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Vietnam Today

Vietnam leads in salary increases in ASEAN

Released at: 14:57, 13/12/2017

Vietnam leads in salary increases in ASEAN

Photo: Khanh Chi (VET)

Country ranks first in ASEAN in salary increases while its jobseekers are second in happiness index, according to latest Jobstreet.com survey.

by Hong Nhung

While salary increases in regional countries stand at around 16 per cent, in Vietnam the figure ranges from 20-24 per cent, according to a recent survey released by job portal Jobstreet.com, powered by Jora.

“According to the survey, there are many factors supporting the positive growth results of Vietnam’s human resources market in 2018,” said Ms. Angie Phang, Country Manager of Jobstreet.com Vietnam. “Together with increasing recruitment demand, the salary increase rate will continue to grow in the coming time.”

Besides the massive jobs growth forecast for Vietnam compared to other Southeast Asian countries, the country also sees a higher happiness index among employees, at the second-highest in the region.

The peak season for hiring is from January to June. Backed by foreign direct investment (FDI) growing at 37.4 per cent in the first ten months, the driving force behind predicted jobs growth is believed to be company expansion (68 per cent), the highest ratio in the region. The Top 3 industries predicted to bloom next year, according to hirers, are manufacturing and production, wholesale, and construction and engineering.

In contrast to the bright forecast for Vietnam’s jobs market next year, there are still issues that affect the recruitment process and employment growth. Externally, companies said that finding qualified employees and hiring candidates that fit the company’s culture and a lack of employer branding in a competitive recruitment market are some of their biggest concerns, in which approximately 50 per cent of respondents worry about finding qualified employees, especially in positions such as supervisor, specialists, and managers.

Vietnam has the greatest need for manager-level candidates. The research shows that industries that require more skilled workers, such as construction, IT, and production, are the Top 3 most challenging industries in terms of employee recruitment.

From inside the companies, HR personnel also have to deal with many obstacles, for instance recruitment demand with short notice, as cited by more than 48 per cent of respondents. Together with a better retention strategy, companies need a solid long-term recruitment strategy to fill vacancies and not be affected by talent shortages.

“The challenge for Vietnam’s hirers today is that it’s a candidates market, and they need to form a competitive recruitment strategy comprising three major factors: a unique retention strategy for business continuity, building a talent bank for the future, and innovative technology for optimizing productivity,” Ms. Phang said.

“In the formation of competitive recruitment plans, JobStreet.com powered by Jora is well positioned to be a strategic recruitment partner for Vietnam’s HR community in achieving upcoming business growth initiatives. We will continue to innovate to be part of Vietnam’s ecosystem in improving lives through better careers.”

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