kế hoạch marketing xuất khẩu lao động trong lĩnh vực cơ khí, xây dựng xâm nhập vào thị trường của nền văn hóa trung cận đông e

KẾ HOẠCH MARKETING XUẤT KHẨU LAO ĐỘNG TRONG LĨNH VỰC
CƠ KHÍ, XÂY DỰNG XÂM NHẬP VÀO THỊ TRƯỜNG CỦA NỀN VĂN HÓA
TRUNG CẬN ĐÔNG

Topic: Marketing planning for the product of company can enter the market of
Middle East countries Cultural (Saudi Arabia, Iran, Iraq)

Product: Labor exporting in the fields of Mechanical Engineering, Building

Market: Saudi Arabia market

TABLE OF CONTENTS
Foreword
I.

ANALYSIS OF EXTERNAL ENVIRONMENT

I.1 Analysis of macro environment
1. Geography and population
2. Politics
3. Economic Environment

1


I.2 Analysis of the industry environment
1. The needs assessment
2. Competitive Analysis
II. ANALYSIS OF CULTURE’S EFFECT ON THE MARKET
1. Saudi Arab Culture
2. How do the cultural differences between Vietnam and Saudi Arab affect

business?
3. Positioning
4. Selecting a market segment

III.

MARKETING STRATEGY

1.

Pricing strategy

2.

Distribution strategy

3.

Communication Strategy

4.

Human Strategy

IV.

CONCLUSION

2

Foreword
Why choose this market?
When the potential labor market like Korea, Taiwan is at risk of closure to
Vietnam Labor due to "labor escape," labor exporting in country in general and for
our company in particular is difficult to fill the labor contract signed with Malaysia
partners because low wage in Malaysia do not attract workers.
So company needs to explore new markets like the Middle East, Japan, and
USA, to make sure to catch the market and achieve better business results. We group
06 propose Company a solution for labor exporting to Saudi Arab market and this
is a safe and good income market (political stability). Middle East is considered as
the open market, capable of receiving large numbers of foreign workers, not specify
quotas as other countries. Industries receiving the labor are much diversified, to
nearly 100 industries. Most labor-intensive industry is now building and mechanical
engineering. The number of Vietnam labor-received in this market is very
small. Therefore, the Ministry of Labor - Invalids and Social Affairs organizes the
business and workers Supporting Program to recruit in this market. Ministry of Labor
- Invalids and Social Affairs set a target from 2010 onwards, each year will export
50,000 workers to Saudi Arabia.

3


I. ANALYSIS OF EXTERNAL ENVIRONMENT
I.1 Analysis of macro environment
1. Geography and population
The Kingdom of Saudi Arabia

al-Mamlakah al-‘Arabiyyah as-Sa‘ūdiyyah,

commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah,
is the largest state in Western Asia by land area, constituting the bulk of the Arabian
Peninsula, and the second-largest in the Arab World. It is bordered by Jordan, and
Iraq on the north and northeast, Kuwait, Qatar and the United Arab Emirates on the
east, Oman on the southeast, and Yemen on the south. It is also connected to Bahrain
by the King Fahd Causeway. The Red Sea lies to its west, and the Arab Gulf lies to
the northeast. Saudi Arabia has an area of approximately 2,149,690 km2 (830,000
sq mi), and it has an estimated population of 27 million, of which 8.8 million are
registered foreign expatriates and an estimated 1.5 million are illegal immigrants.
Saudi nationals comprise an estimated 16 million people.
2. Politics
Saudi Arabia is an absolute monarchy, although, according to the Basic Law of Saudi
Arabia adopted by royal decree in 1992, the king must comply with Sharia (that is,
Islamic law) and the Quran. The Quran and the Sunna (the traditions of Muhammad)
are declared to be the country's constitution, but no written modern constitution has
ever been written for Saudi Arabia, and Saudi Arabia remains the only Arab Nation
where no national elections have ever taken place, since its creation.
No political parties or national elections are
permitted and according to The Economist's
2010 Democracy Index, the Saudi government is
the seventh most authoritarian regime from
among the 167 countries rated.
On 25 September 2011, Saudi Arabia's King
Abdullah has announced that women will have
the right to stand and vote in future local

