Trends in the Recruitment and Job Placement Market in Vietnam, April-June 2024

＜Market Overview in Vietnam＞

In Vietnam, a new state president, the second-highest ranking official according to the constitution, has been elected. This comes amid a series of resignations within the top leadership, making future developments particularly noteworthy.

According to data released by the General Statistics Office of Vietnam, the GDP growth rate for the first half of 2024 was 6.42%, significantly higher than the 3.72% growth recorded in the same period last year. This indicates a strong recovery trend in the Vietnamese economy. The GDP growth for the April-June quarter was 6.93%, the second-highest increase in the past decade. Foreign direct investment (FDI) has also risen, with Japan ranking as the second-largest investor after Singapore. This underscores the continued high interest of Japanese investors in the Vietnamese market.

＜Local Hiring Trends among Companies in Vietnam＞

The unemployment rate for the labour force in the first half of the year was 2.27%, showing a recovery in the labour market compared to the 3.72% recorded during the COVID-19 pandemic in the third quarter of 2021. Most labour demand is in labour-intensive industries, and the increase in production orders suggests that the manufacturing sector is gradually emerging from the global recession it faced last year.

The April-June period typically sees an increase in job openings due to higher worker mobility, and this trend is evident again this year. However, an increase in companies looking to hire means more competition for talent. Therefore, companies need to highlight their attractiveness during interviews and selection processes to appeal to job seekers.

＜Job-Seeker Trends in Vietnam＞

As usual, there is high mobility among job seekers, with many candidates seeking new opportunities. However, with the increasing options of freelancing and entrepreneurship, candidates seem to be more cautious in their job selection. Given the high learning enthusiasm among Vietnamese people, effectively communicating the benefits of working with the company, such as education and training opportunities, will be key to successful recruitment.

The number of Japanese job seekers has increased in the April-June period, potentially benefiting companies aiming for localization.