- Tram Ho
Mercer – Talentnet has just announced the results of its 2019 salary survey. This is an annual survey conducted by the world’s leading HR consulting firm Mercer and the leading Vietnamese consulting firm Talentnet.
This year, the survey has attracted the participation of a total of 605 businesses in 16 different industries from technology, consumer goods, pharmaceuticals, to chemicals and manufacturing. With a source of data collected from more than 342,000 employees across Vietnam, the Mercer – Talentnet salary survey can be considered as the most detailed and standard report on the overall salary and welfare situation of the employers. businesses in Vietnam for over 10 years.
High-tech industry is increasingly dominant on the salary rankings in Vietnam market.
Although, this year’s survey results are not much different from 2018, but it still has some interesting details, faithfully reflecting market movements as well as the situation of many different industries.
Accordingly, the high-tech industry, namely big data, AI, blockchain, customer experience … is showing its greater attraction when the salary increase or salary rates are the second highest in the market; On the contrary, with the instability in 2019, the real estate and banking industries no longer maintain their performance as many years ago.
High-tech industry to the throne
According to the survey results of Mercer – Talentnet, the salary increase rate in 2019 for foreign companies is 8.6% and for Vietnamese companies is 8.9%. In general, this rate of increase is still higher than Vietnam’s inflation rate and the situation of GDP growth in 2019.
Industries such as high technology, chemicals and commerce are the three categories with the highest wage increase, at 10.2%, 9.0% and 8.6% respectively. In 2018, high technology, pharmaceuticals, and chemicals were among the top 3 industries with the highest wage growth rates in Vietnam with an increase of 9.7%, 9.1% and 9% respectively. Accordingly, the pharmaceutical industry has fallen out of the top 3, to make room for trade. In contrast, in 2019, industries such as oil and gas, education and banking had the lowest increase, at 4.5%, 6.6% and 6.9%, respectively.
Ms. Phuong Nguyen is presenting the report.
Oil and gas industry is one of the three industries with the lowest wage increase, but that does not mean that the salary in this industry is low. The oil and gas industry has always been one of the very high pay sectors, so the wage increase cannot be too high. The education sector is driven by a mechanism, especially the public education sector, so the low wage increase rate is entirely understandable.
On the other hand, a report from TovDev shows that in Vietnam, the salary of artificial intelligence engineers has reached 22,000 USD, equivalent to more than 510 million VND / year. This is the highest salary in the field of information technology. Industry expert – Mr. Tran Duc Tri Quang, FWI Director of FPT Software, predicts that in the next 5 to 10 years, AI will grow to the peak.
Therefore, not only FWI, but now many technology universities in Vietnam are focusing on training in data & analytics, AI – including machine learning.
” In addition to high-tech industry, industries related to electronics such as digital marketing, e-commerce, customer experience design … are also being paid very high. There is a very fierce competition between domestic and foreign companies in attracting talent in this field, pushing the average salary of this industry increasingly higher than it actually is.
In order to avoid rushing into the money-burning war, many businesses have chosen solutions such as borrowing people from the parent company, recruiting personnel from abroad or internal training to avoid having to fight with the outside. ” Ms. Phuong Nguyen – Talentnet representative said.
In addition, among experts, the top 3 highest-paid industries are data and data analysis, government relations (people working directly or related to public authorities), services. finance (except banks); The lowest is the customer care industry, product quality control ….
” This year has been an unfavorable year for real estate and banking. As we know, in the past 2 years, there have been nearly 150 real estate projects in Ho Chi Minh City that have had to suspend construction. In addition, with the sanctions from the State Bank, capital inflows into real estate have been tightened than before.
As for the banks, many domestic banks this year are restructuring, reviewing the quality of their staff and reviewing their salaries. Similarly, the fluctuations of many banks in the region also have a negative impact on Vietnam’s banking industry, “Phuong Nguyen explained.
Vietnamese companies pay bonuses and foreign companies pay salary
The results of the report can be an important information for HR staff to plan their compensation and benefits.
The average salary in 2019 for domestic enterprises is 26% lower than for foreign businesses. The difference between these two groups of companies when measured by each rank is as follows: employees, specialists and managers are 14%, 25% and 33%, respectively. Salary disparities tend to increase at the management level because foreign companies often pay higher salaries for senior management positions to match the level of contribution and scope of work.
However, from another perspective, the expected rate of increase of Vietnamese companies this year is higher than that of foreign companies (22.6% compared to 17.5%). ), this shows the difference in salary structure, bonuses of domestic and foreign companies. Vietnamese companies pay bonuses and foreign companies pay salary.
Regarding bonuses, due to the nature of the industry, companies in the field of foreign corporate finance include: companies that are not in the banking group (including consumer lending, fund management and insurance companies) are Industry groups had the highest reward rate in the past year, with the bonus rate of 30.4% and 22.9%, respectively, compared to the annual salary. In particular, 2019 recorded a remarkable increase in the reward rate of the agricultural sector at 19.4%.
On the other side, transportation, logistics, retail and education services have the lowest bonuses of 13.8%, 14.8% and 15.4%, respectively, compared to the annual salary.
It is also interesting to note that the higher the salary that businesses operating in Vietnam pay for personnel studying at home and studying abroad, the higher the difference is: with university degrees, international students are paid. 34% higher than domestic personnel, but higher – i.e. masters or experts, the difference is only 5%.
” The increasing number of businesses participating in the Mercer – Talentnet salary survey reflects the huge demand of businesses on the use of a reliable database in optimizing the salary and bonus policy. assisting enterprises in making human resource strategies, attracting talents and improving market competitiveness.
In addition, salary data will be a valuable source of information for managers and business leaders in making business development decisions as well as planning for succession teams “, Ms. Nguyen Thi Thanh Huong, Deputy General Director of Talentnet concluded.
Source : Trí Thức Trẻ