Overview of Vietnam Human resource and Xuan Thanh Insurance corporation . 1

1.2.1 Overview of Vietnam Human resource

During the period of industrialization to modernization, human resources are the most important factors determining the economy of the country and the survival of

the enterprise. However, in Vietnam today, many businesses have not paid proper at-tention and focus on the quality of human resources in their organizations.

And focus on the quality of human resources¹ (GSO) in 2011, Vietnam's popu-lation reaches almost 88 million people (an estimated 87.84 million people). With this population, Vietnam is currently ranked the 13th in the world in terms of population and the 2nd in Southeast Asia. Regarding the workforce, the country had 51.4 million people aged 15 and older labor force, accounting for 58.5% of the total population. In which the labor force of rural areas accounted for 70.3%.(GSO, 2011).

(GSO, 2011 )Vietnam is currently ranked the 13th in the world in terms of pop-ulation meet the labor needs for businesses. Because of skilled labor is still very lim-ited in Vietnam. In total 51.4 million people, nearly 7.8 million people only have been trained, accounting for 15.4 %( GSO, 2011). The difference in quality of labor re-sources is obvious especially in rural areas and urban areas. In urban areas, labor was trained workers accounted for 30.9%, while in rural areas only 9%. This difference is too big, and has effects on the overall economic development of the country.

urban areas accounted for 30.9%, while in rural areas only 9%. However, many enter-prises still complained about employee shortage. The reason is that the labor in Vi-etnam only meets the demand in terms of quantity, but it does not meet the demand for quality. This not only makes it difficult situation for businesses but also makes the self-employed workers lose employment opportunities for themselves.

According to data from the HCMC Institute of Development Studies (HIDS)² in 2014, the labor supply in Vietnam is plentiful and greater demand for labor. However, most of the supply of labor is unskilled, while skilled labors mainly stay in big cities.

Thus, it leads to the uneven distribution of quality labor across regions. Specifically, nearly 77% of workers in the working age have not been trained, it is limited to occu-pational skills and labor quality in urban areas is higher than in the rural region. On the demand side, the human resources of Vietnam now largely been allocated at the

1 General Statistics Office http://knoema.com/atlas/sources/General-Statistics-Office-of-Vietnam 

2 HCMC Institute of Development Studies http://www.hids.hochiminhcity.gov.vn/web/vncpt-english/home 

cultural sector, where workers’ do not need high level skills and qualifications. The industrial labor force accounts for 20% and the service sector accounts for only about 26%(HIDS,2014).

According to the Ministry of Labor³, at present, the quality of employment is still very low. Specifically, unskilled in menial jobs is accounting for nearly 40% of the total employment of the country. In urban areas, the ratio is 18.1%, but in rural ar-eas account for almost 50% of total employment. Meanwhile, compared with the pre-vious year, along with the development of the economy in general and businesses in particular, the demand for human resources with high quality of service and industrial sectors increased rapidly.

Currently, businesses in Vietnam, especially foreign-owned companies, are thirst for skilled workforce. Meanwhile, the percentage of high quality workers in Vi-etnam is too little, not enough to meet the needs of businesses. Therefore, the quality of human resources training becomes extremely important issue today.

Thus, it is seen that the quality of labor force is currently still very low, while the demand for skilled labor of the company is continuously increase. This leads to the irony that while there is a large number of people looking for jobs, companies are still experiencing the shortage of skill workforce. This is one of the causes leading to grow-ing unemployment in Vietnam today.

To overcome this situation, the State and the agencies gave the solution as: Ac-tively organize short-term training schools for employees to sharpen and improve practical knowledge and skills career. Also, the state frequently bring opportunities and motivate employees to learn and improve their ability for their own benefits. This is an effort to help workers find employment opportunities for themselves, and gradu-ally overcome the weakness in the quality of labor resources of Vietnam today.

3 Ministry of Labor http://www.molisa.gov.vn/vi/Pages/Trangchu.aspx 

1.2.2 Introduction of Xuan Thanh Insurance corporation (XTIC)

Xuan Thanh Insurance Corporation (XTIC) was established on 11/07/2011 by Decision No. 57 / GPDC7 / KDBH, formerly Insurance Corporation Thai Son (GMIC), established under decision No. 57 / GP / KDBH of the Ministry of Finance dated 21/12/2009.

After a short time in operation, XTIC has gradually affirmed its position on Vi-etnam's insurance market through the deployment of business areas such as: Receive and reinsurance; Capital investment activity; The assessment services, investigations, calculations adjusters, consideration of compensation and claim a third person; Office rental; Services for sale, repair, salvage and auto parts business; Purchase, sale and maintenance of motor vehicles and motorcycles, motorbikes, spare parts for motor ve-hicles, gasoline, lubricants; - Business services, hotels, restaurants, tourism and sports;

Business investment in housing development and activities related to real estate; Pur-chase and sale of goods, trade and broker dealers.

1.2.3 Operating results of the XTIC in the period 2010-2012

In 2012, total revenues of the XTIC 2.380 billion count for 94% target. In that written premiums revenue reached 1,966 billion 4.69% growth compared to 2011, reaching 92% of the plan; insurance claim ratio 47% original. Profit before tax was 130 billion, down 4% compared to 2011, reaching 92.9% of the plan. In Group 4 com-pany the market leader in non-life insurance, general insurance joint stock comcom-pany Xuan Thanh growth rate ranks 3rd (after Bao Vietnam and PVI).

Business performance in 2012 is reflected in the accounting figures (audited by Deloitte), according to which in 2012 the accounting rate of return after tax on the to-tal assets reached 4.78%, the rate tax profit on equity (ROE) reached 17.69% (com-pared with 9.84% the result of PTI, PVI 6:39%, Bao Minh 3.97%); Earnings per share (ESP) reaches 14:28%, expected dividend of 12%.

4 Xuan Thanh Insurance Corporation Introduction website: http://www.xti.com.vn/Desktop.aspx/Thai-Son/Gioi-thieu-cong-ty/Gioi_thieu/ 

The size of human resources of the XTIC continued to increase through the year, which increased mainly business staff and the number of agents. Specifically, in 2011, an increase of 50 people in comparison with 2010. In 2012, an increase of 70 people compared to 2011.

Among employees, the highest proportion of employees accounted for 54.7%

of total number of employees of the XTIC in 2012, whiles the proportion of technical personnel accounts for 11%, and management staff is 13.5%. This shows an imbalance in the workforce of XTIC where administrative staff accounts for a high percentage of workforce while professional employees such as insurance consultants only account for a low percentage.

The company is facing an urgent need for trained and skilled employees to improve its effectiveness and competitiveness. Therefore, companies must have specific training plan to meet the need to improve the quality of human resources.