HR TRENDS IN VIETNAM LABOUR MARKET Kim Le Country HR Manager April 28, 2017

Agenda Labour Market Overview Challenges & Opportunities HR Trends in Vietnam Labour Market Agenda Labour Market Overview Challenges & Opportunities Skills Shortage in Vietnam Hardest Job to fill Friday, April 28, 2017

Source: ILO Vietnam, July 2015 HR Trends in Vietnam Labor Market MARKET OVERVIEW Education: High skilled employees only accounted for 22.1% of total labors in Vietnam Many wage employees have relatively low education backgrounds, but they acquired “on the job” training skills. Working Age: 37.6% of total employment is in prime working age: ages 25 - 54 44.7% of total employment is in young age: ages 15 - 24 Source: ILO Vietnam, July 2015 Friday, April 28, 2017

WORK EXPERIENCE EMPLOYMENT BY SECTOR add presentation title here Friday, April 28, 2017

PRODUCTIVITY HR Trends in Vietnam Labor Productivity of Vietnamese employees is still a big concern. Some main reason: Skilled Labor accounts for only 22.1% of total workforce. Majority are semi-skilled labours. Training does not meet the demand from Employers: many university graduates don’t have enough employability skills and require “on the job” training skills Lack of soft skills: teamwork, communications, negotiation, time management, etc. to perform jobs effectively. Friday, April 28, 2017

SALARY OF HIGH SKILLED EMPLOYEES HR Trends in Vietnam SALARY OF HIGH SKILLED EMPLOYEES For higher positions, the gap between Local and MNC is bigger => highly skilled employees want to work for MNC in management positions Source: Mercer Friday, April 28, 2017

HIRING DEMAND BY LEVEL Demands for Mid-level Professionals is highest HR Trends in Vietnam HIRING DEMAND BY LEVEL Demands for Mid-level Professionals is highest accounted 63% of total placements at ManpowerGroup Vietnam Friday, April 28, 2017

CHALLENGE VS OPPORTUNITY for Mid-level Employees in Vietnam HR Trends in Vietnam CHALLENGE VS OPPORTUNITY for Mid-level Employees in Vietnam Challenges: Productivity Soft skills Career Advancement/ Career Growth within organization Technical Hard Skills (Manufacturing Industry) Competition within ASEAN (08 occupations in free movement under AEC) Opportunities: Opportunities from International and Regional Economic Integration: Vietnam recently joins many important FTAs: Trans Pacific Partnership (TPP), Asean Economic Community (AEC), EFTA (EU – Vietnam Free Trade Agreement) => More job opportunities, more options for professional growth, Friday, April 28, 2017

SKILL SHORTAGE COMPARING TO CHINA & INDIA HR Trends in Vietnam SKILL SHORTAGE COMPARING TO CHINA & INDIA Friday, April 28, 2017

TOP SKILLS IN SHORTAGE Survey from ManpowerGroup in 2011: HR Trends in Vietnam TOP SKILLS IN SHORTAGE Survey from ManpowerGroup in 2011: Industry/Consumer/Product Knowledge Occupational Health & Safety Adapting to new technology Ability to innovate Business Planning Work Procedures, Team work, Interaction Operating Machine & Equipment Friday, April 28, 2017

HR Trends in Vietnam Lack of skills in Middle Management: Management Skills Motivational Skills Presentation Skills Understanding the role of the company in society Foreign Language Skill Sense of Responsibilities Knowing How to delegate Legal/Economics/Finance Basics Friday, April 28, 2017

HARDEST JOB TO FILL (GLOBAL TREND) HR Trends in Vietnam HARDEST JOB TO FILL (GLOBAL TREND) Source: ManpowerGroup Trend in Vietnam is expected to shift similarly to global trend since Vietnam have had a deeper economic integration in future (through TPP, AEC, other FTAs) Friday, April 28, 2017

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