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Vietnam has a total population of around 83 million and a labor force of about 43 million, though the labor force has been growing by 1-1.5 million workers on an annual basis for the past several years. In order to retain highly-skilled workers and top employees, businesses have been increasing salaries blue collar workers saw increases of around eight percent, while white collar workers received increases of close to 10 percent in 2004. Though foreign companies tend to offer high salaries (sometimes as much as 30 percent higher) than domestic companies in Vietnam, the domestic companies are the ones increasing their annual salaries at a faster rate; the increase was about 2 percent higher versus foreign companies.

In the first quarter of 2005, the countrys job demand had already increased 15 percent from the end of 2004. Fields with the most available jobs included sales, telecommunications, marketing, and engineering positions. Conversely, positions in the areas of utilities, retail and real estate dropped significantly. As Vietnams economy grows and more and more foreign companies enter the country, executive management and expatriates are in greater demand with a 100 percent growth rate in the first quarter. Healthcare and pharmaceutical/biotech positions are increasingly sought out, with growth rates of about 400 percent and 300 percent, respectively.

In 2004, around $20 billion was invested by businesses and trainees into vocational training. Moreover, the average salary was nine percent higher in 2004, versus 2003. Nevertheless, some companies still struggle with job training and proper working conditions. Many workers in Vietnam still lack adequate job training and are often subject to frequent overtime and low wages.

In hopes of improving the skills of workers and students in Vietnam, the government has established two new human resource programs. Through a project established by Hanoi National University, Vietnam will invest $20.7 million in the training of gifted students between 2004 and 2011; another $11 - 45 million will be provided in the form of State-funded scholarships and international scholarships. In addition, the Prime Minister approved a program to help train and improve human resource skills in small and medium size businesses through special training courses.

Hanoi National University aims to train gifted students in the areas of management, technology and business. For instance, top graduates studying business management, economics or law, ages 22-30, will be eligible to enroll in Masters programs in management and will go on to serve as mid-level managers when they enter the workforce. It is expected that the program will attract 350 scientists, 175 business people, and 175 managers to Vietnam to help support and run the program.

The new HR training program for small and medium size businesses in Vietnam went into effect in August 2004 and will continue through 2008. The new HR program will help companies and individuals increase their competitive edge and provide business owners with the knowledge they need to expand in Vietnam and abroad. The program offers three types of training courses: (1) A five-day training course offering information on laws and policies, production strategies, and how to set up a company; (2) A seven-day course focusing on improving human resource management, marketing, finances and technology skills; (3) A fourteen-day course training business people in consulting and marketing. During the duration of the program, 3,600 courses will be held for entrepreneurs and managers of small- and medium-sized companies.

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