More than 100 Victorian children in state residential care have been sexually exploited in the past two years.
There were 423 incidents reported to the Commission for Children and Young People between July 2021 and March this year, the data released on Wednesday states.
More than 240 incidents involved sexual exploitation and abuse of children aged under 16, while 11 incidents involved nine children under the age of 12.
"Behind these figures are 165 of Victoria's most vulnerable and victimised children," Commissioner Liana Buchanan said.
"Children who have already suffered trauma, been removed from their families and are now in the care of the state."
There needed to be stronger action and investment from the Victorian government to ensure children were safe in residential care, Ms Buchanan said.
A 2021 report from the commission found an alarmingly high number of children who were absent or missing from residential care were sexually abused, often by adult men.
Sexual exploitation was also significantly under-reported because of the fragmented and inconsistent approach across the state, the report found.
The commission previously recommended a complete overhaul of Victoria's residential care system and better reporting and monitoring of sexual exploitation.
It was important to highlight the ongoing issues in the lead-up to May's state budget, Ms Buchanan said.
"We've simply seen too little progress," she said.
"Numerous inquiries have highlighted that there is a dire and urgent need to improve the quality of care.
"It is also clear that action to better identify and protect children at risk of sexual exploitation and abuse is overdue and that children are suffering as a result."
Attorney-General Jaclyn Symes said the government was investing in child protection to reform the sector and staff are trained to identify the risk of exploitation.
"It's devastating to read such stories but we know that this is happening. We know that vulnerable children in out of home care have been targeted by the most heinous people in our community," she told reporters.
"There's always more to do in relation to child protection."
