Human resources is in any era always regarded as company’s valuable property creating value of company. Employee performance affects the survival, competition ability and productivity of each organization. Therefore, motivating employee is necessary for any organization. When being motivated, employee can improve their performance and as the results, the organization can reach its goals. Katolec Vietnam Corporation company (hereafter referred as “KAV”)-100% invested Japanese capitalized company, was established in 2005 with the mission to provide best quality electronic parts for electronic applications. In spite of highly respecting role of employees to success or failure of company, human resources management (HRM), especially motivating employees has been received a little attention from managers. Recently, KAV faces some difficulties in human resources: high turn-over rate; low commitment. This affects much its production activity. Since 2008, the turn-over rate in KAV has increased rapidly. The rate is approximate 35% while other company is just 10%. By the in-depth interview with some former employees, the main reasons for leaving KAV are: Their contributions are not recognized by managers, the treatment is unfair. Employees with good performance, high responsibility are under-evaluated by managers, even their salary is lower than others who have good relationship with managers. On the other hand, KAV do not have good benefits to employees. Employees feel uncomfortable when working. Unclear performance appraisal makes them more dissatisfied. Thus, they only care about their own responsibilities, not concern much about the company’s objectives or company’s problems. The author wish to research and analyse the main reasons leading to de-motivation of KAV employees and suggest some solutions to improve the employee motivation. From this view, the topic “Improving employee motivation in Katolec Vietnam Corporation” was chosen.