Key Takeaways
- Understanding the local labor market is key to successful hiring in Vietnam
- Adapting your hiring process and focusing on employer branding can help attract top talent
- Utilizing local resources, such as job boards and recruitment agencies, can streamline the hiring process and connect you with top talent.
Vietnam is emerging as one of the fastest-growing economies in Southeast Asia, and as a result, the country is quickly becoming a hotspot for global businesses looking to expand their operations.
Vietnam has emerged as a highly attractive destination for businesses looking to expand their operations globally, thanks to its remarkable economic growth over the past three decades.
According to the World Bank, between 2002 and 2021, the GDP per capita increased 3.6 times, reaching almost US$3,700. Poverty rates (US$3.65/day, 2017 PPP) declined from 14 in 2010 to 3.8 percent in 2020. This impressive growth has helped transform Vietnam from one of the world’s poorest countries to a lower middle-income nation with a burgeoning consumer base.
However, one of the key challenges that companies face when entering the Vietnamese market is finding and retaining top talent.
With a population of nearly 100 million people, Vietnam has a large and diverse workforce, but hiring the right people can be a complex and time-consuming process.
In this article, we’ll share five tips for successful hiring in Vietnam that will help you navigate the local labor market and build a strong team that can help your business thrive.
From understanding the unique characteristics of the talent pool to adapting your hiring process to local cultural norms, these tips will provide you with actionable insights that you can use to streamline your recruitment efforts and find the best candidates for your organization.
Whether you’re a multinational corporation or a small startup, these tips will help you build a strong employer brand, prioritize communication, and leverage local resources to attract and retain top talent in Vietnam’s competitive job market.
So if you’re ready to take your hiring efforts to the next level and build a world-class team in Vietnam, read on to learn more.
Before we venture further into this article, we like to share who we are and what we do.
About 9cv9
9cv9 is a business tech startup based in Singapore and Vietnam with a strong presence all over the world.
With over six years of startup and business experience, and being highly involved in connecting with thousands of companies and startups, the 9cv9 team has listed some important learning points in this overview of the top 5 tips for hiring talents in Vietnam
If your company needs HR, hiring, or recruitment services, you can use 9cv9 recruitment services. Book a consultation slot here, or send over an email to [email protected].
5 Tips for Successful Hiring in Vietnam
- Understand the Local Labor Market
- Adapt Your Hiring Process
- Focus on Employer Branding
- Prioritize Communication
- Utilize Local Resources
1. Understand the Local Labor Market
When it comes to successful hiring in Vietnam, understanding the local labor market is critical.
Vietnam’s labor market is diverse and rapidly evolving, with a large pool of talented and highly skilled workers.
To attract and retain top talent, businesses need to have a deep understanding of the local labor market and the unique characteristics of the talent pool.
The first step to understanding the local labor market is to research the talent pool.
This involves identifying the skills and experience that are in demand in your industry, as well as the unique characteristics of the local workforce.
Conducting market research and utilizing local resources such as job boards and recruitment agencies can help you gather insights into the talent pool and identify potential candidates.
Excluding the Covid19 years, Vietnam’s labor force has been growing steadily at a CAGR of 1.15% in tandem with its explosive GDP growth over the past few years (minus the Covid19 years).
Also, it is crucial to know the legal framework governing hiring and recruitment in Vietnam.
The Vietnam labor code is governed by the Labor Code 2019, which came into effect on January 1, 2021.
This new labor code introduced significant changes to Vietnam’s labor laws, including updates to labor contracts, working hours, overtime regulations, and more.
It’s essential for businesses operating in Vietnam to understand and comply with the provisions of the Labor Code 2019 to avoid legal issues and ensure a fair and safe working environment for their employees.
Once employers have identified the ideal candidates for their organization in Vietnam, they must adhere to a number of crucial procedures to onboard their new staff members effectively. These procedures include:
- Ensuring that deductions are appropriately withheld and remitted to the Vietnam Tax Department (Tong cuc Thue). Individuals and organizations that are subject to PIT must register with tax offices to obtain the tax identification number (TIN).
- Remitting social security contributions to the relevant funds through the Social Insurance Agency (SIA). Read this article to find out more about the different social insurance rates and contributions.
