Viable, Vibrant, Sometimes Vexing Vietnam Human Resources Insights William Chin Senior Staffing Manager Qualcomm
Oct 19, 2014
Viable, Vibrant, Sometimes VexingVietnam Human Resources Insights
William Chin
Senior Staffing Manager
Qualcomm
GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Vietnam Overview
Population• 13th largest worldwide
Pro Business• Competes against China, India
GDP
2006 2007 2008 2009
8.2% 8.4% 6.2% 5% est
Median Age Literacy Rate
26.9 90.3
86 Million
8M – HCMC 4M - Hanoi
Key Industries
@Thanh Nien News.com
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
The Alternative to China
• Abundant labor supply
• Lower wage costs
• Competitive w/ China and India
• Growing consumer market
• Strong business orientation
With
Predictable
Outcome
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Labor Trends
• Expanding labor market
• Demand outstrips supply
• Greatest gap in professional,
middle, senior management
• More opportunities, greater
turnover
• Driving up salaries
All Industries5
GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
HR Band-Aid
• Scramble for Talent
• Outbid the Competitor
• Poor Talent Management
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Labor Profile
Local
• Skilled supply tight
• Quality varies
• Limited experience
• Practical skills minimal
• Abundant opportunities
Overseas Returnees
• Cultural identity (some)
• International exposure
• Local language ready
• Commitment level varies
• High salary requirement
Expat
• Adjustment difficult
• Cultural/language barrier
• Seasoned leadership
• Costly salary and benefits
• SOE competition
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Skill Groups
• Mostly filled by foreign expats
• Local candidates lack int’l exposure
• Most capable turn entrepreneur
Senior Managers
• Common Issues
• Over educated
• Under experienced
• Expect a fast-track
• Premature promotions
Middle Managers
• University training improving
• Exam oriented
• Limited practicum
• Hungry for training and exposure
Professional/ Technical Staff
• Migrant workers
• Abundant supply
• Untrained
Semi/ Unskilled
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Compensation Trends
2007 2008 2009
Salary •Increasing (12%)
•Stiff competition
•Increasing (15%)
•High inflation
(25%)
•Salary freeze,
deferment
Pay Structure Net Income (15% of
companies)
Gross Salary (85%
of companies)
Gross Salary, new
tax laws
Turn-Over 18%
Stiff competition
18%
Competition
continues
Critical skills
remain high
Benefit Trends: Mobile phone, transportation allowance, meal allowance,
private health care, personal loans, overseas training
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Pay Attention
Labor Law
• Changing
• Ambiguous
• Subject to interpretation
• Increasing minimum wage
Social Insurance / Tax
• New Social Insurance law, Jan ’07
• New Income tax regime, Jan ’09
• Net to Gross Income
Labor Unions
• “Illegal” strikes
• Labor relations
Social Responsibility
• High corruption
• Policy documentation
• Role Model, Training
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Outlook
• Market continues to expand, slower
• Economy hit hard, like the rest of the world
• Still hiring, critical skills in demand
• Slight bargaining power by employers
• Still, a stable political environment
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Lessons Learned
• It takes time, go slow
• More complicated
then expected
• Network, build
relationships
• Seek expert advice
• Long term investment
Leadership Involvement12
GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
Thank You
http://asiarecruitingtidbits.blogspot.com
For More Info:
William Chin
Senior Staffing Manager, Qualcomm