According to head hunting companies and online job services, the human resource market is seriously lacking in an executive level labour force. It is estimated that the supply of highly qualified workers is consistently 30% lower than demand. Experts have warned that the ‘talent shortage’ will become increasingly more serious.

Labour’s “Hot points”

The Vietnam Online Labour Force Index, which reviews supply and demand of labourers, showed that Hanoi and HCM City remain the two hottest labour market focal points, where 34% and 46% of jobs are allocated, respectively.

The southern provinces of Ba Ria – Vung Tau, Binh Duong and Dong Nai, and northern Hai Duong have also become hot markets in recent years thanks to the growing number of newly established enterprises, and steadily strong flow of foreign direct investment (FDI).

In 2007, Ba Ria – Vung Tau expects to attract some $1.06bil in FDI, in the top 50. Analysts said that the province will be listed among the five biggest labour markets in Vietnam in several years.

According to Navigos Group, the market is now seriously lacking highly qualified personell, particularly managers.

Jonah Levey, Managing Director of Navigos Group, said that while Vietnam has more than successfully attracted FDI capital, it still cannot provide an adequate labour force. Besides, the talent war between major companies and conglomerates has only increased the shortage.

Vietnam is not the only Asian nation facing an inadequate work force. Like other newly emerging markets, Vietnam’s economy is booming, but the education system and market is not able to keep up with the growing need for experienced managers and executives. As a result, Vietnam is now struggling with the threat of deceleration caused by the labour force crisis.

According to Mr Jonah, in order to solve the problem, companies need to have long term labour force development plans which aim to attract, preserve and reward excellent and qualified employees.

Attractive destination

Due to the shortage, companies tend to employ foreigners for upper echelon positions. Statistics showed that in the third quarter of 2007, the number of foreigners who applied for jobs in Vietnam increased by 100% over the second quarter of the same year.
Analysts believe that the number of foreigners working in Vietnam would be increasingly high if the Government approves the proposal to remove limitations on the number of foreign workers in companies. A highly qualified foreign work force would be the solution to the current management and executive candidate shortage.

Nguyen Quoc Cuong, Deputy Director General of Quoc Cuong Gia Lai Group, said that he has to use ‘foreign brains’ in his company. It is undeniable that in many fields, such as hydropower, hotel services and resort management, foreigners are currently more capable than Vietnamese due to their experience and ideas.

 “However, I really want to employ local staff to develop my company. Vietnamese people are industrious and eager to learn, and I really appreciate these traits,” he said.
Source: VietnamNet