In recent years, Vietnam has become a significant player in Apple's manufacturing network, altering the dynamics of the tech giant's global supply chain. As one of Apple's primary manufacturing partners, Vietnam's role has surged in importance. In this article, we will explore the intricacies of Apple's production in Vietnam and the strategic decisions Apple has undertaken to fortify its position. Furthermore, we'll delve into the impact of these developments on the local manufacturers and Vietnam's broader economic landscape.

Apple's Manufacturing Footprint in Vietnam: Growth and Strategies

Apple's Shifting Focus to Vietnam

Apple's supplier landscape witnessed a significant transformation in recent years, with Vietnam emerging as a prominent destination. In 2022, Apple's global supplier list included a substantial presence in Vietnam, with 25 suppliers having established factories within the country's borders.

Previously, China had been the dominant location for Apple's suppliers, accounting for 44% to 47% of their manufacturing operations in the five years leading up to 2019. However, this rate decreased to 41% in 2020 and further to 36% in 2021. In contrast, Vietnam's share increased, rising from 2.2% to 3.7% during the same period. Apple and its partners are actively working to diversify their investments, with Vietnam positioned as an alternative manufacturing hub.

According to DigiTimes, Vietnam is poised to play a more substantial role in Apple's global supply chain. As per JPMorgan's assessment, it is anticipated that the nation will manufacture one-fifth of iPads and Apple Watches, 5% of MacBooks, and an outstanding 65% of AirPods by the year 2025. Vietnam isn't merely a production hub but is also becoming a thriving consumer market. With the launch of the Apple Store online in Vietnam, Apple is actively engaging with Vietnamese users, enabling them to purchase products with ease and providing customer support through a Vietnamese-speaking team. Additionally, Vietnam is the third Southeast Asian country to offer Apple Pay, further underscoring its significance to the tech giant.

Notable Investments by Apple's Contractors

In June 2023, Compal Electronics, a significant manufacturing contractor for Apple's iPad and Apple Watch, took a significant step by leasing land to establish a new factory in Vietnam. The factory, situated in Lien Ha Thai industrial park, is part of a project with a total registered investment capital of USD 260 million. This venture is set to manufacture a wide range of products, including computers, communication equipment, and electronic components, and is expected to generate an estimated revenue of about USD 1.2 billion by 2029 and USD 6.8 billion by 2037.

Compal Electronics already operates in Vinh Phuc Province, Vietnam, producing Apple products. This expansion underscores their commitment to enhancing their production capabilities in the country.

Meanwhile, Foxconn, one of Apple's largest contractors, has been progressively transitioning iPad and MacBook production to Vietnam. With over 60,000 employees in the country, Foxconn is investing heavily in its Vietnam operations. Notably, Foxconn Industrial Internet (FII), a Foxconn subsidiary, is set to supply made-in-Vietnam servers exclusively for Apple, supporting the company's AI services development.

Impact on Vietnam's Economic Landscape: Apple’s Manufacturing Effect

Economic Growth and Job Creation

One of the key factors propelling Vietnam's impressive economic growth is the substantial Foreign Direct Investment (FDI) that supports the manufacturing sector and enhances the complexity of products produced in the country. Harvard University's research underscores the importance of product complexity in driving a developing nation's economy. In this context, the strong support from major FDI players, including Apple and its partners, instills confidence that FDI inflows, especially into the hi-tech sector, will continue to be a driving force behind Vietnam's economic growth. Apple's decision to commence the production of Apple Watches and MacBooks in Vietnam exemplifies the country's capacity to handle intricate manufacturing, even for products as complex as Watches.

As highlighted by research from LSE and other prestigious institutions, FDI exerts a profound influence on elevating a nation's economic status. The immediate impact of newly announced foreign investments leads to the creation of relatively well-paying jobs for the local workforce. Notably, Apple's decision to relocate production units to Vietnam is poised to fuel a 'war for talent' in the country, a testament to the appeal of such investments. Furthermore, hi-tech FDI not only contributes to short-term GDP growth through increased incomes but also enhances Vietnam's capacity for complex product manufacturing. This dual effect substantially bolsters Vietnam's economic outlook, with domestic consumption playing a significant role in this economic transformation.

