Guide to Living and Working in Paris as an Expat

By: City Pass Guide

Let’s admit it; Paris is one of the world’s most exciting places to live. You will never run out of things to do in this beautiful city, from exploring its fantastic culture and fashion to enjoying its many scenic places. It can be even better if you work here, given that it’s home to pretty much every big multinational company you can imagine.

Working in Paris

However, as a foreigner, your experience could be different if you do not know the ins and outs of living here. In this post, we highlight some of the critical areas you need to familiarize yourself with for a smoother transition when relocating to Paris for work.

Visa and work permit

Anyone who plans to stay for more than three months needs a French residence permit. It would help if you also got a job before you move, as this makes it easier to obtain a work permit. But that’s not all; you have to register with the government within three months of moving to Paris.

Working in Paris

The new micro-enterprise regime makes things a little easier for those who do not want to be employed. In that case, you can register a small business and be allowed to stay on that basis. A caveat though is that you will need to take a business administration course if you choose to use this route.

Housing

As an expat, you can live in any form of housing, although most people prefer furnished rentals upon arrival. Whichever option you choose, be sure to gather all the necessary details on renting houses and the requirements you must meet.

Nearly all Parisians landlords will ask for proof of income before they allow you to occupy their apartments. Usually, they want to be sure that your income is at least three times the rent amount. Apart from that, most of them will ask for guarantors who are supposed to pay your rent in case you default.

Healthcare

Although France has one of the best healthcare systems globally, expats need to acquire international healthcare insurance to access it. Most people get covered under the State Health Insurance Program, but you need to register with CPAM, the body entrusted with administering national health insurance in the country, to be eligible.

Working in Paris

If you’re like most expats, you will want to look for other alternatives, given that the state health insurance program is generally insufficient. However, should you opt for this route, try to familiarize yourself with the best hospitals in Paris before registering for these plans.

Banking

An expat in Paris can open a bank account as long as their visa and work permits are in order. You need this account in order to be paid by your employers or make business transactions if you are self-employed. You can use it for saving, too, because you need a good financial cushion to live comfortably in this city.

The few crucial documents required to set up a French bank account include your passport, residence permit, and proof of residency. Opening a bank account is a simple process, but you will have to wait for about ten days to get a card and a checkbook.

Language and culture

Since you are moving to a country that does not speak your native language, you must learn French to be able to interact with the locals here. Sure, there are millions of English-speaking people in Paris and other parts of France. But it certainly will prove difficult for you to work, because French is the dominant language in most workplaces, including multinational companies.

Working in Paris

Luckily, French isn’t the most difficult language to learn. Once you are properly settled in Paris, consider looking for a language school and enroll to speed up the process. The best part is that most of these schools allow for flexible schedules, meaning you can learn at your own time and pace. There are plenty of online classes too.

Exploring Paris

Your life as an expat in Paris should not be limited to your workplace and apartment alone. Create time to explore your new environment and see what it has to offer. For example, you can use your weekends and other free time to visit suburbs on the city's outskirts to learn about what life is like there. Also, there are hundreds of attractions in this city, it would take you months to exhaust all of them!

Working in Paris

Conclusion

Living in Paris as an expat can be enjoyable if you know how to go about it. Treat this as an opportunity to enjoy a new culture and interact with different people. There is no limit to what you can do in the City of Love.


How Mobile Apps Have Forever Changed the World of Digital Marketing

By: Paul Espinas and Tom Hitz

“The Mobile app market is expected to grow 270 percentfrom USD70 billion in 2015 to USD189 billion by 2020,” according to App Annie, an app data and insights company in San Francisco, California.

