Vietnam

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Capital City: Hanoi

Largest City: Ho Chi Minh

Population: 86M

GDP (nominal) 2008
- Total US$90B
- Per capita US$1.0K

 

GDP: (PPP) 2008 
- Total US$241B
- Per capita US$2.8K

Corruption Perception Score: 2.4

 

Currency: Vietnamese dong (VND)

 

Dominant Religion: Buddhism

 

Official Language: Vietnamese

Government: Socialist republic

Background:

 

Vietnam became part of French Indochina in 1887. It achieved independence in 1954 after remarkable success in the battlefield. The country was divided into Communist North and anti-Communist South Vietnam. United States involvement gradually increased during the 1960’s in South Vietnam but was withdrawn by 1973. The Communist North seized control of the South and reunited the country in 1975. Vietnam then stagnated economically and enacted liberalization reforms in 1986 that began to have positive affect. 

Today, Vietnam is an extraordinary successful economy with a strong future. It is attracting significant investment from a range of industries and countries. 

 

Appraisal of Management Talent

 

Available Types:

Vietnam is a fast growing emerging powerhouse.  That said, most international companies have only been operating in the country for less than 10 years -- and most much less than that.  Given that more than 10 years are required to develop senior management talent, it is clear that there are few local managers available who are capable of working at international standards.  

 

There has been an influx of Vietnamese returnees who are said to be very good quality but the demand for such people is vastly more than the supply.  International companies expanding or setting up in Vietnam will need to consider relocating expatriates to run operations.  One common strategy is to use internal expatriates for senior roles or hire Asian nationals (especially Filipinos and Malaysians).  

 

Education Standards:

Vietnam was a restrictive communist country until recently.  There is a very small supply of managers with international schooling.  

 

Candidate Experience:

In the past, there were very few multinational companies in Vietnam to serve as training grounds for local managers to develop international skills.  Local companies are considered unable to perform this function at this early stage of their development.  Most international companies need to consider relocating expatriate managers in order to participate in this market.  

 

Career Stability:

Vietnam has been one of the fastest growing economies in the region for the past few years and has attracted a large number of international companies setting up operations.  Each new locator is desperate to hire staff and severe problems with staff retention (and salary escalation) have emerged.  Most companies have considered relocating expatriates for management roles in Vietnam until adequate supplies of local managers can be developed.  

 

Language Skills:

There are a small number of people who speak French and English in Vietnam.

 

Career Mobility:

Vietnamese managers are not often considered for roles elsewhere in Asia for various reasons.  Their skills are often in such demand in their own country that there is no reason for them to consider relocating.  

 

Compensation:

Given the tremendous success of the Vietnamese economy and the reality that few people have international management experience, the cost of those who are available is higher than would be expected for a small emerging market.  International managers complain bitterly about the cost of management salaries and the quality of the skills they receive.  A further great expense is related to staff turn-over which is one of the highest in the region.  

 

 

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SPECIAL DOWNLOADS:

 

Media organizations throughout the world call upon the Principals of Chalre Associates for thought leadership.  Below are some examples of published material written by our consultants or international journalists who refer to them.  For a complete list of published work, Click Here.  

 

 

Getting Ready For The Deluge: Outsourcing in Philippines

by Chalre Associates senior staff

 

Download [PDF file, 62KB]

 

The Economist Intelligence Unit of the Economist magazine asked Chalre Associates' Chairman, Richard Mills, to write a chapter about the Philippine outsourcing sector in its annual Business Guide Book.  The material provides a Executive Briefing on the progress and major issues facing this industry that is certainly one of most significant growth stories in the world.  more

 

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Asia Pacific Mining Conference 2007 - Report

by Chalre Associates senior staff

 

Download [PDF file, 28KB]

 

The 7th Asia Pacific Mining Conference put on by the Asean Federation of Mining Associations was perhaps the largest such event in the region.  Richard Mills, Chairman of Chalre Associates gave this report on what was said by the prominent mining people who presented. more

 

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The State of BPO in Philippines: Dan Reyes Speaks

by Chalre Associates senior staff

 

Download [PDF file, 31KB]
 

Richard Mills, Chairman of Chalre Associates, interviewed Dan Reyes of Sitel for ComputerWorld (US) recently to get his views on the state of the BPO industry in Philippines. Dan presented US readers with compelling information to support his view that Philippines is currently seen as the "Number 1" option by global companies sending BPO work to offshore destinations. 
 
Dan Reyes is easily one of most experienced Business Process Outsourcing (BPO) managers in the Asia Pacific region and the world. He is head of the extremely successful Philippine operations of Sitel, the world's largest call center organization. Among other things, he is a founder and former president of the Business Processing Association of the Philippines.    more