Apple as a Transformational Manufacturing Partner

In a significant meeting held in New York, U.S., Vietnamese Prime Minister Pham Minh Chinh engaged with top executives from global giants, Apple included. During this meeting, the Prime Minister proposed that Apple continues its research endeavors and expands its investment cooperation within Vietnam, emphasizing the enhancement of localization rates. Simultaneously, Apple has been urged to serve as a conduit for U.S. businesses and Apple's suppliers, facilitating increased investments in Vietnam. This collaborative approach aims to bolster Vietnamese businesses, enhancing their production capabilities and competitiveness, ultimately enabling them to take on an increasingly influential role within the global supply chain. Apple's presence in Vietnam is not merely transactional; it signifies a transformative partnership that goes beyond manufacturing to bolster the country's economic prospects.

Future Prospects and Opportunities for Growth in Apple’s Manufacturing

Shaping Apple's Future Investments in Vietnam

The magnitude of Apple's investments and expansion plans in the realm of Apple production in Vietnam has sent reverberations throughout the global tech industry. These trends are expected to persist and even amplify in the coming years. Apple's strategic intentions and long-term objectives align with the nation's economic development trajectory, underlining its commitment to shaping the future.

Implications for Vietnam's Economic Development

The implications of these future trends extend far beyond the realm of Apple manufacturing. They have far-reaching impacts on Vietnam's overall economic development and the nation's positioning within the broader landscape of tech manufacturing. The robust growth and diversification of the manufacturing sector exemplify the nation's resilience and adaptability.

Strategies for Enhancing Vietnam's Attractiveness as a Manufacturing Partner

In light of these profound transformations, Vietnam is uniquely poised to take advantage of opportunities to further enhance its standing as a preferred manufacturing partner for not only Apple but other multinational tech companies. Strategies centered around advanced workforce development, improved infrastructure, and an attractive investment environment will be pivotal in reinforcing Vietnam's appeal as a manufacturing hub. This evolution aligns with the broader vision of nurturing technological advancements, fostering innovation, and cementing Vietnam's place in the global arena as a tech manufacturing powerhouse.

Final Thoughts

In summary, the influence of Apple's manufacturing in Vietnam is undeniable, as it continues to transform the country's manufacturing landscape. Our exploration has uncovered the multifaceted impact of Apple's presence on the economic growth, local suppliers, and the nation's position in the Apple's production network. The manufacturing success which Apple has found in Vietnam signifies that the opportunities for growth in Vietnam’s manufacturing industry are boundless. This remarkable journey can be navigated effectively with Viettonkin's guidance, where we specialize in providing insights and strategies for those seeking to harness the potential of Vietnam’s potential in manufacturing. Explore our services to embark on a path of innovation and success in the dynamic realm of investment in the manufacturing industry in Vietnam. Your next step towards excellence starts here.

In recent years, investing in Southeast Asia has gained remarkable significance for businesses and investors worldwide. The region's dynamic economies, strategic location, and abundant opportunities have positioned it as a central destination for international investment. This article delves into the factors fueling Southeast Asia's ascendancy on the global investment landscape, shedding light on the sectors that beckon and the potential for future growth. As the ASEAN investment landscape evolves, understanding its key components is essential for any investor seeking to capitalize on the region's economic promise. Join us in exploring the significance of investment in Southeast Asia and uncover the strategies for successful endeavors in this flourishing market.

The Rising Trend of Investing in Southeast Asia

Key Factors Driving the Region's Attractiveness to Investors

Southeast Asia has undergone a remarkable transformation in its investment landscape, solidifying its status as a compelling destination for global investors. The region's economic metamorphosis, combined with its strategic advantages, has drawn a surge of interest from businesses worldwide.

This transformation can be attributed to several essential factors:

• Economic Growth and Stability: Southeast Asia exhibits consistent economic growth and stability. Despite the global economic slowdown observed in the second quarter of 2023, countries like Indonesia, Singapore, and Vietnam sustained moderate but stable GDP growth from the previous quarter, underscoring the region's economic strength.
• Strategic Location: The region's strategic geographical positioning makes it a natural bridge between the East and the West. Its proximity to major markets, including China and India, establishes Southeast Asia as a critical crossroads for trade and commerce.
• Demographic Dividend: A young and dynamic population contributes to an expanding consumer market, while a growing labor force drives industrial expansion. The demographic dividend presents a unique opportunity for businesses to access a vibrant workforce and consumer base.
• ASEAN Integration: The Association of Southeast Asian Nations (ASEAN) plays a central role in enhancing regional cooperation and reducing trade barriers. The establishment of the ASEAN Economic Community (AEC) in 2015 has streamlined trade and investment, creating a more investor-friendly environment.
• Infrastructure Development: Investments in infrastructure projects, such as transportation and logistics, have significantly improved connectivity within the region. These developments have enhanced trade flows, reduced operational costs, and created an inviting setting for investors.