Mobile apps are growing at an unbelievable rate in large part because of the ‘digitalisation phase’ we are currently witnessing. What is digitalisation? Digitalisation refers to the conversion of analogue systems and information into a digital format. Mobile phones are a tool used by more than 75 percent of the world’s population, they help us to communicate, store information and complete daily tasks that are crucial to most people’s lives. The mobile app industry is at the forefront of this digitalisation era.

mobile appsImage source: mobilemarketingmagazine.com

Here is an example to provide an understanding of the process of digitalisation and in particular a mobile application. 10 years ago if you wanted to hail a taxi or organise a ride, you would call the taxi company or stand on the side of the road or at taxi stands and physically wave a taxi down. Now we have companies like Uber and Grab who have a developed a mobile phone application that has digitalised and therefore simplified this process. And not only simplifying the process, ride-sharing apps now provide everyday people with a driver’s license and a car the ability to earn money as a driver. In this example, the digitalisation occurring has not only simplified the existing process but has become an added benefit as well.

mobile appsImage source: mitagency.com

Mobile Marketing Trends 2018 for Apps and Advertising

Whether we are at work, on holiday or at home, every element of our lives is beginning to involve our mobile phones. Mobile app stores allow businesses to utilise the existing hardware that mobile owners possess and implement their solution or software through a simple download.

Vietnam has a total population of 95.6 million people. Out of that number, 73 percent use a mobile phone and there are 50 million people currently active on social media. This makes Facebook ads the most effective digital advertising platform in terms of potential reach.

mobile appsImage source: medium.com

According to market research sources such as eMarketer and IAB, USD78 million was spent on mobile ads, accounting for 36.6 percent of Vietnam’s total spending on digital ads. The presence of mobile phones within society will continue to rise as phones continue to make the transition from a communication device to a personal assistant tool. As these numbers increase, so too will the number of potential applications and opportunities for advertising.

Mobile Apps Reinvent Digital Marketing

Traditional advertising methods rely strictly on strategies such as placement and timing. For example, a television commercial that is aimed at a mature market will be placed amidst a news program displayed between 5 p.m. to 7 p.m. Mobile phone applications are a new territory for advertising campaigns and they call for an updated approach. Mobile phones are available for use 24/7, which allows for consistent and efficient advertising designed to align with the specific wants and needs of the audience.

mobile appsImage source: bharatsoftwares.com

Machine learning plays a big role in this alignment. Mobile apps have the ability to collect data based on user behaviour. If I spend my time researching yoga and where to find yoga studios, the application itself will begin to notice these trends and you will likely begin to notice ads in your newsfeed relating to yoga.

As mobile phones continue to become more prominent and useful in all areas of life, the potential for effective and personalised advertisement is rising at an enormous rate.

Banner Image source: vinutnaa.com


The Golden Circle

By: Patrick Gaveau

Too few organisations effectively know WHY they do what they do. And by WHY I don't mean “to make money”, that's just a result. I mean... 

What is your purpose?

The Golden Circle is an inspiring model and concept that challenges the status quo. Developed by Simon Sinek in 2009, it has been used as a guide for anyone to vastly improve their life, leadership, corporate culture, hiring process, product development, sales, and marketing. It defines loyalty and dictates how to create enough momentum to turn an idea into a social movement.

As we face turmoil, many realise how strong tides and winds can quickly affect your life or your business. Nothing fun about it. What stands between these individuals or enterprises who still strive regardless of the conditions, and those who may not, is often linked to their capacities to move forward. It is this intrinsic motivation for the cause or the belief they stand for, that can make or break them.

Understanding your own purpose is an essential question to be addressed, and the sooner you do, the better. Unfortunately, most will choose not to, simply because it’s easier to follow others and the current trends. This compliant reactive posture often leads to having disappointing lives and/or failed businesses. 

So let’s address what we stand for together, so that you can unleash your true powers. This practice is effective, and it can transcend your life or business with increased meaning and authenticity to propel you forward and prepare you for the long run.

The Golden CircleImage source: smartinsights.com

If you look at the golden circle in more detail, you can see three circles:

- Why? – Describes the mission and core belief of a business, organisation, or of an individual. It’s why the business exists or your actual reason for being. An essential start when strategizing.

- How? – Illustrates the way in which your ‘WHY’ is most often achieved. It’s how the business or person fulfills their core belief. 

- What? – Describes the activities of the entity. It’s what the company or person does to fulfill their core belief. It’s an action, a belief, a product or service that you offer to others or to the market.

When you have determined your WHY and clearly defined your HOWs you may have an accompanying sense that you carry an important mission that is going to leave a positive impact on this world. This is often the most powerful feeling of being alive. All masterpieces that were created in this world began with a WHY, and so should your life. 

