Challenges for Human Resources from the Flow of FDI Capital in Northern Vietnam
May 11, 2021
Vietnam’s FDI inflows in the North of Vietnam are increasing significantly, bringing many challenges and demand on long-term HR investment.
More HR challenges to face from the rise of FDI
According to Foreign Investment Agency (Vietnam Ministry of Planning and Investment), in the first quarter of 2021, Vietnam’s total FDI reached USD10.13 billion, increased 18.5% comparing to Q1.2020.
As a result, many local businesses are suggested to change employment structure from handicrafts into high-technology to catch the FDI inflows. However, according to a report conducted by Vietnam Department of Employment, the number of skilled workers who have qualifications or work certificate accounted for only 24.5%. Moreover, the local workforce has to compete with the flow of foreign workers. Up to July 2019, there are 90,000 workers are foreigners in Vietnam and this number is predicted to rise 5% each year thanks to economic integration.
Long-term HR investment: “the backbone” of sustainable development
With the redirection of FDI inflows in Vietnam, specifically in the North, Ms. Tieu Yen Trinh – CEO of Talentnet emphasizes: “Long-term HR investment is the backbone of sustainable development for business.”
Besides, to meet the demand of digital transformation, she also suggests to promote high-tech training for existing employees or attract talents from other regions with favorable welfare plan. Businesses can also find solutions from professional consultant agencies or HR services providers to not only save time, cost, but also allow business to utilize enormous talent database.
Ms. Nguyen Thi Thanh Huong, deputy CEO of Talentnet emphasizes that companies need to nurture potential workforce for business development in the future. “With my experience of business consulting in the Northern market, I realized that sponsoring scholarships or connecting with universities, vocational schools to find interns could help businesses recruit a creative and high potential workforce for sustainable development.” Said Ms. Huong.
Besides developing a solid infrastructure, businesses located in the Northern region should also establish a disciplined and long-term HR strategy to prepare for the flow of FDI in Hanoi market and Vietnam.
Source: Dân Trí