The Vietnam Factor

An Emerging Area

From India across to China and into Mexico, the Odgers Berndtson global office network has continued to provide first-class, seamless executive recruitment service to both clients and candidates. This has been particularly true of the international, cross-border resourcing activities for the Electronics and Precision Engineering sector. Even when set within the context of this sharp global economic downturn and a collective revenue drop of 2.8% for the 10 leading international Electronics Manufacturing Services (EMS) providers during 2008, many of our Electronic and Precision Engineering clients continue to look to Asia to satisfy their urgently required low cost production and assembly needs.

Vietnam is emerging as “Asia’s next rising tiger”, a truly technology-driven nation and a challenging competitor to its peers across the continent. The pace of economic growth for Vietnam is second only to China across the Asia region. In the last few years, Vietnam’s IT and Electronics industries have recorded an average growth rate of around 30% per annum. 

Whilst the proactive government development strategy, vastly improved infrastructure and low labour costs are key contributors to the growth of the Electronics and Precision Engineering sector in Vietnam, another important factor is demand for semiconductors. Local Original Device Manufacturers continue to flourish, boosting semiconductor consumption. Vietnam’s electronics industry targets production value of around US$5.5 billion by 2010. Vietnam is increasingly hosting key players from high-tech industry and can no longer be ignored as a potential destination for low cost production, assembly and sourcing. The world’s largest electronics component manufacturer, Intel, has led the way in pioneering the high-tech industry move to Vietnam, investing over US$1 billion in local semiconductor manufacturing since 2006.

The Local Market

Odgers Berndtson has a wholly-owned operation in Vietnam, headquartered in Ho Chi Minh City. The  Odgers Berndtson Vietnam office has a well established track-record in assisting leading global organisations in optimising their operations across the region. San Chau, the Odgers Berndtson Managing Partner for Vietnam, summarised the relative attractions and key factors affecting his local market. “Several factors have converged to establish Vietnam as an increasingly attractive location for EMS, semiconductor and Original Device Manufacturing following Vietnam’s entry into the World Trade Organisation in January 2007. Vietnam continues to provide an abundance of low-cost, relatively well educated, trainable local staff and our government is keen to create the right economic environment to allow Vietnam to  establish itself as a prominent, electronics exporter.” He added that, “Great strides have been made to combat corruption in industry and to bolster the once underdeveloped economic infrastructure. Vietnam’s potential for growth and clear dynamism is primarily due to the principal asset - its people.”

About Odgers Berndtson

Odgers Berndtson is the UK’s leading executive recruitment firm. It operates internationally across 51 offices, of which 8 are regionally distributed throughout the UK.  Offices are located in London (West End & City), Leeds, Manchester, Birmingham and Glasgow, Aberdeen and Cardiff. It comprises a broad range of dedicated practices offering specialist executive recruitment skills by sector and by job- function. The Electronics & Precision Engineering Practice specializes in the recruitment of executive roles in a broad range of engineered component, OEM product, systems integration and service companies.

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