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VN workforce skills to rise commensurate with FDI inflows: analysts

With the increasing foreign investment in Vietnam, the human resource structure will see a fundamental change since FDI generally goes into industries that require medium to very skilled workers, experts have said.
VN workforce skills to rise commensurate with FDI inflows: analysts ảnh 1A chart showing the labour structure based on skill levels at foreign-invested businesses in manufacturing. (Photo: VNA/VNS)
HCMCity (VNS/VNA) - With the increasing foreign investment in Vietnam,the human resource structure will see a fundamental change since FDI generallygoes into industries that require medium to very skilled workers, experts havesaid.

“The Covid-19 pandemic will continue to be more complicated in 2021 and theworld is still in the ‘new normal’ phase,” Bui Ton Hien, director of theInstitute of Labour and Social Affairs, told a webinar on July 22.

“Businesses have to optimise their operation and production to be both moreeffective and safer.

“Foreign-invested firms in manufacturing will lean more towards automation, andwill thus influence demand for labour skills and skilled jobs in the market inthe next two to three years.”

The webinar heard the results of a comprehensive survey of over 200 foreignenterprises in manufacturing and processing done by ManpowerGroup Vietnam andthe institute between October to December last year, which forecast employmentand skill trends in 2021 – 23.

It found that they use high to very high level technologies (32 percent) ormedium level technologies (63 percent).

Only 5 percent use low or very low level stuff.

Nearly half their workers (46 percent) perform unskilled or simple jobs, withthe ratio being especially high in motorbike and automobile manufacturing,textile and electronics.

Around a third of the workers have medium to low skills (office workers/services and sales, assembly technicians and equipment operators).

Work ethics, discipline at work and professional/technical skills are rated asvery important by the companies.

Foreign language skills also play a critical role.

The skills that businesses find most difficult to find areprofessional/technical, foreign language, analytical, logical and criticalthinking, creativity, initiative, leadership/management, decision making,problem solving, and conflict management.

Simon Matthews, regional manager of ManpowerGroup Vietnam, Thailand &Middle East, said: “Vietnam has steadily turned into a manufacturing hotspot inAsia due to its relatively large and cost-competitive workforce, attractive taxregime, stable political environment, geographical advantages, and open tradepolicies.

“Foreign firms plan to expand manufacturing operations in Vietnam in an effortto diversify supply chains. This will bring about great opportunities for Vietnamto develop manufacturing to the next level, creating thousands of meaningfuljobs for its workforce.

“Due to the technological disruption, employers need to develop an effectiveand holistic workforce strategy. As the world of work is changing fast and itbecomes more and more challenging to find workers with suitable skills,organisations must build, bridge and borrow the skill sets they need.

“That will be critical for their success…, especially in the digital age.”

The manufacturing sector achieved a higher growth momentum in the fourthquarter of 2020 than previous quarters, brightening prospects for an economicrecovery.

With its international integration and young and abundant workforce, Vietnamcontinued to strongly attract FDI.

The businesses participating in the survey are in motorbike or automobilemanufacturing, electrical and electronics production, textiles, leather andfootwear, food and beverages, chemicals, and interior decoration.

They are located in six provinces or cities with high rates of foreigninvestment: Bac Ninh, Hanoi, Hai Duong, Da Nang, Binh Duong, and HCM City./.
VNA

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