Alongside a high economic growth and the establishment of many enterprises, the labour market has become heated with a huge demand for human resources. However, it is very difficult for enterprises to recruit qualified people, meeting all requirements of works, creating a high effectiveness for enterprises in the market economy with fiercer competition. A shortage of high quality human resources, especially qualified managers, has become popular.
According to the Navigos Group, since late 2003, the demand for high quality human resources has seen a strong increase, between 30 per cent and 50 per cent per year. This is because of a high increase in the number of foreign-invested projects in Vietnam, recently. Enterprises need to recruit personnel in sales, marketing and advertisement most. In particular, in 2005, a sudden increase in the demand for trademark directors has been seen. This is because enterprises have begun to focus on promoting their trademarks. With five, seven or even ten trademarks for each company, the demand is expected to increase more rapidly. After marketing and sales, enterprises need to recruit staff members for their financial, accounting, administrative, information technology and pharmaceutical production fields.
Difficult recruitment
According to companies, specialising in human resources, a growth in both quality and quantity of candidates has been seen. Foreigners account between three and five per cent of the companies’ recruitment demand, compared to that of 30 per cent five years ago. Important positions in many foreign companies have been occupied by Vietnamese, who have favourable working conditions to get knowledge of advanced management and administration from foreign experts, plus their efforts to improve their skills, meeting more challenging requirement of their jobs. Also, overseas Vietnamese and those young people who have studied in foreign countries have added to the supplies. However, with a higher increase in the market demand, the increase in the supplies cannot fill the shortage. At present, companies specialising in human resources can meet only between 50 and 60 per cent of the market demand. The biggest difficulty is in sales and financial services. Foreign companies have developed ‘localising‘ strategies on human resources, using local people in important positions, including financial director, marketing director and regional director.
The Navigos Group, one of the leading human resources companies, especially after the acquisition of the human resources service department of Ernst & Young Vietnam, has recently successfully implemented a contract on recruiting sale managers for a milk and dairy product company after seeking for months from local enterprises and representative offices of foreign companies. It takes human resources companies some weeks to seek people for normal management positions but for important positions, it takes between one and two quarters. The Pricewaterhouse Coopers Vietnam, for example, wants to recruit a customer care director but it has not found suitable person after two months yet. In the software industry, it may be easy to find good programmers but it will be very hard to find qualified project managers.
Temporary solution - training
Apart from foreign companies, in recent years, many Vietnamese enterprises have paid more attention to human resources development to increase their competitiveness. Attractive salary, working conditions, and promotion opportunities are inadequate for enterprises to attract talented people. Therefore, most enterprises have to discover ‘potential’ candidates and develop suitable training strategies to help them meet tougher requirements when they are promoted. The Phong Phu Textile Company prioritises professionalism, deep knowledge about socio-political issues and quick reactions, as norms to choose managers. Candidates will be chosen for job trial and they will have to show their ability to convince colleagues. Candidates will be further trained in Vietnam or foreign countries. The Toan My Company has increasingly given attention to training its managers to improve the company’s management and administration. The company prioritises creativity as a top norm to select marketing managers. Some other companies do themselves recruitment and training jobs. Accordingly, they closely follow excellent students of universities and those who win knowledge contests. Those students who practise at Pepsico Vietnam would receive high remark when they implement their assigned tasks seriously, honestly and flexibly. When they work for Pepsico, they will have good promotion opportunities if they can complete their task, train their colleagues and improve their skills. Pepsico Vietnam now has over 100 managers of its operation nationwide.
As the Vietnamese economy is preparing for its international integration with many challenges, the building and development of qualified managers will be an urgent need.
Hai Nguyen
Vietnamese
