capital

1. At least 90 days before the expiration of the term of service as a representative of state capital, the representative of state capital shall submit a self-assessment report on their performance in fulfilling their duties during their term to the entity representing the owner's rights.

2. The entity representing the owner's rights shall seek written opinions from the same-level party committee regarding the proposed candidate for reappointment as a representative of state capital.

3. The entity representing the owner's rights shall examine, conclude on any issues arising (if any), discuss, and decide on the reappointment of a representative of state capital.

In cases where the representative of state capital is not reappointed, the entity representing the owner's rights shall be responsible for coordinating with the enterprise to arrange alternative employment or address their benefits and policies in accordance with legal provisions.

Chapter V ASSESSMENT, QUALITY GRADING, REWARD AND DISCIPLINE

Section 1

ASSESSMENT AND QUALITY GRADING

Article 28 Assessment and Quality Grading of State-Owned Enterprise Managers, Representatives of State Capital in Enterprises, Supervisors

1. Responsibility for Assessment and Grading

Each year, the competent authority is responsible for assigning and specifically defining the goals by phase and annually, indicators, and work tasks for state-owned enterprise managers, supervisors, and representatives of state capital to serve as the basis for assessment and grading.

The competent authority that assesses and grades quality shall be legally accountable for its decisions.

2. Grading Levels

State-owned enterprise managers, representatives of state capital, and supervisors are assessed and graded annually into four levels: Exceeding Task Requirements, Fulfilling Task Requirements Well, Fulfilling Task Requirements, and Not Fulfilling Task Requirements.

The competent authority evaluates based on the evaluation criteria specified in Clause 3 of this Decree’s Article 29 and the results of quality assessment by the enterprise (if any) to consider and decide on the grading according to its authority for state-owned enterprise managers.

3. Timing of Assessment

The assessment of state-owned enterprise managers, supervisors is conducted annually after the competent authority announces the enterprise’s quality grading results in accordance with legal provisions; the assessment of representatives of state capital is carried out after the annual financial report of the enterprise is published.

In case there are discrepancies between the annual financial report of the enterprise and the report used for assessment, which affect the evaluation result, the competent authority adjusts the quality grading results accordingly.

For state-owned enterprise managers and representatives of state capital who are party members, the party member’s assessment is conducted first; then the management assessment follows.

Article 29 Basis, Content, Evaluation Criteria

1. The basis for evaluation and content to be evaluated for state-owned enterprise managers shall be carried out in accordance with the provisions of laws on managing and investing state capital in enterprises and the provisions of the competent authority representing the owner.

2. For supervisors and representatives of state capital in enterprises, the basis for evaluation and content to be evaluated apply according to the provisions of laws on managing and investing state capital in enterprises and the provisions of the competent authority representing the owner.

3. The criteria for evaluating and grading based on the levels specified in Clause 2 of this Decree’s Article 28 are implemented in accordance with party regulations, legal provisions on enterprises, management, and investment of state capital in enterprises, and the provisions of the competent authority representing the owner, including the following main contents:

a) General criteria group: Politics, ideology; moral qualities, organizational discipline awareness; leadership and management capabilities, ability to meet requirements for task execution, work attitude, spirit of innovation and creativity, daring to think, act, and take responsibility for common interests; level of trust, reputation, and capability in rallying unity;

b) Criteria group on the results of fulfilling assigned responsibilities and tasks, which must clearly define goals to be achieved in each phase and year of the enterprise, including: Degree of completion of production and business plan (revenue, profit, dividends, preservation and development of state capital); tax payment results, ability to settle debts, loss status, state capital loss; international management capability according to standards; ability for restructuring and privatization on schedule; risk governance capability; evaluation and grading results of the enterprise.

In case an enterprise is graded B due to objective conditions, the competent authority evaluates, considers, and decides on a suitable quality grading level for the state-owned enterprise manager.

Article 30. Procedure and Process for Evaluation

1. For State-Owned Enterprise Managers

a) The state-owned enterprise manager shall write an self-assessment report according to the evaluation content and criteria, and self-rate their quality level;

b) The board of members convenes to evaluate and assess the state-owned enterprise manager; the evaluation meeting is recorded in minutes, which specify the participants and the opinions expressed;

c) Written feedback is sought from the same-level party committee on the evaluation and rating results;

d) Based on the feedback from the same-level party committee, the board of members or the company president shall review and decide on the quality level within their authority or report to a higher authority for decision-making.