FDI Landscape in Southeast Asia: Key Insights and Trends

The investment landscape in Southeast Asia is marked by dynamic shifts, with the region steadily gaining recognition as a favored destination for foreign direct investment (FDI). Investors from across the globe are increasingly drawn to this vibrant part of the world, and for good reason.

• Foreign Direct Investment (FDI) Inflows: Southeast Asia has witnessed a substantial influx of FDI over the years, reflecting its appeal to global investors. In recent years, FDI inflows have displayed remarkable growth, driven by the region's economic stability and investment-friendly policies. These inflows encompass a wide range of sectors, from manufacturing to technology and renewable energy, making it a diverse investment landscape.
• Leading Recipients of FDI: According to Statista, several countries within the region have emerged as leading recipients of FDI. Vietnam, with its robust economic performance and business-friendly environment, has seen a surge in FDI inflows. It is considered one of the primary investment destinations within Southeast Asia. Other nations like Singapore and Indonesia have also secured substantial FDI, largely due to their strategic locations and market potential.
• Leading Investors: Southeast Asia's appeal isn't limited to domestic or regional investors. It has become a magnet for leading investors from around the world. Notably, the United States, China, Japan, and the European Union (EU) countries have consistently been at the forefront of FDI contributions to the region. Their investments encompass various sectors, contributing to Southeast Asia's economic vibrancy.

Key Sectors and Industries for Investment in Southeast Asia

Investing in Southeast Asia has gained substantial momentum, driven by a dynamic economic landscape. In 2022, the region witnessed a significant surge in Foreign Direct Investment (FDI) inflows, notably in the manufacturing, services, and technology sectors. Several key industry drivers contributed to the growth of FDI, underlining the region's prominence in the global investment arena.

Strong Investment in Key Industries in Southeast Asia

Manufacturing took the lead as the star performer, recording a remarkable 134% growth, amounting to $44.7 billion. The rapidly developing manufacturing sector, particularly in fields such as electric vehicles (EVs), electronics, biomedical, and pharmaceuticals, attracted substantial investments. Investors recognized the robust potential for growth within these industries.

Finance and banking remained a critical recipient of FDI, experiencing a significant 22% rise to reach $56.9 billion. The financial sector's resilience and growth prospects continued to entice investors, reaffirming its importance in the region's economic landscape.

Megaprojects Redefining Investment in Southeast Asia

As stated in the ASEAN Investment Report for 2022, the year 2021 witnessed a significant surge in megaprojects in Southeast Asia, with 17 projects surpassing the $1 billion mark in value. This marked an increase compared to the 13 such projects in the previous year. The cumulative value of these megaprojects surpassed $89.4 billion, representing over 90% of the total international project finance value in 2021. This remarkable figure marked a substantial 170% growth from 2020, signifying the region's growing appeal for large-scale investments.

The majority of these megaprojects were concentrated in the energy and industrial sectors, with a primary focus on semiconductors and EV-related activities. The upswing in such projects reflects the strategic shift of companies seeking diversified supply chains and growth opportunities within Southeast Asia.

Hai Phong Offshore Wind Power Plant (Vietnam): This project, with a colossal total cost of $11.9 billion, is a testament to the region's commitment to renewable energy. Sponsored by Orsted A/S and T&T Group, it signifies Vietnam's emphasis on the power and renewables sector.

Bayan Lepas Intel Semiconductor Packaging Facility (Malaysia): With a total project cost of $7.1 billion, this investment led by Intel exemplifies the thriving industry sector in Malaysia. The project contributes to the growth of the industrial landscape.

DITO Telecommunity Corp Telecom Towers (Philippines): An investment valued at $5.4 billion, this project led by China Telecommunications is reshaping the telecommunications industry in the Philippines. It showcases the significant role of telecommunication in the region's economic growth.

Future Prospects and Strategies for Investing in Southeast Asia

Future Investment Trends in Southeast Asia

The future of investing in Southeast Asia holds immense promise. As the region continues to evolve and flourish, several key trends are expected to shape the investment landscape. Notable among these trends is the growing focus on sustainable and green investments. Southeast Asian countries are making significant strides towards a more sustainable future, aligning with global initiatives and environmental targets. Investors looking to capitalize on the region's potential should consider opportunities in renewable energy, sustainable infrastructure, and environmentally friendly technologies.

Another prominent trend is the rapid digital transformation across Southeast Asia. With a thriving tech-savvy population and increasing digital adoption, the technology sector is poised for substantial growth. E-commerce, fintech, and digital services are areas that investors should closely monitor.

