The labor market outlook for Vietnam heading toward 2025 exhibits promising signs, according to the "2025 Labor Market and Salary Report" released by Navigos Group. With the workforce expected to hit 53.2 million by the end of 2024, the country is poised for positive growth. The average monthly income has climbed to 7.7 million VND, marking an 8.6% increase compared to the previous year, yet disparities remain, particularly between urban and rural workers, as well as between genders.
Despite the low unemployment rate of 2.24%, challenges persist, especially among rural populations where underemployment remains significant. According to the report, 63.5% of workers reported income increases, with 23.3% enjoying raises exceeding 10%. Interestingly, though, 13.3% of the workforce saw their earnings decline, with 3.7% facing reductions over 20%.
A notable finding is the importance of social benefits, with 72.53% of workers fully receiving mandatory benefits, but 12.55% reported not getting sufficient support, and 10.01% received no benefits at all. These dynamics reveal the pressing factors influencing the job search, where workers prioritize salary (61.92%), advancement opportunities (36.41%), and direct management quality (27.10%). For 2025, the preferences are shifting, with salary becoming even more dominant at 78.92%.
Technological advancements, particularly artificial intelligence (AI), are transforming job-seeking methods. The demand for skill enhancement is high as workers increasingly rely on AI tools for optimizing CVs, job searches, and interview preparation. Despite this trend, only 18.45% of candidates currently use AI technologies, leaving room for growth.
With many businesses exploring the four-day workweek model, the shift toward flexible work arrangements reflects global trends aimed at increasing productivity and work-life balance. Companies are leaning toward this approach as they seek to attract talent amid fierce competition. The necessity for workers to embrace technology and adapt to market changes has never been clearer.
AI is gradually permeate the recruitment sector, with 28% of businesses reported to have integrated AI systems to streamline resume screening and candidate data analysis. This trend is anticipated to escalate as employers acknowledge the benefits of AI to improve recruitment processes.
Vietnam is on the verge of significant advancements, characterized by the burgeoning digital economy and its substantial opportunities for job creation across various sectors, including Information Technology, Banking, Manufacturing, and Logistics. According to Navigos Group, certain industries are experiencing high demand for skilled labor, particularly for roles such as Data Scientists, AI Researchers, Machine Learning Engineers, and Data Researchers.
Logistics is another area experiencing labor shortages, especially maritime and warehousing sectors, coupled with the semiconductor industry growing due to high investment influx and high-quality workforce training. Notably, Vietnam is positioning itself to become a semiconductor talent hub as large tech firms like Nvidia expand their presence.
To fully leverage these opportunities, cross-coordination among businesses, government entities, and educational institutions is imperative to secure talent capable of meeting market demands. Enhancing training quality, investing in skill development, and effectively utilizing technology are pivotal to affirming Vietnam's stature within this new growth phase.
Employers are encouraged to refine their strategies, emphasizing skills enhancement, especially analytical thinking and creativity. Incorporation of AI tools will optimize operational processes and boost labor productivity. The hybrid work model is increasingly popular, offering competitive advantages for attracting and retaining talent.
The rise of diversity, equity, and inclusion (DE&I) principles is noteworthy, as 20.27% of employers are prioritizing these factors to promote equitable workplaces. Sustainability (ESG - Environmental, Social, Governance) is now regarded as integral to recruitment branding strategies, with companies expected to initiate ESG programs to attract talent and promote responsible work environments.
For job seekers, there is urgency to improve skills, particularly relating to AI and data technologies. Understanding foreign languages—particularly English, Chinese, Korean, and Japanese—will provide advantages when seeking employment with multinational firms.
Vietnam's labor market is impacted by shifting demands and global trends, making adaptability key among workers and organizations alike. Navigos Group forecasts growing trends toward AI integration within hiring processes, underscoring the importance of preparing for the labor market's future.