Vietnam is teeming with university graduates, making gaps in the workforce harder to fill. The developing finance, technology, and manufacturing sectors make recruitment of graduates and interns a key part of business development.
High-potential graduates will not be flocking to a company just because there is a job posting. Foreign businesses need to understand how to find target graduates, build relationships with the right universities, and comprehend student expectations for internships. Understanding the legal requirements for workplace internships and the perceptions of the employer brand in the country is also important. This guide provides insight on the hiring of graduates and interns in Vietnam to provide a sustainable workforce and help grow business operations.
Vietnam’s Graduate Talent Pool
The development of sustainable business operations in Vietnam requires the recruitment of graduates by foreign businesses. Rapid growth in finance, manufacturing, logistics, information technology, and professional services have prompted the need to address the business talent pipeline. These sectors have a heavy reliance on innovative workforce solutions, such as graduate programs and internships.
Vietnam has a younger population thanks to the development of a rigorous education system. The Ministry of Education and Training states that Vietnam has a workforce of hundreds of thousands in diversified areas of business, technology, engineering, healthcare, and finance. Developing these graduates can further support the growth of business operations in Vietnam.
In Vietnam, knowing where graduates are trained can help businesses improve their hiring.
Key Universities and Academic Hubs
Talented graduates in Vietnam can be found in its major cities. Those cities are known for their own unique strengths.
Ho Chi Minh City is the largest city in Vietnam and its business center. Some major schools in the city are Ho Chi Minh City University of Technology (HCMUT), Ho Chi Minh City University of Economics (UEH), Vietnam National University – Ho Chi Minh City (VNU-HCM), RMIT Vietnam, and FPT University. These schools offer degrees in business related to engineering, information technology, economics, finance, business administration, and digital technology. Ho Chi Minh City’s ties with multinational companies allows students to intern with those companies giving students the opportunity to work in international environments.
The most prestigious universities in Vietnam are located in Hanoi. Graduates from Vietnam National University – Hanoi (VNU), Hanoi University of Science and Technology (HUST), Foreign Trade University (FTU), and National Economics University (NEU) are in high demand. These schools offer engineering degrees and train students in economics, international business, public policy, and finance.
Da Nang is also known for producing skilled engineers and IT graduates. The University of Danang and FPT University Da Nang are key players in supplying graduates for Da Nang’s growing IT outsourcing, software, and digital services. Da Nang’s lower operating costs makes it a good choice for hiring engineers and IT professionals.
An increasing trend is international and bilingual education. Institutions like RMIT Vietnam, British University Vietnam (BUV), and Fulbright University Vietnam provide an education that helps graduates learn English and understand international business, which helps graduates get jobs with multinational companies.
Gaps in Vietnam’s Graduate Market
Vietnamese graduates have educational training and have been described as having a willingness to learn and adapt. These graduates enter occupations in manufacturing, engineering, software, accounting, finance and business services and are described as having good analytical skills and are able to learn and developing through training programs.
However, like other emerging economies, graduates have gaps and need more training in areas like client facing, work engagement, project management, and teamwork. There also gaps in communication skills, proficiency in business English, and critical thinking, which are age and country related and are differentiated by institution and discipline.
Graduates are most sought in areas relating to software engineering, artificial intelligence, data analytics and digital marketing as well as traditional fields like logistics, accounting and supply chain management. Competition for graduates is increasing for domestic and foreign employers as they expand their businesses in Vietnam.
For foreign businesses, graduate recruitment is more effective when combined structured onboarding, mentorship and internship programs. Having developed a workforce that is loyal and committed also helps reduce recruitment costs.
Legal Framework for Hiring Interns and Fresh Graduates in Vietnam
In many countries, hiring interns and recent graduates is seen as flexible hiring, but Vietnam Labor Law would still apply to foreign companies depending on the type of relationship they will be engaging them in. Understanding the difference between an internship that is purely educational and an internship that involves the performance of work for employment purposes, is important for businesses to manage labor compliance risks and position themselves favorably in the market to attract and retain young talent.