Strategies and Considerations for Investors

Investors seeking to invest in Southeast Asia should approach the region with a well-defined strategy. Market research and due diligence are essential. Understanding the regulatory environment, local business practices, and cultural nuances is crucial for successful investments. Collaborating with local experts and established partners, like Viettonkin, can provide invaluable insights and support throughout the investment journey.

Furthermore, diversification is a key strategy for mitigating risks. Southeast Asia offers a range of investment options, and spreading investments across different sectors and countries can help safeguard against market fluctuations.

Final Thoughts

In essence, the landscape of investment in Southeast Asia is teeming with unprecedented opportunities, solidifying its position as a prominent hub for foreign investment. With a dynamic economy and a diverse range of investment opportunities, the region presents a promising prospect for investors worldwide. From the rapid growth in FDI to ASEAN to the thriving tech sector, Southeast Asia offers a fertile ground for ventures. To tap into the full potential of investing in Southeast Asia, it is crucial to adopt a strategic and well-informed approach. Connect with Viettonkin today to embark on your journey into the realm of investment in Southeast Asia and capitalize on the region's robust economic prospects.

In the evolving landscape of foreign investment in China, it is essential to examine the latest statistics and emerging trends that shape the dynamics of this crucial market. This article delves into the intricacies of foreign direct investment in China (FDI), dissecting the figures, patterns, and the broader context that characterizes China's investment environment. In a world where China plays a major role in global economics, comprehending the driving forces behind the shifting tides of foreign investment in this nation is not only informative but also indispensable for investors and businesses seeking to invest in China.

Recent Statistics on Foreign Investment in China

Recent Trends and Figures

In recent years, China has solidified its position as the second-largest recipient of foreign direct investments (FDI) globally, an impressive feat underscored by the nation's dynamic FDI statistics. In 2021, China attracted an estimated 181 billion U.S. dollars in FDI, reinforcing its status as a global investment hub. Remarkably, even in the midst of the challenging COVID-19 pandemic, FDI inflows into China displayed resilience, growing by 5.7 percent in 2020. Building on this momentum, 2021 witnessed a remarkable 21 percent surge in FDI, demonstrating the world's sustained interest to invest in China.

While the influx of FDI is noteworthy, the path it takes to reach Chinese shores is equally intriguing. International financial hubs such as Hong Kong and the Virgin Islands played pivotal roles in directing foreign financial streams into China. Official records from Statista indicate that over 50 percent of inward Chinese FDI stock in 2020 flowed through Hong Kong, with a substantial share also originating from the Virgin Islands. Moreover, calculations by UNCTAD aimed at tracing back ultimate investors revealed that approximately 10.4 percent of China's total inward FDI stock in 2020 originated from investors in the United States, 7.6 percent from Japan, and 6.1 percent from the United Kingdom. Interestingly, 10.4 percent of this stock came from Hong Kong, with 12.1 percent originating from within China, specifically from Chinese companies not registered on the mainland.

However, it's important to note that China's FDI landscape still retains relatively high restrictions and encounters stiff competition from domestic companies. These factors have contributed to lower FDI growth rates and a decline in greenfield investment since 2011. According to FDI Intelligence, in the early 2010s, greenfield foreign direct investment (FDI) into China reached an estimated capital expenditure between $70 billion and $80 billion, surpassing other nations. Nevertheless, by 2020, this figure had significantly decreased to $30 billion, further reducing to $29 billion in 2021. In the first half of 2022, greenfield FDI in China hit its lowest level on record. While greenfield investments have dwindled, there has been a parallel increase in outbound investments, driven by China's Belt and Road Initiative (BRI), which has mobilized Chinese investments abroad. In 2012, the volume of inbound FDI into China surpassed outbound FDI from China by fourfold. However, in 2021, the balance tilted in favor of outbound FDI, constituting 53.4% of the country's total foreign FDI flows. Notably, the Asia-Pacific region has absorbed half of Chinese overseas FDI, reflecting China's global investment reach.

Sectors and Destinations Attracting Foreign Investment in China

The landscape of foreign investment in China is witnessing transformative shifts in both industry and destination. Traditionally, the manufacturing sector reigned supreme, attracting a substantial portion of foreign investments. However, according to Statista, over the past 15 years, manufacturing's dominance has gradually waned. In its place, the service sector has emerged as a formidable player, rapidly gaining significance. Industries such as IT, leasing, and business services are driving this shift, underscoring China's evolving economy and investment environment.

