Economic reform (doi moi in Vietnamese) has had a profound impact on the transformation of Vietnamese society, including the area of human resource management (HRM). The diversity of the system of ownership and increasing competition is forcing individual companies to adopt new ways of managing their human resources. Contract employment and performance-based compensation systems have gradually replaced the lifetime employment and egalitarian wage systems in order to achieve flexibility and competitiveness. However, the transformation from the old personnel management to the new HRM has been met with uncertainty and hesitation in many state-owned enterprises. This research is a pilot project based on the cases of seven manufacturing companies in Ho Chi Minh City. It aims to analyze the nature and implications of the changes in the area of HRM with the emphasis on how work, employment and industrial relations have adjusted to the new market conditions.
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