Human resources are always the key factor determining the success of an enterprise. In order for the business to develop, the human resources must be strong and professional. Therefore, when “launching” the Vietnamese market, besides learning about documents and hiring a representative office, building quality human resources is indispensable.
Building quality human resources – Problem for foreign enterprises (Foreign Direct Investment – FDI)
To attract foreign invested enterprises (FDI), Vietnam has announced many attractive investment policies dedicated to various fields, such as technology. But because they realize the importance of human strength, most FDI enterprises are eager to recruit high-quality human resources before they think of long-term investment in Vietnam.
However, in fact, the shortage of human resources suitable to the nature of the work, for FDI enterprises is still a problem that has not been completely resolved. Based on the statistics of the authorities, up to 37% of the recruited laborers do not meet the job requirements, 39.86% of FDI enterprises are short of workers; many companies take 1-2 years to retrain their workforce…
It can be seen that, although they want to focus on building a stable workforce, FDI enterprises still have to continue to understand the causes affecting the quality of labor when investing in the Vietnamese market.
The reason why the quality of human resources in Vietnam is not high
The reason comes not only from the business side but also from the employees. Specifically, the quality of human resources in FDI enterprises in Vietnam is still low because the following limitations have not been met.
The proportion of workers with vocational training and skills in the total workforce is still low
As of 2019 according to the General Statistics Office, in the whole country, the number of people with vocational training and skills (with elementary level or higher) accounted for only 22.8% of the total labor force. The proportion of workers without training degrees/certificates in FDI enterprises accounts for nearly 80% of employees and this percentage has remained almost unchanged from 2011 to present.
Moreover, the labor force training structure still has many unreasonable points. The number of workers with secondary professional qualifications and technical workers is mostly concentrated in big cities and urban areas. Besides, this quantity is too small compared to the demand of FDI enterprises. And especially, many Vietnamese workers still lack in areas such as foreign languages, IT skills and the ability to use technology.
The brain workforce is lacking in quantity and weak in quality
In general, knowledge workers in Vietnam are still weak in both quantity and quality compared to the world and the region. The group of science and technology workers has not yet met the requirements of deploying new technologies, and lacks the goals of industrialization and modernization. The group of business managers in the private sector has few opportunities to be trained, so they have little understanding of the market and market mechanisms, while the demand for this type of labor is becoming increasingly scarce and harshly by the pressure of the market, competition and integration. Therefore, Vietnam has a serious shortage of high-tech and high-class service workers in finance, auditing, law and most of the industries. These are the industries that FDI enterprises are in dire need of high-quality human resources.
Work style and discipline are still low
Workers in Vietnam still lack the ability to work in groups, are not able to cooperate and bear risks, are afraid to promote their individual initiatives and share work experiences. Most FDI enterprises have to spend a lot of time just to re-train their employees’ behavior before hiring them to work officially.
The lack of aspiration and frequent “jumping” of the workers.
This is the consequence of not having a long-term vision, thinking only of making a living today, not accepting the current modest job, easily discouraged. Human resources of enterprises are currently facing the problem that employees are willing to “jump” jobs just because of their hobbies, having difficulties in work, which makes the employees themselves have no opportunity for promotion. In the future, similarly, enterprises in general and FDI enterprises are very afraid and do not dare to invest in training in human resources in Vietnam.
So is there any solution to help businesses create their own perfect staff?
Supporting FDI enterprises to build quality human resources
In order to support FDI enterprises to build quality human resources, terra has developed a group of comprehensive human resource management solutions based on long-term consulting experience for foreign enterprises doing business in Vietnam. Terra’s cloud-based HR management service helps with HR related activities such as salary calculation and HR process management such as job interviews → employment procedures → attendance management → payroll calculation → social insurance procedures → training status → personnel evaluation → retirement procedures, etc. are automatic and transparent.
Services of the human resource management soluton group terra include:
– terra HR System: Phần mềm quản trị nhân sự toàn diện tích hợp đa chức năng như quản lý dữ liệu nhân sự, chấm công, lương thưởng, BHXH, tuyển dụng, đào tạo,… Thông qua terra HR System, doanh nghiệp có thể thực hiện chuyển đổi số một cách dễ dàng.
- terra Payroll: Payroll outsourcing service combining technology and in-depth consulting terra Payroll was developed with the purpose of completely solving the difficulties of the human resources department in calculating salaries, providing maximum support to the human resources department. effective when implementing digital transformation. Besides, when using the terra Payroll service, businesses will be able to use all the features of the comprehensive human resources management software - terra HR System, completely free of charge.
– terra Academy: Nền tảng đào tạo trực tuyến cung cấp các khóa học bổ ích, những kiến thức được cập nhật sớm nhất cho cộng đồng nhân sự và doanh nghiệp tại Việt Nam.
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