While China's economic development extends beyond its coastal regions into the inner provinces, FDI inflows predominantly target these thriving coastal areas, which have absorbed over 80 percent of total investments in recent years. The dynamic regions of China, including the Yangtze River Delta encompassing Shanghai, Jiangsu, and Zhejiang province, the Greater Bay Area in Guangdong, and the northern regions like Beijing, Tianjin, and Shandong province, have been especially attractive to foreign investors. These areas have been hubs of foreign investment activities. Many investments have been concentrated in Special Economic Zones, which offer advantageous conditions for foreign investors, further enticing global corporations to seek opportunities within China.

Factors Driving Foreign Investment in China

Government Policies and Incentives Shaping Foreign Investment

The realm of foreign investment in China is significantly influenced by the strategic policies and incentives laid out by the Chinese government. These policies play a pivotal role in shaping the landscape of investment. In recent years, China has introduced a series of policies designed to promote and facilitate foreign investment. One notable example is the revision of the Catalogue for Guidance for Foreign Investment Industries. This catalog has been continuously updated to offer greater access to foreign investors by removing restrictions and encouraging investment in various sectors, including high-tech industries and service sectors.

Moreover, as part of the broader initiatives such as the "Belt and Road," China has actively engaged in promoting international investments. The establishment of the Silk Road Fund and the Asian Infrastructure Investment Bank (AIIB) has provided new platforms for international investors to participate in infrastructure projects within and beyond China's borders. These initiatives have created more opportunities for foreign direct investment in China and fostered stronger international economic partnerships.

On a more localized level, China has also been keen on creating a favorable environment for foreign investment by establishing Free Trade Zones (FTZs). These FTZs offer preferential policies and fewer restrictions to attract foreign investors. Moreover, the Foreign Investment Law, which came into effect in 2020, reinforced the protection of the rights and interests of foreign investors, further boosting their confidence.

Economic and Market Developments Impacting Foreign Investment

Economic and market developments have a profound impact on the dynamics of foreign investment in China. Notably, China's steady economic growth and expanding middle class have transformed it into an attractive destination for investment. The nation's shift towards a more consumption-driven economy has presented new opportunities for foreign companies, particularly in sectors catering to Chinese consumers, such as e-commerce, retail, and consumer goods.

Market conditions in China are continually evolving, and foreign investors are keenly observing these shifts. The rise of e-commerce giants and digital platforms has altered consumer behavior and preferences, offering opportunities for investments in technology and digital services. Furthermore, the growth of environmentally-conscious consumerism has led to a surge in clean energy and sustainable technology investments.

Final Thoughts

In conclusion, staying attuned to the ever-evolving landscape of foreign investment in China is essential. As the nation continues to open up its markets, enact favorable policies, and exhibit impressive economic growth, foreign investors have abundant opportunities to explore. It is crucial to remain informed and leverage these insights when making investment decisions. For a comprehensive guide and expert support in navigating the complexities of foreign investment, we invite you to explore Viettonkin's wealth of resources and services, which are tailored to assist and empower foreign investors. Stay ahead of the curve and make informed decisions with Viettonkin.

In the dynamic landscape of Vietnamese business, effective talent management services have become paramount. With its burgeoning economy, Vietnam is a hotspot for growth, making talent management a critical component for sustained success. At Viettonkin, we understand the unique challenges and opportunities within this vibrant market.

As a leading authority on talent management services in Vietnam, we have honed our expertise to provide holistic talent solutions tailored to the Vietnamese context. In this article, we delve into the intricacies of talent management, exploring strategies that empower businesses to thrive. Join us on this journey to unlock the full potential of talent in the heart of Southeast Asia.

Viettonkin’s Expertise in Talent Management

Viettonkin stands at the forefront of delivering top-notch talent management services in Vietnam. Our commitment to providing comprehensive solutions sets us apart in the industry.

At the heart of our approach lies a holistic view of talent management. We understand that effective talent management encompasses not only recruitment but also development and retention. Our services cover the entire talent lifecycle, ensuring that you have the right people in the right roles at all times.

What truly differentiates Viettonkin is our ability to blend local insights with global talent management excellence. We recognize that the Vietnamese market is unique, and our strategies are tailored accordingly. Yet, we don't stop there. Drawing from international best practices, we infuse a global perspective into our services.

Our success is rooted in our unwavering commitment to Talent Acquisition Strategies, Talent Development Programs, and Talent Retention Strategies. Through a combination of local expertise and a global mindset, we provide you with the tools to navigate the intricate talent landscape in Vietnam.

