For installing the open source VMware Tools for CentOS, you need first to install the EPEL repository with:
yum --enablerepo=extras install epel-release
Then to install the actual open source VMware Tools, it is indeed:
yum install open-vm-tools
This time, it won't give you any error.
Additionally, if installing VMWare Tools (open or not), take care to make sure you will be using the VMXNET NIC adapter interfaces and disk access paravirtualization.
Whilst normally the VMXNET adapter use/configuration can nowadays be pretty automatic, you need to do extra parametrisation on the ESXi/ESX side to take profit of disk controller paravirtualization (e.g. selecting a paravirtualized disk controller).
See VMWare KB: Configuring disks to use VMware Paravirtual SCSI (PVSCSI) adapters (1010398)
open-vm-tools is nowadays the recommended way to install VMware Tools add-ons due to the complexity that VMWare own official VMware Tools bring.
The official VMware Tools add-ons need to be compiled and installed as modules. Additional development tools, namely gcc and headers, the kernel headers source, and
dkms need to be installed, adding size and complexity to the server, especially in a VM environment. As an additional complication, the official modules have to be (re)compiled each time the kernel is upgraded to a new version; consequently you also need to upgrade every time the kernel headers source, and the added inconvenience and delay of deploying and compiling things is not welcome to people doing system administration of multiple servers.
Whilst the open source VMWare Tools also had to be (re)compiled in the past, nowadays it just need to be installed.
As such, it is nowadays also much more lightweight and conducing to the UNIX philosophy of installing the minimum software needed in a server to install the
Over time, the support for VMWare is also getting incorporated into the Linux kernel (source), and
open-vm-tools is gradually ending up not being much more than wrappers/scripts to interface with the kernel modules. see When do/did I need development tools/kernel source for `open-vm-tools`?
Furthermore, even the VMWare KBs and white papers recommend nowadays installing the open source VMware Tools, and leaving the official own VMWare Tools one for obsolete versions not supported by the open source version.