Internship Agreements and Employment Contracts
Unlike other jurisdictions, Vietnam does not have an internship law. Therefore, the law will depend on whether the internship is part of an educational program or the intern performs work similar to that of a regular employee.
When universities place students for practical training during the school year, companies generally sign internship agreements or memorandums of understanding with the university and, if applicable, an internship agreement with the student. These agreements are for the purpose of educational placement and do not constitute an employment relationship.
The situation changes when graduates or interns start performing actual work, under control of the employer. If that person performs work of a regular employee and that person is paid a salary, then that person has to be covered by an employment contract as required by the Labor Code of Vietnam.
For foreign companies, this distinction is important. Misclassifying full-time employees as “interns” to evade employment obligations would create a labor compliance risk for the company, particularly when the situation would have the characteristics of a regular employment relationship.
In the design of internship programs, there must be provisions for specific learning outcomes, defined supervision, and a time limit. Companies interested in offering regular employment to interns who are good performers may wish to provide conditions for them to transition into full-time employees upon graduation, instead of prolonging the internship.
Complensation and Absorption
Providing stipends for interns, who are completing internships that are a compulsory part of their academic studies, is not a legal requirement for companies in Vietnam. However, many companies provide monthly stipends to improve their programs and assist their interns in covering transportation, meal, and housing costs.
In many sectors, including technology, finance, engineering, and consulting, the market has made provided stipends a standard practice. These monthly stipends vary from VND 2-5 millions in each month.
Wage laws in Vietnam provide stipulations on newly hired employees who were formerly interns. These laws require employers to provide employees with a minimum wage, mandated employee benefits, and social insurance.
When evaluating the internship program, the employer must also evaluate whether the internship program provides the company with the legal right to employ the intern considering the local laws in Vietnam.
Probation Policies on Interns Converted to Employees
Recruiting new employees through internship programs is a common practice, especially among foreign companies. Companies should be aware that hiring employees this way does not eliminate the employee’s right to a probation period.
If a graduate accepts a full-time job offer, a formal contract should be issued, and the Labor Code should be followed regarding a formal probation period. The internship period is typically not considered formal probation, even if the individual has worked several months at the company.
The length of formal probation is determined by the position, and the probation employee is entitled to at least 85% of the salary offered.
From a business consideration, employers should communicate to successful interns prior to the completion of the internship. A written offer letter, with the proposed commencement date, and an explanation of the transition to full-time employment, will help with the employer’s reputation with graduate talent and will assist with the full-time employee onboarding process.
How to Build an Effective Graduate Recruitment Program
For many international businesses, hiring graduates is filling entry-level business position. The purpose of a well-designed graduate recruitment program is to establish a sustainable talent pipeline that reduces long-term recruitment costs and helps develop future business managers.
Successful businesses in Vietnam employ a combination of partnerships with universities, structured development programs, and digital recruitment within the early student employment, in addition to job postings.
Campus Recruitment
Establishing relationships with universities is among the most effective methods to access graduate talent in Vietnam. Successful businesses partner with universities by participating in career fairs, providing guest lectures, internship programs, sponsoring university projects, providing scholarships, and seminars.
By focusing on these initiatives, firms can discover high-potential candidates prior to graduation while increasing brand recognition. Given the offered services, students gain insight into the possible career paths and industry standards.
The spring months, especially between March and May, see the highest amount of campus recruitment activity. Career fairs are organized by the universities, where employers can recruit final year students to fill internship and graduate positions.
Recruitment does not have to happen at formal university events. Students can be reached through university clubs and student communities. Business clubs, tech clubs, and student societies often offer employers the chance to sponsor workshops and networking events.
For foreign companies who are just starting to operate in Vietnam, being active on campuses is a great way to promote their brand as an employer and form relations with students during a time of intense competition for talent.
Management Trainee and Graduate Development Programs
Several of the foreign operated companies have structured management trainee programs and graduate programs to develop their own future managers. These companies take a high-potential graduate and provide them with a series of management rotations, mentoring, and formal training, instead of hiring an experienced manager to fill the role.
