NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAM

-----------------------------------------------

Report Internship

Topic: Managing human resources in Vietnamese companies:

Challenges and opportunities

Name Le Phuong Anh

Student code 11180191
Class Human Resource Management 60
Instructor Assoc. Prof., Dr. Pham Thi Bich Ngoc

Hanoi, 4/ 2021

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 TABLE OF CONTENT

1. Introduction.....................................................................................................3

1.1. Rationale of the study..................................................................................3

1.2. Objectives of the study................................................................................3

1.3. Research scope and research objects.........................................................4

1.4. Research Methodology................................................................................4

2. Finding and discussion...................................................................................5

2.1. Definition and theory...................................................................................5

2.1.1. Human Resource Management:...........................................................................................5
2.1.2. The role of Human Resource Management..........................................................................5
2.2. Overview of human resource management in Vietnamese companies...7
2.2.1. Recruitment of human resources.........................................................................................7
2.2.2. Human resource planning.....................................................................................................7
2.2.3. Human resource training and development.........................................................................8
2.3. Opportunities and Challenges of HRM in Vietnamese companies.........9
2.3.1. Human Resource Management Trends in 4.0 era.................................................................9
2.3.2. Opportunities......................................................................................................................10
2.3.3. Challenges...........................................................................................................................11
2.4. Solutions to improve human resource management in Vietnamese
companies............................................................................................................13

3. Conclusion.....................................................................................................17

4. List of references...........................................................................................18

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1. Introduction
1.1. Rationale of the study.

"Of all the tasks of the administrator, the administrator is the central task
and the most important because all other issues depend on the success of the
administrator" - That is Dareck Cherrington famous language - an
international human resource management specialist.

Indeed, human resources play a very important role in the development of any
organization. Not understanding right human values is synonymous with failure. In
international business, we must pay more attention to this issue because international
enterprises operate in national environments with different labor markets, cultures,
legal systems, and systems economic and political system. Therefore, human resource
management plays a particularly important role, contributing to the success of the
business.

However, this job is not simple, especially in the period of technology -

modernization. Therefore, human resource management always faces opportunities
and challenges. Furthermore HR managers must consider carefully to be able to
implement HR policies that are appropriate for the market and global trends. With a
passion for human resource management and aspirations to work in human resources
positions in the future. I have chosen a research topic “Managing human resources in
Vietnamese companies: Challenges and opportunities.”

1.2. Objectives of the study.

Based on the theory and general perception of human resource management

together with the scientific approach research method and the guidance of lecturers, I
have conducted research on challenges and opportunities. of human resource
management in Vietnamese businesses. As is known, the Industrial Revolution 4.0 is
creating a rapid change in the way of management, administration and development of
enterprises on an international scale. In Vietnam, human resource management is also
being directly affected. This study also helps those who aspire to become employees
in the HR field of Vietnamese enterprises to better understand the opportunities and

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challenges of human resource management to gradually understand and develop their
careers to suit modern trends. From learning about the opportunities and challenges of
human resources in Vietnam, we will see more clearly the role of human resource
management and offer solutions to fulfill the challenges that human resource
management is facing. must face to face.

1.3. Research scope and research objects

Learn and analyze opportunities and challenges of human resource management in

Vietnamese companies.

The object of the study is the current state of the era of technology - modernization
accompanied by the development of human resource management.

1.4. Research Methodology.

Topics are studied at the table, through journalistic understanding, and explored
through websites. On that basis, by the method of dialectical materialism, analysis,
synthesis, reasoning, applying the knowledge learned about human resource
management to make recommendations and solutions to develop human resources. at
a Vietnamese company.

2. Finding and discussion

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2.1. Definition and theory

2.1.1. Human Resource Management:

Human: refers to the skilled workforce in an organization.

Resource: refers to limited availability or scarce.
Management: refers  how to optimize  and make best use of such limited or scarce
resource so as to meet the organization goals and objectives.

Human Resource Management is the process of recruiting, selecting, inducting

employees, providing orientation, imparting training and development, appraising the
performance of employees, deciding compensation and providing benefits, motivating
employees, maintaining proper relations with employees and their trade unions,
ensuring employees safety, welfare and healthy measures in compliance with labour
laws of the land and finally following the Orders / Judgements of the concern High
Court and Supreme Court, if any.

According to Decenzo and Robbins, “Human Resource Management is concerned

with the people dimension” in management. Since every organization is made up of
people, acquiring their services, developing their skills, motivating them to higher
levels of performance and ensuring that they continue to maintain their commitment to
the organization is essential to achieve organsational objectives. This is true,
regardless of the type of organization – government, business, education, health or
social action”.