King Abdullah of Saudi Arabia
4

elections and join the advisory Shura council as full member and be able to run as
candidates in the municipal election, but the King never yet mentioned about not
allowing women to drive cars and to live a life without male guardians.
The Al ash-Sheikh and the political role of the ulema:
Saudi Arabia is almost unique in giving the ulema (the body of Islamic religious
leaders and jurists) a direct role in government. The ulema have also been a key
influence in major government decisions. In addition, they have had a major role in
the judicial and education systems and a monopoly of authority in the sphere of
religious and social morals.
Monarchy and royal family
The king combines legislative, executive, and judicial functions and royal decrees to
form the basis of the country's legislation. The king is also the prime minister, and
presides over the Council of Ministers (Majlis al-Wuzarāʾ), which comprises the first
and second deputy prime.
The royal family dominates the political system. The family’s vast numbers allow it
to control most of the kingdom’s important posts and to have an involvement and
presence at all levels of government
3. Economy Environment

5


Saudi Arabia is the 19th largest exporter and the 20th largest import market in the
world. Exports now represent all economic sectors. Topping the list of exports to
some 90 countries are petrochemicals, plastics, metal goods, construction materials,
and electrical appliances.
Saudi Arabia's command economy is petroleum-based; roughly 75% of budget
revenues and 90% of export earnings come from the oil industry. The oil industry
comprises about 45% of Saudi Arabia's gross domestic product, compared with 40%

from the private sector (see below). Saudi Arabia officially has about 260 billion
barrels (4.1×1010 m3) of oil reserves, comprising about one-fifth of the world's
proven total petroleum reserves.
The government is attempting to promote growth in the private sector by privatizing
industries such as power and telecommunications. Saudi Arabia announced plans to
begin privatizing the electricity companies in 1999, which followed the ongoing
privatization of the telecommunications company. Shortages of water and rapid
population growth may constrain government efforts to increase self-sufficiency in
agricultural products.
Oil price increases of 2008–2009 have triggered a second oil boom, pushing Saudi
Arabia's budget surplus to $28 billion (110SR billion) in 2005. Tadawul (the Saudi
stock market index) finished 2004 with a massive 76.23% to close at 4437.58 points.
Market capitalization was up 110.14% from a year earlier to stand at $157.3 billion
(589.93SR billion), which makes it the biggest stock market in the Middle East.
OPEC (the Organization of Petroleum Exporting Countries) limits its members' oil
production based on their "proven reserves." The higher their reserves, the more
OPEC allows them to produce. Saudi Arabia's published reserves have shown little
change since 1980, with the main exception being an increase of about 100 billion
barrels (1.6×1010 m3) between 1987 and 1988. Matthew Simmons has suggested that
Saudi Arabia is greatly exaggerating its reserves and may soon show production
declines (see peak oil).
Saudi Arabia is one of only a few fast-growing countries in the world with a relatively
high per capita income of $24,200 (2010). Saudi Arabia will be launching six
6


"economic cities" (e.g. King Abdullah Economic City) which are planned to be
completed by 2020. These six new industrialized cities are intended to diversify the
economy of Saudi Arabia, and are expected to increase the per capita income. The
King of Saudi Arabia has announced that the per capita income is forecast to rise from

$15,000 in 2006 to $33,500 in 2020. The cities will be spread around Saudi Arabia to
promote diversification for each region and their economy, and the cities are projected
to contribute $150 billion to the GDP.
However the urban areas of Riyadh and Jeddah are expected to contribute $287
billion dollars by the year 2020.
In December 2005, Saudi Arabia joined the World Trade Organization (WTO), a
significant development that gives Saudi products greater access to global markets,
creates jobs and encourages foreign investment.
Year 2010 GDP is approximately 676 billion USD; income per capita is about
$25.345/year
I.2 Analysis of the industry environment
1. The needs assessment
Foreign employees: Saudi Arabia is a destination for workers who are seeking
employment from South, East Asia, East Africa and the Middle East. Hundreds of
thousands of unskilled labor from developing countries have migrated to Saudi
Arabia.
In addition to United Arab Emirate (UAE) and Qatar, Saudi Arabia is considered as
the market demand for huge labor from Vietnam. Ministry of Labor - Invalids and
Social Affairs said Saudi market can absorb hundreds of thousands of foreign
workers/year.
Saudi Arabia is an easy market, which may receive unskilled workers and workers
with professional skills. The areas with diversified needs: oil and gas, nurse, assistant,
engineering, construction...
Recruitment Criteria to Saudi Arabia is also suitable for Vietnamese: male from 21 to
50 years old, 160cm height and weighs 60kg or more, graduate secondary school or
7


