Developing human resources in IT sector in Vietnam

By Priya Chetty on December 12, 2011

In recent era, Vietnam has accomplished a remarkable economic performance. It is principally being seen as the country that has managed to come forward from a prior low performing economy under the sternly closed system to high performing economy under globally integrated market economy (World Bank, 2003).

Integrating with the global market

Integrating with global market economy and offering favorable environment by the government in the country all the way through legal and financial incentive packages, Vietnam is emerging as a dynamic and prospective destination for IT outsourcing. The country has the opportunities  of a well-built young and  talented human resources with comparatively lower cost of availability  as far as  other IT outsourcing destinations in Asia (Phan, 2008). Nevertheless, the main challenge that the IT sector in Vietnam is facing is the apt development of human resources.  In fact there is hardly any empirical research which has really examined the issue of developing human resources and adopting the suitable human resource management practices in Vietnam (Thang and Quang, 2005). Considering the importance of developing human resources  in the IT sector of Vietnam and lack of empirical research regarding adopting  the suitable  human resource management practices, the IT sector in Vietnam is facing big challenges. Suitable  human resource management practices are required in this sector to grow.

Human resource in Vietnam

Armstrong, M. (2006) argued that developing and managing  of human resources concern to the  practices of recruitment and selection , performance appraisals, rewards and benefits, and training and development.

Development, as per Noe, Hollenbeck, Gerhart and Wright (2004), implies learning that is not essentially linked to the employee’s present job. In its place, development gets ready employees for further positions in the firm and enhances their aptitude to move into jobs that might not yet subsist. Development could as well help out employees get ready for changes in their present jobs, in the forms of changes resulting from fresh technology, work designs or customers. Development consequently is in relation to getting ready for change in the type of fresh jobs, fresh responsibilities, or fresh requirements. Noe et al (2004) moreover restate that employee development is an indispensable endeavor of a firm to get better quality and to get together the challenges of global competition.

On the other hand, Lundy et al (2004) go over that development is the process, which may well facilitate human resources to accomplish   full potential. Therefore, development is mainly long term in focus, where education adds to development by helping the accomplishment of specific knowledge and skills.


  • World Bank (2003), FDI policies for development: national and international perspectives, World Investment Report, July: New York
  • Phan, C.(2008), Vietnam as an IT Outsourcing  Destination, ,…/1/Chau%20Phan,%202008S.doc
  • Thang, L. and Quang, T.(2005), Human Resource Management Practices in a Transitional Economy: A Comparative Study of Enterprise Ownership Forms in Vietnam, Asia Pacific Business Review Vol. 11, No. 1, 25–47, March 2005
  • Armstrong, M. (2006), A handbook of human resource management practice, London: Kogan Page
  • Noe, R. A., Hollenbeck, J. R., Gerhart, B. and Wright, P. M. (2004), Fundamentals of human resource management, Toronto: McGraw-Hill