2.1.2. The role of Human Resource Management.

One of the first roles of human resource management is to help build and direct, as
well as oversee, the human resources apparatus to work properly with the strategic
objectives outlined by the organization. In addition, effective human resource
management also affects the working environment of employees, helping to increase
labor productivity, increase revenue and profit for businesses.

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The importance of human resource management will be evident through the following
goals:

 Track culture, evaluate and develop corporate cultural environment.

 Managing talent as a whole
 Responsible for recruiting a high-quality workforce.
 Salary proposition based on market evaluation.
 Propose employee benefit programs.
 Organize and ensure programs work in the workplace.
 Take on the job as a bridge to help resolve any conflict between employees and
leaders.

In the face of the fact that economic activities take place with increasingly fierce
competition, human resources are a strategic factor to create a competitive advantage
for the units. Moreover, with the development of science and technology, the
personnel with high professional qualifications and skills have been created. At this
point, the human resources' knowledge, experience, ... are the decisive factor for the
development of an enterprise. However, to achieve this, businesses need to be able to
manage, create an ideal environment for employees to devote their best efforts.

In case, if the enterprise does not come up with an effective method of human
resource management, everything is done will become unorganized and disciplined.
However, if the human resource management in an enterprise is good, it will create a
team of enthusiastic, enthusiastic, long-term commitment to the business.

Always remember: A good human resource manager is someone who must know
how to properly evaluate the working capacity of each employee, know how to
motivate, encourage, and evoke potentials, helping employees enthusiastically work
with all. his talents and wisdom.

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2.2. Overview of human resource management in Vietnamese companies.

2.2.1. Recruitment of human resources.

Recruitment of human resources is the process of selecting human resources to

satisfy the needs of using human resources of enterprises and to supplement the
necessary labor force to realize the goals of enterprises.

In the case of manpower scarcity, the managers need to implement the employee
transfer program according to their capabilities and potentials according to the needs
and capabilities of the job set out. If, after rearranging, it is not enough according to
needs, the organization will conduct the recruitment and selection of staff. It is
possible to recruit inside the company or recruit prison candidates outside the
company. Recruiting good human resources helps businesses save input costs such as
wages, raw materials in the production and business process, helping businesses cut
costs due to having to re-recruit, retrain, and such as avoiding risks in the process of
doing work.

Currently on the labor market in our country, despite the abundant labor supply,
the situation of production and business establishments is not allowed to use labor to
respond to the task of changing economic, technological and organizational structure.
Management to improve competitiveness in the domestic and international arena is
still popular. In general, the recruitment of labor in our country still has many
shortcomings, basically that is the level of candidates when participating in the
application they cannot answer the employers' requests and above all, they lack
information about architecture that I present to recruiters.

2.2.2. Human resource planning

Human resource planning is the process of researching, defining human resource

needs, making policies and functional activities to ensure that an organization has
enough human resources with the necessary qualities and skills to perform. effective
work.

Human resource planning helps the organization clearly define the gap between the
present and the future direction of the organization's human resources needs;

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proactively foresee difficulties and find solutions to meet human needs. At the same
time, human resource planning helps the organization to see more clearly the
limitations and opportunities of its human assets available.

The planning work at the current enterprises has not been focused, in some of these
public enterprises are still sketchy, there are no specific and clear plans, policies, and
the long-term demand for real estate activities has not been forecast. business
production of the company, which only meets short-term human resource needs, has
not yet met the needs of long-term manpower planning for production and business
activities of the company, has not been implemented scientifically. Therefore,
enterprises are completely passive when there are changes in personnel, the company
cannot flexibly respond to sudden changes in personnel as well as changes in the
external environment.

2.2.3. Human resource training and development

In current conditions, in addition to the issue of human resources in general,

researchers have summarized: To successfully integrate into the world economy
requires states to have wise and assertive leaders, Enterprise managers are rich in
creativity, dare to take risks and have a high sense of national resilience. Accordingly,
the training of human resources at all levels is becoming increasingly important and
urgent, especially interested in countries. Because this is the team with the highest
role, deciding the human resource development of enterprises in particular and of the
country in general.