2. For State Capital Representatives and Supervisors

a) The state capital representative and supervisor shall write an self-assessment report according to the evaluation content and criteria, and self-rate their quality level to be submitted to the entity representing the owner;

b) The entity representing the owner may seek feedback from the board of members or company president on the assessment of the state capital representative (if necessary);

c) Based on the evaluation and rating criteria and tasks assigned according to the annual plan, the entity representing the owner shall decide on the quality level for the state capital representative and supervisor.

3. The results of the evaluation and rating are recorded in the individual's file and communicated to the person being evaluated.

Section 2
REWARD AND DISCIPLINE

Article 31. Reward

State-owned enterprise managers, state capital representatives who have achievements or a career of dedication shall be rewarded in accordance with the provisions of the law on commendation and reward.

Article 32. Discipline

1. Principles

a) Ensuring objectivity, fairness; transparency, severity; accuracy,

b) Each disciplinary action shall be applied only once for each violation. When multiple violations are considered at the same time, separate conclusions are drawn for each violation and the highest form of discipline is decided;

c) In cases where a state-owned enterprise manager, state capital representative or supervisor is disciplined by the party, within 30 days from the date of the party disciplinary decision announcement, the competent authority shall issue a corresponding disciplinary action.

If the highest disciplinary action related to the performance of duties is imposed, the personnel department shall report to the competent authority for a higher-level disciplinary action; if unrelated to the performance of duties, the competent authority shall coordinate with the party disciplinary authority before deciding on a lower level of discipline by one degree compared to dismissal.

If there are changes in the form of party disciplinary action, corresponding changes must be made. The time served under the old disciplinary decision is deducted from the new disciplinary decision (if applicable). If the party's competent authority decides to revoke the party disciplinary decision, the competent authority for discipline shall issue a decision to cancel the disciplinary action.

A disciplinary decision becomes effective 12 months after it takes effect; in cases of reprimand, warning, or dismissal from office, the planning, appointment, and candidacy for higher positions, as well as personnel arrangements, are subject to the provisions of the competent authority.

If a party disciplinary decision has already been made, the effective date of the disciplinary action is calculated from the date the party disciplinary decision takes effect, except in cases where dismissal is imposed. During this period, if no further violations occur that warrant disciplinary action, the disciplinary decision automatically ceases to be effective without the need for a termination notice.

2. Forms of Disciplinary Action

a) Reprimand;

b) Warning:

c) Dismissal from office for state-owned enterprise managers and supervisors; removal from position for state capital representatives at enterprises;

d) Compulsory resignation.

3. Procedure and Process for Disciplinary Action and Application of Laws on Disciplinary Actions.

If a party disciplinary decision has already been made, the competent authority may issue a corresponding disciplinary action without following the procedure, except as provided in paragraph 1, point c of this article.

Where no party disciplinary decision has been made, the competent authority for discipline shall instruct the personnel department to apply the provisions on enterprises, labor laws, and the entity representing the owner (if applicable), as well as the company's operating regulations, to handle the disciplinary action against individuals who violate rules.

Chapter VI
TERMINATION OF OFFICE, DISMISSAL, RESIGNATION,
TEMPORARY SUSPENSION OF DUTIES, ABSENCE FROM WORK, LEAVE
EXEMPTION FROM RESPONSIBILITY

Section 1
TERMINATION OF OFFICE, RESIGNATION, EXEMPTION FROM DUTY,
TEMPORARY SUSPENSION OF DUTIES

Article 33. Principles for termination of office, resignation, and exemption from duty

1. Timely consideration shall be given to the termination of office, resignation, or exemption from duty for a state-owned enterprise manager or a representative of state capital in a state-owned enterprise when there is sufficient grounds.

Termination of office or resignation shall not be carried out if it involves an exemption from duty.

2. Encouragement shall be given to voluntary termination of office and resignation where the individual no longer meets job requirements, lacks credibility, or has committed minor violations that do not warrant an exemption from duty.

3. After termination of office, resignation, or exemption from duty, if there is a desire to terminate employment or retire, such individuals shall be entitled to benefits and policies as prescribed by law.

