Foreign enterprises still the employer of choice for a large proportion of Vietnam's talent, Vietnam HR Awards Forum hears.
A professional working environment and good remuneration policies are key factors in retaining talent, insiders agreed at the Vietnam HR Awards Forum in Ho Chi Minh City on December 8.
Foreign-invested enterprises (FIEs) and multinational corporations (MNCs) attract the most attention from job seekers. Human resources (HR) management at local enterprises, meanwhile, still bears many shortcomings, which limits their competitiveness in the race to attract talent.
According to a representative from Abbott, to attract a foreigner to work in a local business it is not simply about wages but also about a variety of other factors such as sharing the company’s goals, workplace, language, and thinking, to ensure these foreign employees can integrate and contribute to the company’s development.
Each enterprise should have its own HR and business strategies, said Mr. Pham Phu Ngoc Trai, Chairman of Global Integration Business Consultants Co. (GIBC).
Agreeing with Mr. Trai, Mr. Ton That Anh Vu, Head of HR at HSBC Vietnam, said that businesses should understand and define their vision, research HR policies, and follow and understand their companies’ position and ranking in the market.
FIEs usually have HR strategies as soon as they set foot in Vietnam. In the early days they use foreigners in management positions to train the local workforce. In the next stage these FIEs will send local staff abroad, but build a workforce with strategic vision as the staff approach multinational cultures and become the next generation of management in Vietnam.
Domestic enterprises have had to face stiff competition from foreign enterprises since Vietnam joined the WTO, and the competition will become even fiercer with free trade agreements (FTAs) and the TPP coming into effect. If businesses cannot attract and retain talent and skilled employees it will be quite difficult for them to survive in a competitive global environment.
After the ASEAN Economic Community (AEC) is officially established from 2016 there will be freedom of movement for workers between countries in the region. Domestic companies are therefore expected to face greater difficulties relating to talent recruitment and retention in the future.