- Returns must be filed with the Vietnam Tax Department within four months after the end of the chosen tax year.
- Employers must compile annual reports on their employees’ working hours to comply with local labor laws.
- Additionally, annual reconciliation reports on personal and corporate tax payments must be created, and employers must provide guidance on Business License Tax payment to ensure compliance with Vietnam’s tax regulations.
In addition to understanding the talent pool, it’s also important to know your competition.
Identifying key players in your industry and their hiring strategies can help you stay ahead of the curve and identify unique challenges and opportunities for your organization.
This can involve tracking industry trends, attending networking events and conferences, and engaging with local professional organizations and industry groups.
To stay up-to-date on industry trends, it’s important to keep tabs on emerging technologies and practices in your industry.
Understanding how these trends are impacting the local labor market can help you identify opportunities to stay ahead of the curve and attract top talent.
This can involve conducting regular market research, engaging with industry experts, and utilizing data and analytics to inform your hiring strategy.
That’s why we highly recommend users to subscribe and register to our 9cv9 Blog to keep up with our writings, research pieces and news.
Finally, leveraging data and analytics can help you track key metrics such as time-to-hire and cost-per-hire, and identify areas for improvement in your hiring process.
By utilizing data to inform your hiring decisions, you can streamline your recruitment efforts and attract top talent more effectively.
But wait, if you are hiring talents but still do not have a corporate entity then you cannot proceed with the hiring unless you register and set up a local entity (or to use a PEO/EOR such as 9cv9 to help house your talents in Vietnam).
Read this article on how to set up a Joint Stock Company (for medium-sized and large companies).
Or to read this article on how to set up a Limited Liability Company (for startups and small-sized companies).
Or if you do not want to deal with the hassle of setting up your own company in Vientam, then use the smartest strategy of them all, employing a PEO/EOR such as 9cv9 to help you straightaway sidestep the registration and hire your talents in Vietnam. Book a consultation slot here, or send over an email to [email protected].
Learn how to use a EOR to boost your business in Vietnam effectively, and quickly.
Learn about PEO here in our most popular article on what do Professional Employment Organisations do and how to choose one to help you in your human resource activities in Vietnam.
Understanding the local labor market is critical for successful hiring in Vietnam.
By researching the talent pool, knowing your competition, staying up-to-date on industry trends, and leveraging data and analytics, businesses can build a deep understanding of the local labor market and attract and retain top talent.
To find out more in depth on the labor laws, minimum wages, etc, read on our top article here on “Vietnam’s Labor Laws: What You Need to Know as an Employer (Updated in 2023)“.
2. Adapt Your Hiring Process
When it comes to successful hiring in Vietnam, it’s important to adapt your hiring process to the local cultural norms and expectations.
Vietnam has a unique business culture that values personal relationships and trust, and it’s important to understand and respect these cultural norms when hiring.
At this point, take a break and read our top article on 10 Characteristics of Workplace Culture in Southeast Asia You Need to Know.
Adapting your hiring process can involve a range of strategies, from building relationships with local partners and industry organizations to tailoring your job postings and interview questions to local customs and expectations.
One key strategy for adapting your hiring process is to prioritize communication.
As mentioned in our cultural article, in Vietnam, personal relationships and open communication are highly valued, and it’s important to establish clear lines of communication with candidates throughout the hiring process.
This can involve providing regular updates on the status of their application, being responsive to their questions and concerns, and conducting frequent check-ins to ensure that they feel valued and supported.
Another important strategy is to build a strong employer brand that resonates with local job seekers.
This can involve highlighting your company’s values, culture, and mission, and showcasing your commitment to supporting and developing your employees.
By building a strong employer brand, you can attract top talent and differentiate yourself from other employers in the competitive Vietnamese job market.
Typically, most companies will register at 9cv9 Job Portal to showcase their employer brand and to solicit reviews from jobseekers to boost their visibility on the employer hiring list.
When it comes to tailoring your job postings and interview questions to local customs and expectations, it’s important to do your research and understand what local job seekers are looking for.
This can involve incorporating local language and terminology into your job postings, highlighting opportunities for growth and development, and asking interview questions that showcase your commitment to supporting your employees.
Finally, it’s important to be flexible and adaptable when it comes to the hiring process.