“ The two most important days in your life are the day you are born and the day you discover why. ” - Mark Twain

A strong life WHY helps you clarify your purpose out of life and helps you focus and push yourself. If you establish your life WHY correctly, it should serve you as a roadmap, helping you make your dreams and passions a reality. Your life’s WHY and HOWs are your best compass to help you live a full life.

However, having only a WHY isn’t enough. If your WHY isn’t powered with specific HOWs and WHATs, as well as a strong commitment to your strategy and tactics, then your WHY is merely an illusion. 

When you identify your big WHY, ask yourself, “Why would you fight for it? Why you? Why do you care? Why does it matter?” 

When these answers are clear, you have a powerful WHY and you become more passionate, more innovative, and more progressive in your marketing and communication. You have one more important reason for waking up in the morning.

The implications of defining The Golden Circle reach far beyond what one can imagine.

The Golden CircleImage source: stackpathdns.com

At a corporate level, think about the typical challenges that you often face ...

- Why can’t you sell more? Your product is good, your teams are motivated, and you know that people need what you propose.

- Why are your competitors, big and small, able to pull customers away from you?

- How can you inspire greater loyalty and engagement among your customers and employees?

- How can you achieve and sustain large amounts of success for years on end?

- How can you define an ideal and clear persona that can be used to reach your key target segments?

- Why is it so complex to formulate a clear consistent marketing strategy that sustainably addresses what you stand for, who you truly are and what you believe?

The Golden CircleImage source: zenogroup.com

Now let’s look at some of the benefits associated with having a clear Golden Circle ...

- When companies cannot articulate their WHY, the price, features, and quality of their product/service become the only forms of differentiation. Starting with your WHY can be a great way to justify a higher price point or overcome shortcomings.

- Your buyers know and believe in your mission. This helps create the framework for long-lasting and meaningful relationships that increase customer lifetime value.

- Purpose and values are easy to identify with and creates personal connections.

- Simplify your marketing copy and next time you're writing an email, a blog post, or a landing page, start your writing with WHY.

- A majority of B2B decisions are made before speaking with sales. As a result, it’s critical to position yourself to stand out in order to create sales opportunities.

- Start clearly defining your ideal customer profiles and personas. Then, create messages that specifically target those companies and roles. Finally, engage their teams across all channels - both online and offline.

- Millennials are quickly coming into positions where they will influence B2B buying decisions. Doing business with companies that share their values and beliefs matter most.

- Starting with WHY helps vendors establish trust and clearly differentiate the value in their offering. 

- Creating trust and starting with WHY can be cornerstones for B2B businesses in 2020 and beyond.

The WHY is the soul of any business or person. This is your purpose, your belief, the reason WHY you exist, WHY you’re doing what you’re doing now. Businesses and people need to understand WHY it is we do what we do.

With that understanding, you can tell a compelling story to your audience of prospects and clients that will help them be driven emotionally by your message, converting them into life-long customers.

The goal is not to sell to people who need what you have, the goal is to sell to people who believe what you believe.

Let’s look at some examples from the business world to learn in detail why having a powerful WHY is so important.

For the past 6 years, everyday I drive my Ford Escape XL 1987. Why is it that I drive a Ford you might ask? Simple, Ford's slogan "Go further". They challenge their statement by building bad-ass vehicles. Vehicles that push the limits for your miles per gallon. They expertly produce the build of their product from years and years of testing. And are able to handle any on and off road experiences.

The Golden CircleImage source: ford.com.au

Ford’s Why, How and What are:

Why: We inspire people to “Go Further”

How: We use and develop cutting edge technologies

What: We build vehicles that suit your needs and driving desires

As a result, Ford has some of the most robust and best selling cars and trucks out there. The company inspired leadership demonstrates their WHY in everything they do. Employees, clients, and partners embrace it, it is exemplified within everything the company does both externally and internally.

WHY is a belief, HOW is the action you take to realize that belief and WHAT is the result of those actions. Of course for the golden circles to work, you have to be consistent in what you say and do.

Are you consistent in what you say and what you do?

