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BUSINESS REPORT

in the region and a promising destination
for many global businesses, especially those
implementing a “China + 1” strategy and
particularly manufacturing and processing
companies, Ms. Tham noted. One of the
strengths of Vietnam’s workforce is the
relatively low labor cost, which holds par-
ticular significance in a challenging global
economic landscape that prompts busi-
PHOTO: VIET TUAN is also seen as a market with a young,
nesses to look to reduce outlays. Vietnam
dynamic workforce characterized by a high
spirit of learning, ambition, and the ability
to progress quickly when trained by busi-
Up to speed nesses or working alongside foreign experts.
Moreover, the increasing trend of jobseekers
using online platforms adds to the con-
venience for businesses in recruitment.

With recruiting and retaining high-quality workers in the manufacturing IMPROVING EFFORTS
and processing sector posing ongoing challenges, many foreign According to the General Statistics
enterprises are actively working to improve the situation. Office (GSO) in summarizing 2023, Viet-
nam’s labor market and employment situ-
| By GIANG HOANG ation showed positive signs compared to
the previous year. Specifically, the workforce
aged 15 and above reached 52.4 million
people last year, an increase of 666,500
he findings from the PCI-FDI 2022 before joining the production process,” said compared to 2022. Additionally, an esti-
survey conducted by the Vietnam Ms. Tham Tran, Head of Human Resources mated 14.1 million people, or 27 per cent,
T Chamber of Commerce and Industry at Triumph International Vietnam. received training and held certificates,
(VCCI) underscores the existing potential According to the PCI-2022 survey, busi- marking a 0.6 percentage point increase
for enhancing the quality of workers in nesses hope to maintain a stable workforce against a year prior. To continually improve
various cities and provinces around Vietnam. as this allows them to invest in training workforce quality while ensuring worker
A significant 54 per cent of foreign businesses programs for large, long-term orders. The stability, foreign enterprises have made
said the quality of workers meets only aver- survey indicated that, on average, each efforts to adapt to the constant changes
age needs, indicating considerable scope worker stays with a business for one to and updates in the manufacturing and
for improvement. Additionally, about one- three years. Some FDI enterprises have processing industry. Training remains the
third of FDI enterprises believed that worker longer average working times, with 29 per top solution selected by these foreign enter-
quality meets most of their requirements, cent having workers for three to five years prises to enhance the quality of their work-
while a mere 9 per cent expressed complete and 18 per cent for five years or more. force. “Internal training is the most effective
satisfaction with the quality of Vietnam’s However, retaining workers has become tool for businesses,” Ms. Hong said. “They
workforce; a notable decline from 15 per more challenging post-pandemic. understand their technology and processes
cent in 2021. This suggests a persistent “In the last two years, due to the impact better than anyone else, allowing them to
challenge in aligning workforce skills with of Covid-19, the lifestyles and work prefer- proactively plan training for their employ-
the evolving requirements of businesses. ences of the workforce have changed sig- ees. Businesses should also actively coop-
The report further highlights a concern nificantly,” Ms. Tham explained. “Workers erate with educational institutions like
raised by 33.7 per cent of FDI businesses, tend to choose jobs with high flexibility, to vocational schools and technical schools
that labor costs outpaced increases in work- balance work and life. With the boom in e- to implement internship programs or offer
place productivity in 2021. This discrepancy commerce and the emergence of many practical training, thereby actively building
poses a challenge, especially in the manu- freelance and online business opportunities, a skilled workforce for their operations.”
facturing and processing sector, where the workers have more employment choices At Triumph International Vietnam,
increase in workplace productivity struggles than before. This significantly affects labor meanwhile, training and development are
to match the rising costs associated with supply for the manufacturing and processing always a focal point, to enhance the quality
the workforce. This underscores a broader sector in Vietnam, both in terms of quantity of the workforce for both short-term and
trend that needs attention to boost overall and quality.” Ms. Hong Nguyen, General long-term production needs. “We develop
efficiency and competitiveness. Director at HR2B, has a similar perspective, training programs for different target groups,
Triumph International Vietnam, with a saying that, over the last two years, the from workers to technical teams, supervisors,
workforce of over 2,500 employees, is con- quality of the workforce in the manufac- and managers,” Ms. Tham said. “Within
stantly recruiting skilled workers. In the past turing and processing industry has slipped this, English communication is a central
two years, however, the company has faced due to the rapid adoption of high-tech program, helping employees improve their
challenges in recruitment due to candidate solutions and Industry 4.0, leading to a language skills and opening up many oppor-
quality falling short of expectations. “Only skills gap in meeting actual job requirements tunities for professional learning and devel-
10 per cent of the workforce we recruit is compared to academic expertise. opment with foreign experts. We also grad-
immediately usable, while 50 per cent have Looking at the positive aspects, as of ually build succession training programs
skills but need retraining, and 40 per cent the present moment, Vietnam continues for key positions, to serve the company’s
are unskilled and require 30 days of training to be regarded as a labor market of potential long-term development.” %

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