Human Resources Management Strategies of Taiwan-based Enterprises in Vietnam

participant commented. The statement coherent to Gupta and Shaw (2014), the 
organization should not neglect the importance and the influence of compensation 
system on the quality and effectiveness of employees in HRM process. The result 
indicated that company provides several kinds of compensation packages and incentive 
activities based on employee’s performance and productivity in order to motivate 
higher employee performance. The result fixed with Gerhart and Rynes (2003), the 
compensation 
has powerful incentive and improving the employees’ performance
. 
Undoubtedly, incentive and compensation systems contribute to motivate employees 
interested in work as well as show out their positive performance and dedication. 
Also, compensation is significant impact to the quality of people who apply the 
job, someone are hired, and the level of motivating and performance of the employees, 
according to Dineen, & Williamson (2012). Such some of participants said that, they 
offer incentive and compensation program not only a part of HRM process, but also to 
attract and retain local skilled labor: company are willing heighten salary and welfare to 
recruit local talents. It consisted with Dong Duong (2014), many large companies have 
set high growth targets that have been focused on improving their overall 
competitiveness in which priority attract talents through salary and welfare policies in 
recent years.

---

58 
5.2 Conclusion 
As far as the result finding, the research could conclude that the issues of 
Taiwan-based companies in HRM in Vietnam are mainly happen in cross-cultural 
management and human capital. In turn, cross-cultural management includes language 
barrier and cultural difference factors which significantly impact to HRM of Taiwanese 
companies in Vietnam. In which, language barrier is described as one of main factor 
produce on misunderstand situations in workplace that influence on working progress 
as well as work efficiency of company. Another, cultural difference is expressed in 
conception and self-cognitive of Vietnamese employees on job that may effect to 
productivity of company. In term of human capital issues, Taiwan-based companies 
have faced with employee recruitment and labor productivity problems. As participants 
pointed out they have difficulty on recruiting local talents. There are several reason 
why it hard to hire skilled labor in Vietnam, Vietnamese people are priority work in 
urban or around downtown area rather than rural, on mountain and countryside area. 
Labor productivity is also supposed a problem of human capital. As participants 
evaluated labor productivity of Vietnam lower than other countries, for instance, it 
lower than Taiwan. Nevertheless, the young population along with low labor cost is 
strength points that attract foreign investor to Vietnam, no exception Taiwanese 
investors. 

---

59 
To deal with the difficulties in HRM in Vietnam, Taiwan-based enterprises 
offer the HRM strategies which contain localization management, training and 
development programs and incentive and compensation systems. For the localization 
management, employing local managers to help manage local labor and support 
production activities are considered as a beneficial policy of Taiwanese companies in 
Vietnam. According to response of participant, local managers could bring mentally 
encourage and working morale to employees better than Taiwanese managers which 
may reduce conflict occur in workplace. Moreover, local managers could help to build 
up the friendly relationship with local government that may benefit to company if 
needed. Regarding training and development programs, it is seen as an indispensable 
strategy in HRM process. Based on the result, Taiwan-based companies provide the 
difference training and development program rely on difference of company character 
and condition then launch out preferable strategies. They also stressed on offering free 
Chinese course to employees and proving suitable training program such as invited 
Taiwanese expertise and experienced come to Vietnam to instruct and train their 
employees, and they also assign Vietnamese employees go abroad to take training as 
well. Last, incentive and compensation systems are assumed an important strategy in 
HRM practice. As result showed that, incentive and compensation systems is not only 
attracting and retaining local talents, but also it contributes to motivate employees’ 
positive performance.

---

60 
In conclusion, there are a lot of problems in HRM which not only happen in 
Taiwan-based enterprise, but also it happens in FDI companies in Vietnam. However, 
the important thing, companies know what problem they faced with, where their 
company located in, and how to solve with the problems as best as company possibly 
can.