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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 4th: Recruitment and Securing Personnel
When starting production activities in Vietnam, it is necessary to hire a large number of workers and management staff who can speak Japanese or English. Although labor costs in Vietnam have been rising over the years, they are still only about 1/3 of those in China and 1/2 of those in Thailand, so there are still many benefits for the manufacturing industry. This article will introduce how to recruit workers and management staff in Vietnam, points to be aware of during recruitment, and how to retain the recruited staff.
1. Recruitment Methods for Workers
- A common sight in many industrial parks is the method of hanging recruitment banners on the fences surrounding factories, as shown in the picture. These banners displaying the job openings can effectively spread the word through worker-to-worker referrals. However, setting wages far higher than the neighboring factories’ rates may risk backlash from surrounding companies. It is advisable to research the general wage levels of workers at nearby factories and set wages accordingly.
- There are specialized worker recruitment websites available, so posting job listings on those platforms can be an effective method. However, these websites are typically in Vietnamese, so hiring Vietnamese staff for the management department would be necessary to handle the job postings if the company does not have Vietnamese-speaking personnel.
- There are over 30 Japan-affiliated recruitment agencies in Vietnam, and some of them specialize in hiring factory workers. If the methods mentioned above are not successful, utilizing a recruitment agency, though it involves a fee, is recommended.
２. The recruitment of management staff (managers, interpreters, accountants, general affairs personnel) can be approached in the following ways
The management staff need to have direct communication with the Japanese factory managers, so they must have at least a certain level of Japanese or English proficiency in order to perform their duties effectively. Recruiting such multilingual talent is often difficult without the assistance of recruitment agencies. Additionally, these foreign language-capable candidates tend to reside in the city centers (Hanoi, Ho Chi Minh City), so ensuring their commute needs to be addressed. Many companies provide shared transportation with the Japanese supervisors or arrange for vans or buses to transport the staff from the city centers.
Chúng tôi xin giới thiệu một số công ty có thành tích trong việc tuyển dụng nhân sự người Việt Nam, bao gồm cả công nhân và nhân viên quản lý:
- G.A. Consultants Vietnam Co., Ltd.: https://www.vieclambank.com
- Kosaido HR Vietnam Co., Ltd.: www.kosaido-hr.com
- Reeracoen Vietnam Co., Ltd.: www.reeracoen.com.vn
- Ryobi Vietnam Co., Ltd.: www.ryoubi-vn.com
３. Considerations When Hiring
１） When interviewing workers, it is necessary to confirm “Why did they decide to change jobs and choose our company?” Possible reasons may include “salary, distance from home (commute time), interpersonal relationships within the company, dissatisfaction with the company”, etc. However, the same issues may also arise at your own company, so it is important to judge whether their reasons for changing jobs are reasonable. Additionally, a common scenario is that employees who were previously hired as technical interns in Japan are then re-employed at the local factory when the company sets up a new factory in Vietnam. In these cases, there is often a gap between the salary in Japan and the salary in the local factory, which leads many employees to become dissatisfied and quit quickly. For skilled employees who can immediately contribute, it is necessary to provide a commensurate salary.
２） For Japanese personnel, it is desirable for them to have at least N2 level or higher on the Japanese Language Proficiency Test. However, even N3 level can be sufficient for everyday conversation, so it’s best to judge their conversational abilities during the interview by engaging them in casual discussion. For English personnel, the English proficiency of the Japanese staff they will be working with is also a concern, so it’s important to thoroughly assess how well they can communicate with you during the hiring interview. Companies often hire Japanese personnel as Japanese interpreters/executive assistants, but in these cases, it’s crucial to carefully evaluate the candidate’s character, as they may wield disproportionate power by leveraging the authority of the executive they support. When selecting vendors in Vietnam, there is still a lingering bad practice of kickbacks, so rather than leaving it solely to the executive assistant or purchasing department, it’s necessary to obtain multiple quotes and personally verify the selections, rather than just relying on them.
４．Strategies to Retain Hired Staff
１） Workers may sometimes choose to switch jobs to a neighboring factory if the quality of the company-provided lunch is not up to par with the competition. Therefore, it is crucial not to compromise on the lunch quality compared to nearby factories. Even if language barriers exist, it is necessary to establish regular communication with workers through interpreters. Giving workers birthday messages and small gifts can also be an effective approach. When the company has the means, taking all employees on company trips to nearby resorts is a common practice. However, as worker-level turnover tends to be high, it is more important to have immediate replacement measures in place.
２） Administrative Staff: Importance of Communication and Cultural Sensitivity. Similar to the workers, regular communication is crucial for administrative staff as well. However, since Vietnamese people tend to prioritize family over work, it can be effective to inquire about the birthdays of staff members’ parents and provide gifts to them on those occasions. This can sometimes discourage the staff from resigning, as their parents may not allow it. Additionally, it is important to closely monitor the situation of other staff through interpreters (or secretaries) on a regular basis. It is crucial to avoid any condescending attitudes towards Vietnamese staff, as they are ultimately human beings, just like the workers. Occasionally, one may spot company presidents who call in interpreters even on their days off, which is a blurring of personal and professional boundaries and should be avoided. The mindset that “it is already a blessing that a Japanese person who cannot speak the local language can work in Vietnam” should be avoided, as it can lead to an arrogant attitude towards the Vietnamese employees.
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
