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Difficulty In Retaining Talent Due To Foreign Invested Enterprises


Posted by Ngoc Thuy Nguyen

about 1 year ago

The movement of foreign factories into Vietnam has created multiple challenges in the recruitment and retention of talent.

Vietnamese recruiters are facing challenges in the recruitment and retention of talent in manufacturing industries due to the establishment of Chinese factories in Vietnam. This is one finding from the QI/2019 survey on the demand for middle- and top-level personnel, conducted by Navigos Group on customers.

The movement of factories and assembly lines is taking place from China into Vietnam, especially in supporting industries and furniture carpentry. According to Navigos Group, newly established factories in Vietnam are planning to expand two or even three times their sizes, in terms of personnel within a year, especially in the field of manufacturing electronic equipment and high-end spare parts.

The exponential growth due to expansion or restructuring has created a movement of the labor force between factories in the same industries, creating challenges in recruiting and retaining employees.

The majority of vacancies are managerial positions, and the demand is predicted to increase steadily until companies settle into routine operation.

In Ho Chi Minh City, middle- and top-level management positions in the secondary sector enjoy higher payment, compared to other industries. Monthly salary for engineers can reach 4,000 USD, while managers can be paid up to 8,000 USD.

The survey reports a trend of multinational companies opening their first Vietnamese branch, especially in F&B and cosmetics, resulting in a significant increase in the demand for sales and marketing employees, ranging from associates to top managers. There is a common preference for candidates with technological and digital literacy.

Within the first quarter of 2019, a trend in franchising by both international and local companies can be observed, especially in cosmetics, fashion, and F&B industries. This also contributes to the increasing demand for middle- and top-level personnel.

Franchising in Retails has contributed to increasing demand for personnel

The requirements applicable to agricultural workers have also changed due to technological advancements. The majority of demand comes from the fields of livestock production and veterinary. Most middle- and top-level positions require technical aptitude and expertise.

It is also noteworthy that the M&A trends (Merger & Acquisition) among real estate companies has entailed a demand for C-level positions, such as CFO, COO, Country Manager, etc. that facilitate the growth of such companies.

Source: Lao Dong Tre (