Let’s also look at Airbnb as an example. By creating an online platform where travellers can rent a spare room from an Airbnb host, it allows people to interact in a way they previously couldn’t. People can rent anything from a couch to a castle in 8000 cities around the world, and while you’re staying in someone else’s home, you are essentially immersed in the local life.

The Golden CircleImage source: thinkdigital.travel

Airbnb’s Why, How and What are:

Why: Because travelling can and should be so much more than just staying at a hotel.

How: Create an environment where guests can immerse themselves within a culture and connect with local people of various backgrounds during their travels.

What: Provides a platform for individuals to rent out their lodging for travellers to stay. 

Do you see now why knowing your Golden Circle can make such a difference? 

On an individual level, let us consider the inspiring case of Wolfgang Amadeus Mozart for whom music was everything. His WHY could have been phrased as, “To compose outstanding classical music so that it can transcend the test of time”. He also knew HOW he wanted his own music to be composed and played: It had to be for an orchestra, preferably in an opera, a symphony or a concerto. Centuries later, his legacy remains. 

There are few Mozarts, but we all have an intrinsic purpose to serve, something we are born with, our mission is to find it.

People that inspire, leaders, and companies of all sizes think, act, and communicate from the inside out. Companies as large as Apple and Google apply these principles in every aspect of their business. Smaller companies like mine or yours should also be using these principles in everything that we do and this is where I can help you find it. We as individuals should all strive towards a life that is meaningful and full of purpose. 

Those interested can contact me at patrick@innovo.vn.
Together, we can clarify The Golden Circle that applies to you and/or your company.

Banner Image source: anandaindia.org


Building Workplace Performance Through Trust

By: Victor Burrill

What can you do to build trust in the workplace?

Trust increases speed and thus lowers costs in businesses.

Building Trust with The Emotional Bank Account

‘You cannot prevent a major catastrophe but you can build an organization that is battle-ready, that has high morale, that knows how to behave and that trusts itself. One where people trust one another. In military training, the first rule is to instill soldiers with trust in their officers because without trust, they won’t fight.’  - Peter Drucker

One way you may consider building performance in your team is through building trust.

Teams and organizations that operate with high trust significantly outperform those who do not cultivate trust at the core of their culture. A Watson Wyatt study showed that high-trust companies outperformed low-trust companies in total return to shareholders — by 286%!

Building Workplace PerformanceImage source: business2community.com

In his book, The Five Dysfunctions of a Team, Patrick Lencioni says that the first of the five dysfunctions is the absence of trust among team members. Essentially, he says, this stems from their unwillingness to be vulnerable within the group. Team members who are not genuinely open with one another about their mistakes and weaknesses make it impossible to build a foundation for trust.

What can you do to build trust in the workplace?

“Whatever anybody says or does, assume positive intent. You will be amazed at how your whole approach to a person or problem becomes very different.’’ - Indra Nooyi, PepsiCo CEO

It is firmly believed by many that trust isn’t a quality you either have or you don’t, it’s a learnable skill that is developed with practice.

Stephen M. R. Covey in his book The Speed of Trust: The One Thing That Changes Everything explains the first step towards building trust is self-trust (trusting yourself) or credibility. As the writer and philosopher Ralph Waldo Emerson wrote “Self trust is the essence of heroism.”

Credibility is about developing the integrity, intent, capabilities, and results that make you believable, both to yourself and to others. Essentially, it boils down to two simple questions... 

Question 1. “Do I trust myself?"
Question 2. “Am I someone others can trust?”

Building Workplace PerformanceImage source: miro.com

Research shows that many of us don’t follow through with the goals we set and don’t keep the promises and commitments we make to ourselves. For example, almost half of the western world set New Year’s resolutions, research shows that only 8 percent actually keep them. By doing this time after time the result will be repeated failure to make and keep commitments to ourselves which erodes our self-confidence and we lose trust in our ability to make and keep commitments. Thus, we fail to project the personal strength of character that inspires trust. We may try to borrow strength from position or association. But it’s not real. It’s not ours… and people know it. And whether we realize or not, that impacts the bottom line.

Although we all know it intuitively, research validates that a person’s self-confidence will affect his or her performance. This is one reason why Jack Welch of GE claimed that “building self-confidence in others is a huge part of leadership.”

