Vietnam ranks 76/108 in terms of the percentage of women in business management.

A new study by the International Labour Organization (ILO) shows that Vietnam ranks 76th out of 108 countries in terms of women’s participation in management, at 23%. The study also shows a positive relationship between women’s leadership and business performance and calls for increasing the proportion of women in top leadership positions (currently only 5% worldwide).

This is the information given in the research report “Women in Business and Management” published by ILO on January 13.

President Truong Tan Sang met with outstanding Vietnamese businesswomen who won the Golden Rose Cup in 2013, February 2014. Photo: VNA

There are more and more female business leaders.

According to the report, although women remain underrepresented in top leadership positions, the number of women in senior and middle management positions has increased over the past 20 years. The proportion of women in all management positions by country is lowest at 2.1% in Yemen and highest at 59.3% in Jamaica (out of 108 countries).

The Philippines ranked highest in Asia and fourth globally (47.6%), followed by Mongolia at 41.9% and 17th globally. Vietnam ranked 76th with 23% of women holding management roles in businesses.

The proportion of women in management positions has increased over the years in most countries for which ILO data is available, and Vietnam has also seen a modest improvement. According to the Labour Force Survey, the proportion of women in “leadership, management and administration” positions increased by 0.5 percentage points to 24.4% in 2013 compared to 2012, and increased by 0.6 percentage points from 2011 to 2012.

“Our research shows that women’s growing participation in the labour market is the single biggest driver of growth and increased global competitiveness. Numerous studies also show a positive relationship between women’s participation in top decision-making groups and business performance. However, we still have a long way to go to achieve true gender equality in the workplace, especially at the top management level,” said Deborah France-Massin, Director of the ILO Bureau for Employers’ Activities.

The ILO report found that less than 5% of CEOs of large companies worldwide are women. The larger the company, the less likely it is that the head is a woman.

In the case of Vietnam, data from the Global Female CEO Project of a France-based organization (Intelligence Financial Research and Consulting) shows that only 7% of CEOs of more than 600 surveyed companies are women and 14% of board members are women.

“Women taking on senior management roles in strategic areas is particularly important for building a pool of potential candidates for top positions such as CEO or chairman,” France-Massin said. “However, there are still ‘glass walls’ that limit women to certain management positions such as HR, communications and administration.”

Female management is good for business

Today, women own and manage more than 30% of all businesses globally, but the majority are micro and small businesses, and in Vietnam alone, the 2013 Labour Force Survey found that 29.5% of employers are women. The report shows that having more women start and grow businesses is not only important for gender equality, but also has positive implications for national development.

The authors of the study also emphasized that women and girls receive about half of the world's educational resources, so they also make up a significant proportion of talent. Vietnam is no exception. Data from UNESCO shows that the number of women studying at university level or higher has always been higher than that of men in the period from 2007 to 2011.

Research has shown that there is evidence to support the benefits of employing female talent for businesses, including adapting to an increasingly female-led consumer market. As women often control household budgets, make financial decisions and have increasing purchasing power, they are important customers and consumers of products and services. Therefore, decision-making in businesses needs to involve both women and men.

“Supporting women to advance in their careers is not just a matter of gender equality, it is also important for business. Promoting diversity in management by having more women in top positions is key to increasing productivity, competitiveness and thus capturing the economic and social benefits of deeper integration into the country,” said ILO Viet Nam Director Gyorgy Sziraczki.

According to Vietnam+