More discretion over headcounts in 2025, but hiring remains competitive

In 2024, the global economic slowdown, geopolitical conflicts and supply chain disruptions dealt a blow to the hiring market in Vietnam, particularly for engineering and manufacturing businesses funded by foreign direct investment (FDI). However, hiring activities proceeded at a moderate pace as Vietnam remains a key operating location for foreign players.

According to Trang Nguyen, Senior Manager at Robert Walters Vietnam, much of the hiring demand stemmed from FDI inflows, which led to a huge surge in megaprojects in electronics and semiconductors in the north and smaller to medium-sized projects in the south. This comes as many businesses have chosen to base their first overseas production sites in the country, while others entered the market as part of efforts to diversify operations as part of the “China Plus One” strategy.

“Nevertheless, most hiring came out of necessity – when a position becomes vacant, or when expansion plans and client requests require a new headcount,” says Trang. “Businesses will likely maintain this level of caution going into 2025.”

Read on to find out more about Trang’s expectations for Vietnam’s labour market and hiring trends for Engineering & Manufacturing professionals in 2025. 

Skills-based hiring takes the stage

Economic uncertainties loom large for the manufacturing industry, so many businesses will continue to be prudent when planning their headcount in 2025. However, Trang points out that they will still need support executing projects that were registered in the previous year, and there is also a steady stream of new projects forthcoming. As such, the hiring market remains competitive, with demand outstripping supply.

“Many employers are struggling to find the talent they need, as candidates either lack the experience they need or ask for salary and benefits they can’t fulfill,” Trang reveals. “This will spur them to double down on existing efforts to retain and upskill their existing talent.”

In hiring, employers will take a skills-based approach, prioritising candidates who possess the skills they need. Some of the most valuable attributes they are looking for are agility and business smarts, while the bar is higher for talent at the leadership level, who will be expected to lead and unite teams through restructuring exercises. 

Industry prioritises business-savvy leaders

In 2025, companies will place a premium on candidates that possess strong business acumen. They are also on the lookout for professionals that have a proven track record in operations optimisation and resource utilisation, with strong communications skills to match. Prior experience leading teams or the company through transitions and key projects is also highly valued.

The most in-demand positions are general managers, plant managers, project managers, and quality managers and directors.

Create a positive candidate and employee experience 

“Engineering and manufacturing professionals are generally open to hearing more about opportunities on the market, as most are either casually or actively looking to change jobs within the year,” Trang relates. “However, they are sizing up each prospective role more carefully, looking into the hiring company’s financial stability, workplace culture and career development prospects.”

Now that candidates are more sensitive to various aspects about a potential opportunity, a strong first impression is vital. From the first point of contact through to the end of the hiring process, companies should aim to provide a great candidate experience, facilitating prompt and conducive interviews.

These concerns can be addressed by clearly outlining career progression pathways and implementing programs and strategies to support employee wellbeing.

As the market continues to face a talent shortage, Trang also recommends that companies consider candidates for the skills they offer, beyond traditional credentials and qualifications. 

Increments expected

Despite global economic uncertainties, salaries are expected to go up, with Trang stating that most employers intend to raise salaries in 2025.

“Mid- to senior management level professionals in enterprises with FDI can look forward to salary adjustments of 5 – 7% if they stay in the same organisation,” she says.

Find out more 

Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in Vietnam.