The lack of Self Trust also undermines our ability to trust others. In the words of Cardinal de Retz, “A man who doesn’t trust himself can never really trust anyone else.”

The good news in all of this is that when we do make and keep a commitment to ourselves or set and achieve a meaningful goal, we build credibility and self-confidence within ourselves. The more we do it, the more confidence we have that we can achieve our goals, and are more likely to set new ones. The more we accomplish our goals, the more we trust ourselves.

Consider which ones of the following High Trust Behaviours would you like to change the most and why?

1. Straight Talking

8. Confront Reality

2. Demonstrate Respect

9. Clarify Expectations

3. Communicate with Transparency

10. Practice Accountability

4. Right Wrongs

11. Listen First

5. Show Loyalty

12. Keep Commitments

6. Deliver on Promises and Achieve Results

13. Extend Trust

7. Get Better

 

Trust increases speed and thus lowers costs in businesses

The result from the 41 Country Study of Paul Zak and Stephen Knack also shows “In all cases, the countries with the highest trust levels have the highest per capita incomes and GDPs. Because trust reduces the cost of transactions, high-trust societies exhibit better economic performance than low-trust societies.”

High trust also increases speed and thus lowers costs in businesses and organisations too. A lot of people around the world trust in FedEx to deliver them goods overnight. But have you considered that your trust in them is a major part of why they’re so fast at delivering in the first place? Since many people trust in FedEx to deliver the next day, they must move hundreds of thousands of packages and orders each day – as people buy, and they buy fast. The speed with which FedEx receives incoming orders at scale is what endows it with the flow of financial capital it needs to not only pay for overnight drivers or book special air freight services, but also create systems that will lower the average cost and time per delivery.

Building Workplace PerformanceImage source: news.com.au

Since 9/11 the average airport security checks take 90 minutes, as opposed to approximately 30 minutes before. The trust in airplane passengers has gone, making the whole process of checking each passenger slower, and leads to an increased cost for personnel and machinery.

Building Trust with The Emotional Bank Account

An Emotional Bank Account is a metaphor describing the amount of trust that has been built up in any relationship. It represents how safe you feel with or around another person.

Much like the idea of having a savings accounts flood with cash or real estate investments with large equity balances – which are all great things – there is another type of account that probably affects your life much more significantly. This account is measured by your trust. It is an emotional bank account and we are regularly making deposits into it and take withdrawals when we need to. A deposit represents someone doing a caring act for us or making us feel safe and accepted. A withdrawal will be somebody showing us malice, bad intent or aggression and represents us losing trust in that person.

We make similar kinds of deposits and withdrawals in our relationships at work into our Emotional Bank Accounts. When the balance is high, so is the resulting level of trust, and so is your ability to achieve the results that you are measured by. When the balance is low, trust is low, the quality of your work will decrease and suffer, and ultimately your work relationships can suffer also.

Building Workplace PerformanceImage source: i.ytimg.com

To build a strong, healthy balance with the people with whom you work, follow these important points:

1. Never deposit to withdraw - While there are similarities between a traditional bank account and an Emotional Bank Account, you should never accumulate a high emotional balance in order to make planned withdrawals later. I know a colleague who kept a box of thank you notes in his office because he had developed an unhealthy habit of using them to build a reservoir of goodwill before dumping a big project on someone. This approach is exactly how not to utilize the Emotional Bank Account as your attempts to show good intent will be seen through quickly and will not be well received.

2. Know the other person’s currency - Like trying to deposit British Pounds into a Chinese bank account, you are sure to raise eyebrows and cause confusion. Understand how to change your tones and words to communicate with certain people and make an effort to ‘speak their language’. If done correctly this will instantly gain you their trust. Take time to learn what the important people in your workplace (aka your boss, your cubicle mate, your best clients) consider a deposit.

3. Communicate your own currency - You cannot expect people to read your mind. In the fast-paced world of work, it can cost you plenty if you do. Clarify and communicate your expectations before, during, and after every project. Doing so sets everyone up for success as showing trust in them builds rapport and understanding.

