erc conference - vietnam
Post on 19-Oct-2014
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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.TRANSCRIPT
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
2
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
3
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
6
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
7
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
8
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
9
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
10
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
11
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