Human Resource Management Practices in a Transitional Economy: A Comparative Study of Enterprise Ownership Forms in Vietnam

Abstract

This exploratory study compared human resource management (HRM) practices in four types of companies in Vietnam. It found, from a sample of 169 companies, that the adoption of HRM practices reflects the company's ownership traits. Overall, foreign-invested companies (FICs) are somewhat more developed in HRM practices than state-owned enterprises (SOEs). Conversely, local private companies, albeit more entrepreneurial, are often less receptive to adopting HRM practices than SOEs. It also revealed that transforming SOEs into equitized companies has brought about no significant changes in this regard. Together with an examination of the impact of management's perceived value of human resources (HR), union status, and company size, the study provides more insight into the variations in HRM practices and suggests some implications for initiating change in this area.

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