Labour market needs top talent to embrace new trends

VIETNAM, July 13 - By Mai Hương

Over the past five years, Việt Nam's labour market has undergone significant transformation due to technological advancements, the COVID-19 pandemic, and economic shifts, necessitating adaptation from both employees and recruiters to new trends.

The Fourth Industrial Revolution, the COVID-19 pandemic, AI advancements like ChatGPT, the rise of the chip industry, tech sector volatility, economic slowdown since late 2022, digital banking transformation, increased corporate ESG focus, supply chain shifts from China, and Chinese investment in Việt Nam have all significantly impacted the labour market, both positively and negatively.

According to Ngô Thị Ngọc Lan, Northern director of Navigos Search, job openings are now concentrated in business, marketing, technology, R&D, production, finance-accounting, and human resources.

High-demand roles include UI/UX Designers, Data/Business Analysts, Chip Design Engineers, Environment Experts, and GPU Engineers. Companies from China and major R&D centres continue to maintain or increase hiring, particularly in manufacturing and banking.

In an interview with Việt Nam News, Lan said that employers were facing significant challenges in finding suitable personnel.

One of the biggest hurdles is the scarcity of candidates with the skills and experience required for new job roles, according to Lan.

For example, the demand for data scientists and chip design engineers outpaces the supply of qualified labour in the Vietnamese market. Employers now seek candidates with a combination of technical expertise, problem-solving skills, good communication abilities, foreign language proficiency, and adaptability. The quality bar for candidates has been raised, with companies expecting higher performance levels than in the past.

“As customers become more demanding, requiring higher quality and greater quantities at lower prices, businesses also need to demand higher quality from their employees and candidates. Previously, companies were willing to hire candidates with skills and experience rated at 5 or 6 out of 10, but now they require candidates to be at 7 or 8. The number of people who can meet this higher standard is limited, making it difficult for businesses to recruit sufficiently or promptly,” Lan said.

In addition, Vietnamese businesses increasingly value the role of skilled workers, especially those in managerial or leadership positions, and are open to attracting candidates from abroad or engaging with foreign enterprises to recruit talent, Lan observes.

However, there remains some hesitation among these candidates in deciding to switch work environments and adapt to Việt Nam's corporate culture. Thus, many companies have heavily invested in employer branding campaigns to change their image as employers and have achieved notable successes.

Việt Nam remains an attractive destination for foreign investors, particularly in manufacturing. However, investment trends are shifting from labour-intensive industries to those requiring high technical content and automation, which demands a higher quality labour force.

Phạm Hoài Nam, director of the Population and Labour Statistics Department at the General Statistics Office, acknowledged that the labour market still faced limitations, particularly with the quality of the labour supply not meeting the demands of a modern, flexible, sustainable, and integrated labour market. Notably, over 70 per cent of the workforce lacked formal training.

Labour quality had seen little improvement, with a substantial segment of informal workers in precarious positions comprising over three-fifths of the total workforce. In an economy moving towards greater industrialisation, Nam said the imperative for a skilled and educated workforce was paramount. Consequently, there was a rising recognition within the Vietnamese labour community of the necessity for ongoing learning and skill enhancement.

"Expanding educational institutions can significantly boost the number of continuously trained workers. Việt Nam has prioritised enhancing education quality and expanding educational infrastructure to offer greater learning opportunities for its citizens, enabling workers to pursue further education and enhance their skills upon joining the workforce," Nam said.

Demand from future workforce

Việt Nam boasts of being one of Southeast Asia's largest and most dynamic labour markets, with 51.4 million people currently employed as of June, accompanied by a consistently low unemployment rate. Vietnamese workers play a crucial role in the country's economic and social advancement.

Currently, Generation Z (born 1997-2012) and Millennials (1981-1996) constitute 54 per cent of the workforce, while Baby Boomers (1946-1964) make up just 0.6 per cent. By 2025, Generation Z is expected to comprise 25 per cent of the total workforce.

As the future workforce, Generation Z brings a distinct perspective on productivity drivers and workplace preferences.

Ivan Loo, associate director at Talentvis – a recruitment agency in Southeast Asia – highlighted the significant transformations driven by technological advancements and shifting employee expectations.

The expansion of the digital economy has increased the demand for professionals skilled in IT, e-commerce and digital marketing. Additionally, the trend towards flexible and remote work arrangements has provided diverse job options catering to individual preferences.

Vietnamese workers are seeking better work-life balance, higher salaries, and more fulfilling careers.

Loo said employers were encouraged to adapt by offering upskilling opportunities, competitive salaries, benefits, and flexible work arrangements. This approach would help in fostering a better work environment and improving employee retention.

“We encourage employers to truly understand and get in touch with the demands of today's employees through upskilling opportunities. This fosters a better work environment and improves employee retention as they grow trust in their employer’s ability to value their work and train them to keep up with the market,” he said.

"Employees today focus on maintaining a healthy balance between their professional and personal lives. They seek opportunities that allow them to excel in their careers while also having time for family, hobbies, and personal interests," Loo said.

He suggested organisations could adapt by offering flexible work arrangements like remote or hybrid options, flexible hours, or compressed work weeks. Investing in training would show commitment to professional growth, while clear career pathways would foster engagement and loyalty. Creating a supportive, inclusive workplace culture where employees feel valued and engaged was essential, he said.

A recent report by Jobs_that_makesense Asia and Manpower, "The Quest for Meaning at Work", revealed that in Việt Nam, when seeking new employment, salary and job stability are primary concerns for 40 per cent of respondents. One-third prioritise career and personal growth, while 26 per cent emphasise maintaining a positive work-life balance for professional satisfaction.

Việt Nam's labour market is evolving rapidly, influenced by technological advancements and changing employee expectations. By adapting to these trends and leveraging digital tools, organisations can draw in and retain top talent, foster employee satisfaction and productivity, and achieve their business objectives in a competitive labour market. VNS

51.4 million people employed in Q2: GSOHÀ NỘI The number of people employed in the second quarter of this year reached 51.4 million, increasing by 195,800 compared to the same period last year, the General Statistics Office has reported.Notably, the rate of those joining the labour force in Q2 was reported at 68.6 per cent, the office said.During the April–June, the nationwide labour force aged 15 and above stood at 52.5 million, lifting the total in the first half to nearly 52.5 million, marking a rise of 196,600 year-on-year.In the last quarter, the percentage of Vietnamese working people with degrees or certificates accounted for 28.1 per cent, up 0.3 percentage points compared to the previous quarter and by 1.3 percentage points year-on-year.Meanwhile, the unemployment rate among the working-age population in the period remained unchanged at 2.27 per cent compared to the same period in 2023.The average income of working people in the first half of 2024 was VNĐ7.5 million (nearly US$300) per month, up 7.4 per cent compared to the same period last year.