HRNAVI JOINT STOCK COMPANY
Founder-Chief Executive Officer
Nguyen Dinh Phuc
interview=Ken Mitsui | Text=Aya Rikitake | Photographs=Kohei Nishiyama
Delivering Meticulous Services Built on Our Legacy of Achievement Since Establishment
HRnavi, a recruitment agency in Vietnam that operates the job search website "VietWork," is renowned for its deep understanding of the management practices of Japanese firms, despite being a Vietnamese company. This unique strength was highlighted in an exclusive interview with the company's representative, Mr. Nguyen Dinh Phuc.
Transforming Vietnam’s Image Through Human Resources Business
―To begin, could you share some insights into your company’s business activities?
HRnavi Joint Stock Company, founded in 2007 in Vietnam, is a recruitment agency that operates “VietWork,” a platform dedicated to facilitating job transitions across Vietnam and Southeast Asia. The company has also established strategic partnerships with both domestic and international human resource service providers to enhance its efforts in connecting Japanese talent with Japanese companies operating in Vietnam. Currently, nearly all of its employees are Vietnamese, with only two Japanese staff members.
―What led you to pursue a career in the human resources service industry?
My connection with Japan began in 1996 when I studied abroad there. During my first year, I attended a Japanese language school, and in the following year, I began studying civil engineering at Wakayama National College of Technology. In my third year, I transferred to Kyoto University, where I completed a four-year undergraduate program, followed by two years of graduate school, graduating in 2004. That same year, I joined Kyocera Communication Systems in Kyoto as a new graduate.
In 2006, I transitioned to the accounting consulting firm I-GLOCAL, and in 2010, I acquired and took over HRnavi, a division of I-GLOCAL, which I have been managing ever since.
At that time, the perception of Vietnamese talent in Japan was not always positive, partly due to the prevalence of illegal recruitment channels and human trafficking. As someone deeply connected to both Japan and Vietnam, I felt a strong responsibility to change this situation. While I-GLOCAL specialized in certified professional industries, it faced challenges in the human resources service sector. This prompted me to take over HRnavi and dedicate myself to this field.
―Have there been any significant changes in your business or operations since you took over HRnavi?
When I first took over HRnavi, the salary and evaluation system was modeled after Japanese companies, as I had been working in Japanese firms. This system did not include commission-based pay. However, to better align with local needs, I gradually increased the proportion of incentive-based pay. Specifically, I restructured the compensation system into three tiers: basic salary, competency-based salary, and bonuses, adopting the U.S.-style 3P Remuneration System*, which includes quarterly bonuses.
Starting in 2022, I further refined the performance-based pay structure and introduced quantifiable incentives, such as paying 50,000 VND (approximately 295 JPY) per phone call and 70,000 VND (approximately 413 JPY) per interview. Although the KPIs were set at a stricter level compared to other companies in the industry, I increased compensation to attract highly motivated talent.
Additionally, having worked in large companies, my initial approach after taking over was to follow the model of major Japanese firms, hiring and training a large number of new graduates. However, over time, I gradually reduced the emphasis on hiring new graduates and shifted the focus towards skill-based recruitment.
*3P Remuneration System: A salary structure where employees are fairly evaluated based on Position (job title), Person (competency), and Performance (achievements).
―Could you explain why you decided to switch to the 3P Remuneration System?
A friend of mine who had worked for an American company advised me that “the American style is better suited for Vietnamese.” It was challenging at first, as we had to establish KPIs, but once the targets were clearly defined, it became much easier to measure performance. As a result, the staff naturally became more motivated and proactive, which was a significant benefit.
Surprisingly Few Human Resource Companies Provide the Most Basic Services in a Straightforward and Expected Manner
―Are all of your client companies Japanese?
While we do have some Vietnamese companies as clients, they are in the minority. Since recruitment fees are not inexpensive, the number of companies in Vietnam that can afford them is relatively small. However, I am always eager to introduce exceptional Japanese talent to dynamic Vietnamese companies and witness new developments.
―Your company is headquartered in Vietnam. How do you approach acquiring new clients, particularly Japanese companies?
Currently, we are limited to working with companies with which we established relationships during the I-GLOCAL era and through those connections. As our headquarters are not in Japan, we face challenges in having our representatives in Japan visit us, or in sharing talent information between our Japan and Vietnam offices. However, in the future, I hope our staff can experience Japanese values in some way.
