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Navigos Search, a leading recruitment service in Vietnam specializing in mid-to-senior level recruitment, has announced its Labor Market Report for the first half of 2024. The report offers a comprehensive overview of the labor market trends in Vietnam. It analyzes the fluctuations and emerging trends within the Information Technology, Electronics, and Chinese-invested Manufacturing sectors, providing employers with valuable insights to support their business development.
Global and Vietnamese Labor Market Overview
According to reports from reputable global organizations, global job growth is expected to remain positive in 2024 and 2025, although the growth rate will be relatively low, at approximately 0.8% in 2024 and 1.1% in 2025. The labor force participation rate is anticipated to decline in both years to 60.5% and 60.4%, respectively.
In Vietnam, the General Statistics Office reports a positive trend with an increase in the number and rate of labor force participation, signaling economic growth. However, the unemployment rate (including those currently unemployed, actively seeking work, and available for work) remains stable at 2.27%. The market still needs help with job seekers, particularly in urban areas (2.68%). The youth unemployment rate (ages 15-24) increased by 8% in the first half of 2024.
Information Technology and Telecommunications Sector
At the end of 2023, the global IT sector experienced significant layoffs, with over 262,000 positions cut, primarily from major tech companies such as Meta, Google, Amazon, and Microsoft. The primary reason was the excessive hiring and inefficiencies following the rapid growth during the COVID-19 pandemic.
Navigos Search observes that the IT and telecommunications labor market continues to have high demand in Vietnam, especially for experienced professionals (accounting for 77.3%). This is driven by the digital transformation needs of domestic businesses and the investment from foreign projects in Vietnam, creating a favorable environment for the IT sector to thrive.
Given the rapid development of new technologies, Navigos Search encourages job seekers to enhance their competitiveness by acquiring essential skills such as AI or Machine Learning during this period.
Electronics Sector
The global trend towards clean and renewable energy continues to drive growth in the electronics sector. Since late 2023, the industry has grown substantially with expanding consumer electronics, electric vehicles, and energy storage technologies (e.g., lithium-ion batteries).
According to data and observations from Navigos Search, the demand for experienced professionals in the Electronics sector remains high (74.43%). Additionally, there is significant demand for managerial positions (16.42%) and other roles (8.1%) within the sector.
To succeed in this competitive labor market, candidates in the Electronics sector should equip themselves with specialized skills and deepen their understanding of renewable energy technologies and energy management systems due to the global shift towards sustainable and efficient energy solutions.
Chinese-Invested Manufacturing Sector
China’s investment in Vietnam is increasingly shifting towards high-tech industries, including components and parts for industrial production, electronics, and automotive sectors. In the first half of 2024, the demand for Mandarin-speaking professionals in the workforce has surged, reflecting an increase in recruitment for roles requiring Chinese language skills.
Navigos Search’s data and observations reveal that the labor market in the Chinese-invested manufacturing sector shows a strong preference for experienced professionals (68.26%) and those with managerial experience (21.94%). Chinese-invested manufacturing enterprises are expanding and relocating production activities, necessitating diverse skills and expertise to maintain and enhance business efficiency.
Ms. Tran Thi Hoan, Deputy Director of Navigos Search for Northern Vietnam, recommends: “Due to the rising demand for Mandarin-speaking candidates at Chinese companies and the limited supply, businesses may consider prioritizing recruiting key Mandarin-speaking roles and employing interpreters as additional support. In the long term, companies could explore programs to encourage employees to learn Mandarin at their own pace or offer educational subsidies. Some Chinese firms also encourage their Chinese staff to improve their English proficiency to facilitate international operations.”