Outmoded mechanisms

According to Do Hoai Nam, Director of the Vietnam branch of the Indian National Institute of Information Technology (NIIT) in Hanoi, one of the reasons leading to “brain drain” in State agencies is that employees find very few opportunities to get promoted and show off their capabilities. Some employees even do not dare to think of a brighter future ahead. Meanwhile, foreign direct investment (FDI) companies and trans-national companies dwell on young talents’ psychology by offering numerous incentives such as better working conditions, attractive positions and opportunities to test their capabilities. In their recruitment policy, these companies attract talents by selecting excellent students at leading universities, offering them scholarships and recruiting them after graduation. 

New competition

There is no doubt that the competition to recruit employees with highly professional skills in the financial and banking sector in Vietnam is becoming tougher. Between 2000-2006, a series of credit organisations of all economic sectors were established. The number of insurance service providers increased sharply from 15 to 31 between 1991-2005. As a result, the demand for high-quality human resources in the financial and banking sector has been increasing rapidly in recent years, leading to fierce competition in the area. Meanwhile, the supply of trained employees in the banking, insurance and accounting sectors currently does not meet the requirements of these markets in terms of quantity and quality. 

Accepting the risk

According to Phung Dac Loc, General Secretary of the Vietnam Insurance Association, many years ago employers “tied” employees to an article in the signed labour contract that employees who were sent to training courses inside and outside the countries would pay back training fees and other social welfare allowances if they want to leave the company after these courses. Such an article no longer exists. Instead, under a decree guiding the implementation of the Labour Code, those employees will have to work at the company for a certain period of time equivalent to the length of training courses without paying any compensation.

In addition, Mr Loc said the concept of working for a State company is not very important now. If employees find the work boring and uncreative, the phenomenon “brain drain” will eventually occur.