This chapter describes the changing Human Resource Management (HRM) practices in Viet-namese enterprises and to develop an explanation of why their HRM practices have developed along this path. It seeks to systematically identify and compare the following HRM practices used in Vietnamese enterprises before and after Doi Moi: recruitment and selection of employees, performance management, compensation and reward management, and training. The chapter then discusses the transformation of the HRM/Industrial Relations (IR) system and contemplates key challenges facing further development of the system in Vietnam. The Confucian values that govern personal relationships, such as respect for elders, loyalty to friends, benevolence on the part of superiors and so forth also influence the conduct of HRM/IR practices such as payment and performance appraisal practices in firms. Finally, at the Human Resource (HR)-specific level, each HR function is facing a different set of constraints to its operation. As far as recruitment and selection is concerned, companies face an unbalanced labour market.