As a result, our clients not only excel in talent management but also gain a competitive edge in the Vietnamese business arena. We measure our success by the growth and prosperity of the businesses we partner with.

Navigating Challenges in Talent Management

The Vietnamese business landscape is a dynamic arena filled with opportunities and challenges. To excel, it's crucial to employ effective strategies and practices that can give your organization a competitive edge in Vietnam.

Effective Talent Acquisition Strategies

Leveraging Local Expertise

Many foreign companies operating in Vietnam opt for local expertise through work contracting or project-based hiring. This offers flexibility and cost-effectiveness during market exploration or product development phases. For this purpose, companies often rely on the services of a third party, such as Viettonkin Consulting, which provides comprehensive Staff Augmentation services, including Professional Employment Organization (PEO), Employees of Record (EOR), and Payroll Administration.

Building Strong Employer Branding

Employer branding is pivotal for multinational enterprises in Vietnam. Given the intense competition for top talents, establishing a robust employer presence is essential. Strategies include harnessing social media, partnering with universities for talent fairs and internships, and targeted advertising campaigns. In this competitive landscape, foreign companies must position themselves as appealing destinations for Vietnam's highly qualified, globally-ready young professionals.

Timing Matters

Understanding Vietnam's recruitment calendar is critical. Key milestones, such as university graduations in May and September, significantly impact recruitment success. Strategic planning that aligns with these timelines is essential for optimizing recruitment outcomes.

Performance-based Hiring

Performance-based hiring, which extends beyond skill-based methods, represents a paradigm shift in the recruitment process. While skill-based hiring focuses on evaluating candidates based on their mastery of specific skills, typically assessed through proven track records, live demonstrations, or placement tests, performance-based hiring centers on assessing  candidates' achievements and career progress. 

We believe that attracting exceptional candidates involves creating a compelling Employee Value Proposition (EVP) that positions the role as a stepping stone in one's career. This shift requires a comprehensive evaluation process, emphasizing "doing" and "becoming" over transactional considerations.

Our method focuses on role-specific performance objectives, fostering conversations that align candidate career growth with success. This approach widens the candidate pool, considering diverse individuals and high performers.

In essence, Performance-Based Hiring flips the hiring process by emphasizing "doing" and "becoming," minimizing the focus on "having" and "getting." We start by defining what a candidate must do to succeed at their job, not just the skills they should possess. This approach broadens the talent pool, ensuring a match between candidates' career progression and company success.

Talent Development Programs for Growth

Leading FDI firms and MNCs in Vietnam excel in crafting prestigious talent programs, notably flagship Management Trainee Programs. These multi-year initiatives set clear development milestones and robust career paths, attracting top-tier applicants from Vietnamese universities.

Graduate Recruitment Programs

These programs target recent graduates, offering them entry-level positions and structured training programs. MNCs often hire graduates from top universities in Vietnam. For example, PwC Vietnam, EY or Deloitte have an annual graduate recruitment program called “Fresh Graduate Recruitment Programme”, targeting recent graduates for entry-level positions and provide comprehensive training.

Internship Programs

Internship programs provide students and recent graduates with hands-on experience in a specific industry or role. MNCs use internships as a pipeline for future full-time hires. At IBM Vietnam, internship programs for students and recent graduates are open. These programs allow interns to gain practical experience in areas like technology and consulting. In addition, Internship Programs in Viettonkin aim to recruit and train talents for new projects, enhance Viettonkin's employer branding, and prepare interns as Reserve Human Resources.

Leadership Development Programs

Designed for high-potential individuals, leadership development programs groom future leaders within the organization. Participants undergo specialized training and mentoring to prepare them for leadership roles. VinaMilk is a Vietnamese leading dairy corporation with a widespread presence globally. The corporation has the Management Trainee Program for 18 months, targeting potential future leaders. This program attracted over 1,500 top talents from universities nationwide in 2020.  

At Viettonkin, we also have a 2-year Management Trainee Program, offering certified training, engaging job rotations, and a clear trajectory towards senior management positions.

Talent Development and Training Programs

These programs focus on upskilling and developing existing employees. MNCs invest in continuous learning opportunities to ensure their workforce remains competitive and aligned with industry trends. A notable example is ABB Vietnam with its annual “Apprenticeship Program” to attract, train and retain talents from engineering majors. 

Mentorship Programs

Mentorship programs pair experienced employees with newer recruits. Big MNCs like Unilever, Nestles, Microsoft Vietnam have formal mentorship programs to facilitate knowledge transfer and professional development among its employees.

