Vietnam's HR Landscape, Compliance, and Recruitment
Published: December 2022We provide readers with an overview of Vietnam’s Human Resources landscape, compliance requirements, and recruitment options for foreign firms. Over the last year Vietnam’s labor market has been in a state of flux. COVID-19 has changed how Vietnamese workers work and what they want. The pandemic also exposed vulnerabilities in establishing local offices which we tackle by looking at low-risk alternative ways for foreign firms to utilize Vietnam’s competitive advantages.
Vietnam's Labor market is in what is commonly called the ‘golden population period’. With just over 70 percent of its population of working age it is a unique point of the nation building process. This has created a myriad of opportunities for foreign firms to utilize an abundance of low-cost labor.
The pandemic, however, changed the labor market in Vietnam considerably. Extended lockdowns saw the way workers work change considerably. White collar workers, for example, were forced to work remotely and although the pandemic is well in the rear-view mirror, many workers have been reluctant to let working from home go.
There has also been a significant shift of labor between some sectors. Information technology, for example, received a huge influx of workers as IT services skyrocketed during the pandemic. At the same time, with borders closed, a considerable number of service sector staff left the tourism industry. Many of these workers are unlikely to return.
Moving forward, foreign firms operating in Vietnam may need to adjust their HR processes and procedures to meet the demands of this new labor market. They should also be aware of alternative, low-risk ways to access Vietnam’s labor market that can give them an edge entering Southeast Asia, such as Global Staffing Solutions.
In this issue of Vietnam Briefing Magazine, we cover what’s happened to Vietnam’s labor market, employee expectations moving forward, and how foreign firms can go about recruiting staff. We also address Global Staffing Solutions and how foreign firms can start operating in Vietnam without putting boots on the ground.
For more information or support with your human resources needs, or for help doing business in the Vietnamese market, please contact us at vietnam@dezshira.com