higher; have no criminal records; healthy enough to work in foreign countries in
accordance with the Ministry of Health regulation. Except for skilled workers they

must have work experience of two years or more.
2. Competitive Analysis
As mentioned above Saudi Arabia market can receive hundreds of thousands of
foreign workers/year. Overall this market is not limited quotas. So this is a huge
market for companies to exploit.
According to the Ministry of Labor - Invalids and Social Affairs, in 2009, Vietnam
exported to the Middle East about 10,000 workers, of which the workers exported to
Saudi Arabia is very modest about 1,000 workers.
About the competitor:
•

Foreign competitors:

Indonesia, Philippine has similar cultures to Saudi Arabia, population and labor is
large, India is a country whose culture is also closer to Saudi Arabia than
Vietnam. Wage in this market is acceptable for the majority of employees in the other
countries and China, so they were very favorable in the export of labor in this
market. Particularly

Indonesia

exports

to

the

Middle

East

over

25,000

employees/week, for Philippine is over 10,000 employees/ week. Vietnam still has to
compete with other strong labor exporting countries as China, India.
However, recently, Indonesia request Saudi to sign a memorandum on the protection
of employees and said it will stop sending labors to Saudi Arabia until the note was
signed. Indonesia has been discussed for months demanding Saudi Arabia to increase
the minimum wage for maids and ensure the working conditions for workers in
Indonesia. Philippine has also imposed more conditions in the recruitment and use of
their employees. Arabnews.com quoted a spokesman of the Saudi Arabia Ministry of
Labor Hattab Bin Saleh Al-Anzi that Saudi will find the labor supply and house maids
from other countries "because many countries are interested in sending labors to
Saudi.”The statement is an opportunity for other countries to exploit this market
(including Vietnam).

8


Ministry of Labour - Invalids and Social Affairs has been promoting the program to
export 50,000 workers to Saudi Arabia each year. This actually increases the
competitiveness of our company in particular and Vietnam enterprises in general.
•

Domestic competitors

Our company is one of the enterprises licensed to export labors to Saudi Arabia by
Ministry of Labor - Invalids and Social Affairs (over 50 companies) so the domestic

competitors is now the licensed enterprises. When market is favorable it will
stimulate other firms entering the market.
Because market demand is not limited so competition among recruiting firms mainly
in the skill and high or low cost to export labor.
The company should:
•

Align with policies of supporting to send labors working overseas under
contracts for the nine provinces: Nghe An, Ha Tinh, Quang Binh, Quang Tri,
Phu Yen, Khanh Hoa, Ninh Thuan, Binh Dinh and Hau Giang to recruit the
workers with the low expense that employees need to pay so labor supply here
will be large (because employees in the rural areas is mostly the poor if the
cost is too high, they will not meet financial requirement).

•

Recruit skilled labor from the training institution in the country.

•

Recruit the worker back from another country because these people have
experience working abroad.

•

Do well in training and retraining skills, foreign language proficiency for
employees. Educate knowledge of Arab culture for employees. Also need to
educate them about the typical cultures of China, Japan, U.S., Europe for them
because there are many foreign workers come from different nationalities
working and living in Saudi Arabia.

II.

ANALYSIS OF CULTURE’S EFFECT ON MARKET STRATEGY

1. Saudi Arabia Culture

9


The pilgrims are praying at the Masjid Al Haram. Mecca

Water Park at Ri-ace

Saudi Arabia is a very conservative country with centuries-old attitudes and
traditions, often derived from Arab tribal culture. This conservative tendency has been
bolstered by the austerely puritanical Wahhabi form of Islam, which arose in the
eighteenth century and now predominates in the country. The many limitations on
behaviour and dress are strictly enforced both legally and socially. Alcoholic
beverages are prohibited, for example, and there is no theatre or public exhibition of
films. Public expression of opinion about domestic political or social matters is
discouraged. There are no organizations such as political parties or labour unions to
provide public forums.
Daily life is dominated by Islamic observance. Five times each day, Muslims are
called to prayer from the minarets of mosques scattered throughout the country.
Because Friday is the holiest day for Muslims, the weekend begins on Thursday. In
accordance with Wahhabi doctrine, only two religious holidays are publicly
recognized, ʿĪd al-Fiṭr and ʿĪd al-Aḍḥā. Celebration of other Islamic holidays, such as
the Prophet’s birthday and ʿĀshūrāʾ (an important holiday for Shīʿites), are tolerated
only when celebrated locally and on a small scale. Public observance of non-Islamic