In business, the Japanese sense of values is something that cannot be learned from textbooks. I understand this firsthand because I have worked in Japan. For example, when I joined a company in Japan and they arranged housing for me, I once forgot to pay rent for a week. The CEO called me and reprimanded me severely, explaining that it was a matter of the “company’s credibility.” This is a value unique to the Japanese, and it’s something Vietnamese people may not inherently understand.
―How do you distinguish your company from its competitors?
The 18 years of history and achievements in our business are significant strengths. Many of our client companies have been with us since our inception, and we are deeply familiar with their needs and the type of talent they seek. In terms of recruitment, the candidates we introduced at the start of our business are still active today.
Another distinguishing factor is our commitment to providing standard services efficiently. As a result, we set our introduction fees higher than our competitors. While reducing our fees might generate more inquiries, we are dedicated to offering high-quality services by maintaining this higher fee structure.
What do you mean by “Providing the basic services as a standard practice”?
For example, we provide candidates with detailed explanations about the companies they are considering, including their websites, business operations, and corporate culture. While this may seem like a standard service, surprisingly few competitors actually practice it.
Additionally, even after a hiring decision is made, we offer thorough services such as conducting pre-joining meetings with candidates to confirm their intentions. Initially, we were hesitant to implement these meetings due to the additional workload involved. However, after realizing that these meetings significantly reduce last-minute withdrawal, we now actively incorporate them into our process.
Revamping Traditional Japanese Salary Systems to Appeal to Highly Skilled Talent.
―Tell us about the market in Vietnam at the moment.
The overall economy of Vietnam is showing signs of improvement. With the absence of inheritance and property taxes, many individuals have been able to save more as their incomes increase.
However, in terms of recruitment, the number of Japanese companies expanding into Vietnam has declined since the COVID-19 pandemic. This has led to fewer opportunities for Vietnamese workers to switch jobs to Japanese companies, resulting in a decrease in job-hopping.
Additionally, there has been a pronounced polarization of skills in recent years. On the one hand, there are individuals with low incomes who lack both opportunities and motivation to learn. On the other hand, some continue to upskill themselves, achieving higher careers and salaries than their Japanese counterparts. For example, a Vietnamese woman I know, who works for a Vietnamese company as a specialist in corporate restructuring, earns a monthly salary of 200 million VND (approximately 1.2 million JPY).
―A salary of 200 million VND per month in Vietnam is impressive. What challenges do Japanese companies need to address in order to recruit top talent?
Japanese companies currently struggle to offer competitive benefits compared to other foreign firms. For example, Vietnamese companies are quick to adapt and revise their pay structures to drive rapid growth, whereas Japanese companies tend to lack this flexibility. As a result, individuals who start their careers at Japanese companies often follow a fixed trajectory for both their career and salary, remaining with the same company without questioning this path. In contrast, those who begin their careers with U.S. companies and later transition to Japanese firms often find the rigid structure and predetermined routes incompatible, leading to higher turnover.
On the other hand, some Vietnamese professionals feel reassured by the stability of Japanese employment practices. Even if salary growth is modest, they appreciate the consistency of Japanese firms. Additionally, Japanese companies are more inclined to hire new graduates who may not show immediate outstanding talent but are considered “good behavior” candidates with “future potential.” This nurturing approach resonates with some Vietnamese employees, who, in turn, stay with Japanese companies long-term. Thanks to this compatibility, our company has not yet faced a significant shortage of human resources.
―Lastly, could you share your plans for future initiatives?
We plan to leverage AI to enhance our team’s capabilities. Currently, we are using a dedicated ChatGPT account for drafting proposals and planning documents, which has significantly improved their quality—from a score of 5 out of 10 to 7 or 8. Moving forward, we aim to implement an automated resume input system and focus on creating an environment that allows us to deliver better services more efficiently.
HRNAVI JOINT STOCK COMPANY
Room 09, 6th Floor, Pearl 5 Center, No. 5 Le Quy Don, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam
https://www.vietwork.jp/
Established in 2007, HRnavi is a Vietnamese recruitment agency that operates the local job search portal “VietWork” and provides comprehensive consulting services for local talent.
Selected as a government-sponsored international exchange student, Mr. Nguyen studied and worked in Japan from 1996 to 2006 before returning to Vietnam. Upon his return, he began consulting for Japanese companies. Noticing that many Vietnamese professionals—aside from a few exceptional individuals—lacked team-oriented skills and productivity from a Japanese perspective, he founded HRnavi Joint Stock Company in 2010, focusing on recruitment services. Motivated by a mission to enhance the skills of Vietnamese talent, Mr. Nguyen remains dedicated to this cause every day.
