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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 24th Worker Dispatch System
When expanding into Vietnam, securing local talent becomes critical to success. This article will introduce the situation of dispatch employees in Vietnam.
1. Industries that utilize dispatch workers
In the past, dispatch employees were often assigned to office work such as accounting and HR, but they have since been replaced by full-time employees. This is due to the increase in the number of university graduates in Vietnam. With a university degree, there is a strong desire to obtain a better job title, which has significantly changed the situation of dispatch employees. Dispatch workers are now primarily active in the manufacturing industry. However, the manufacturing roles assigned to dispatch workers are limited to simple, unskilled tasks. Additionally, seasoning manufacturers in supermarkets have promotional periods about 3 times a year, during which they may add free gifts or sell products in 2-packs. Dispatch workers are utilized for these promotional tasks for about 3 months prior to the promotion, as the work is suitable for those without experience.
2. Number of dispatch workers
Depending on the company size, the number of workers dispatched is typically in the tens per month. During the summer vacation in July and August, many university students without classes participate, taking up the dispatch employee slots.
Companies need to make efforts to ensure dispatch employees do not quit. There are examples of companies implementing countermeasures that have reduced the number of quitting employees. These include keeping the restrooms clean, providing air conditioning, and giving bonuses to those who work for 100 consecutive days. In addition to having to stand for hours, the dirty and hot work environment can lead dispatch workers to move to other factories with better facilities.
3. Methods for recruiting dispatch employees
There are mainly three methods.
(1) Job sites: Similar to Japan, companies in Vietnam also post job listings on job sites.
(2) Social media: Facebook is the mainstream platform. When job postings are made on Facebook, interested people will send messages. Recently, TikTok has also been used as a means of recruitment. In Vietnam, TikTok is often used for business opportunities, and companies may entrust young employees with recruitment through TikTok.
(3) Local brokers: Local brokers utilize social media and their own websites to recruit talent.
4. Hiring Criteria
There are companies that have a probationary period. A certain number of people also quit on the first day due to reasons such as not being able to keep up physically. Additionally, there are cases where people who do not meet the age requirements specified in the job posting come for the interview, and if the company is satisfied with their health condition and other factors, they may still be hired.
5. Pricing System
For office workers, the company pays the dispatch company a dispatch fee of around 20-30% of the employee’s monthly salary. However, for people working in factories, they pay a certain amount in Dong per day to the dispatch company, rather than a monthly fee. For security guards, the fee is even lower. The duration varies by company, but there is a guaranteed period, and if the worker quits within that period, another worker will replace them in the work.
6. Comparison between Dispatched Employees and Regular Employees
In Vietnam, labor laws stipulate that there should be no difference in allowances and benefits between dispatched employees and regular employees. Additionally, if dispatched employees and regular employees are performing the same level of work, their salaries should be equal or the dispatched employee’s salary should not be lower. Therefore, it is possible for dispatched employees to have higher salaries.
While dispatched employees can be dismissed at any time, regular employees cannot be easily dismissed once hired. Dispatched employees can only work for a maximum of 1 year, after which the contract must be terminated or the employee must be converted to a regular employee. When converting a dispatched employee to a regular employee, the company must pay the dispatch company a fee equivalent to 1-2 months’ salary.
Dispatched employees are limited to simple tasks that can be easily replaced, as the priority is to maintain the required headcount. For roles requiring a certain level of skill, it is common to hire regular employees and provide them with technical training.
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.
