Vietnam Labor Market Update in Quarter 2/2022

HR Insight

Ho Chi Minh City, July 08, 2022: Adecco Vietnam releases the Q2/2022 labor market update, sharing our insights on recruitment demand and growing trends in this quarter, also advice for both employers and employees to thrive in the new normal.

Rising demand across industries

This quarter, data from Adecco shows the same YoY hiring requests volume. However, some industries have increased recruitment demand while trying to bounce back, or even bounce forward.

According to Ms. Thu Ha Nguyen, Director, Adecco Hanoi office, the demand for IT personnel continues to soar. She remarks, "Digital transformation, big data, cloud computing, and Internet of Things trends not only provide ample local chances for Vietnamese IT staff but also open up remote opportunities at oversea companies and projects. Consequently, although many enterprises offer attractive salary and bonus schemes, they still need all-out efforts to recruit highly specialized candidates.”

She also noted the labor demand in the Manufacturing businesses, such as Electronics, Textiles, and Chemicals, has climbed significantly this year and would most likely mount hereafter.

The motives are varied. "First, since a few years ago, we have benefited greatly from China's manufacturing exodus and other signed FTAs ​​with the EU, Japan, and South Korea. Recently, the US-China trade tensions along with the production disruptions in China make it inevitable for firms to diversify their supply chains for resilience. Vietnam, along with other Southeast Asian countries, is considered a potential destination. Moreover, industrial enterprises are accelerating their production to make up for the past years of stagnation”, she explained.

However, the lack of skilled labor is one of the major obstacles for many. Besides the immense need for workers, management positions in Production, Quality Assurance, and Engineers are also much sought-after.

"Beside Manufacturing and Tech-related enterprises, firms in Food & Beverage service, Consumer Electronics, and Energy are also coming to us with significant hiring demands. Plus, the search for talents in Commercial, Sales, Marketing, and Software Engineer roles is very competitive as candidates have been overwhelmed with opportunities from new players in the market”, Ms. Thanh Le, Country Director, Adecco Vietnam, stated.

Ms. Hoa Dang, Associate Director, Recruitment Business, Adecco HCMC, also notice the candidate shortage in Financial Services and Insurance sectors. She discusses, "The stock market has fluctuated dramatically in recent months, spurring employees to leave for more stable and promising industries. Also, the number of specialized candidates in these industries is insufficient compared to the continuous recruitment demand. As a solution, some companies find candidates with a Consumer service background can still well-perform once given the appropriate training.”

A candidate-driven market in the new normal

Many businesses are now taking advantage of both online and physical interviews to boost recruitment efficiency and attract tech-savvy applicants. According to Hoa, "For high-volume or mid-level vacancies, the first few rounds can be conducted using online platforms. Some businesses also prepare additional candidate assessments to swiftly screen a large number of resumes. The best-fit candidates will then join the in-person interviews, which are one of the last hiring phases. Companies, on the other hand, continue to prefer meeting directly from the start for senior management roles."

She also highlighted that in the current candidate-driven recruitment market, it’s quite common for businesses to compete for job offers. "A qualified candidate can receive many offers at the same time, even counter-offers from their current or former employer", Hoa shared.

Thanh observes, “The uncertainty caused by the COVID-19 and the recent inflation made employees more cautious with the work culture, additional wellbeing support, career path as well as salary increment. Employees also show a greater interest in the hybrid working model. This will be a challenge for the Manufacturing and Retail sectors, while it’s more feasible for the Service and Technology industries.”

With industries heavily affected by COVID-19, such as hospitality and entertainment, massive recruitment campaigns and employer branding activities can help ease the labor shortages. “However, the risk of losing key people to other businesses arises, as post-pandemic, they realize industries with sustainability and flexible culture are more attractive and less vulnerable when coping with uncertainty”, Thanh said.

The competitiveness urges companies to re-think their talent attraction strategy

To stand out from the multitude of job postings, employers need to build a work environment that keeps up with changing candidate expectations. Hoa advises, "You can start by surveying current employees to identify rooms for improvement or development. For example, consider a remote model or flexible working hours if employees seek greater freedom at work and the nature of the job allows it. You can promote things that make your employees happy and engaged to gain more prominence as an employer of choice."

Thanh argues that instead of spending a lot of time and energy on posting and screening, businesses should focus on the right candidate pool, adjust the recruitment budget, and ask for the right qualifications. She suggests, "Partnering with an executive search company can help you build professional, well-designed, and customized processes for recruiting the perfect match talent."

With businesses in the hardest-hit sectors that are struggling to meet employees' salary expectations, Ha believes that other non-cash benefits could be feasible alternatives. Non-monetary incentives leave a deeper emotional impression, are more memorable, and can act as an intrinsic drive for long-term employee retention.

You can start by providing more in-depth training sessions”, Ha points out, “since career growth has long been a workplace deal-breaker. Such training can be company-wide, department-specific, cross-training, or peer mentoring. You also have several other options, such as flexible working, public recognition of achievements, extra days off, wellness programs, tangible gifts, experiential rewards, etc. And remember to share these activities online to reach a wider talent pool."

For candidates, Ha reminds them to thoroughly assess each opportunity to make the right move. She advises, "You can negotiate an offer which looks very good on paper but don't forget to consider the business's long-term potential and stability. Make sure the new position aligns with your growth goals and provides a sense of career confidence even in future uncertainties."

--------------

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.

Website: adecco.com.vn

For further information please contact:

Find the right person.

Whether you want temporary help or full-time employees.


Get started

Call our team

Contact your local branch and speak to a job expert


Find a branch