Trends in the Recruitment and Job Placement Market in Vietnam, October-December 2023

＜Market Overview in Vietnam＞

JETRO's survey reveals declining profitability expectations among Japanese companies globally for 2023. This trend is particularly acute in Vietnam, with sectors like transportation/warehousing, electronics, and trading companies experiencing worsening business conditions. Declining demand (both local and export-oriented) and rising labor costs are cited as key factors. Despite this, around 60% of companies anticipate increased sales within Vietnam as a portion of their overall revenue in the future, suggesting the market's potential remains recognized.

Additionally, Vietnam's GDP growth is being driven by a rebound in tourism, fueling strong growth in the service industry, arts, entertainment, and hospitality sectors.

＜Local Hiring Trends among Companies in Vietnam＞

The October-December period is usually a time when the mobility of local human resources declines, and a similar trend can be seen this year as well. In 2024, the semiconductor industry, in which the U.S. is considering multi-billion-dollar investments, is expected to be one of the key factors. In 2024, the semiconductor industry, in which the U.S. is considering multi-billion dollar investments, will be one of the key factors.

In the Japanese recruitment market, we are seeing an increase in consultation from companies seeking to localize the operations of their local branches, and we expect to see an increase in the need to switch from expatriate to locally hired staff. However, the process for obtaining work permits continues to be unclear, and future trends must be monitored closely.

＜Job-Seeker Trends in Vietnam＞

The October-December period consistently sees a slowdown in local workforce mobility within the US, and a similar trend is expected for 2023. This is partly influenced by the semiconductor industry, where the US is considering significant investments.

The Japanese recruitment market is seeing increased demand for localization services, suggesting companies seek to transition from expatriate to locally hired staff. However, the work permit process remains complex and requires close observation.