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Participating in professional clubs and associations is very important for individuals’ career development. In photo: DTK Consulting Director (first right, sitting row) with colleagues from HRA (HR Association) during the annual outing of HRA, this year to Song Hong Thu Do eco-tourist site, Vinh Phuc province (8 Aug 2009). |
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Eight months have passed – If looking at the average consumer price index (CPI) compared to the same period last year, there is some relaxation when this is now just one-digit figure. However, recent repeating increase of fuel prices certainly will lift up the costs of many kinds of products and services. It means the economy, enterprises and consumers are still to face lots of challenges for the coming months.
Newsletter No.21
(August 2009)
Written for organizational counterparts
and individuals - collaborators
Business environment
Macroeconomics
Two thirds of 2009 has passed, the consumer price index (CPI) in Aug increased 0.24% compared to July (Table 1). Average CPI of the first 8 months increased 8.31% compared to the same period last year, positioning clearly in the under 2-digit inflation band for 2009 (Graph 2).
Table 1: Consumer Price Index in Aug 2009
|
|
Index in Aug 2009 compared to |
CPI of the first 8 months of 2009 compared to same period in 2008 |
|
Aug 2008 |
Dec 2008 |
July 2009 |
|
Consumer Price Index |
101.97 |
103.47 |
100.24 |
108.31 |
|
I. Food and foodstuff |
101.74 |
102.37 |
99.92 |
111.47 |
|
In which
1-Food |
90.50 |
99.25 |
99.58 |
108.38 |
|
2- Foodstuff |
104.05 |
102.06 |
99.91 |
110.54 |
|
3- Eating outside |
114.40 |
107.09 |
100.35 |
118.91 |
|
GOLD PRICE INDEX |
115.68 |
126.08 |
101.75 |
109.44 |
|
USD PRICE INDEX |
108.95 |
106.36 |
100.13 |
109.02 |
(Source: Website of General Statistics Office)
Considering food and foodstuff, their CPIs increase around 10% compared to the same period last year, while the eating outside CPI increases about double. The average CPI of food and food stuff increases 11.47% in comparison with the same period last year. For human resource management, CPI trend helps to monitor the real purchasing power of employees’ salary, especially those on lower salary grades, and it serves annual salary review.
Graph 1:
Graph 2:
Legislation environment
In August 2009, some relevant legal documents have been introduced in the field of Severance Allowance (Official Letter 3214/LĐTBXH-LĐTL of MOLISA dated 28/8/09), Personal Income Tax (Circular 160/2009/TT-BTC of Ministry of Finance, Official Letter 3221/TCT-TNCN of General Department of Tax), Tax Management etc. The HR practitioners and accountants can refer to the Vietnamese version of this Newsletter for the complete list.
Human Resource Management and DTK Consulting’s Activities
Professional and networking activities: As a member of Steering Committee and Head of Communications and Information Unit of HRA (HR Association), in August 2009, DTK Consulting Director contributed significant time for HRA's Marketing and PR activities, in relation to the annual outing of HRA (on 8 Aug 2009) as well as preparation for Vietnam HR Day (31 Oct 2009), in the role of organizational committee member. Some articles and photos about HRA's activities are posted on HRA Blog.
Vietnam HR Day is co-organised by HR Clubs CPO, HRA, EduViet Corp. and Forum HRlink.vn. HR colleagues, entrepreneurs, sponsors, information patronizing organisations and interested individuals can refer to the following link for details: http://hrlink.vn/hrsummit (in Vietnamese).
Giving lectures and training: In August 2009, DTK Consulting Director returned to Asian Institute of Technology Center in Vietnam (AITCV), not in order to participate in short courses as 10-12 years before, but as a trainer for the advanced course in Human Resource Management. Trainees of this course are HR officers and managers from local companies, foreign non-government organisations, projects, and managers from district departments of Quang Tri province. With this level of trainees, the trainer should focus on experience sharing, answering their 'hard' questions. With 13 years experience in HRM and consultancy, DTK Consulting Director has satisfied the trainees.
On August 30th 2009, as an enterprise instructor, DTK Consulting Director participated in Matriculation Ceremony of Batch II students of TOPICA E-learning Bachelor Programme (Hanoi Open University), and had interactions (Q&As) with students. Besides giving lectures for making video learning material, in August 2009 DTK Consulting Director started to give offline lectures in the subject Personal Skills Development for TOPICA, designed case studies for students to discuss on Forum and answered their questions.
Minimum Cost of Living and Expected Salary Levels
This is a hot topic when fresh university leavers are seeking jobs and have to negotiate salary.
Table 2: Minimum cost of living (MCL)
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Categories of expense |
Percentage (by DTKC) |
MCL for a person (with one dependant) in May 2008, VND, by DTKC
|
Figures updated for Aug 2009, with 6.97% as inflation adjustment, VND |
|
Food and foodstuff |
38.2% |
2,062,000 |
2,206,000 |
|
Clothing |
8.7% |
469,000 |
502,000 |
|
Transportation |
6.9% |
372,000 |
398,000 |
|
Accommodation |
30.7% |
1,657,000 |
1,772,000 |
|
Education |
10.8% |
583,000 |
624,000 |
|
Saving |
4.8% |
257,000 |
275,000 |
|
Total |
100% |
5,400,000 |
5,777,000 |
In Newsletter No. 8 (July 2008), DTK Consulting already discussed topic minimum cost of living. Figures from Table 2 show that, for a fresh university leaver, who is single and with no dependant, the monthly MCL would be VND 2.9 million including house rent. If they stay with parents or acquaintances, then the MCL would be VND 2.1 million. These figures are indicative and it should be noted that the average MCL per head for a 4-member family often is lower compared to one of a single person. In reality, the salary levels expected by fresh university leavers depend significantly on their competencies self-assessment, spending pattern, influences of the university, friends and the family.
Currently there are 8 minimum salaries specified by the Government, depends on the type of the business and where a company is located (VND 650-800k for local companies, and VND 820-1,200k for foreign ones).
For employees at starting level, they have very clear needs for a better income, besides having more responsibilities. They are often ready to change job, aiming at higher income, to meet one’s increasing spending needs. Therefore, employers and recruitment managers need to apply an appropriate ‘strategy’, from setting a competitive starting salary level to applying mid-year and annual salary review, in order to attract and retain employees of this category in a not too short period. Anyway, if employees of this category are not stable in post, they will incur ‘hidden’ costs for the employer, and that in recruitment and training of the replacements.
Recruitment
Hot vacancies are advertised on website www.dtkconsulting.com, Job Opportunities section. DTK Consulting is ready to give advice and support to companies and organizations in recruitment, as well as individuals in career transition ■
DTK Consulting, 14 September 2009
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