Ho Chi Minh City Faces Talent Shortage in Core Industries

Key pointsPham Nhat Vuong of Vingroup is venturing into various new fields, ranging from real estate and tourism to automotive, energy, and railways. Notably, he has signed a contract with France's Alstom to supply 200 vehicles for the urban railway project in Hanoi. His endeavors aim to showcase Vietnam's technological capabilities to the world.
Business impactJapanese companies can gain access to new technologies and markets through collaboration with firms like Vingroup, particularly in the infrastructure and energy sectors.

Key pointsHo Chi Minh City is facing a talent shortage in core industries such as semiconductors, AI, and advanced technology. There is a lack of both quantity and quality in the labor supply, and collaboration between educational institutions and companies is insufficient.
Business impactJapanese companies need to strengthen partnerships with educational institutions to improve the quality of the workforce and secure talent with the necessary skills.

Key pointsVietnamese companies are aiming to enhance their position in the global value chain by acquiring technology and developing high-value-added products. Mr. Do Vin Khuan, Vice President of T&T Group, has received the 'Outstanding Entrepreneur Award,' contributing to the improvement of corporate international competitiveness.
Business impactJapanese companies also need to reassess their technology investments and brand strategies to enhance competitiveness in the Vietnamese market. In particular, efforts to increase product value-added are essential.

Key pointsSince the Doi Moi policy in 1986, Vietnamese entrepreneurs have established their status both domestically and internationally. Notably, the establishment of Vietnam Entrepreneurs' Day in 2004 has provided an opportunity to reaffirm the importance of entrepreneurship. Recent policies recognize the private economy as a key driver of national economic growth, aiming to account for approximately 70% of GDP by 2030. Entrepreneurs are expected to contribute to national development through technological innovation and social responsibility.
Business impactJapanese companies are required to strengthen collaboration with Vietnamese entrepreneurs and support their growth through the provision of technology and capital. Additionally, to enhance competitiveness in the Vietnamese market, it is necessary to reassess product development and service offerings in line with local needs.

Key pointsGG Power has established a high-tech battery manufacturing facility in Hai Phong and signed its first contract with a customer in India, leveraging its design capabilities. The factory, designed for 5GWh capacity, was completed in just nine months but is currently operating at about 10% of its design capacity. Founder Bùi Xuân Bình has successfully navigated challenges in funding and construction to enter the Indian market. The next challenge is to expand the customer base.
Business impactJapanese companies need to consider collaboration with emerging Vietnamese firms and explore opportunities in the Indian market. Additionally, as the high-tech industry grows, it is crucial to reassess strategies for workforce acquisition and technology transfer.