Understanding Recruitment Process Outsourcing in Vietnam

Read about the challenges of hiring in Vietnam and understand the benefits of the recruitment process outsourcing in Vietnam.

In this ever-evolving labor and talent market in Vietnam, the need for a full-spectrum talent acquisition strategy has become more critical than ever. As a result, recruitment process outsourcing has gained a lot of traction from businesses all over Vietnam so that companies can make the most of their hiring investments.

With the business and manufacturing pivot away from China, Vietnam is becoming the new business outsourcing center of Asia. With that comes a massive demand for highly skilled workers in the country. With more and more competition for the same pool of employees, the struggle to ensure a capable and strong workforce becomes tougher.

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Very few companies can afford to build the internal capabilities necessary to manage talent sourcing from scratch upon expanding to Vietnam. Headhunting, placement, labor department registration and payroll can all be handled by a single recruitment provider who knows the market exceptionally well.

In this article, we will give you a brief introduction to what recruitment process outsourcing in Vietnam is, as well as how you can benefit from it.

What is Recruitment Process Outsourcing in Vietnam

Recruitment process outsourcing in Vietnam (abbreviated as RPO) is a type of process outsourcing of business where a company partially or fully transfers its internal recruitment and hiring processes to an external professional.

The RPO provider focuses on long-term business goals, optimizes recruitment processes, and streamlines the entire operations. Then it offers the necessary skill sets, process methodologies or even technologies to ensure the recruitment success of your business.

Challenge of Recruitment in Vietnam

Due to the rapidly changing business landscape in Vietnam, the internal human resource of each company has encountered challenges, especially with the skills gaps and turnover rates.

The key challenges lie not only in getting the best talents in the country but also in how to drive the best behaviors of employees to ensure optimal productivity. Major challenges include the following:

Significant Talent and Skill Gap

Even with its flourishing economy, there is still a considerable talent and skill gap in Vietnam – posing a real problem for recruitment and hiring in the country. This is largely due to an education system which is still severely underdeveloped and does not match the economic growth of the country itself. The shortage of talents, especially for senior, mid-level, and specialized positions, has become one of the biggest barriers for employers.

However, in recent years this has started changing, with an ever-increasing focus on the teaching of specific technical knowledge, especially tech-focused subjects like IT which has been complemented by the massive increase of young Vietnamese studying abroad.

Companies in Vietnam further encounter labor shortages, particularly in industries such as technology, blockchain development, and finance. To prevent hiring issues, global corporates, such as Samsung or Intel, together with the Vietnamese government offer several training programs aiming at increasing the number of adequate skilled candidates they can later hire.

A High Turnover Rate

The retention rate of employees in Vietnam remains low, about 10% lower than the global average, and companies are now facing a challenge to increase the time workers are willing to spend at their businesses.

This is due to the traditional nature of Vietnamese society, where most people live with their families until they get married. This gives them a sense of financial security which young people in the west don’t have access to. Young people from the ages of 20-30 are not dependent on their salaries for food and shelter.

Employer’s Reputation and Branding

According to TRG International, 84% of the interviewed job seekers claimed a company’s reputation is very important; and 50% of them clarified that they would not work for an organization with a bad reputation – even if the organization offers a high salary.

This is because the reputation of a company will somehow define their future career path and affect their opportunities.

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Recruitment Process Outsourcing in Vietnam as a Solution

As many businesses can imagine, these challenges have put a lot of burden on employers. Thus, effective recruitment process outsourcing in Vietnam can help any business strengthen its talent acquisition.

The companies encountering the following circumstances can especially benefit from RPO in Vietnam:

  • Limited human resource headcount
  • High-volume hiring requirements
  • Urgent recruitment requirements
  • Seasonal, fast-growing, or shifting staffing needs
  • Unique recruitment needs that require diverse or non-typical talent sources

Cekindo’s best-in-class recruitment process outsourcing services enable you to recruit and hire the best talent in the shortest period of time. With our customized solutions to talent sourcing, recruiting, and employing qualified candidates, even specialized or senior positions can be filled more efficiently and quickly. Contact us now for a free consultation on how we can assist you setting up your workforce in Vietnam.

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Cekindo is a leading provider of global market entry services in Southeast Asia. We are part of InCorp group, a regional leader in corporate solutions, that encompasses 8 countries in Asia, headquartered in Singapore. With over 1,100 legal experts serving over 15,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup and advice based on local requirements to make your business perfectly fit into the market with healthy growth.

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Verified by:​

Hien Le

Hien is a Manager of the Human Resources Department at our office in Vietnam. She has more than 15 years of experience in all spectrums of Human Resources including Global Mobility and Office Management.