Article 34. Resignation

1. The consideration for resignation of state-owned enterprise managers or representatives of state capital in a state-owned enterprise may be conducted under the following circumstances:

a) Due to self-perceived limitations in leadership and management capabilities, or lack of credibility to fulfill assigned responsibilities;

b) With more than 50% of low-trust votes at the prescribed evaluation period;

c) For other legitimate personal reasons;

d) As a head of an enterprise under management where direct subordinates or those directly responsible for the enterprise have committed serious corruption, waste, or malpractice but not to the extent that disciplinary action is warranted according to regulations;

e) With two consecutive years of non-completion of assigned duties during their term in office;

f) For violations of political quality, moral integrity, and lifestyle causing public dissatisfaction and damaging personal and enterprise reputation;

g) For relatives (spouse, children) violating state laws; engaging in social vices, causing public dissatisfaction, and damaging personal and enterprise reputation;

h) Allowing others to exploit their position for personal gain with serious consequences, public dissatisfaction, damaging individual and agency reputation (except where it can be proven that the individual was unaware);

i) Refusing to take responsibility, shirking duties, failing to perform tasks within their authority as per assigned functions and responsibilities, causing severe negative public opinion.

In addition to the cases stipulated in this paragraph, based on work realities and according to jurisdiction, relevant authorities may decide on the termination of office for representatives of state capital in a state-owned enterprise.

2. Cases not eligible for resignation

a) Currently undertaking critical national defense or security duties where completion is necessary; resignation would severely impact ongoing tasks;

b) Under investigation, audit, or inspection by competent authorities;

c) Situations as stipulated in points d, e, g, h, and i of paragraph 1 of Article 35 of this Decree.

3. Procedure for approval of termination of office

a) The individual submitting resignation shall submit the resignation letter to the competent authority;

b) Within ten working days from receipt of the resignation, the personnel advisory body shall discuss with the individual and report to the competent authority for examination and decision-making;

c) The competent authority shall decide on termination of office within ten working days from receiving the proposal from the personnel advisory body; in exceptional circumstances due to objective reasons, this period may be extended up to fifteen working days.

4. If the resignation has not been approved by the competent authority, the state-owned enterprise manager or representative of state capital shall continue to fulfill their duties and responsibilities as assigned.

5. After resigning, a state-owned enterprise manager who still has less than five years of service may be reassigned to a professional or technical position; if they have more than five years of service, the competent authority may consider assigning them a lower-level position or an appropriate position where such a lower-level position is not available due to sufficient staffing. After at least 24 months in the new position, if they have effectively addressed any violations, deficiencies, limitations, and weaknesses (if applicable), and are evaluated as having performed their duties well, meeting standards and conditions, they may be considered for planning, appointment, or nomination for a similar position according to regulations when resigning.

Article 35. Exemption from Office

1. Cases for consideration of exemption from office

a) Subject to disciplinary warning and evaluated by competent authority with limited capacity,

b) Subject to disciplinary reprimand related to duties assigned twice or more within the same term of appointment;

c) Less than two-thirds of the confidence votes at the prescribed evaluation period are low;

d) Rated as failing in performance for two consecutive years concerning the execution of duties assigned;

d) Found by competent authority to have degenerated politically, morally, and in lifestyle; engaged in "self-evolution" or "self-transformation"; violated rules that party members are not allowed to do; failed to set a good example, causing public dissatisfaction and damaging one's reputation and the reputation of the agency or unit where they work;

e) Found by competent authority to have violated political standards as per internal Party regulations on protecting internal politics to the extent requiring exemption from office;

g) Where enterprises under management, supervision, or direct subordinates experience corruption, waste, or negative consequences severely according to the conclusion of a competent authority but not yet subject to disciplinary action as per regulations;

h) As head where enterprises under management, supervision, or directly responsible experience serious conflicts and disunity according to the conclusion of a competent authority;

i) At the request of a competent authority;

k) Where one falls within any of the cases stipulated in paragraph 1 of Article 34 of this Decree but does not voluntarily resign;

1) Other cases as per laws, regulations of the state-owned enterprise representative body or by-laws.

