A presentation I delivered at the Worldwide ERC, The Workforce Mobility Association, Conference; "The Global Workforce Summit: Focus on Asia-Pacific" was held on March 4-5, 2009 in Singapore.
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ERC Conference - Vietnam
1. Viable, Vibrant, Sometimes Vexing
Vietnam Human Resources Insights
William Chin
Senior Staffing Manager
Qualcomm
2. Vietnam Overview
Population
• 13th largest worldwide
86 Million
8M – HCMC 4M - Hanoi
Median Age Literacy Rate
26.9 90.3
Key Industries
Pro Business
• Competes against China, India
GDP @Thanh Nien News.com
2006 2007 2008 2009
8.2% 8.4% 6.2% 5% est
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
3. The Alternative to China
• Abundant labor supply
• Lower wage costs
With
• Competitive w/ China and India
Predictable
• Growing consumer market
Outcome
• Strong business orientation
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
4. Headline News
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
5. Labor Trends
• Expanding labor market
• Demand outstrips supply
• Greatest gap in professional,
middle, senior management
• More opportunities, greater
turnover
• Driving up salaries
All Industries 5
GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
6. HR Band-Aid
• Scramble for Talent
• Outbid the Competitor
• Poor Talent Management
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
7. Labor Profile
Local Overseas Expat
Returnees
• Skilled supply tight • Adjustment difficult
• Cultural identity (some) • Cultural/language
• Quality varies
barrier
• International exposure
• Limited experience
• Seasoned leadership
• Local language ready
• Practical skills minimal
• Costly salary and
• Commitment level
• Abundant opportunities benefits
varies
• SOE competition
• High salary requirement
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
8. Skill Groups
• Mostly filled by • Common Issues
• Over educated
foreign expats
• Local candidates • Under experienced
lack int’l exposure • Expect a fast-track
• Most capable turn • Premature
entrepreneur promotions
Senior Middle
Managers Managers
• University training • Migrant workers
• Abundant supply
improving
• Exam oriented • Untrained
• Limited practicum
• Hungry for training
and exposure
Professional/
Semi/
Technical
Unskilled
Staff
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
9. Compensation Trends
2007 2008 2009
•Increasing (12%) •Increasing (15%) •Salary freeze,
Salary
•Stiff competition •High inflation deferment
(25%)
Pay Structure Net Income (15% of Gross Salary (85% Gross Salary, new
companies) of companies) tax laws
Turn-Over 18% 18% Critical skills
Stiff competition Competition remain high
continues
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
10. Pay Attention
Social Social
Labor Law Labor Unions
Insurance / Tax Responsibility
• Changing • New Social • “Illegal” strikes • High corruption
Insurance law,
• Ambiguous • Labor relations • Policy
Jan ’07
documentation
• Subject to • New Income
• Role Model,
interpretation tax regime, Jan
’09 Training
• Increasing
• Net to Gross
minimum wage
Income
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GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
11. 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
12. Lessons Learned
• It takes time, go slow
• More complicated
then expected
• Network, build
relationships
• Seek expert advice
• Long term investment
Leadership Involvement 12
GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC
13. Thank You
William Chin
Senior Staffing Manager, Qualcomm
For More Info:
http://asiarecruitingtidbits.blogspot.com
GLOBAL WORKFORCE SUMMIT: FOCUS ON THE ASIA-PACIFIC