New forms of ownership and human resource practices in Vietnam

Abstract

In 1986, the government of Vietnam commenced the move from a centrally planned system to a market‐oriented economy with a multisectoral economic structure and a multiownership system.This process, known as Doi Moi, has had a major effect on the economic and social fabric of Vietnam. Although the body of research on this topic has grown, few studies have explored the effect of these economic changes on the internal operations of enterprises. In particular, little is known about the relationship between these new forms of ownership and how enterprises structure their human resource management. This article seeks to explore this relationship through detailed case studies of 32 enterprises covering the range of ownership types.The findings reveal a diversity of human resource management practices, but certain practices are now more prevalent in particular types of enterprises; human resource management remains the overall exception. The article concludes by considering the theoretical and practical implications of these results for economies undergoing transition. © 2008 Wiley Periodicals, Inc.

Managing employee performance in an emerging economy: perceptions of Vietnamese managers

“…Vietnam is a valuable case study of a country undergoing a significant transformational process and facing the task of developing and utilizing its abundant human resources (Thang and Quan 2005a, 2005b, Zhu et al 2008. Empirical studies on HRM in Vietnam suggest that PM has not been fully recognized by local enterprises as a critical managerial tool (Kamoche 2001;Kauanui, Ngoc, and Cotleur 2006;Truong 2006, 245-246).…”

“…Also Zhu, Warner, and Rowley (2007) argue that the individualist verses collective debate in people management can be a false dichotomy as many HRM characteristics already exist in many Asian countries, and Warner (2010) argues that different narratives can coexist in a dynamic context. Furthermore, like other parts of the world, Asian businesses are strongly affected by the trends of globalization Quang 2005a, 2005b;Zhu et al 2008). HRM challenges such as organizational restructuring, workforce diversity, outsourcing, the need for a highly skilled workforce, and balancing HRM functions and organizational financial performance are increasing (Siengthai and Bechter 2005).…”

“…Empirical research into HRM in Vietnam is emerging (Kamoche 2001;Quang 2005a, 2005b;Kauanui, Ngoc, and Cotleur 2006;Zhu et al 2008). Vietnamese studies focus on HRM in general such as emerging patterns and practices particularly in relation to forms and types of ownership (Kamoche 2001;Nguyen and Bryant 2004;Quang 2005a, 2005b;Truong 2006;Zhu et al 2008; Bartram, Stanton, and Thomas 2009;Zhu and Verstraeten 2013), impacts in small and medium enterprises (Kauanui, Ngoc, and Cotleur 2006), employment relations challenges (Collins 2009;Vo and Rowley 2010;Collins, Sitalaksmi, and Lansbury 2013) and human resource development (Truong and Ha 1998;Napier 2005;Cox and Warner 2013).…”

“…Since Vietnam initiated economic reform through the DoiMoi or opendoor policy in 1986, it has transformed from a command economy into a more open, market-oriented system, increasingly integrated into the global economy and experiencing continuing economic growth Quang 2005a, 2005b;Zhu 2005;Truong 2006, 234;Collins 2009). Vietnam's economy consists of three key areas: state-owned enterprises (SOEs), indigenous private companies (PCs) and foreign-owned enterprises (FOEs; Quang 2005a, 2005b;Truong 2006, 234;Zhu et al 2008). Vietnamese government policy has sought to streamline SOEs, unleash local private sector potential and attract foreign investment (Truong 2006, 234), its cheap, young and dynamic labour force strongly contributing to its economic development (Kamoche 2001;Collins 2009).…”

“…Vietnamese studies focus on HRM in general such as emerging patterns and practices particularly in relation to forms and types of ownership (Kamoche 2001;Nguyen and Bryant 2004;Quang 2005a, 2005b;Truong 2006;Zhu et al 2008; Bartram, Stanton, and Thomas 2009;Zhu and Verstraeten 2013), impacts in small and medium enterprises (Kauanui, Ngoc, and Cotleur 2006), employment relations challenges (Collins 2009;Vo and Rowley 2010;Collins, Sitalaksmi, and Lansbury 2013) and human resource development (Truong and Ha 1998;Napier 2005;Cox and Warner 2013). Apart from Vo (2009) and Vo and Stanton (2011), none of these studies has studied PM in depth, so there is little systematic evidence as to how Vietnamese managers perceive its importance and put it into practice.…”