2. For cases specified in points a, b, c, d of paragraph 1 of this Article, if there is a resignation request, the competent authority shall consider and decide according to its jurisdiction.

3. Procedure for considering exemption from office:

a) Upon having sufficient grounds for exemption from office for state-owned enterprise managers and state capital representatives as per paragraph 1 of this Article, within ten working days, the Chairman of the Shareholders' Council, Chairman of the Company or the personnel advisory body responsible shall exchange views with the state-owned enterprise manager to propose consideration and decision by competent authority; for state capital representatives, the personnel advisory body of the appointing authority performs these tasks;

b) The competent authority shall consider and decide on exemption from office within ten working days from the date of receiving the proposal; in case of objective reasons necessitating extension, it may be extended up to fifteen working days.

4. After exemption from office, the competent authority shall reassess for professional work (not leadership or management roles); after at least thirty-six months of service in a new position, if one has effectively corrected deficiencies and shortcomings, is rated as having performed well in duties, meets standards and conditions, they may be considered by the competent authority for planning and appointment.

For cases specified in paragraph 2 of this Article, the competent authority shall reassess and assign a lower-level position than the previous one or an appropriate position (if a lower-level position is not available due to sufficient staffing); after at least twenty-four months of service in the new position, if one has effectively corrected deficiencies, shortcomings, limitations, weaknesses, and is rated as having performed well in duties, meets standards and conditions, they may be considered by the competent authority for planning and appointment to a similar position as per regulations.

5. For state-owned enterprise managers falling under cases d, e, g, h, i of paragraph 1 of this Article, the competent authority shall reassess for professional work that aligns with the requirements of the enterprise according to the principle of not assigning leadership or management roles; after at least thirty-six months of service in a new position, if one has effectively corrected deficiencies and shortcomings, is rated as having performed well in duties, meets standards and conditions, they may be considered by the competent authority for planning and appointment.

Where exemption from office is due to performance rating as failing for two consecutive years, the competent authority or organization shall terminate employment according to legal provisions.

6. If a state-owned enterprise manager or state capital representative wishes to retire after being exempted from office, their retirement benefits and policies will be handled in accordance with labor laws.

Article 36. Temporary Suspension from Duty

1. The authority to temporarily suspend duty for personnel managing state-owned enterprises, representatives of state capital at enterprises, and supervisors shall be in accordance with the provisions of Articles 5, 6, and 7 of this Decree.

2. The competent authority may decide on temporary suspension from duty if any of the following grounds exist:

a) Engaging in actions that violate moral character or lifestyle, causing negative and contentious public opinion, damaging the reputation of organizations or individuals;

b) Deliberately avoiding responsibilities, failing to perform tasks assigned according to their functions and duties;

c) Engaging in harassment or corruption, creating inconvenience for citizens, enterprises, agencies, or organizations during the performance of their duties;

d) Being under disciplinary investigation where they intentionally delay or evade fulfilling requirements from competent authorities during the process of investigating violations committed by themselves; or using their position to influence or create difficulties for such investigations;

d) Having been disciplined with a warning or removal and are awaiting decision on their current position, where continued work would negatively impact the activities of the party committee or enterprise;

e) There is evidence that disciplinary action from a warning level upwards or legal criminal proceedings must be taken, and relevant supervisory, inspection, auditing, investigation, prosecution, trial, and enforcement agencies have requested temporary suspension from duty;

g) There are grounds to determine that disciplinary action at the level of a warning or higher is necessary or that legal criminal proceedings should be initiated, and relevant supervisory, inspection, auditing, investigative, prosecutorial, judicial, and enforcement bodies have issued requests for temporary suspension from duty.

3. Duration of Temporary Suspension from Duty

a) The duration of temporary suspension from duty shall not exceed thirty working days; in cases where an extension is necessary, the maximum additional period may be up to thirty working days;

b) In cases as specified in points e and g of paragraph 2 of this Article, the duration of temporary suspension from duty shall follow the request from the competent authority;

c) The decision on temporary suspension from duty automatically ceases upon expiration of the period for such suspension.