In our country with a developed market economy, they open many schools and
classes to train, retrain and foster good management experts who are qualified and
brave enough to successfully run and manage businesses. It can be said that technical
staff and experts play a particularly important role for enterprises, because they are the
people directly in contact with the work and directly operating the work. The results of
the job success or failure depend greatly on this team. Therefore, the training of
experts and technical staff is very necessary. However, in our country today there is a
situation that university training is taking place massively, while the training of
technical workers is overlooked and not focused properly. This leads to a situation of
"redundant teachers and lack of workers" in a serious way. According to the analysis

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of economists and the experience of developed countries, production will develop
when there is a reasonably trained human resource and a proportion corresponding to
the technical expertise level as follows: 1 engineer - 4 staff - 10 technical workers. But
this rate in our country today is: 1- 1.6 - 0.95. This ratio shows that the technical
workforce of our country is currently in a serious shortage. it directly affects the
productivity of enterprises as well as of the country, especially in the current
integration period. The problem now is that the State needs to have specific and
appropriate policies in university training as well as professional high school officials
and technical workers in a reasonable manner, to meet practical needs process of
integration.

2.3. Opportunities and Challenges of HRM in Vietnamese companies.

2.3.1. Human Resource Management Trends in 4.0 era.

Industrial Revolution 4.0 is creating a rapid change in the way of management,

administration and development of Vietnamese enterprises. This also has a direct
impact on the development trend in human resource management in each enterprise.

Human resource management is now not just about calculating salary, benefits,
recruitment or training, but most of all people working in the human resources field
need to discover and retain talented people, moreover, plan policies to develop human
resources for businesses. According to Deloitte, this shift is through the following
HRM trends:

- Building the organization of the future: The speed of change and continuous
pressures in the 4.0 era makes HR professionals realize that building the
organization of the future is an important challenge to do right away. this time.
The level of interest surveyed signals a change and must redesign a new
organization to actively build its networks and ecosystems. Acumen plays a
central role in the organization of the future. Companies are racing to replace
the structural system with teams that have been empowered to take action.

- Career and education go hand in hand: Thinking that if you have a stable job,
you don't need to study any more is a mistake in the digital age. This drives

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 businesses towards seamless learning experiences, allowing employees to
quickly, easily build skills that are tailored to their own capabilities. According
to the survey, career and learning rose to second place in terms of importance
with 83% of experts saying "important or very important".
- Attractive talent: Focus on the candidate's experience. Finding and recruiting
the right people is vital to any business. Attracting talent has now become the
third most important challenge faced by businesses. Nowadays, job search is
supported by many tools: through social media, analytics, and corporate
management software that integrate cognitive abilities to find employees in a
new way; from there decide who will best suit the job, team and business.
Cognitive technologies are drastically changing the hiring process.
- Focusing on employee experience for the company: Corporate culture and
cohesion are the factors that make the employee experience. In the 4.0 era,
businesses are focusing on improving employee experience, right from the first
contact between candidates and employers, to rich internal activities, welfare
policies, even Applying the index to measure customer satisfaction for its
employees.
- Performance management: About 5 years ago, businesses experimented with
new approaches to performance management. Currently, many businesses are
reducing their focus on due diligence, instead focusing on training and listening
to continuous feedback, implementing new working models on a larger scale. A
new approach to performance management has contributed to increased
productivity and changed the corporate culture.

2.3.2. Opportunities.

Thanks to the globalization process, we can quickly access the world's modern and
advanced technologies and methods of managing people. When investment capital and
modern technology are brought into our country, it is always accompanied by a team
of highly qualified management experts, which will accelerate the process of learning
management experience and knowledge. of human resource managers in the country.

In addition, a contingent of foreign management experts who come to work in

Vietnam will also contribute significantly to improving the quality of management
human resources and improving the qualifications of Vietnamese managers. In

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general, can create the necessary competition for the domestic management
workforce, they must improve their own expertise.

Human resource management today is gradually replacing the position of the

normal human resources administration department (recruitment, salary payment,
training, ...) in order to renew and improve the management apparatus with a long-
term vision. on the basis of self-control rather than on external control. It is the
expansion of the depth and diversity in its role that has shown a positive change in
human resources in Vietnam.

Human resource management also plays an important role in promoting and

connecting people to reach the company's goals, inseparable from business strategy
and largely decisive to the survival of the business. Specifically, in addition to the
organization and effective use of human resources, the human resources industry is
also a link connecting all members in the organization by linking the culture and
individual values of each individual. encourage employees to contribute more in
building and preserving the company's image.

Talent management will take a new step based on human behavioral science. This
management is essentially a combination of their core HR skills combined with a
policy of salary, benefits, development and efficiency to manage and retain their
employees. Expand the use of human resources according to many different job
positions. Managing individually and gradually integrating employees with
management, eliminating the distance in relationships to harmonize and understand
well each person's psychology.

New technology will help managers to implement human resource features and
bring many high usage benefits such as time and cost savings, quick deployment and
reliability high security.

