Strong macroeconomic foundation fuels growing hiring demand
Strong macroeconomic foundation fuels growing hiring demand
Vietnam's recruitment market is continuing on an upward trend following the strong recovery of the economy post-pandemic.
In the third quarter of 2022, Vietnam economy showed a firm bounce back post-pandemic. The World Bank recently raised its Vietnam GDP growth forecast to 7 per cent this year, backed by a recovery in exports, retail and tourism, plus a relaxed coronavirus containment policy.
According to the General Statistics Office of Vietnam, foreign direct investment (FDI) inflows reached $15.43 billion in the first nine months of 2022, increasing 16.43 per cent on year. This marks the highest nine-month FDI inflows since 2018.
The recruitment market, therefore, saw an upward trend. Adecco Vietnam’s data shows steady growth in new job openings and applications. Increasing FDI inflows and investor-friendly policies for industrial zones lead to higher demand in manufacturing, engineering, and industrial real estate.
According to Thu Ha Nguyen, director of Hanoi Office at Adecco Vietnam, the demand for middle and senior-level roles in manufacturing is on the rise, especially in electronic manufacturing, since global electronic brands and original equipment manufacturing suppliers are relocating their production sites to Vietnam following months of supply chain disruption.
“Good government support, young and large workforce, appropriate cost, fewer COVID restrictions, and a stable political-economic landscape are some reasons that make Vietnam an ideal destination for supply chain relocation, thus the opportunity to become a chain in the global logistic network. The need for factory management, quality assurance, and engineers roles has been heating up faster, including existing and new factories,” she noted.
The service sector also recorded positive signs in hiring demand, especially in food and beverage, as easing coronavirus restrictions and high vaccine coverage allow people to return to their pre-pandemic habits. However, staffing in hospitality has been slow in recovering since Vietnam reopened for international tourism in mid-March.
While the global tech industry is going through a hard time of large layoffs and hiring freezes, the pendulum seems to swing the other way in Vietnam, with tech candidates only meeting about 50 per cent of the hiring demand.
According to Kim Truong, associate director of Permanent Recruitment, Adecco Vietnam, Vietnam is still a competitive market for foreign and local tech employers. More foreign investors are coming, plus the shortage of qualified candidates is exaggerating the war for talent. Tech experts are sought after to fuel digitalisation projects for digital banks, fintech firms and software companies.
However, there is a supply-demand mismatch. “Businesses offer attractive remuneration packages for strategic tech-related positions, but few candidates are qualified. Most fall short of expectations for English and technology proficiency. Post-COVID, candidates working onsite for foreign companies are returning home, which is a good sign to fill the gap,” she added.
With regards to hiring in the year-end season, candidate movement tends to slow down during Q4 as companies and candidates need to take more factors into account.
To enhance efficiency and ensure a smooth hiring process during the year-end season, both employers and candidates should communicate upfront about their needs and expectations.
