Conditions for Appointment as an SOE Director in Vietnam

Short answer: A director of a state-owned enterprise (SOE) is appointed by the owner’s representative agency and must meet standards on political qualities, ethics, management capacity, professional qualifications, and not fall under prohibited categories for holding enterprise management positions. Unlike private enterprises, appointing an SOE director follows a strict personnel process and state capital management regime.

Legal basis

• The Law on Enterprises 2020 — state-owned enterprises;
• The Law on Management and Investment of State Capital in Enterprises 2025 (No. 68/2025/QH15, effective from 01/8/2025);
• Decree 159/2020/ND-CP — management of title and position holders in enterprises with 100% state-owned charter capital.

General standards

• Good political qualities and ethics; compliance with Party policies and State laws;
• Management and operational capacity; professional qualifications suited to the field of operation;
• Health and age meeting job requirements;
• Not falling under prohibited categories for enterprise management (being criminally prosecuted, serving a sentence, banned from holding positions, etc.).

Appointment procedure

1. Personnel proposal: the Members’ Council/Board of Directors or competent authority proposes candidates;
2. Appraisal: the owner’s representative agency appraises the standards and conditions;
3. Appointment decision: the owner’s representative agency issues the appointment decision;
4. Announcement and registration: information is published and manager changes are registered as prescribed.

Term, dismissal and replacement

• The term follows the appointment decision and may be renewed;
• Dismissal applies when standards are no longer met, discipline is violated, or the enterprise suffers prolonged losses due to subjective causes;
• Where the director position is vacant: the owner’s representative agency assigns an acting person or appoints promptly to avoid operational disruption.

If you need to determine the appropriate approach for your specific situation, you should discuss it with a lawyer beforehand to have your file reviewed and a suitable solution advised.

For quick advice, you may contact a lawyer via 0966.475.966.

Related articles

• Who may appoint the director of a joint-stock company?
• The enterprise’s legal representative
• What are the characteristics of state-owned enterprises?