Human Resources Management Strategies of Taiwan-based Enterprises in Vietnam

2.3 HRM Strategies in Vietnam
Nguyen and Bryant (2004) 
de
fi
ne
d HRM as the strategic integration of HR 
practices into the management and development of employees. It has role of the 
management of such aspects of the employment related as compensation, evaluation, 
recruiting
, 
fi
ring and reward systems above the traditio
nal view of personnel 
management and the HR practices as strat
egic to the success of the 
fi
rm. If the 
enterprise want to maximize their efficiency and effectiveness and to meet their 
organizational goals, HRM practices are particularly relevant in transitional economies 
that rely heavily on human labor, according to King-Kauanui et al. (2006). In addition, 
for the enterprises are operating in foreign countries as Taiwanese enterprises, it
’s

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better to apply the HRM strategies suit with the local culture, local working 
environment and preferable to local labor market. 
2.3.1 Localization Management 
Localization management is no longer a fresh strategy for foreign enterprises in 
Vietnam. This trend was started in many years ago. Up till now, there are the number of 
Taiwan-based enterprises are still using a traditional management as a way to manage 
their business such as employ expatriate assignment manager or hire Chinese managers 
in order to reduce management cost and in the same language. However, the difficulties 
associated with cultural difference have led organizations to consider alternative 
approach prefer to host country context such as recruit the local talent for managers 
position as well. Vietnam culture still exist a habit that 
companies’
managers have 
social engagement with government organization as if have a dinner party, luncheon 
party, afternoon tea, coffee, etc., for the purpose of work exchanging. As (Hutchings, 
2005) remarked that local managers are connected in a network of social relationship 
which makes it easier than expatriate to build trustful and closely relation with local 
government. Therefore, local managers are considered necessary personnel to foreign 
companies in Vietnam context as now. 
Furthermore, the language barrier as well as the difference of cultural 
background is also factors bring about difficult in interacting and information sharing 
between Taiwanese managers and Vietnamese employees within workplace. Employ 

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local mangers could contribute to the morale and effectiveness of employee better than 
expatriate managers (Hailey, 1996). Foreign companies tend to localize management 
have to understand the culture, context, and regulation of host country to better 
recruitment right people to right position, and to serve for company long-term 
development as well.