2.3.3. Challenges.

They are entering the 21st century with great challenges of human resource
management. In the last century, the human resource management function actually
focused on activities of the human resource nature. Change occurs due to many
influencing factors such as the changing nature of the effects of the economic and

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government environment, the emergence of new forms of organization, global
competition and the perception of organizations. Nowadays, the organization is the
main force in realizing the goals of society. The main factors that make human
resource management turn into a strategic function are organizational restructuring in
companies, global competition, slow growth, diversity of forces. labor, the employee's
desire and the role of organizations in the realization of social purposes.

Restructuring organizations in companies: Today there have been changes in the

way of creating a competitive advantage, which is a focus on restructuring, in which
the challenges are evident with human resource management. Restructuring has a
strong

impact on all levels of the organization and with its employees. In the process,
workers are concerned with what their role will be with the "new organization". With
such influences on employees, human resource management becomes a key activity
for an organization's success.

One of the most notable challenges is the difficulty in predicting the trend in order
to invest in human resource development in the future. According to forecasts, by
2025, up to 80% of jobs will be new jobs that have never existed at the present time.
In fact, in Vietnam some occupations are also disappearing. This challenge led to the
policymakers need to keep up to the layout structure of labor resources to meet the
needs of the country.

The quality of the labor force is still low, not meeting the requirements of the labor
market. This is also a pressing issue that is being concerned by the whole society, how
to improve the quality of education and training. As for training, especially training at
colleges and universities is not linked to the market, the quantity is not much,
compared with other countries in the region and compared with the population, but
even the number trained is also Can not find a job, including the cause of unsuitable
profession, expertise, low practical skills, low morale, attitude and labor discipline.

The help of information technology and its application in the software IT industry
makes changes in business processes. A clear example of this is the trend of online
business is almost completely replacing the traditional form of business.
Manufacturing businesses focus on automation in production, airlines are also

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researching to use robots to replace people in some work positions. In addition, human
resource management through software will easily evaluate the quality and progress of
employees' work. These provide many opportunities. However, most of the enterprises
currently have not promptly adapted to the changes of technology 4.0, even have
difficulty in using office informatics applications. If the business does not quickly
recruit and train the staff to adapt to this change, it will cause difficulties for business
operations.

Global competition: The trend that has a long-term impact, mainly on the human
resource profession is the globalization of the economy. As a response to the
increasingly competitive international environment, many joint ventures were formed.

Workers 'desires: Workers' desire that the information revolution improves quality of
life. The trend of wanting time to take care of family is more common and more and
more people are working from home thanks to improvements in communication and
computer technology, and that has a big impact on the progress in management human
resource management.

How to find, attract and retain talent for the long-term sustainable development of the
organization? That is an issue that a lot of people working in human resources care
about. How can we build a corporate culture capable of attracting talented people to
work?

The employees' professional and technical qualifications are not high, and there is
a lack of good managers and human resource management specialists. No industrial
working style.

In general, the labor force in our country has been trained and the quality of the labor
force is very low, the ability to practice and industrial manner as well as the ability to
access advanced technology is very low. Therefore, in order to innovate the economy,
it is necessary to quickly reform education and training, improve the quality of human
resources.

2.4. Solutions to improve human resource management in Vietnamese

companies.

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 Perfecting the recruitment and use of human resources:

The quality of human resources and the effectiveness of recruitment depend greatly
on the professional qualifications of the recruiting staff as well as the professional
qualifications of the human resource management staff. Therefore, it is necessary to
improve the professional qualifications and comprehensively develop the role of staff
in the recruitment of human resources.

Established a human resources department specializing in recruiting human

resources. Because at present, a number of small and medium enterprises do not have
a human resources department in charge of human resource management activities.
With the development of the economy, the fierce competition of the market leads to
the complexity of the management and use of human resources. The establishment of
a specialized division in charge of human resource management will solve those
problems.

After recruiting human resources, the organization should arrange and arrange staff
to effectively use the human element in the organization to improve the organization's
operational efficiency, thereby helping the organization fulfill its goals. short, medium
and long-term tasks. The organization should allocate reasonable human resources to
the right people with the right job to promote the capabilities and capabilities of its
employees. Thereby, attracting and retaining employees, makes them always
motivated to work and creates opportunities for them to strive to thrive.

 Focusing on the experience of the staff:

Human resource management should take the candidate's experience as the core
issue. This not only creates a two-way relationship but also brings satisfaction to
contribute to building corporate culture. Attention to employee experience can be
achieved through concern for employee welfare and remuneration policies; building
corporate culture and implementing internal communication activities such as
meetings, company events ... All these activities aim to increase organizational
cohesion and build experience for employees.

