Insights from May Nguyen: Understanding Vietnam’s Job Market and the Impact of EOR Partnerships
Vietnam’s job market is bustling with opportunities, particularly in the tech and sales sectors. To understand what talents in this dynamic market seek in employment and how partnering with an Employer of Record (EOR) service provider can be beneficial, we turned to May Nguyen, Country Director at Worknetics Global. With a background in commercial law from one of Ho Chi Minh City's prestigious universities and nearly six years of experience in the field, May brings a wealth of expertise to her role. Her insights shed light on the specific skills in demand, the balance between technical and soft skills, emerging trends, and the advantages of EOR services for both employers and employees.
1.What specific skill sets and qualifications are most sought after in your market when hiring new employees?
In Vietnam, the demand for highly skilled professionals, particularly in the IT sector, is growing rapidly. According to May Nguyen, roles such as full-stack developers, cybersecurity experts, data analysts, software implementation specialists, and application engineers are highly sought after.
Additionally, there is a significant demand for sales-related positions targeting overseas clients. For these roles, strong communication and persuasion abilities are crucial, along with a thorough understanding of the products being sold or consulted on.
Proficiency in English and other foreign languages, especially Chinese, is also a key asset, opening up numerous work opportunities in the global market.
2.Any idea if employers prioritize soft skills versus technical skills in potential hires?
Employers in Vietnam are looking for a balanced mix of technical and soft skills in their potential hires. While technical skills are essential for job performance, May highlights the increasing importance of soft skills:
Communication
Teamwork
Adaptability
Networking abilities
Problem-solving
In roles like sales, customer service, and assistant positions, soft skills often take precedence over technical expertise. Employers value candidates who can expand their networks and effectively engage with clients, while technical skills can often be developed through training or on-the-job experience.
3.Can you identify any emerging trends that are shaping the job market in your market?
The increasing demand for IT and tech-related roles driven by digital transformation across industries.
The rise of remote and hybrid work models offering greater flexibility to employees.
Advanced technologies such as AI and blockchain are gaining traction.
Growth in e-commerce, digital marketing, and online services.
Expansion in the manufacturing and engineering sectors.
Increased demand in the healthcare and pharmaceuticals industry due to the focus on health and wellness.
Popularity of livestream sales on platforms like TikTok and Shopee in the sales sector.
4.How do local regulations and labor laws impact the hiring process and employee management in your region?
Local regulations in Vietnam require employers to comply with labor laws related to contracts, minimum wage, working hours, social insurance, and employee benefits.
Staying compliant with these laws is crucial to avoid legal issues and ensure operations go smoothly especially when local employees are well aware of what they are entitled to
Both Employers and Employees must discuss in detail any terms within the boundaries permitted by the Vietnam Labor Code. Any terms outlined in the contract that go beyond legal requirements (mostly related to employee benefits such as healthcare, allowances, and bonuses) may to be mutually agreed upon and recorded in the labor contract or its appendix.
5.Any strategies that come to mind that successful companies use when it comes to hiring in your market to attract and retain top talent?
Successful companies in Vietnam attract and retain top talent by:
1. Offering competitive salaries
2. Offering attractive benefits packages, including health insurance, other types of allowances (housing, gifts for special occasions), other benefits (referral bonus, performance bonus, 13 month salary, opportunities to relocate to other countries to work) and professional development opportunities.
3. Establishing a clear promotion roadmap with defined salary increments and role promotion milestones.
They also emphasize a positive work culture and flexible working conditions. Building a strong employer brand helps employees enhance their career prospects and opens up opportunities to join top-tier companies in the future. Additionally, leveraging professional networks for recruitment is an effective strategy.
6.How important is cultural fit and diversity in hiring decisions within your market?
According to May, a strong cultural fit helps in fostering teamwork, collaboration, and a positive work atmosphere, which are essential for achieving organizational goals. In order for that to happen, companies need to take the time to really understand cultural nuances in order to ensure effective communication amongst team members. In addition, diversity is also gaining importance as businesses understand the value that a diverse workforce brings in terms of perspectives, ideas, and problem-solving approaches.
7.In what ways do you think employers benefit from partnering with an Employer of Record (EOR) service provider like us in your market?
EOR services benefit Employers by:
Providing access to local expertise in labor laws and regulations. While
regulations can be found online, EOR partners provide invaluable knowledge to current practices and nuances of each process to ensure smoother and faster onboarding processes, enhancing the overall efficiency of talent acquisition and management.
Offering streamlined payroll and HR management, allowing companies to focus on their core business activities.
8.In what ways do you think employees benefit from being onboarded by an EOR solutions provider like us in your market?
EOR services also benefit the Employees by:
Ensuring the Employees who work as freelancers / work for oversea companies fulfill their tax filing obligations, PIT finalization, helping them avoid future legal issues with tax inspectors.
Gaining access to statutory benefits: Ensuring compliance with local regulations such as monthly social, health, unemployment, and insurance (SHUI) contributions, and eligibility for maternity/paternity/health benefits, sick leave claim, and other compulsory benefits.
Having clear salary payment proofs and signed labor contracts, which serve as financial guarantees for Vietnamese employees traveling overseas (essential for visa applications in some countries).
Offering reference letters or dispatch letters for employees who need a guarantor for business visas during business trips.
Having support anytime with matters arising locally related to benefit claims from Social Security Authority, or other matters relating to their employment.
9. What are the main benefits employees in your market are looking for when it comes to employment?
Career Growth Opportunities:
They seek positions that offer open-up opportunities for career advancement and professional development in the future.
Competitive Salary, Benefits, and Bonuses:
Fair compensation packages, including attractive benefits and performance-based bonuses, are highly valued.
Good working environment:
Good leader and non-toxic colleagues.
Comprehensive Health Insurance:
Employees often prefer health insurance policies that provide coverage not only for themselves but also extend to their family members’ health expenses.
May Nguyen’s insights provide a comprehensive overview of Vietnam’s dynamic job market. With a strong focus on balancing technical and soft skills, adapting to emerging trends, and ensuring compliance with local regulations, both employers and employees can navigate this landscape effectively. Partnering with an EOR service provider like Worknetics Global offers significant advantages, streamlining HR processes and ensuring compliance while providing valuable support to employees. Understanding these market specifics and leveraging EOR partnerships can drive success and growth in Vietnam’s competitive job market.