Vietnam’s labor market is highly competitive, and it’s important to be prepared to move quickly and make decisions in a timely manner.
This can involve streamlining your hiring process, reducing the time-to-hire, and being responsive to candidate feedback and concerns.
Adapting your hiring process to local cultural norms and expectations is critical for successful hiring in Vietnam.
By prioritizing communication, building a strong employer brand, tailoring your job postings and interview questions, and being flexible and adaptable, businesses can attract and retain top talent and build a strong team that can help them succeed in the competitive Vietnamese job market.
3. Focus on Employer Branding
In the competitive Vietnamese job market, it’s essential for businesses to focus on building a strong employer brand to attract and retain top talent.
Employer branding refers to the way in which a company presents itself to job seekers and the broader public, including its values, culture, and reputation.
To build a strong employer brand in Vietnam, it’s important to focus on several key strategies.
The first is to establish a clear set of values and mission that guide your company’s actions and behaviors.
These values should be reflected in all aspects of your business, from your hiring process to your company culture and the way you interact with customers and partners.
Another important strategy is to create a positive and supportive company culture that values collaboration, innovation, and diversity.
This can involve offering competitive benefits and perks, providing opportunities for professional development and growth, and promoting a healthy work-life balance.
To showcase your employer brand to potential candidates, it’s important to have a strong online presence, including an engaging and informative company website and social media accounts.
Your website should showcase your company culture, values, and mission, and provide detailed information about job opportunities and the hiring process.
It’s also important to leverage employee advocacy to showcase your employer brand to a wider audience.
Encouraging employees to share their positive experiences on social media and review sites can help build trust and credibility with potential candidates and demonstrate your commitment to employee satisfaction and well-being.
Using 9cv9 to solicit positive reviews about your company can help boost your hiring in Vietnam.
Finally, measuring the effectiveness of your employer branding efforts is key to identifying areas for improvement and optimizing your strategy.
This can involve tracking key metrics such as candidate engagement and retention rates, conducting regular surveys to gather feedback from employees and candidates, and leveraging data and analytics to inform your employer branding decisions.
In summary, focusing on employer branding is critical for successful hiring in Vietnam.
By establishing clear values and mission, creating a positive and supportive company culture, showcasing your employer brand through a strong online presence and employee advocacy, and measuring the effectiveness of your efforts, businesses can attract and retain top talent and build a strong reputation in the competitive Vietnamese job market.
4. Prioritize Communication
In Vietnam, personal relationships and open communication are highly valued, and it’s critical for businesses to prioritize communication throughout the hiring process.
Effective communication can help build trust and establish strong relationships with candidates, leading to higher engagement and retention rates.
One key strategy for prioritizing communication is to establish clear lines of communication with candidates from the outset.
This can involve providing regular updates on the status of their application, being responsive to their questions and concerns, and conducting frequent check-ins to ensure that they feel valued and supported.
It’s also important to tailor your communication style to local customs and expectations.
In Vietnam, indirect communication and subtle cues are often used to convey information, and it’s important to be aware of these cultural norms when communicating with candidates.
This can involve using inclusive language, avoiding confrontational or direct communication styles, and being aware of nonverbal cues such as facial expressions and body language.
Another important strategy is to leverage technology to enhance communication and streamline the hiring process.
This can involve using video conferencing tools to conduct virtual interviews, providing candidates with access to an online portal where they can track the status of their application, and leveraging chatbots or other automated tools to provide quick and responsive communication.
To ensure that communication is a priority throughout the organization, it’s important to establish clear policies and procedures for communication with candidates and employees.
This can involve providing training to hiring managers and other team members on effective communication strategies, and establishing regular check-ins and feedback sessions to ensure that communication remains a priority.
Finally, measuring the effectiveness of your communication strategy is key to identifying areas for improvement and optimizing your approach.
This can involve tracking key metrics such as response rates and candidate satisfaction levels, conducting regular surveys to gather feedback from candidates and employees, and leveraging data and analytics to inform your communication decisions.
Prioritizing communication is essential for successful hiring in Vietnam.
By establishing clear lines of communication, tailoring your communication style to local customs and expectations, leveraging technology to enhance communication, and measuring the effectiveness of your strategy, businesses can build strong relationships with candidates and employees and differentiate themselves in the competitive Vietnamese job market.