Furthermore, “Succession Planning Programs'' in Viettonkin are designed to develop current managers and high-contributing individuals into future leaders and C-level executives. These programs establish comprehensive, long-term Learning & Development initiatives.

Technology-Driven Recruitment

Leveraging advanced technologies, such as artificial intelligence and data analytics, MNCs optimize their recruitment processes. Applicant tracking systems, online assessments, and video interviews are common components. FPT Corporation is a leading technology company in Vietnam that uses advanced technologies in its recruitment process - the SIS (Smart Interview System). With this technology, the corporation can filter approximately 25,000 out of 42,2000 applicants with suitable profiles, constituting a 59% success rate. Hence, this streamlines the screening process, significantly saving time, resources, and costs associated with applicant assessment and interviews.

Ensuring Talent Retention with Strategies in Vietnam

Talent Retention Essentials

Talent retention is as crucial as acquisition and development. In Vietnam's competitive job market, keeping your top talents is paramount. Successful strategies involve fostering a work environment that encourages growth, engagement, and loyalty.

Tailored Career Progression Plans

Developing clear and individualized career progression plans for your employees is essential. Vietnamese talents, like professionals worldwide, seek advancement opportunities. Offering a well-structured career path within your organization can significantly enhance retention rates.

Competitive Compensation Packages

Competitive salaries and benefits packages are essential retention tools. MNCs operating in Vietnam recognize this and often tailor their compensation to attract and retain top talents.

Employee Engagement Initiatives

Engaged employees are more likely to stay. Strategies such as regular feedback, mentoring programs, and involving employees in decision-making processes contribute to higher job satisfaction.

Professional Development Opportunities

Investing in ongoing professional development not only enhances employee skills but also demonstrates your commitment to their growth. Offering training and educational opportunities can be a powerful retention strategy.

Work-Life Balance

Maintaining a healthy work-life balance is increasingly important for employees. Ensuring reasonable working hours and providing support for employees' well-being can enhance retention.

Final thoughts

In shaping effective talent management strategies in Vietnam, talent management services play a pivotal role. These services, including Talent Acquisition, Development, and Retention, are essential in navigating the dynamic Vietnamese job market.

At Viettonkin, we excel in providing talent management services tailored to your specific needs. With our deep understanding of the local landscape and global best practices, we bridge the gap between talent and success.

Explore how Viettonkin can elevate your talent management efforts and drive sustainable growth. Contact us today for personalized solutions that empower your business to thrive in Vietnam and beyond.

“Our story” is a series of articles that present Viettonkin’s attempt in assisting clients to achieve their target. Our case study will help you understand how we work, how we help clients solve their problems in the most professional way. 

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About FacCo

FacCo is a leading Hongkong-based facility, asset, and property management service provider with branch offices in Macau and China Mainland. FacCo wished to form a business operation in Vietnam to implement its various services such as interior and architectural management services, building consultancy, and improvement works services in addition to the aforementioned services. FacCo wished to establish company in Vietnam at the earliest opportunities to immediately commence on doing business and asked Viettonkin to help in this regard. 

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Approach

Viettonkin’s approach to this project sought to highlight the client’s most urgent need, which is able to establish company in Vietnam as soon as possible. The incorporation process for a 100% foreign-owned entity will typically take 80 working days to 3 months. Viettonkin would help its expertise to shorten this delay duration. 

Recommendations

With the client’s top priority pinpointed, Viettonkin recommended that instead of declaring and registering FacCo Vietnam as a 100% foreign-owned enterprise, the company should consider establishing company in Vietnam with a business entity under a Vietnamese nominee shareholder’s name. This would greatly accelerate the incorporation process because the nominee registration procedure is typically considerably faster.

Indeed, Viettonkin assisted FacCo in all of the components of this establishment process. First and foremost, the initial task of the nominee registration process involved in finding and appointing the nominee himself. There would typically two nominees: Nominee Legal Representative and Nominee Shareholder. Since FacCo did not have any partners in Vietnam to authorize, Viettonkin assisted it in sourcing and recruiting trusted nominees for the establishment process, including supporting service in drafting and reviewing Trust Document, Authorization Agreement and Business Cooperaation Contract (between FacCo Hong Kong and FacCo Vietnam).

After the statutory registration procedure, FacCo Vietnam was able to do business immediately but the capital flow was not formalized, meaning that the transfer of capital between FacCo Hong Kong and FacCo Vietnam had to be made through Viettonkin, which caused certain inconvenience and delay. 

