Vietnam’s Labor Market: Trends for Employers in 2025
As globalization and technological advancements continue to reshape economies, Vietnam’s labor market is undergoing significant transformations. For international employers, especially those in Europe, understanding the capabilities and trends of the Vietnamese workforce is crucial for establishing effective collaborations.
Vietnamese Human Resource Solutions for International Employers
1. Capabilities of Vietnam’s Workforce
Vietnam is currently experiencing a “golden demographic structure,” with a young and abundant workforce. According to the General Statistics Office, by 2024, the national labor force reached approximately 54.79 million people, with young workers (aged 15-29) accounting for nearly 30% of the total workforce. This presents a significant advantage in adopting new technologies and meeting the demands of international labor markets.
However, the quality of Vietnam’s workforce remains relatively low on the global skill scale. The proportion of trained workers with degrees or certificates was only 20.5% in 2015, equivalent to around 11 million workers. Although labor productivity in Vietnam has increased considerably—averaging a 7.59% annual growth rate from 2015 to 2021—it still lags behind regional competitors. Specifically, Vietnam’s labor productivity is:
- 1/26th that of Singapore
- 1/7th that of Malaysia
- 1/3rd that of Thailand
This highlights the need for further investment in vocational training and skill development to align with international labor market requirements.
2. Labor Market Trends in Vietnam by 2025
By 2025, Vietnam’s labor market is expected to recover and expand. Many companies have secured new contracts, expanded operations, and initiated large-scale projects, leading to a steady increase in recruitment demand.
In Hanoi, for example, hiring needs are projected to rise by:
- 20% in the commercial and service sectors
- 10-15% in manufacturing, processing, construction, and textile industries
Additionally, the demand for professionals in science and information technology will remain high due to the ongoing global digital transformation.
Vietnam’s skilled labor source is a solution for employers in Europe
3. Opportunities and Challenges for International and European Employers
Vietnam and European Union (EU) countries share a strong economic partnership, which includes cooperation in labor supply. The European market is considered a key destination for Vietnamese workers, offering numerous employment opportunities across various industries.
Vietnamese workers have built a solid reputation in international labor markets, known for their diligence and adaptability. However, hiring Vietnamese workers also presents certain challenges for international employers:
- Limited proportion of certified or trained workers
- Lower labor productivity compared to global standards
- Language barriers and lack of soft skills
To address these challenges, Vietnam must implement comprehensive training programs, focusing on professional skills, technical expertise, and language proficiency to meet global employment standards.
4. Solutions to Enhance Workforce Quality
To ensure Vietnam’s workforce meets the demands of international employers, the following solutions should be prioritized:
- Investment in Education and Vocational Training
- Adopting and implementing international training programs
- Standardizing vocational training systems to align with global competency frameworks
- Developing Soft Skills and Language Proficiency
- Enhancing training programs in English and other foreign languages
- Improving communication, teamwork, and adaptability skills
- Digital Transformation in Vocational Education
- Integrating e-learning platforms and virtual training tools
- Expanding access to online certification programs
Trend of recruiting Vietnamese female workers to work for factories in Europe
Conclusion
Vietnam’s labor market is on a strong growth trajectory, presenting numerous opportunities for international and European employers. However, to fully capitalize on this potential, strategic investments in workforce training and development are essential. Strengthening cooperation between businesses, training institutions, and policymakers will be key to ensuring Vietnam’s workforce remains competitive in the global labor market
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