5. Utilize Local Resources
When it comes to successful hiring in Vietnam, it’s essential for businesses to leverage local resources to navigate the unique challenges and opportunities of the local job market.
From job boards to recruitment agencies to professional networks, there are a wide range of resources available to help businesses connect with top talent and build a strong team.
In our previous article, we highlighted some free job boards that you can get started with to post your hiring roles on.
Some of the most widely used job boards in Vietnam include 9cv9 Vietnam, VietnamWorks, CareerLink, and JobStreet, among others.
By posting job openings on these sites and leveraging their advanced search and filtering capabilities, businesses can reach a wider audience of job seekers and connect with top talent more effectively.
Another important local resource to leverage is recruitment agencies and headhunting firms.
If you are hiring IT and tech developers in Vietnam, then using professional IT recruiting firms is an absolute resounding yes. Read our top article on how to hire top tech talents in Vietnam.
These firms can provide valuable expertise and support in identifying and attracting top talent, as well as helping businesses navigate the complexities of the local job market.
Many recruitment agencies such as 9cv9 in Vietnam specialize in specific industries or job functions, and can provide a range of services from sourcing and screening candidates to negotiating salaries and benefits.
Professional networks and associations can also be a valuable resource for businesses looking to connect with top talent in Vietnam.
These networks can provide opportunities to build relationships with key industry players, stay up to date on industry trends and best practices, and connect with potential candidates and partners.
Some popular professional networks and associations in Vietnam include the Vietnam Human Resources Association and the American Chamber of Commerce in Vietnam, among others.
Finally, it’s important to leverage local language and cultural expertise to ensure that your hiring efforts are tailored to the unique needs and expectations of the Vietnamese job market.
This can involve partnering with local translators and language experts to ensure that job postings and other communications are accurately translated and culturally appropriate, as well as seeking out guidance from local experts on best practices for hiring and managing employees in Vietnam.
Utilizing local resources is critical for successful hiring in Vietnam.
By leveraging job boards and recruitment websites, recruitment agencies and headhunting firms, professional networks and associations, and local language and cultural expertise, businesses can connect with top talent and build a strong team that can thrive in the unique opportunities and challenges of the Vietnamese job market.
Conclusion
Successful hiring in Vietnam requires a nuanced understanding of the local job market, a willingness to adapt to local customs and expectations, and a commitment to leveraging local resources to connect with top talent and build a strong team.
Tip #1: Understanding the Local Labor Market, involves conducting research and staying up-to-date on local regulations, pay scales, and industry trends, to ensure that your hiring strategy is aligned with the unique needs and opportunities of the Vietnamese job market.
Tip #2: Adapting Your Hiring Process, involves tailoring your hiring process to the unique cultural expectations and preferences of Vietnamese candidates, while also leveraging technology and innovative strategies to streamline the hiring process and improve candidate experience.
Tip #3: Focusing on Employer Branding, involves building a strong employer brand that resonates with Vietnamese job seekers, leveraging social media, online reviews, and other channels to showcase your company culture and values, and building a reputation as an employer of choice in the Vietnamese job market.
Tip #4: Prioritizing Communication, involves establishing clear lines of communication with candidates, tailoring your communication style to local customs and expectations, and leveraging technology to enhance communication and streamline the hiring process.
Tip #5: Utilizing Local Resources, involves leveraging job boards, recruitment agencies, professional networks, and local language and cultural expertise to connect with top talent and build a strong team that can thrive in the unique opportunities and challenges of the Vietnamese job market.
By implementing these tips and strategies, businesses can differentiate themselves in the competitive Vietnamese job market, connect with top talent, and build a strong team that can drive business success and growth.
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We, at the 9cv9 Research Team, strive to bring the latest and most meaningful data, guides, and statistics to your doorstep.
Also, read our hiring guides and workplace tips for Southeast Asia
- Vietnam: How to hire IT Developers in Vietnam
- Malaysia: How to hire employees in Malaysia
- Thailand: How to hire and find talents in Thailand
- Philippines: How to hire and find talents in the Philippines
- Singapore: How to hire tech talents in Singapore
- Indonesia: How to hire and find talents in Indonesia