4. Procedure for Temporary Suspension from Duty

a) Upon determining that any grounds for temporary suspension exist, the personnel department shall, within two working days, advise the competent authority to issue a decision on temporary suspension;

b) Within one working day of receiving a proposal, the competent authority shall issue a decision on temporary suspension;

c) Within three working days from having sufficient grounds to revoke the decision on temporary suspension, the competent authority shall issue a decision to revoke such suspension;

d) Decisions on temporary suspension and decisions to revoke such suspensions shall be communicated to the person temporarily suspended; announced within the employing agency or unit; and sent to relevant agencies or units.

5. Other Provisions Relating to Suspension from Duty

a) A person whose duty is suspended shall also have their position automatically suspended; upon expiration of the temporary suspension decision, they shall resume their duties according to regulations;

b) A person temporarily suspended has the right to request reconsideration by the head if there are grounds to believe that the temporary suspension was not in accordance with regulations; they may recover their lawful rights and interests when a competent authority concludes that no violation occurred or no disciplinary action or criminal proceedings were initiated;

c) The benefits and policies for a person temporarily suspended shall be implemented as if they had not been suspended.

Part II
TERMINATION OF EMPLOYMENT AND RETIREMENT

Article 37. Termination of Employment and Retirement

State enterprise managers, state capital representatives at enterprises, and supervisors may terminate their employment or retire in accordance with the provisions of labor law, social insurance law, unemployment insurance law, enterprise law, and the enterprise's regulations.

Where a state enterprise manager or state capital representative at an enterprise has already accumulated work experience subject to mandatory social insurance contributions prior to commencing employment at the enterprise but has not yet received a lump-sum payment, the enterprise shall, based on its own regulations and collective labor agreement, decide on the payment of compensation for that period.

Chapter VII
TRIAL TENURE SYSTEM FOR POSITIONS
CHIEF EXECUTIVE OFFICER, OPERATING DIRECTOR

Article 38. Principles for Implementing a Trial Tenure System for Chief Executive Officer and Operating Director Positions

1. The tenure of the chief executive officer and operating director positions shall be implemented in accordance with the implementation plan approved by the competent authority.

2. The tenure of the chief executive officer and operating director positions shall not be implemented for state-owned enterprises engaged in national defense and security sectors.

3. Priority shall be given to implementing a trial tenure system for the chief executive officer and operating director positions in scientific, technological, innovation fields, and other areas where local human resources are insufficient.

4. The personnel hired must have experience, outstanding products, and reputation in the field of operation of the enterprise; they need not fully meet all standards and conditions stipulated for the position or rank, nor follow the appointment procedures as prescribed.

Article 39. Development of Implementation Plan

1. The board of members and company chairman shall be responsible for developing a plan to hire chief executive officer and operating director positions, which will be submitted to the competent authority for approval before implementation. Within 30 days, the competent authority must review and decide on approving the plan. If the plan is not approved, reasons must be communicated.

2. The plan shall include: political basis, legal basis; needs, objectives, requirements; personnel capability; implementation scheme; funding sources for compensation; expected effectiveness of hiring personnel; rights and responsibilities of hired personnel and board members, chairman; organizational responsibility for implementation; recommendations to the competent authority; and other relevant content (if any).

Article 40. Implementation of Tenure System

1. The hired personnel must be a Vietnamese citizen who meets the standards and conditions stipulated in the Enterprise Law; they should generally meet the standards and conditions specified in this Decree, but need not fully comply with the standards and conditions set out in paragraphs 1, 2, 3, 5, and 7 of Article 10 of this Decree. The board of members and company chairman shall be responsible for ensuring the professional competence and moral character of the hired personnel.

In cases where the hired personnel have one foreign nationality, they must comply with national security regulations, confidentiality laws, and relevant authority provisions.

2. The contract for hiring chief executive officer and operating director positions shall be executed in accordance with labor law, civil law, and other related legal provisions, which must clearly define the responsibilities of each party to preserve and enhance state capital invested in the enterprise; rights and obligations of the chief executive officer and operating director in selecting personnel and managing the enterprise, as well as other content as prescribed.

3. The procedures and formalities for hiring shall be carried out according to the decision of the board of members or company chairman.

4. The board of members and company chairman shall regularly monitor and evaluate the performance of hired personnel, promptly address any difficulties or obstacles, and create favorable conditions for the hired person to fulfill their duties and responsibilities.

