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

Headline News

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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