Hiring gains speed as Vietnam forges ahead with economic recovery
Vietnam’s hiring market in 2024 reflects an economy in recovery, marked by notable improvements in GDP growth and a strong performance in manufacturing.
Despite weak public spending, Vietnam’s GDP growth accelerated to 6.4% year-on-year in the first half of 2024, compared to 5% in 2023. This uptick was largely driven by manufacturing, which surged from 3.6% in 2023 to 8.8% in H1 2024. Notably, the Industrial Production Index (IPI) recorded a remarkable year-on-year rise of 13.3% by July, and the manufacturing PMI climbed to 54.7 in June and July, reflecting a sharp rise in new orders.
Recovering consumer demand is another driving force behind Vietnam’s economic gains, supported by a firm job market and a low unemployment rate. With labour demand growing in the manufacturing sector, household finances have strengthened, enabling a rise in consumer spending.
Retail sales have kept pace with Vietnam’s economic upswing, with growth increasing to 9.4% year-on-year in July, up from 7.8% in the first half of the year and 6.6% in 2023.
“This sustained rise in retail sales underscores the positive impact of Vietnam’s economic momentum on consumer confidence and spending,” states Phuc Pham, Country Manager at Robert Walters Vietnam.
Read on to find out more about Phuc’s expectations for Vietnam’s labour market in 2025.
Companies and candidates stick to the familiar
While economic indicators paint a brighter picture, Phuc notes that employers and employees alike remain cautious and risk-averse.
Hiring timelines were prolonged in 2024, a trend expected to persist moving into 2025. However, many “boomerang employees” are willing to rejoin a previous employer. Businesses also put out more counteroffers to retain staff, a strategy that Phuc says is ineffective in the long run as two-thirds of employees leave within a year of accepting the counteroffer.
A more sustainable way forward that companies have opted for is hiring on potential. This has allowed companies to fill positions more quickly as they nurture promising candidates to effectively assume the role they have assumed. Looking ahead, more companies are expected to adopt this strategy amidst a tight labour market.
Efforts around sustainability and corporate social responsibility (CSR) will continue, with companies expanding on ongoing efforts to promote these initiatives in the employer branding and hiring. Candidates can expect to see more about how employers are addressing these issues through content on digital channels, in job descriptions, or industry events and reports.
Hiring demand strengthens in select industries and functions
Growth is no longer the sole responsibility of revenue-generating roles like sales or business development. More and more, companies have been strengthening their business partnering capabilities by increasing demand for talent in human resources, legal and finance, as they recognise that these functions can support the business in identifying opportunities and sustaining growth.
Consumer and healthcare industries are also set to benefit from recovering consumer demand.
There will also be stronger hiring demand in manufacturing industries.
Advice for talent attraction and retention
Vietnam’s rapid economic growth has created a wealth of opportunities, but it also means that companies are having to work harder to outdo competitors and attract the talent they need. Already, more companies are relying on executive search, leadership coaching and outsourcing to build and maintain their workforce.
As technology advances rapidly and digital transformation accelerates, the demand for certain skills often exceeds the supply of qualified candidates. Many companies face challenges in finding talent with the right skills and expertise to keep pace with these changes.
Today’s workforce is younger and driven by a rising middle class, with candidates approaching work with new priorities – work-life balance, career development and company culture are now important considerations. With diverse motivations shaping individual expectations, companies often face challenges in meeting these evolving needs and retaining talent.
“Employers should consistently gather employee feedback and keep up with changing market conditions,” states Phuc. “This gives them a better sense of how they can adjust their talent attraction and retention strategies.”
Compensation and benefits remain a key lever in attracting and retaining talent, and Phuc advises companies to keep their packages in line with industry standards. In addition, businesses can also recognise employee achievements and contributions, and these rewards don’t always have to be monetary. Employee appreciation programs can boost morale, and growth opportunities – in the form of training programs, mentorship or clearly defined progression pathways – keep talented employees engaged and looking ahead.
On top of that, companies should also aim to create a positive and inclusive culture that promotes work-life balance, teamwork and collaboration. Flexible and remote work arrangements are particularly attractive to employees seeking work-life balance, and done right, Phuc believes that companies can strike a balance between productivity and flexibility.
“These features and offerings are what makes up a strong employer brand, so be sure to highlight your company values and showcase positive employee experiences across various channels like social media, career sites and industry events.” Phuc concludes.
Salaries remain stable
In 2025, salary increments will hold steady at rates of 15 – 25%.
Find out more
Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in Vietnam.
