Article: How to survive in the Vietnamese fast-paced growing economy

Talent Management

How to survive in the Vietnamese fast-paced growing economy

A fast-paced growth in Vietnam has brought with it a set of challenges and opportunities for both organizations and employees. Both parties will have to gear up in time to survive this tectonic shift.
How to survive in the Vietnamese fast-paced growing economy

Vietnam has witnessed some stellar economic revival after the US-Vietnam war. The losses were deep, but the pace at which Vietnam is progressing, especially in the last two years is astonishing. Anti-corruption laws, reduction in government debt and focus on the development of the private sector have all contributed to reviving Vietnam’s economy and flourishing this Southeast Asian country with more job opportunities. A well-functioning market means competitive job landscape. Specialized skills, creative abilities and innovative and entrepreneurial attitude are necessary to stay relevant when such tectonic growth takes place. Hence, the Vietnamese workforce is witnessing the change that calls for solutions to cope with this growth adequately. 

The existing work-life according to Vietnamese workforce

Better market means more consumption, and more use translates into the increased workload. Hence, according to Michael Page’s employment outlook, about 35% of employees clearly stated that they have no freedom to take breaks during work hours and 1 in 3 employees claim that their tasks or job roles do not offer flexibility in terms of timings and working offsite. One of the major challenges Vietnamese organizations are facing is their lack of investment in employee’s professional growth. Though not being able to channelize resources internally when everything is poured out externally is a widespread phenomenon, the employers still need to navigate around this for sustainable growth. A whopping 47% of employees feel their potential is not maximized and 27% stated that the organization has clearly neglected their professional growth. Addressing this gap is incredibly crucial for Vietnamese organizations as a developing economy requires specialized and top-notch talent and the only way to make this possible is by investing in the existing talent. 

A survival guide for employees

While the employers seem to be still catching up with their employee’s demands for a steeper and smoother career progression here are few ways in which employees in Vietnam can survive the fast-paced growth on their own basis the job market demands. 

Essential skills to hone up

Portfolio of most important and relevant skills in the Vietnamese job market is not a big surprise as highly revered skill sets are those that cope with the fast-paced economic development and rapid changes. Change management, conflict and stress management make it at the top of the skill set chart undoubtedly. Apart from these, mentorship and communication are the most in-demand skills in the Vietnamese job market. In fact, according to a Michael Page report, mentorship and leadership opportunities are one of the deal-breakers for most employees. 

Seeking mentors is important

Mentorship is one of the highly-acclaimed skills that employers are looking for, as mentors within or outside organizations help employees to carve out their career paths effectively. As most organizations are lagging behind when it comes to investing in employees, mentors may be able to push this slow cart for employers. For employees who are starting out in an economy that is proliferating, mentoring will help them to tap the right opportunities and re-skill with most crucial expertise. 

Keep an eye out for labor policies and work permits

Vietnam has come a long way when it comes to providing social security benefits. This Southeast Asian country seems to have a strong game when it comes to providing fundamental benefits to its citizens. However, Vietnam has a limited extension of such policies when it comes to foreign workers. For expats, it’s a slow change with few work permit norms loosening up but still looks like a long way to go. 

Some sectors are better than the others

Just like many other developed economies, Vietnam’s progress, too, is rooted in some strong anchors. Some of the sectors where the growth has benefited the economy by leaps and bounds are fin-tech, digital and data and tourism. Technology is the new wave taking over the Vietnamese economy. More technological advancements are likely to speed up the growth even more and empower other sectors that have not yet picked up the pace. 

A survival guide for employers

Whether you are just starting a business in Vietnam or already have a foothold in the Vietnamese market, staying relevant to your employee’s demands is always an excellent strategy to gain a competitive edge. Top reasons for leaving organizations were lack of complete usage of skills and abilities, misaligned leadership styles and better opportunities elsewhere. With 86% of employees feeling under-appreciated with no consideration for their opinions, the top cause for leaving the job is quite clear. If Vietnamese employers continue to operate on the same roadmap, then they are likely to face employee retention crisis in the near future. Some techniques for employers to get started on this front are scheduling training and development plans, giving room for flexibility and focusing on employee engagement.

Vietnam is witnessing one of its golden times and with that come a lot of opportunities along with some challenges. Talent being one of the most important driving factors for any economy, it’s time for both employers and employees to buck up not for a recovering economy but for the one that is advancing beyond what it has ever been.

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Topics: Talent Management, #Outlook2020

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