HUMAN CAPITAL

IN VIETNAM 2005-2010

Group 4: Trương Thủy Anh

Hoàng Thuỳ Dương
Trần Thị Cẩm Dương
Trần Thị Hồng Phương
Lương Thu Thủy
Trương Hoàng Yến
HUMAN CAPITAL
THEORY OF HUMAN CAPITAL
DEFINITION
• Human capital is the concept indicating and
categorizing people’s skills and abilities
used in employment and otherwise
contribute to the economy
• Many early economic theories refer to it as
labor and consider it as commodity
CLASSIFICATION
NECESSITY OF HUMAN CAPITAL
• allows the business to operate at maximum
efficiency
• increases the potential of earning a profit
• remaining successful for many years
BRAIN DRAIN PHENOMENON
• Definition: the departure of
educated or professional
people from one country,
economic sector, or field
for another, usually for
better pay or living
condition
BRAIN DRAIN PHENOMENON
• Types:
BRAIN DRAIN PHENOMENON
• Causes
Poor condition of service
Human rights abuses
Misplacement of talent
Disregard for local talent
Scarcity of job
Limited access to education
Value foreign relationship
 BRAIN DRAIN PHENOMENON
Effects Solution
• Loss of critical skills • Provide a conductive
necessary for environment
development • Respect for human
rights
• Resources wastage
• Stamping out corruption
• Limited innovation
• Peaceful and stable
environment
HUMAN CAPITAL
VIETNAM’S CASE
 STATE OF SOCIOECONOMIC DEVELOPMENT
AND HUMAN CAPITAL IN VIETNAM
• Socioeconomic development
 Member of World Trade Organization
 The market economy, on the process of integrating in
global and regional economy
 Broader business environment, larger number of
products services and job opportunities
 Population of 86 mil, 67% is working age group and
increasing rapidly
 Abundant human resources, guaranteed potential
working generations
 STATE OF SOCIOECONOMIC DEVELOPMENT
AND HUMAN CAPITAL IN VIETNAM
• Human capital
 Labor indexes:
 50% of trained labors can do a job which right for their
major
 73% of labors is farmers, who are not encouraged to
apply new technology in mass production
 Number of worker today is just 5 mil – about 6% of
nation population, just 3.3% of them have standard level
of study
STATE OF SOCIOECONOMIC DEVELOPMENT
AND HUMAN CAPITAL IN VIETNAM
 Intelligentsia:
o 63% graduates don’t have a job, the others are
unable to work in the right branch or must be
retrained
o number of educational institutions and higher
degreed people is increase but the practical skills
of people remain unchanged
STATE OF SOCIOECONOMIC DEVELOPMENT
AND HUMAN CAPITAL IN VIETNAM

 Educating methods:
 Content is unspecialized for clear career
directions
 Focus on figures of achievements
 Examination of quality is not concerned
STATE OF SOCIOECONOMIC DEVELOPMENT
AND HUMAN CAPITAL IN VIETNAM

The competitiveness
reduction

The difficulty in getting out

The low quality
of ASEAN’s middle income
of human capital trap

The loss of the chance to

join international labor
market
THE NEED OF HUMAN RESOURCE DEVELOPMENT IN
STATE-OWNED ENTERPRISES IN VIETNAM
• Missions of human resource development department
 Combine economic strategies with training strategies
 Improve and make the training programs up to date
 support employees in studying and researching, as well
as in their daily lives
 WELL RUN HUMAN RESOURCE DEVELOPMENT
DEPARTMENT  WELL QUALIFIED STAFF
BRAIN DRAIN IS TOUGHEST CHALLENGE FOR
VIETNAM
• State:
 The number of employees quitting jobs for higher-income
jobs is now increasing
Percentage of employees quitting job for the times of working
(Employee Newspapers, April 2008)
BRAIN DRAIN IS TOUGHEST CHALLENGE FOR
VIETNAM
 50,000 overseas students, but 80% of them do not
want to return to Vietnam
 From 2000-2006, our government offers scholarships
for 2,684 post-graduates
 The average cost for studying abroad scholarship is
about $22,000/year/person
 Intelligence investment  “FOREIGN CURRENCY
DRAIN” if not exploited in the right way.
BRAIN DRAIN IS TOUGHEST CHALLENGE FOR
VIETNAM
• REASON:
 Low salaries and inefficient
working conditions
 Lack of funds and necessary
equipment for studying
 Unreasonable commend,
award regulation and
unfairness
BRAIN DRAIN IS TOUGHEST CHALLENGE FOR
VIETNAM
• SOLUTION:
 develop human resources and create more job
and career opportunities
 respect and consolidate human rights and
democracy, namely freedom of speech
 establish necessary and positive political, social
and economic conditions that would serve as
incentives to curb the brain drain
SUMMARY
THEORY OF HUMANCAPITAL VIETNAM’S CASE

• Definition • State of socioeconomic

development
• Classification • The need of Human Resource
• Necessity Development in State-Owned
Enterprises
• Brain drain phenomenon • Brain drain is the toughest
 Definition challenge for Vietnam
 State
 Types
 Causes
 Causes
 Suggested solutions
 Solutions
THANKS FOR LISTENING