4. Small and consistent deposits over time are more powerful than occasional, large deposits - Relationships grow in security and trust when they are built with frequent, meaningful contributions rather than an occasional grand gesture. This stockpile can be invaluable when the unintentional but inevitable “you-know-what” hits the fan, and you need to draw from the deep well of deposits to turn a sticky situation around.

5. Right wrongs - A piece of Eastern wisdom says, “if you’re going to bow, bow low”. In other words, when you mess up, make a sincere apology. There is nothing more meaningful than admitting a mistake without making excuses for it. This shows humility and vulnerability, and will build strong trust.

Good luck with your journey in building performance in your workplace!

Banner Image source: betterthansuccess.com


Setting up A Business in Vietnam

By: Victor Burrill

Vietnam’s unique entrepreneurial start-up culture.

The challenges that comes with doing business in Vietnam for foreigners.

Understanding the local processes and government regulations.

Are you thinking of joining the many companies who are moving, relocating or expanding their business operations to Vietnam? Perhaps you have a business idea and want to join the fast growing & fascinating start-up culture unravelling amongst both Vietnamese natives and expats in this great little country of ours...

A Country Ripe for Business

After years of conflict, hunger and economic sanctions, Vietnam reached a turning point in 1986 when the country implemented the policy of Đổi Mới, or ‘renovation’ with the aim of creating a socialist-orientated free market economy. In 1994, Bill Clinton lifted the 19-year post-war US trade embargo and Vietnam entered the global marketplace.

Today, Vietnam’s 94 million people have experienced huge economic change. The national GDP is now around $180bn – a massive leap from just $6bn in 1990. As of 2017, 24 of the 28 EU nations have invested in around 2,000 projects in the country, with a total registered FDI reaching above $21.5bn. Industry, construction, and services were the major sectors that attracted the majority of EU capital.

Business in VietnamImage source: shutterstock.com

According to Forbes, Vietnam has become Asia’s hottest investment destination with $17 billion in FDI commitments last year alone. Bloomberg recently reported that the current GDP growth of Vietnam is at about 6.8%. This makes Vietnam one of the best performers among the emerging markets in South Asia.

The Vietnamese are incredibly enthusiastic about foreign investment and the opportunities it brings and increased integration into international markets. They are also keen to share their proud culture, traditions and history with foreigners in order to protect their local heritage in a rapidly developing and forward-thinking economy. For this reason, acknowledgement of Vietnamese culture can earn foreigners a lot of esteem.

Why Vietnam?

According to Tomas Svoboda, Head of Cekindo Vietnam - an organisation that provides market entry support to companies and investors entering Vietnam - many businesses are moving here due to competitive wages and a strong working culture. Common types of businesses favouring to operate in Vietnam range from IT to e-commerce, consulting firms, food and health supplements companies, and manufacturers.

Business in VietnamImage source: povertyactionlab.org

Tomas also says that many companies are moving or expanding operations from China to Vietnam to avoid US tariffs in the US-China trade war and Vietnam’s preferential trade agreements. Another big reason is the rapidly growing domestic market. Vietnam’s GDP is also one of the fastest growing in the world and is expected to double by 2030, creating an increased consumer demand.

Many factories are also finding success here, as producers look to lower the cost of labor and operations. Vietnam is a perfect fit for this as a large number of the population have the skills to work manual labour jobs. It’s not only big businesses making the move to Vietnam however…

This country has a unique start-up culture, great value per dollar, a good climate, and a strong entrepreneurial community. Vietnam is now very much ready for the startup scene and smaller companies are finding a lot of success here for a number of reasons. One is that it’s easier to find investors, as there are many investor-2-business matching meetings and pitch competitions that bring the investor closer to smaller organisations.

Things to Consider

Cultural differences can also be a huge challenge for foreigners doing business in Vietnam, not to mention the difficulty of dealing with the language barrier. Tomas advises finding a reliable local partner and being open-minded to marketing strategy, so you can adapt quickly to the local market. He also says that Vietnam is a strong and popular choice for technology startups and that many international companies know about it.

Business in VietnamImage source: investmentinvietnam.com

Some companies who have struggled in developed countries have very successfully grown their scalable start-ups in Vietnam. With 70% of the Vietnamese population being under the age of 35, Vietnam is young, fast and fun.

