The whole world is moving toward 4.0 industry revolution and it had to be in super-sonic mode due to post COVID-19. So here we would try to review how Vietnamese workforce can adapted to these new market demands which are as follows:
Vietnamese market is still a new developing economy and has entailed a fast-growing consumer base, even post COVID19, as Vietnam has already won the fight against it and a strong workforce which is continuously enhancing the required skill set. So estimating that the number of people in Vietnamese labor market would increase by more than one million people annually and as the per-COVID19 market trend was mainly into three areas that had the most hiring demand which were tourism, sales and marketing, IT and software. Leading economists have predicted that the economies in the ASEAN would see a boom of new jobs from 2021. Many international companies have partnered with the Vietnamese government to provide sponsored training and education programs to enhance the quality of the labor force. However, the number of highly skilled senior staff still has not met the demand of the recruitment market. Some of the challenges are mentioned below:
The difficulty in finding high quality employees
Considering existing Vietnamese workforce there is still a lack of skill and talent in high demand fields, especially banking and technology. Therefore, many big organizations have attractive programs to invite expatriates to Vietnam for work. The situation arises since local applicants usually lack interpersonal and technical skills which are needed for some specialized positions, especially regarding business and engineering. Statistics have shown that Vietnam saw a remarkable talent shortage in 2016, placing the country in the bottom half among 123 other countries, according to the survey of human capital index conducted by the World Economic Forum. The number well reflected the ineffectiveness of country development in workforce management. On the other hand, Malaysia which is also a part of ASEAN, ranked in the 4th place.
This ranking was noted by the Vietnamese government and fueled efforts to improve the quality of Vietnamese work-force right from 2017 and main focus is for the period of 2021 to 2025 as it requires much better skills regarding social and collaboration aspects and the shortage of qualified candidates would likely dismiss the job growth opportunities. As to prepare for the 4.0 Industry revolution, employees need to equip themselves at least with a higher level of knowledge and skills for working with modern technology. Automation is the technological factor with the biggest influence on the labor market for the next 5 years. Recruitment demands will change because of shifting nature of work and labor structure. The labor market will transform dramatically under the effect of socio-economic factors related to the nature of jobs and labor structure.
High Tech & Engineering is the most promising job category soon. Another category with great growing prospects in the next 5 years is “Arts, Design, Entertainment, Sports & Media”. On the other hand, certain job categories would experience lower demand, such as “Administrative & Clerical”. Despite being in the top 3 categories in terms of increasing recruitment demand post-automation, as in longer term such repetitive jobs would be automated. So, what would be essential is Problem sensitivity skills, as most of them would need experienced skilled team members to handle them. This has created new jobs for skilled personnel having different competencies, so to keep up with the ever-changing marketing “Active learning” becomes the most essential basic skill for employees. As technological factors are changing the nature of many jobs, which leads to a rising demand for complex skills. So, the top three skills needed for an employee in the future are to cooperate with others, people management, followed by emotional intelligence and judgement and decision making. More focus should be on Critical thinking, communication to improve teamwork.
Additional foreign language
Also, the hottest job skill in Vietnam today is foreign language fluency as majorly Japanese, Chinese and South Korean have investments here. So, the translators and interpreters for tech jobs of the future are expected to be one of the fastest growing occupations in the nation. Furthermore, all positions for programmers, application developers, database and network administrators, engineers, designers, architects, scientists, technicians, and tech support will require bilingual or multilingual fluency, as there are many out-sourcing service providers in Vietnam and they can have higher salaries if they are fluent in any foreign language such as English in addition to Vietnamese. Unfortunately, most graduating Vietnamese students are unable to do more than understand a few basic phrases of foreign languages, and practically none of them can speak any foreign language coherently.
HOW GPO CAN ASSIST
Hopefully, this article was helpful in your research relating to FDI in Vietnam. And we at GPO can assist you by hiring and managing an freelancer market researcher or in depth market analysis and if everything goes as per your expectations we can also assist with business legal advice for getting your business registered in Vietnam and then offer our core service of been your HR business partner in Managing your daily HR activities, as we are an HR business consultancy firm in Vietnam. So, please do share your contact details with us as per the below: gpo.vn