A Look Into Vietnam Human Resources
Vietnam human resources have been recognized as a young and abundant workforce capable of further learning. Yet, there is a multitude of issues foreign businesses need to consider when starting to recruit Vietnamese employees.
Vietnam ranked 84/137 countries in terms of university graduates' skills and 79/134 in innovation capacity.
The "thirst" for high-quality human resources
According to the 2018 Global Competitiveness Report, Vietnam ranked 84/137 countries in terms of university graduates' skills and 79/134 in innovation capacity. Many in-depth assessments show that the number of high-quality human resources in Vietnam are relatively limited compared to Thailand and Malaysia.
In recent years, Vietnam human resources have recorded a rapid shift from low-skilled to highly-skilled labor, resulting in an increasing number of well-trained workforce. Statistics of FALMI (Center for Human Resources Forecasting and Labor Market Information) show that out of 110,172 turns of people wishing to find jobs in 2020, up to 94.78% are trained workers. However, the reality is that the positions requiring high skills and expertise are now often undertaken by expatriates. The "thirst" for high-quality human resources, as a result, remains challenging in Vietnam.
The large and young labor force is both an opportunity to facilitate the country's economic development and a challenge for businesses to make the most of it. Along with that, the large number of young workers also leads to stiff competition in Vietnam career, increasing the employee attrition rates as millennial workers are much more likely to shift jobs. Thus, in a tight talent market, to build high-performing corporate culture, businesses are urged to make specific and worthwhile commitments to retain talents over the long term.
Restrictions on foreign languages and technology
Thanks to good education universalization policies, Vietnam human resources are capable of performing basic English and computer skills. Still, they have not yet reached the proficiency required to work in a professional environment. The government is continually committed to raising the qualifications of the young workforce to navigate such problems. Also, businesses can proactively offer training programs to hone their employees' foreign language and technology skills. This further helps improve the quality of human resources and fosters engagement and retention, as well as the trust and dedication of employees.
Based on HR experts' analysis, there are several potential pros and cons when it comes to Vietnam human resources. So, to make the most of the Vietnam’s labor force, businesses need to have extensive knowledge and insights into the market, most of which are best understood by HR professionals. Therefore, companies should look for the top HR agency for advice on appropriate HR strategy according to the corporate culture, characteristics and laws of the country.
One of the leading HR service companies with a wealth of experience and high advisory capacity that businesses should refer to is Talentnet. By partnering with HR company Talentnet, businesses can reduce the burden of developing human resources, building salary procedures, etc., to focus more on business strategy and goals.