A Vietnamese human resource expert has stressed that local enterprises should “purchase” or “borrow” foreign staffers, particularly those from regional countries, and take better care of their local staff in prepping themselves for the upcoming Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) integration.

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Tieu Yen Trinh, general director of Talentnet, which is a local human resource consulting firm, shared her opinions on how local firms make the most of the forthcoming AEC integration during a recent interview with Tuoi Tre (Youth) newspaper.

By the end of 2015, Vietnam must complete the last line of commitments, including political, security and defense, economic and social pledges, to building the AEC, Deputy Prime Minister Pham Binh Minh said earlier.

The AEC, slated for establishment by the end of this year, is aimed at creating a single market and production base, a highly competitive economic community, a region of equitable economic development, and one fully integrated into the global economy, according to the ASEAN website.

ASEAN is a ten-member bloc which includes such Southeast Asian countries as Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam.

The ASEAN leaders adopted the ASEAN Economic Blueprint at the 13th ASEAN Summit on November 20, 2007 in Singapore to serve as a coherent master plan guiding the establishment of the ASEAN Economic Community by 2015.

Trinh observed that Vietnamese workers’ pay is considerably lower than that of other Asian countries, except India.

She also noted a wide salary gap between senior managers and workers, which would take tremendous efforts to narrow.

By contrast, earnings by the senior management segment at foreign-owned companies and their large local counterparts are a different story, Trinh said.

“Salaries earned by those holding managerial positions in Vietnam are on a par with or even higher than their peers’ in such countries as the Philippines, Thailand and Indonesia though lagging behind those in Singapore, Malaysia, Japan, South Korea and China,” she elaborated.

Readiness for AEC integration

Trinh noticed a high level of readiness for the AEC, which means a substantial shift of labor force out of and into the country, among foreign-owned firms that are operating in Vietnam.

“However, there remains a huge discrepancy between the capacity and performance of the top management and lower-rank executives in Vietnamese firms. That would mean a worrying shortage of employees when they plan the expansion of their business, particularly abroad,” she noted.

Tieu Yen Trinh, general director of Talentnet, a Vietnamese human resource consulting firm. Photo: P.T.

To offset such a resource deficiency, in recent years, major companies in Vietnam have chosen either to revamp their manpower management system by hiking salaries, bonuses and performance indicators, or recruiting talented personnel, particularly for top-notch management vacancies.

A number of local firms now tend to employ staff from such neighboring countries as Thailand, the Philippines, Malaysia and India who demand affordable pay.

The international workforce, who have their own edges in certain fields, do help earn their Vietnamese employers greater stature.

“Though Vietnamese people are quick to learn, diligent and sharp-witted, the corporate culture in Vietnam has traditionally hinged on relationships,” Trinh said.

“Foreign recruits will thus add standard procedures, professionalism and systematic working manners as well as remarkably boost the companies’ competitive edges,” the female director explained.

Trinh also remarked that most major firms in Vietnam have invested handsomely in their manpower assets, which are instrumental to their corporate success.

“I think small- and medium-sized enterprises (SMEs) should also follow suit. While large companies can ‘purchase’ talents, SMEs should ‘borrow’ good-performing staff from regional countries,” she advised.

Trinh suggested leaders of such companies pair up with their partners and make the most out of their own strengths.

Government involvement

Such partnership can also be done by dividing shares, she said.

“It’s vital that SME leaders adopt an open-minded outlook and work to benefit all sides,” Trinh underscored.

“However, these endeavors would not achieve their desired results but for the involvement of the government, trade associations and the entire community.”

The government is also expected to further efforts to boost institutional innovation, enhance legal frameworks and policies, create business environment equality, provide quality human resources, and improve infrastructure to support business development.

“The government’s involvement will also make a big difference to SMEs’ readiness for the AEC integration,” Trinh underlined.

Firms in other ASEAN countries, especially private enterprises, have already taken advantage of the AEC by stepping up investment in expanding markets and boosting growth within the bloc. 

This is not the case for companies in Vietnam, however.

According to Talentnet and Mercer, recent surveys revealed that the knowledge of local businesses, particularly SMEs, of how the AEC is going to affect their business remains limited.

Meanwhile, though large firms are more mindful of the regional economic integration, their readiness is still far from satisfactory.

By contrast, multinational groups have worked out meticulous plans to recruit staff from neighboring countries. Apart from their tempting salary and bonus, such groups also appeal to the international workforce with their multinational corporate culture, and promise to foster fruitful manpower exchanges among regional countries.

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