The labour and employment market in 2022 had a turbulent year with many rapid and unpredictable movements.
In early 2022, many factories had to deal with backlogs of orders while many workers who had been to their hometowns during pandemic did not return to major cities to work, which led to a local labour shortage.
However, the scenario reversed at the end of the year when Vietnam had a surplus of workers but a shortage of orders due to the decline in purchasing power in export markets, global political uncertainty, rising living costs, and tight monetary policy, etc. Domestic businesses were forced to cut costs and cut down headcounts. This unexpected “shock” goes against the norm of increased hiring demand during the peak year-end season.
Notably, the news of layoffs in several industries has dominated headlines since the second half of 2022, especially in Technology, E-commerce, and Real Estate. December saw a slow-down of the layoff waves in these sectors, but their impact has left the market undeniably quieter.
Experts forecast that in the coming time, the production will continue facing difficulties due to a lack of orders, possibly during the end of Q1 or as late as the Q2 of 2023, resulting in many workers being unemployed and losing their jobs. However, it is optimistically believed that by the end of 2023, the situation will improve, and the labour market will soon see the positive. Accordingly, spearhead industries will continue to take advantage and maintain their strong growth momentum. Manufacturing, especially in wood production, footwear, apparel, etc., will soon make a recovery or even a breakthrough at the end of 2023. With higher purchasing power as well as higher living standard of consumers in the domestic market, Consumer Goods and Healthcare remains as well-performing sectors with stable and even booming demand.
Despite the economic uncertainty, 47% of employers still plan to keep headcounts the same in 2023 as it was in 2022, and 43% even expect an increase of their headcounts according to Adecco Vietnam’s research “HR Landscape and Labour Market Outlook 2023”. Top industries with headcount increase forecast are Manufacturing; Supply chain, Logistics & Transportation; and Healthcare, Medical & Science.
Regarding to main objectives, efficient cost control is key driver to HR decision in 2023. Majority of employers are seeking cross-over-skilled staff to handle multitasking roles (nearly a half of respondents prioritise this skill). Together with the dominance of digitalisation, there will be a high demand for highly skilled workers, particularly those with good digital knowledge and adaptability.
While the economic tension is boosting employers to seek cost balance solutions for their businesses, employees are trying to manage their cost of living to handle with the inflation situation. Indeed, majority of working people in our study placed salary as top factor impacts their career choice.
In this ever-changing market while competition is severe and highly skilled candidates are scarce with complex job expectation, we understand it would be tough for businesses to make decision regarding their people.
This 10th edition of Vietnam Salary Guide is another effort from Adecco Vietnam to provide you with a broad overview of the current market offerings in 2 major cities: Hanoi and Ho Chi Minh City. We hope this release will be a handy tool with strategic talent development and recruitment in 2023 for both job seekers and HR professionals.
About Adecco Vietnam
Established in Vietnam in 2011, Adecco Vietnam – a member of The Adecco Group - is the leading Payroll, Recruitment & Outsourcing Agency in Vietnam. We provide one-stop solutions for all Human Resources needs. Operating for more than 60 years, The Adecco Group has 30,000+ passionate employees in 5,000+ branches across 60 countries and territories worldwide.
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