With this problem in sight, Viettonkin made one step further in proposing the Share transfer process from FacCo Vietnam to FacCo Hong Kong. Essentially, FacCo Hong Kong would then acquire the entirety of FacCo Vietnam’s assets the nominee’s shares. Vietonkin actively helped FacCo Hong Kong in all steps of this semi-acquisition, from drafting and reviewing necessary application dossier and obtaining the new notification approval of acquisition to obtaining new Business Registration Certificate and drafting share transfer agreements. 

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Results

After setting up the business operation under the Vietnamese nominees’ names, FacCo was able to start engaging its business activities immediately, avoiding wasting time for other administrative procedures. This approach shortened the establishment process from 3 months to merely 10 days. 

The Share Transfer Process validated not only the capital transfer between FacCo Hong Kong and FacCo Vietnam but also the declaration of the nature of FacCo Vietnam, which was then a wholly foreign-owned enterprise. 

FacCo Hong Kong’s next step after this successful incorporation and compliance is to incorporate into Cambodia and then Malaysia, with Viettonkin being its strategic consultant.  

SEE MORE: [Our story] How does Viettonkin help CallCo establish a venture in Vietnam?

“Our story” is a series of articles that present Viettonkin’s attempt in assisting clients to achieve their target. Our case study will help you understand how we work, how we help clients solve their problems in the most professional way. 

About CallCo

CallCo, a technology-enabled global business service company, is a subsidiary of a California-based Fortune Global 500 corporation. Today, CallCo is known as one of the most giant companies with a presence in over 125 countries and more than 200,000 employees worldwide. Focusing on BPO (Business Process Outsourcing), the company provides services namely customer service, flight reservations, hotel booking, travel assurance and holiday packages with a view to enhancing customer engagement and improving business performance for the best brands in the world. 

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CallCo’s plan

In early 2017, CallCo made a decision to set up a venture in Vietnam and later to Indonesia and Thailand. Thanks to the establishment of local entities with local shareholders and directors, CallCo was able to acquire the entity using a holding structure in Netherlands later on. This strategic plan was important for CallCo to become a part of a global footprint. 

CallCo had a Philippine-based center, however, Vietnam seems to be a perfect fit for the business expansion. Vietnam had enormous advantages of a huge labour force, a high-growth consumer market, and dynamic youngsters who are willing to learn and spend more. Therefore, establishing a business venture in Vietnam was capable of helping CallCo attract key clients with a massive number of transactions. 

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How does Viettonkin help CallCo set up a venture in Vietnam?

In order to penetrate into such a multi-faceted market like Vietnam, CallCo needed an experienced consultant who could provide in-depth advice and one-stop solutions to make the procedure of penetration become quick and flawless. 

After six months of extensive due diligence by CallCo’s global leaders and regional headquarter in India, Viettonkin was appointed as the consulting firm being in charge of all issues in terms of legal, accounting and payroll. 

Viettonkin conducted the legal procedure of establishing CallCo Vietnam (including the appointment of a local director) then directed the acquisition process (which took 04-05 months as call center services were restricted for foreign investors) to turn CallCo Vietnam into 100% foreign-owned company under CallCo Global Holding. Besides CallCo Vietnam, the Viettonkin’s Indonesia team would also help CallCo establish an Incorporation based in Jakarta. 

Nearly one year of setting up CallCo Vietnam, the result was beyond expectation. Viettonkin continued to be chosen as a reliable consultant in aiding CallCo to establish its second entity in Vietnam which specialized in debt management and collection services. Vietnam has strict regulations about debt collection especially for foreign investors, hence on behalf of CallCo, Viettonkin dealt with local stakeholders including the local police department and others with a view to ensuring the success of the company incorporation and acquisition process. Then the second entity was successfully set up and has been running smoothly. 

Today, CallCo and Viettonkin are maintaining a harmonious partnership and discussing a lot of future business projects within and beyond Vietnam. Viettonkin’s top managers usually travel to the regional headquarter to have a discussion on upcoming projects.

If you would like to have a consulting service of setting up a company in Vietnam, you can read How To Set Up a Joint Venture In Vietnam to acquire basic knowledge and leave us your message so that our experts can connect with you and discuss on your plan.

The partnership of CallCo and Viettonkin has cherished a great collaboration in business and generated amazing results, win-win achievements. Viettonkin shall become a representative consultant of CallCo in Southeast Asia to assist the company in entering new markets as well as building relationships with large regional corporations. The story of Viettonkin, a medium-sized consulting firm in Vietnam, and CallCo, a top-tier global MNC has proved that regardless of who you are, whether a local company, you are able to make big results and collaborate with world-level firms.