Restructuring Human Resources: A Driving Force for Vietnamese Enterprises to Enhance International Competitiveness
In the context of a constantly shifting global economy and deeper international integration, enhancing competitiveness has become a top priority for Vietnamese businesses. One strategic and long-term solution is human resource restructuring. According to experts, reorganizing the workforce, improving human capital, and applying modern management models not only help optimize operations but also expand opportunities to access international markets. The Vietnamese Government is also actively promoting this process through a series of supportive policies and digital transformation initiatives in corporate governance.
How is the restructuring trend evolving in Vietnam?
Post-COVID-19 and under the global wave of digital transformation, many Vietnamese enterprises have had to reassess their organizational structure. According to statistics from the Ministry of Labor, Invalids and Social Affairs, over the past two years, more than 60% of medium and large enterprises have significantly adjusted their human resource structure, including:
- Streamlining middle management layers
- Applying project-based, flexible management models instead of traditional ones
- Strengthening recruitment of high-quality talent for strategic positions
- Promoting internal training and workforce development
Leading sectors include information technology, exports, logistics, and manufacturing.
What is the government’s direction regarding human resources?
According to the 2021–2030 Socio-Economic Development Strategy approved by the Prime Minister, developing human resources - especially high-quality human resources - is one of three strategic breakthroughs.
Key policies include:
- The National Digital Transformation Program to 2025, with a vision to 2030, which emphasizes that “enterprises need to strengthen internal capacity through organizational restructuring and workforce quality enhancement.”
- Decision 1446/QD-TTg (August 30, 2022), approving the project “Developing the national startup and innovation ecosystem to 2025,” which focuses on human capacity, digital skills, and global adaptability.
- MOLISA’s project to “Enhance vocational skills for the workforce,” targeting at least 70% of workers to receive formal training by 2025.
What can HR restructuring bring?
According to Nguyen Huu Cuong, CEO of NHT Consulting, HR restructuring is not merely about layoffs or position changes - it is about rebuilding organizational systems aligned with long-term strategies, including people, processes, and supporting technologies.
Specific benefits include:
- Improving operational efficiency: reducing overlapping management and clarifying accountability
- Increasing flexibility: adapting quickly to market volatility
- Attracting and retaining talent: clear development pathways enhance employee engagement
- Meeting international standards: structured organizations are essential for working with global partners
What are Vietnamese enterprises doing?
- FPT Corporation: Transforming into a “digital enterprise,” leveraging AI for workforce performance analysis and talent planning.
- VNG Corporation: Adopting competency frameworks and KPI-based assessments, along with flexible reward mechanisms to retain talent.
- Garment 10 Corporation: Implementing a dual-training model in cooperation with vocational schools to develop a skilled, adaptable workforce.
Challenges businesses face
- Shortage of senior executives with strategic and modern management expertise
- Resistance to change from middle management
- High upfront investment costs in restructuring and training
- Lack of alignment between HR and overall business strategies
Proposed solutions
- Align HR strategy with overall business strategy
- Apply technology in HR management (ERP systems, HRM software, big data)
- Strengthen collaboration with universities and research institutes for young talent development
- Establish clear transformation roadmaps and effective internal communication
- Leverage government and international training support programs
Looking ahead
In the era of globalization, a company’s competitiveness depends not only on products or technology but increasingly on the quality of its organization and workforce. HR restructuring is not optional—it is a prerequisite for Vietnamese enterprises aiming for long-term growth in international markets.
Prime Minister Pham Minh Chinh emphasized at the 2024 Regional Economic Development Conference:
“Human resource quality is the foundation of national competitiveness. The Government encourages and accompanies enterprises in upgrading their workforce.”