One American businessman recently said... 

‘I really love the people of Saigon. They remind me of New Yorkers. They are friendly with a healthy dose of scepticism coupled with a fierce work ethic.’

Another entrepreneur said...

‘Saigon is for bootstrappers who want to go somewhere to put their head down, enter into building mode and crank out their product or business. One could easily live on $1,500 a month here and live quite a privileged existence in a city where modern meets old. Local salaries for admins to coders range from $500 - $1500USD/month. Thus, there are a lot of bootstrappers here in Saigon - and in general, the crowd here tends to be more serious and focused on execution.’

Legal Issues

One of the major challenges businesses face when moving to Vietnam is understanding local processes and government regulations, which can be confusing. Ngo Nhat Minh, Founder & Attorney-at-law at BLawyers Vietnam, advises foreigners to consider finding good legal council before setting up a new business in Vietnam, especially those in conditional business fields.

Business in VietnamImage source: blogspot.com

Minh mentions that one area of help business leaders often need is understanding the many overlapping regulations from different state authorities. Understanding the whole picture can be difficult for foreign investors which can impact the strategy and implementation of launching operations here in Vietnam. He also suggests keeping up to date with the legal status as laws tend to change rapidly.

Minh also suggests foreigners be careful before entering deals. Many go well but if they go wrong it can take a long time to gain support for enforcement from local authorities in situations where parties cannot amicably settle disputes.

Minh also suggests budgeting up to 3 months for setting up a foreign invested company in Vietnam. He says that limited liability companies or joint stock companies are the most common choice of foreign investors because they are easier to manage and have more limited liability for debt and other financial obligations.

Another legal area to consider is understanding the labor law and the rights of employees, especially on termination of employment agreements.

All things considered, if you are looking for a place to expand or start your business, Vietnam could be the right destination for you.

Banner Image source: shutterstock.com


Dream Jobs in Vietnam

By: Frank B. Edwards

Southeast Asia: The Land of Employee Turnover

Paul Espinas sells dreams – dreams of better jobs – and he’s very good at it.

The 28-year-old marketing director of VietnamWorks oversees the employment company’s campaigns to find experienced workers to fill the empty desks of Hanoi’s and HCMC’s office towers with administrators, managers, technicians, sales teams and a variety of specialists.

Every day the VietnamWorks website – known in the recruiting business as a job portal – introduces hundreds of employers to tens of thousands of workers wanting a better job and more money.

Like most Southeast Asian countries, Vietnam has an annual 20 plus percent employee turnover, a frustrating reality for employers who must continually recruit new workers. (The largest job-search surge occurs right after the Tet employee-bonus season.) That reality has spelled success for a wave of job sites in Vietnam including Jobstreet, Careerbuilder, HR Vietnam, Careerlink and VIPsearch.

Turnover

At its busiest, the VietnamWorks website receives up to six million visits a month – and adds several dozen new job postings each day. In mid-January, the job portal listed 6,000 jobs, half of them in HCMC, with salaries ranging from $500 to $4,000 per month. The site requires job seekers to have a minimum of two years’ work experience. Currently, the company has a database of three million jobseekers.

Paul explains that Vietnam’s hot economy is just one reason for the frenzied employment scene. While employment companies certainly profit from high employee turnover in the short term (they charge employers a fee to post their job listings), he cautions that the Vietnamese workplace needs to improve its accommodation of young millennials (born after 1980) who make up the largest workforce demographic.

“Employers have to keep their employees engaged,” Paul says. “Management styles have to adapt because often the expectations of young workers aren’t being met.”

Money is usually a key consideration, but is not always the most important.

Ways to Grow

Several blocks away from the VietnamWorks headquarters, Jon Whitehead sits in a high-rise tower matching managers and executives with corporate employers. Having worked in Hong Kong, Singapore, Australia and Vietnam, the newly appointed managing director of RGF Executive Search (formerly of HR giant Robert Walker) is familiar with hot job markets and has seen managers jump ship for increases as little as $100 per month.

While well-qualified workers can win increases of 20 to 25 percent, he advises his job candidates to be careful about quitting jobs too often.