10


religious holidays is prohibited, with the exception of September 23, which
commemorates the unification of the kingdom.
Islamic heritage sites
Saudi Arabia, and specifically the Hejaz, as the cradle of Islam, has many of the most
significant historic Muslim sites including the two holiest sites of Mecca and
Medina.One of the King's titles is Custodian of the Two Holy Mosques, the two
mosques being Masjid al-Haram in Mecca, which contains Islam's most sacred place,
the Kaaba, and Al-Masjid al-Nabawi in Medina which contains Muhammad's tomb.
However, Saudi Wahhabism is hostile to any reverence given to historical or religious
places of significance for fear that it may give rise to 'shirk' (that is, idolatry). As a
consequence, under Saudi rule, the Hejaz cities have suffered from considerable
destruction of their physical heritage and, for example, it has been estimated that
about 95% of Mecca's historic buildings, most over a thousand years old, have been
demolished.These include the mosque originally built by Muhammad's daughter
Fatima, and other mosques founded by Abu Bakr (Muhammad's father-in-law and the
first Caliph), Umar (the second Caliph), Ali (Muhammad's son-in-law and the fourth
Caliph), and Salman al-Farsi (another of Muhammad's companions).Other historic
buildings that have been destroyed include the house of Khadijah, the wife of the
Prophet, the house of Abu Bakr, now the site of the local Hilton hotel; the house of
Ali-Oraid, the grandson of the Prophet, and the Mosque of abu-Qubais, now the
location of the King's palace in Mecca.
Critics have described this as "Saudi vandalism" and claim that over the last 50 years
300 historic sites linked to Muhammad, his family or companions have been lost. It
has been reported that there now are fewer than 20 structures remaining in Mecca that
date back to the time of Muhammad.
Dress
Saudi Arabian dress strictly follows the principles of hijab (the Islamic principle of

modesty, especially in dress). The predominantly loose and flowing, but covering,
garments are suited to Saudi Arabia's desert climate. Traditionally, men usually wear
an ankle length shirt woven from wool or cotton (known as a thawb), with a keffiyeh
11


(a large checkered square of cotton held in place by a cord coil) or a ghutra (a plain
white square made of finer cotton, also held in place by a cord coil) worn on the head.
For rare chilly days, Saudi men wear a camel-hair cloak (bisht) over the top. Women's
clothes are decorated with tribal motifs, coins, sequins, metallic thread, and appliques.
Women are required to wear an abaya or modest clothing when in public.
•

Ghutrah (Arabic: ‫ )غتره‬is a traditional headdress typically worn by Arab men.
It is made of a square of cloth ("scarf"), usually cotton, folded and wrapped in
various styles around the head. It is commonly worn in areas with an arid
climate, to provide protection from direct sun exposure, and also protection of
the mouth and eyes from blown dust and sand.

•

Agal (Arabic: ‫ )عقال‬is an Arab headdress constructed of cord which is
fastened around the Ghutrah to hold it in place. The agal is usually black in
colour.

•

Thawb (Arabic: ‫ )ثوب‬is the standard Arabic word for garment. It is ankle
length, usually with long sleeves similar to a robe.

•

Bisht (Arabic: ‫ )بشت‬is a traditional Arabic men’s cloak usually only worn for
prestige on special occasions such as weddings.

•

Abaya (Arabic: ‫ )عباية‬is a women's garment. It is a black cloak which loosely
covers the entire body except the head. Usually, the sleeves are decorated with
stitched embroidery and different bright colors or even crystals, and the rest of
the cloak is plain. Some women choose to cover their faces with a niqāb and
some do not. Recently, there's a move towards Abaya colors other than black
especially in the Makkah Province in the west of the Kingdom.

•

Kameez/Kurta Shalwar is a men's and women's garment. It is worn by
Pakistani people in Saudi Arabia.

