The human resource management (HRM) function is critical to an organization's success because it helps it attract and retain top personnel while also building a competitive advantage. One company that has recognized the importance of HRM is Vingroup, a leading conglomerate in Vietnam that operates in various industries, including real estate, hospitality, retail, education,... In a few recent years, Vingroup has expanded its business portfolio to include VinFast, a subsidiary that had stopped producing gasoline cars and switched to electric ones. Using Vingroup's recruitment and selection practices as a case study, the essay examines how these practices have contributed to the company's competitiveness and have been adapted for VinFast's transition to electric vehicles.
VF 8 Electric Vehicle Model in the United States
The human resource management (HRM) function is critical to an organization's success because it helps it attract and retain top personnel while also building a competitive advantage. One company that has recognized the importance of HRM is Vingroup, a leading conglomerate in Vietnam that operates in various industries, including real estate, hospitality, retail, education,... In a few recent years, Vingroup has expanded its business portfolio to include VinFast, a subsidiary that had stopped producing gasoline cars and switched to electric ones. Using Vingroup's recruitment and selection practices as a case study, the essay examines how these practices have contributed to the company's competitiveness and have been adapted for VinFast's transition to electric vehicles.
Vingroup JSC, formerly known as Technocom Corporation, was founded in Ukraine in 1993. Vingroup entered the Vietnamese market in the early 2000s with two primary brands, Vincom and Vinpearl. In January 2012, Vinpearl JSC and Vincom JSC merged to form Vingroup Joint Stock Company. The company operates in various industries and has three main pillars of focus: Technology & Industry, Trade & Services, and Social Enterprise. Vingroup is dedicated to introducing modern, international-standard products and services to Vietnamese consumers and has become a highly respected and recognized private enterprise in the country.
Vingroup faces intense competition in the traditional sectors such as real estate and consumer retail, as well as in the sectors that are new to the company, such as automotive. The company has been building a methodical investment strategy to create new values and attract customers. Vingroup has also faced headwinds at home and abroad, particularly in its real estate where they have to compete with Novaland, Sun Group, and Hoa Binh Group; and electric vehicle sectors, which have faced high costs and declining gains. Despite these challenges, Vingroup has continued to expand its operations and has partnered with Google Cloud to modernize its group-wide SAP systems. Overall, Vingroup operates in a highly competitive environment, but its three decades of market leadership and sustainable development have positioned it as a major player in the Vietnamese economy.
By prioritizing talented individuals who share its culture and values, investing in education and training, and promoting diversity and inclusion, Vingroup has built a strong and dedicated workforce that has helped the company achieve its goals in various industries.
Recruitment and selection play a crucial role in helping Vingroup win in competition by ensuring that the company attracts and hires the best talents who can resonate with Vingroup’s slogan: “Forever the spirit of entrepreneurship.” The company's investment in employer branding; recruitment channels; selection process; the provision of benefits and compensations; employee development has helped it attract top talent in the Vietnamese market. By hiring the right people, Vingroup can build a strong and talented workforce that can help the company achieve its goals in a rapidly changing business environment.
Vingroup's investment in recruitment and selection has contributed to the company's success in the rapidly changing Vietnamese market, where competition is fierce not only in established industries like real estate and consumer retail but also in new ones like automotive.
VinFast's shift to electric vehicles has affected its HRM procedures, especially for recruitment and selection. The company's transition to electric vehicles necessitated the hiring of fresh staff with experience in electric vehicle technology, which is a relatively young industry. Since the electric car industry requires a different set of skills and expertise than the traditional automotive industry, Vingroup had to attract and hire individuals with experience and knowledge in electric cars and related technologies in order to reach their business plan of producing 250,000 automobiles per year. In addition, the company has established a research and development center focused on electric vehicles, which has attracted top talent from around the world. Moreover, in 2022, with the aim to become a global electric vehicle company, VinFast is looking to hire 8,000 more employees for its electric vehicle factory in Vietnam. In order to accelerate production so that it can deliver the first battery-powered SUVs to the US. VinFast has signed a preliminary deal to initially invest $2 billion to build a factory in North Carolina to make electric buses, and sport utility vehicles (SUVs) along with batteries for EVs, which will create more than 7,000 jobs.
The company also invested in training programs and professional development opportunities for its existing employees to ensure they had the skills and knowledge needed to work in the electric car industry. These investments in education and training have helped VinFast develop a skilled and knowledgeable workforce that can design, develop, and produce high-quality electric cars. VinFast has partnered with several universities and training centers to provide training programs for students and graduates in electric vehicle technology.
VinFast's adaption of human resource management strategies to meet the transition to electric vehicles has resulted in a number of good results for the company. To begin, the company was able to quickly acquire and educate a highly qualified workforce with the requisite knowledge and skills in electric vehicle technology, allowing them to develop and manufacture electric automobiles in a reasonably short amount of time. This has resulted in greater production efficiency and productivity, allowing the company to create cars at a faster rate. To provide evidence, VinFast was able to develop its first three vehicles and build an industrial complex with a vehicle assembly plant and VinES battery factory in just 21 months, an impressive achievement for a new car company. In addition, the VF e34 is VinFast's first battery electric vehicle model and the first ever electric vehicle to be manufactured and sold in Vietnam, which features an advanced battery system that provides a range of up to 285 kilometers on a single charge, as well as a fast-charging capability that allows the car to be charged up to 60% in just 18 minutes.
A successful organization relies on human resource management to attract and retain top talent while establishing a competitive advantage. Vingroup, a leading conglomerate in Vietnam that engages in a variety of industries such as real estate, hospitality, retail, education, and so on, is one company that has realized the value of HRM. Vingroup has recently expanded its business portfolio to include VinFast, a company that has transitioned from gasoline to electric vehicles. The essay investigates how Vingroup's recruitment and selection methods have contributed to the company's competitiveness and have been modified for VinFast's transition to electric vehicles using Vingroup's recruitment and selection practices as a case study.