“People here… will move for money. So you have to educate them that too much movement doesn’t show growth and doesn’t show consistency.”

He notes that the supply of Vietnamese managers has grown significantly in recent years but still can’t keep up with the demand. When new manufacturing and IT companies come here, “they want a staff right away but it takes a while to produce one”.

“Vietnam is a young country, it’s a young population here,” he observes. “They do want to learn. They are hard-working, but it comes down to education. Too often, they don’t know what is required of them. [Working for foreign corporations,] the demands are higher and expectations are higher.”

Viet Keu

Often, he says, applicants prefer to report to an expat manager in the belief that they can learn from and develop marketable skills more quickly with a mentor who has international work experience. The smart ones look for jobs with scope to grow so that they can move within a corporation without having to quit and find new employment to advance their careers.

An increasingly important source of Vietnamese management talent is coming from abroad – both from the Viet Kieu population of overseas Vietnamese who left the country after 1975 and recent university graduates who studied internationally and chose not to return to Vietnam immediately.

Jon has seen more of those graduates – many with advanced degrees – returning to the country after they’ve gained some Western work experience. “They come back with a different mindset,” he says, pointing to their experience with domestic consumer

traits and exposure to multinational corporate culture. But he cautions employers that they are not willing to work for “Vietnamese wages”:

“They want to be paid at the same level as expats.”

Meanwhile, Viet Kieu millennials are also finding their way home, often against the will of their parents who have established comfortable lives and successful family businesses.

One such recent arrival is a young digital marketer who grew up in Ottawa, Canada, studied international commerce and then headed east, finally arriving in HCMC last autumn after several years working in Singapore.

At a recent social event, he moved easily through the crowd of young Vietnamese advertising executives (and hopefuls), speaking English effortlessly and offering energetic insights into the world of corporate communications. While he’s determined to be at the forefront of the new IT economy here, he admits that his parents are worried. “This is not the Vietnam they knew,” he says.

While recent university graduates and overseas arrivals are adding to the employee base, the biggest source of talent right now remains within the existing workforce, and that’s where the big HR companies are searching.

RGF Executive Search deals with positions paying $1,500 a month up to the stratospheric salaries of CEOs rising beyond $25,000 a month. (RGF charges employers a finder’s fee that is up to 25 percent of an annual salary.) These days most of the jobs at the lower end of that scale go to Vietnamese; the mid-scale positions are split between expats and Vietnamese while upper executive jobs still favour expats with international experience.

Ready for a Globalised Market Economy?

As employee recruitment continues to get more competitive, companies are becoming more creative. At VietnamWorks, Paul has organised job fairs to bring employers and job seekers together. His Boulevard For Success job fairs bring out thousands of Hanoi and Saigon workers interested in talking to HR personnel from a range of companies. He has a technology job fair and a mobile app in the planning stages.

A shortage of IT professionals is particularly worrying for Paul, whose research suggests that Vietnam will need 400,000 new IT workers by 2020. Even now, he says there is a problem because current IT professionals lack the communication and soft skills (like creativity, problem solving and collaboration) that are important components of the international workplace.

It sector Vietnam

Over the past three years, VietnamWorks has seen the biggest job growth in finance, IT and advertising – the latter two have doubled and tripled the number of jobs on offer. Ironically, 40 percent of its job seekers are pursuing careers in other fields. Accounting, administrative office jobs and manufacturing/production are the most sought-after career fields right now.

In a 2014 report called Skilling up Vietnam, the World Bank noted that the country’s 95 percent literacy rate was just the first step to preparing workers for a modern market economy. It claimed that 80 percent of technical and professional job applicants lacked the skills necessary to fulfil the jobs they were applying for – and that white collar workers lacked both technical expertise as well as leadership, creative, problem-solving and communication skills.

Jon Whitehouse, a Brit, and Paul Espinas, a Filipino, remain optimistic about the road ahead. Both arrived in Vietnam by circuitous career routes and both have declared their intention to stay.

Jon explains that for expat executives, Vietnam is a career stepping stone and the typical stay here is three years. But some fall in love with the place and have trouble leaving. He’s been here for five years and Paul has seven years under his belt; they have no intention of leaving any time soon.

 


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