1. How do cultural differences between Vietnam and Saudi Arab affect on
business?
1.1 The egalitarianism/hierarchy
Countries ranked by the egalitarianism/hierarchy
12


Vietnam: 20 scores; Saudi Arabia: 25 scores
- The Saudi Arabia attaches great importance to hierarchy that are the result of
absolute monarchy, no constitution and parliament. The king holds all power with the
Council of Ministers, social stratification is extremely clear.

- In the hierarchical society, the social structure and institutions are stratified, welldefined for people to interact with each other. People in powerful positions are treated
according to etiquette, with reverence, and respect. The title is often important, and
people base on it to build the command string. In the hierarchical culture, the role of
leaders can be powerful or paternalistic, and people turn their face to the leaders to
get their guidance.
- Therefore, subordinates, employees will have the following behaviors:
+ Employees need the guidance of their superiors, to be monitored regularly, clear
and detail instructions about their role, always check whether leaders understand them
or not, they have very few questions.

13


+ In the hierarchical society, the meeting was convened to discuss about the available
decision or will be made by the leaders. In Vietnam, there are some differences that
the opinions are contributed and decided by majority of people, when the majority
decided, others comply to do.
+ They will not have much of personal opinion; avoid giving comments about
subordinates, superiors and self-evaluating.
Although Vietnam has the advantage of being in the group of countries ranked in the
egalitarianism/hierarchy closer to Saudi Arabia than the rest of the group, but there
are still major differences. So the employees need to be train the compliance with
the direction of superior, the available standards of Saudi Arabia society before
sending workers to this country.
•

2.2 Place the emphasis on group
The ranking in terms of the group focus

Vietnam: 25 scores; Saudi Arabia: 21 scores

•

Maintaining a harmonious environment is both important and beneficial to all
members.

•

Loyalty is the prime importance. Personal are cared and protected by the
family and group. It is believed that the group is always greater than the total

14


number of individuals forming that group.
•

When recruiting, focus on candidates who not talk much about individual
accomplishments, evaluate the candidates with high group focus, they will not
tell them what they do. It is necessary to find out how to work and get success
of the group that they had previously worked for.

•

The manager with a global perspective needs to quickly identify trends in
order to identify whether employees willing to accept the offer or not.

•

They focus on the organization's policies, the integration and the needs of the
group. Loyalty and seniority are important. Therefore there is often the

promotion in the organization, derived from the creative talents of the group,
not the individual.

So it is also favorable for the Vietnam labor when working here because Vietnam
and Saudi Arabia's ranking in terms of group focus are also close together. But
workers need training before they work overseas because of this difference.
* 2.3 Relation
Ranking countries: relation

Vietnam: 17 scores; Saudi Arabia: 25 scores

15


In the transactional culture you expect that interactive friends will be honest and feel
to work best because they have the motivation to work well. There is not any
responsibility other than the transaction. In other words, you do not have to integrate
with them in society, spend time for them to please, or special interest in those who
work with you. In addition, you also think twice before you recruit your friend’s child
to work for your company.
In contrast in the culture which values the relationships, you must value friendship
more than business transaction and even in some cases more than law.
Vietnam is a medium culture between “transaction” culture and “interpersonal”
culture, while Saudi Arabia is the “interpersonal” culture. Thus there are
relatively large differences. Employees need instructions for building the good
relationships with colleagues if superiors particularly boss were fond of you, it
would be beneficial.
•

2.4 Types of communication

Ranking of countries: the style of communication

Vietnam: 17 scores; Saudi Arabia: 21 scores
Saudi Arabian value the indirect information more than the Vietnamese.
•

People who communicate in indirect way value how the message is conveyed,
elegance of language based on a clear verbal message, eloquence.

16


•

Body language is an important part of the message. The context of the
conversation is important.

•

Avoid conflict by always save face for people communicating with
you. Avoiding conflict is the best way to send someone an honor &
respect. The way to talk must be elevated to art. How to behave to make Saudi
Arabia not lose face or help others not lose face in the awkward situation.

•

They convey nonverbal information through body language, gestures, seating
arrangements. In many societies, the speaker's facial expression and how they
view other people is more important than the words they uttered.

•

Body language, gesture of smile, hands clasped in front the feet toed, slightly
stooped forward is showing respect.

•

Eye contact, look away when contact with the Arabian people, often both
talking and observing the facial expression of partners naturally and friendly,
do not stare directly into the eye of partners. Just do not peek.