Article 41. Rights and Responsibilities of the Board of Members, Company Chairman in Hiring General Manager or Director

1. The Board of Members, Company Chairman has the right to:

a) Decide on the selection of personnel for hire, enter into employment contracts;

b) Decide on the remuneration, bonuses, and other policies for hired personnel;

c) Require hired personnel to fulfill their responsibilities as agreed upon;

d) Decide to terminate the employment contract in accordance with agreement or unilaterally terminate the employment contract if the hired personnel fail to meet requirements or fail to complete tasks or for any other reason.

2. Responsibilities of the Board of Members, Company Chairman

a) Bear responsibility for the quality of hired personnel;

b) Ensure the preservation and development of state capital invested in enterprises;

c) Agree on the rights and obligations of hired personnel regarding the selection of managed personnel and enterprise management and operation activities;

d) Regularly monitor, evaluate the effectiveness of hired personnel's work; promptly address difficulties and obstacles as suggested.

Chapter VIII IMPLEMENTATION CONDITIONS

Article 42. Effective Date of Implementation

1. This Decree shall come into effect from the date of issuance.

2. The Decree No. 159/2020/NĐ-CP dated December 31, 2020 by the Government on managing personnel holding positions and state capital representatives at enterprises and the Decree No. 69/2023/NĐ-CP dated July 14, 2023 by the Government amending and supplementing certain provisions of Decree No. 159/2020/NĐ-CP dated December 31, 2020 on managing personnel holding positions and state capital representatives at enterprises shall cease to be effective from the date this Decree comes into effect.

3. In case competent authorities issue documents concerning cadre work with content different from that stipulated in this Decree, implementation shall follow the new provisions of the competent authority.

Article 43. Application of the Decree to Other Subjects

The competent authority establishing and managing state financial funds outside the budget, other organizations as provided by law but not government administrative bodies or public institutions shall decide on applying cadre work regulations according to this Decree for fund managers and organization managers.

Article 44. Implementation

1. The Minister of Defense, Minister of Public Security shall, based on the provisions of this Decree, issue regulations concerning cadre work in the People's Army, People's Police and relevant laws to manage and use personnel holding positions and state capital representatives at state-owned enterprises under their ministries.

2. The Board of Members, Company Chairman where the State holds 100% equity shall, based on Party provisions and this Decree, issue a management regulation for personnel not falling within the scope defined in paragraph 3 of Article 2 of this Decree at their own enterprises and state capital representatives at subsidiary enterprises.

3. In cases where planning or implementation processes concerning the content stipulated in point (a) of paragraph 1 of Article 3 of this Decree were ongoing before the effective date of this Decree, such provisions shall continue to be applied as they were implemented.

4. The Ministers, Heads of agencies at the same level, Chairmen of People's Committees of provinces and municipalities directly under the Central Government, other relevant organizations, entities, and individuals are responsible for implementing this Decree.

For reference:

Central Committee of the Communist Party of Vietnam:

Prime Minister, Deputy Prime Ministers of the Government:

Ministries, agencies at the same level:

People's Councils, People's Committees of provinces and municipalities directly under the Central Government;

Office of the Central Committee and its Departments of the Party;

Office of the General Secretary:

Office of the President:

Ethnic Affairs Committee and other Committees of the National Assembly;

Office of the National Assembly;

Supreme People's Court;

People's Procuratorate:

Audit Agency:

Central Committee of the Vietnam Fatherland Front;

Central organizations of political and social organizations,

VPCP: BTCN, various PCNs, Deputy Chief of Staff, General Director of State-owned Enterprises Corporation's Departments, Bureaus, subordinate units, State-owned Enterprises Corporation:

Read : VT, TCEV (2) : 66

Appendix
LIST OF STATE-Owned GROUPS AND SOCIETIES
(Annexed to Decree No. 181/2026/NĐ-CP dated May 21, 2026)

1. Vietnam Industrial and Energy Group.

2. Vietnam Electricity Group.

3. Vietnam Post and Telecommunications Group.

4. Vietnam Coal - Mineral Resources Group.

5. Vietnam Military Industry Group.

6. Vietnam Chemicals Group.

7. Vietnam Railways Corporation.

8. Vietnam Capital Investment and Business Corporation.

9. Other enterprises operating in key, essential sectors of the economy as decided by the Prime Minister.