 Break the line between leaders and employees:

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 Models in current organizational creative thinking aim to gradually break down
barriers between leadership and staff. This can be understood that the workforce easily
expresses their opinions and opinions. In the context of 4.0, it is possible to think that
human resource management will focus more on the long-term benefits of employees.
For the sake of employees, it is also the direction of business interests.

 Improve the quality of training and develop human resources:

The quality of human resources is an important factor that directly determines

the efficiency of production and business of enterprises. Enterprises need to perfect the
training and human resource development by identifying the training needs of
enterprises and then building training programs and methods for the workers and
employees in the enterprise, after each required period. There should be a system for
evaluating training results. The content of the training program should ensure both
theory and practice in order to improve skills and promote the creativity of employees.

In addition, businesses need to equip and supplement facilities and facilities for
human resource training and development. Helping employees to have the best
conditions to improve their qualifications, techniques and skills.

 Improve the efficiency of human resource planning in the enterprise:

Human resource planning is a very important task because it helps the organization
clearly see its direction and way of managing human resources, ensuring that the
organization always has the right people with the right jobs. the time needed and
flexibly cope with changes in the external environment.

The work of human resource planning is very important because it helps the
organization clearly see its direction and way of managing human resources. In
addition, it also ensures that the organization always has jobs that are reasonable for
each person and flexibly deal with changes in the external environment.

It is necessary to carry out human resource planning as a long-term business

and production plan of the company. The implementation of human resource planning
in the long term is an urgent requirement for all businesses in the current integration
period, it ensures highly efficient and accurate production planning and complete on

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schedule work, keep reputation with customers. Therefore, businesses need to properly
invest in human resource planning to ensure they have enough human resources with
the right qualities and skills to perform work with high productivity, quality and
efficiency.

 Strengthening international cooperation in training technical personnel, high

technology:

This is the key when the majority of domestic institutions can only meet a very
small portion of the demand. If this measure is implemented well from the beginning,
it will create "chain" effects: The trained person can directly instruct or train nearby
personnel. This is also a measure that developing countries similar to Vietnam in the
region are applying such as Thailand, Malaysia, Indonesia ...

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3. Conclusion.

In the current stage of international economic integration, the role of human

resources has been enhanced more than ever. Human resources become the most
important factor determining the success of organizations. Therefore, effective human
resource management is an urgent issue and a challenge for most businesses. The
strong and frequent changes of the environment, the nature of competition and
integration, the increasing demands of employees in the integrated economy have been
putting pressure big for businesses. This requires business managers to have policies
and adaptive solutions to manage human resources effectively.
Human resources is the basic and most important factor for the sustainable and
stable development of enterprises. Human resources are considered as "intangible
assets", holding a special place in the organizational structure. Human resource
development is an important indicator of an organization's developmental level.
Currently, the human resource management of Vietnamese enterprises still has many
problems that need to be overcome, especially at the threshold of international
economic integration. Vietnamese enterprises need to boldly improve and change the
old management method, study and apply modern human resource management
methods in the world. From there, take advantage of and step by step improve the
competitiveness of businesses in the international arena.
The reform of human resource management methods of Vietnamese enterprises
should be implemented in all stages, including: Recruitment, training and
development, human resource use and policy regimes for Human Resources. Only
then can businesses create themselves an effective workforce. Promote the maximum
capacity of the workers. Thus promoting the development of enterprises in particular
and the whole society in general.

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4. List of references

4.1. https://viecoi.vn/cam-nang-nghe-nghiep/chi-tiet-nhung-thach-thuc-trong-quan-
ly-nhan-su-192.html?
fbclid=IwAR3a88XLzP2we8Ct0cnQE0CbRilcyXXImhNB_EuulWuIZNC8ewl
n1K06z-k
4.2. https://123job.vn/bai-viet/quan-tri-nhan-su-42c
4.3. https://tapchitaichinh.vn/nghien-cuu-trao-doi/nhan-dien-thach-thuc-dat-ra-doi-
voi-quan-tri-nhan-su-thoi-dai-40-303997.html?fbclid=IwAR2E1S-KLtEo-
AM_wuh8QL9bgdrR0VhbsHcwFEyhdxT-qgxdLl3o34nVFkQ
4.4. PGS.TS Nguyen Ngoc Quan – ThS. Nguyen Van Diem – Quan tri nhan luc-
Truong Dai Hoc Kinh te quoc dan
4.5. Trieu Tue Anh – Lam Trach Vien – Thiet ke to chuc va quan ly chien luoc
nguon nhan luc, NXB Lao dong xa hoi.
4.6. Báo https://vneconomy.vn/

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