•

Use 'silent' and 'yes' to avoid conflicts, if the possibility of conflict.
Paying attention further to teach labor how to greet in the host country,
shake hands, talk to save face for listener...

•

2.5 Time orientation
Ranking of countries: Time orientation

17


Vietnam: 10 scores; Saudi Arabia: 5 scores
We see Vietnamese and Saudi Arabian have low time culture and also belong to
the two groups ranked close to each other. But Saudi Arabia is ranked in lower
group than Vietnam. So is very convenient for Vietnam employees working here.
The characteristics of the culture of low ranked groups:

- Time cannot be controlled. If you are late, this should be reluctant.
- The groups of low time constraint often do many things at once and pay more
attention to the emotions of others rather than stick to the plan (multiple lines).
- Maintain a harmonious working environment is more important than sticking to the
plan given arbitrarily.
- It is easy to change plans frequently.
- People often do not want to spend time on meetings because they are not able to
plan to discuss about issues related to work.
- People do not plan ahead of meetings, especially since many people do not plan
until the last minute.
* 2.6 The acceptance of change

18


Vietnam: 10 scores; Saudi Arabia: 10 scores
Thus there are similarities between the two cultures and the category "change
adverse" to benefit the Vietnam people in this market.
“Change adverse” culture is considered as threat to their fundamental values. These
cultures believe they are controlled by the external events, try to keep everything the
same and consider new opportunities as the reason of many problems.
2.7 The energetic in work / Balancing between Work and Life
Ranking each country: The energetic / Balance work - life

Vietnam: 14 scores; Saudi Arabia: scores
The Vietnamese and Saudi Arabian have relatively large differences in enthusiasm/
balance work - life. Thus, when the Vietnamese people work here they are believed
working hard. Because Vietnamese employees would like to work more hours to earn
more money so they should take note in advance about this. If the employer refuses to
let them work overtime, it is no problem.

Conclusion
The total points assessed by CW
Vietnam: 113 Scores; Saudi Arabia: 112 Scores
19


2. Positioning
With a good education system, young population, Vietnam is considered as the
market providing abundant labor resources. It is an opportunity for Saudi Arabian
businesses to exploit the abundant labor resources in Vietnam.
In addition to export many workers to Saudi Arabia people should focus on training,
education and improving skills to ensure the prestige of Vietnam Labor - that's the
key to export more workers to Saudi Arabia.
3. Selecting a market segment
Vietnam Labor here is negligible compared with other countries. Saudi Arabia has
demand to receive the labor in many areas, the problem is that we can meet those
needs or not. For example, the field of hotel services, sales ... they need workers with
foreign language proficiency, but the majority of Vietnam Labor does not know
foreign languages. The job in this sector is very high paying (from 1,000 to $
5,000/month). Even for construction they have huge demand and this is a forte area of
labor from Vietnam.
Market segmentation of maid in the Saudi family is in great demand but this job is
more complicated and the government does not encourage this segment.
Vietnam has strength in mechanical engineering and building so company will
focus on this market segment.
IV.

MARKETING STRATEGY

1. Pricing strategy

The low cost of exporting labor to attract employees: Currently the government
encourages and supports to develop this market so it is very favorable. The cost labor
required to pay is lower than working in South Korea, Taiwan, USA, ... Specifically,
the owner shall also buy the return airline ticket for labor when completion of
contract, support accommodation, insurance, medical services. In addition, the owner
shall also be provided three meals/day or meal allowance of 55 USD/month. To work
in Saudi Arabia, worker only need to pay $1,750 for all kinds of worker, drivers;
20


$1,550 for unskilled workers. This fee is used for brokerage fees or management
service fee charged two years ahead, single airline ticket, visa cost and certain other
expenses.
Since the brokerage company operates in Saudi Arabia under the law and regulation
of the Council of Saudi Arabia National Recruitment (Sanarcom), the partners when
receiving the labor is responsible for labor-management process.
Whether going to Thailand to apply for visa of
workers, visa application and necessary procedures for
workers to work in Saudi Arabia is quite favorable
compared to other labor exporting markets.
The Vietnamese workers are working in Saudi Arabia
with high income and good working conditions. In the
near future, Saudi Arabia will open its embassy in A building construction in
Vietnam so the procedures for employees to exit will Dubai
be faster.
•

with

Vietnamese

worker. Photo: Hong Van

Whether the wage in this market is attractive for employees or not?

