Firms show high confidence in business prospects in Vietnam

Up to 71 percent of companies operating in Vietnam showed confidence in their business prospects in Vietnam this year, saying their revenues are expected to rise at least by 5 percent year on year, according to Towers Watson Vietnam.
Results of its survey, released on Wednesday here and conducted during February-March with 120 companies operational in Vietnam, of which 90 percent are foreign-invested, showed that 69 percent of respondents said they will increase their salary budget this year by at least 10 percent on the average, local Saigon Economic Times reported Thursday.
Meanwhile 63 percent of respondents had plans to raise budget for social allowances, and 64 percent to recruit more employees, especially those in sales, production and marketing teams.
However, the survey also revealed that about 10 percent of leaders from responding companies quit jobs to move out working for other companies where they were paid with higher salary and more benefits.
It is really a big challenge to those companies in terms of personnel management, particularly when the ASEAN Economic Community will be formed by the end of this year, besides more free trade agreements to be signed between Vietnam and other countries, according to Towers Watson Vietnam.
Towers Watson is an American leading global professional services firm that helps organizations improve performance through effective human resource, risk and financial consulting and management.