Choosing Domestic or Foreign Personnel?

That foreign experts work at the executive board or as chief head of departments at Vietnam’s commercial joint stock banks has become popular over these years. Majority of them operated as adviser or representative in managing capitals of foreign investors. However, the number of foreign personnel who directly joined the executive mission has increased significantly since 2008. Some domestic banks have also planned to have foreign experts kept high-profile positions.

The recruitment of foreign personnel is like a breath of air which brings in the trust and new impetus for staff as well as shareholders. This means the bank’s strong financial capacity and the board of directors’ determination in conquering the international goals. Moreover, the recruitment also makes pressure of renewal and integration over Vietnamese managers and leaders. They must study and criticize more in order to have their words gone together with deeds.

 

However, the effective usage of foreign personnel meets with difficulties. First of all is the level of salary and enclosed welfares for foreign experts. For example, the salary level of Vietnamese information technology (IT) director is surrounding US$70,000-US$100,000 per year while that of a foreigner at the same position folds 5-7 times. In addition, a Vietnamese laborer is entitled to 12 days’ leave a year while that in the world is between 18 and 30 days in response to length of service and position.

Even if Vietnam’s banks are enough capable to recruit foreign experts, the different language and business culture will be other barriers. The executive board’s meetings must be hold bilingually or at least main contents of documents need to be translated. For the daily work, it seems to be more difficult.     

 

The difference in business culture and conception of risks is a barrier for foreign experts to promote their capability. In fact, decisions given by experts will reach a high logic based on fully-analyzed information. Meanwhile, in Vietnam the characteristic of business requires them to offer decisions rapidly in spite of inadequate information. Foreign experts will naturally consider methods by their subordinates before giving their final decision while in Vietnam staff used to wait for instructions by their boss.       

 

As many as 80 per cent of high-ranking personnel of ANZ Bank in Vietnam are natives while 50 per cent of personnel in the Standard Chartered in Vietnam (SCB)’s executive board is Vietnamese. Many high-ranking positions of Hong Kong & Shanghai Banking Corp. (HSBC) in Vietnam are now kept by Vietnamese such as national director of corporate service and financial sector, financial director. In ANZ Bank, from general director to vice director, manager of the corporate service and finance sector, director of the public organizations bloc, director of the financial market bloc are almost Vietnamese. The director of banking operations and technology sector in SCB is also a Vietnamese national.   

 

Foreign banks explain the reason for which they choose Vietnamese personnel for high-ranking positions is that Vietnamese have good knowledge of the domestic market and they know better what are Vietnamese clients’ demand and taste. In addition, foreign banks always attach importance of employing local human sources in parallel with developing business there.  

 

Naturally, foreign banks still obey the international standards as well as its rules in recruiting personnel for any position instead of local standards. Among criteria for recruitment, foreign banks first consider candidates’ working capacity and their ability in fulfilling mission. 

 

However, it is not whenever candidates meet all requirements, thus banks will base on what they need to recruit positions. For example, it is difficult to seek for a candidate who is not only professional as a foreigner but also well-informed about the Vietnamese market as the native. The important thing here is foreign banks would eye to the enthusiasm and willingness for work. Dam Bich Thuy, ANZ general director in Vietnam and Mekong Region said her bank prefers candidates’ exchange capacity to their shape. We are very willing to believe and entrust mission for Vietnamese personnel. We will support and give favorable conditions for them to fulfill work.  

 

The trend of integration and shareholders’ expectation make the recruitment of foreign managers become popular. However, that whether foreign experts could promote their capability in response to expenditures or not belongs to the management art of recruiters and the willingness for integration of Vietnamese personnel.