According to Nguyen Ngoc Quynh - Director of the Overseas Labor Management
Department (Ministry of Labour - Invalids and Social Affairs), working in Saudi
Arabia is not only high income but also a stable and low risk market.
Saudi Arabia needs to recruit labor working in various fields including unskilled
workers. According to the order the labor-exporting companies registered with the
Department of Overseas Labor Management, worker when working in this market
will be supported in the loan procedures in banks.
Cost of living is low, about 100 USD/month.
Unskilled workers working in Saudi Arabia have received approximately five million
dong/month. Electrician gets seven million/month; workers in construction field get
6.8 million/month.
Other industries: driver (7 million VND/ month); container driver (10 million VND/
month); excavator-iron driver (7 million VND/ month).
21


In addition, overtime salary shall also be multiplied by a factor in accordance with the
Saudi labor law. As for container driver, in addition to basic salary, they shall also be
awarded according to job performance (each working day will be rewarded 240
thousand dong).
It is confirmed that, compared to other markets, this market's earnings are not
high but steady and consistent with the poverty alleviation of the majority
Vietnam Labor.
Duration of the contract while working in Saudi Arabia is two years and may extend
more two years; working time is eight hours/day, six days/week.

For the cost of sending labor, the Company will implement the policy:
•

Low cost for workers

•

Higher wage than the average of market

To implement this strategy the company accepts profit and difficulty sharing with the
employee to recruit well and keep prestigious with customers if the employee has a
better income they will try harder. The company also must accept little number of
contract signing at the beginning. Because of prestige, Company can sign more
contracts and total profits increase with increasing numbers.
2. Distribution strategy
Since all employers in Saudi Arabia do not sign contracts directly with partners in
domestic labor exporting, it is necessary to build good and confident relationships,
good partners with the brokerage firms in Saudi Arabia. For example, Fozan Al
Musharraf Manpower Supply Company (Saudi Arabia), "clues" of most labor
exporters in Vietnam to exploit this market. Building customer relationships with
these confident clues is key to the success of your business.
A good sign is confirmed by Fozan Al Musharraf (interview with Economic Times),
general manager of Al Fozan Musharraf Manpower Supply Company (Saudi Arabia),
"clues" of most labor exporters in Vietnam Labor exploiting this market, "Saudi
Arabia is favorable labor in Vietnam."

22


3. Communication Strategy

Currently the Government, Ministry of Labor, Invalids and Social Affairs, Ministry of
Foreign Affairs, Chamber of Vietnam Commerce and Industry are promoting this
activity.
For the labor exporting company we need to instill the labors that working in Saudi
Arabia is safe to do recruitment well.
Due to the needs of workers in the rural areas of Vietnam is so large, we believe that
the main difficulty in the recruitment process is recruiting the candidates with good
health, the skill, sense of workers.
4. Human Strategy
Recruiting: The recruiting for the manager in Saudi Arabia the candidate must meet
the criteria and characteristics of global leaders: fluent in English, high professional
qualification, 05 year experience in the field of labor exporting, understanding Arab
culture, culture of Vietnam
+ Thinking globally
+ The persistently pursuit of goals
+ Diversity in Management
+ The cultural sensitivity
+ The persistence of emotion
+ Ability to establish relationships
Recruitment and training of employees:
•

Firstly recruit labor meeting requirements, such as men age from 21 to 50
years old, 160cm height and weighs 60kg or more; secondary school graduates
or higher, no criminal records; healthy enough to work in foreign countries in
accordance with the Ministry of Health regulation. For skilled worker,
minimum 02 year working experience.

•

Priority to recruit worker of local supported by government.

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•

Recruit worker in poor province with large number of population.

•

Recruit skilled labor from the vocational school in Vietnam.

•

Recruit workers back from other countries because of contract termination and
now want to work overseas.

•

Select candidates with good health, the skill, good sense. Need to train and test
skill of employees, well educate the Vietnam and Arab culture, educate the
specific culture for employees.

•

Train and retrain skill combined with English training for employees (because
Saudi Arabian also speak English, English is easier to learn than Arab).
V.

CONCLUSION

To have a successful business strategy in Saudi Arab market, the cultural factors are
decisive factors.

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References

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Charlene M. Solomon & Michael S. Shell "Managing Across Cultures"

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