For large companies in banking, manufacturing, and technology, this model creates a recruitment system that is in line with their culture and goals.
Not all businesses can accommodate full management trainee programs, but the principles behind them can be used by SMEs and young foreign businesses. A formal onboarding program, use of professional learning goals, frequent feedback on performance, and management-led mentoring can help graduates stay and develop professionally quicker.
Graduate hiring should be seen by businesses as a long-term investment. Meaningful placements create the advantage of attracting goal-orientated graduates in a tighter labor market.
Graduate Hiring in Vietnam
Digital media are used widely by graduates when looking to get recruited in Vietnam. Traditional job boards have their place, but students are discovering vocations through their universities and social media.
VietnamWorks, TopCV, TopCV Campus, and Internship.edu.vn are examples of recruitment sites used by businesses looking to employ graduates and interns. These sites allow businesses to hone in on specific industries, regions, and levels of experience when recruiting. These sites can also be used to promote a business as a desirable place to work.
Campus recruitment has benefited from social media. Facebook is great for garnering information on a university community, whereas LinkedIn is useful for recruiting graduates who are just starting to build their networks. A positive employee experience is key in the retention of graduates and is critical for the resilience of businesses in Vietnam.
Do not rely on one recruitment method. Instead, utilize campus activities, online recruitment, and graduate programs to develop a steady flow of early-career talent while simultaneously enhancing your employer brand.
Developing an Internship Program
A well-designed internship program becomes a talent pipeline while helping to build your employer brand and lower future hiring costs. In Vietnam’s competitive graduate employment market, offering a quality internship program can help recruit top interns to your organization. For many international businesses, having a great internship program is a better tool to attract top talent than providing top salaries.
What do Vietnamese Students Want from an Internship?
While internship programs that offer a good salary still attract a large number of applicants, many students are now placing higher priority on the availability of professional development and full-time employment opportunities after the internship.
What attracts students the most is a strong employer brand. Top multinational companies invariably attract the largest number of applicants. However, smaller and newer companies that are foreign owned are able to attract enough interns to complete meaningful work and directly engage with business functions.
Flexibility is important too. The most sought-after work cultures in tech, digital marketing, and business are those that prioritize hybrid/flexible work and culturally supportive work environments.
Although internship support varies by city and industry, many employers provide funds to cover transportation and living expenses. Students often prioritize the experience and portfolio growth over financial support.
Designing an Internship
A program that incorporates the intern’s feedback and suggestions creates a constructive work environment. Interns can offer diverse perspectives and fresh ideas, so companies should have predefined goals and responsibilities for interns and offer continuous support and feedback.
Most companies will find that a program that lasts 3-6 months is a good amount of time for the intern to become valuable and offer support through fulfillable tasks. Interns that are offered shorter programs or internships can offer great exposure, while longer programs offer advanced support to the company and interns for the tasks that are technical, engineering, and project based.
Onboarding should be the focus for the first weeks. Fast-tracking interns to being valuable and productive team members is possible through the exposure to culture, practices, and processes. Support and guidance can be offered by assigning a mentor or supervisor.
The confidence of interns should be built through the delegation of tasks and goals of increasing magnitude. To aid professional skills development, informal assessments of progress through support and feedback should be provided.
Towards the end of the program, employers are encouraged to perform a formal assessment for interns to measure performance and to identify those with the potential for future employment. For organizations that utilize internships as a preliminary recruitment strategy, interns may be extended offers as part of the employment strategy before alternative competitors are able to secure those interns.
Well designed internship programs positively impact the student intern and provide a better public relations opportunity and a more positive perception of the business. Internships create a pipeline for future recruitment.
Conclusions
Graduate recruitment and specifically internship programs provide foreign organizations a way to formalize a long-term talent pipeline in Vietnam. Structured strong partnerships with leading universities and top-tier structured internships strengthen the competitive advantage for the business.
Young talent is the future. Organizations that provide opportunities for young talent through career pathways and a positive experience are more likely to nurture young talent and retain them in the business. Short-term internships viewed as a positive opportunity provide long-term sustainable talent to organizations in Vietnam.