Vietnam’s Labour Market: Key Trends and Highlights for Q3 2024

As Vietnam's economic landscape continues to evolve, the labour market remains a key driver of growth, particularly in its southern economic hub, Ho Chi Minh City (HCMC). In the third quarter of 2024, HCMC saw a rise in job demand, reflecting the city’s growing economic potential and its position as a dynamic centre for talent and innovation. Let's delve into the top highlights from the labour market and what businesses and job seekers can expect for the remainder of the year.

1. Ho Chi Minh City Adds Nearly 60,000 Jobs in Q3

According to the HCMC Centre for Forecasting Manpower Needs and Labour Market Information (Falmi), the city added approximately 60,000 jobs in the third quarter of 2024. This marks a 3.5% increase compared to the same period last year, highlighting the strong demand for skilled talent across various industries. The four key industries driving this growth were Engineering, Electronics And IT, Chemical Pharmaceuticals And Rubber, and Food Processing, which collectively accounted for over 13,100 job vacancies—an increase of 12.24% from 2023.

2. Strong Demand in Nine Major Service Sectors

In addition to the four core industries, nine major service sectors also showed a rise in job vacancies. These sectors include Trade, Transport and Warehousing, Tourism, Post-Telecommunications and ICT, Finance, Property, Science and Technology Consultation, Education and Training, and Healthcare. These sectors needed nearly 46,700 workers, indicating a 1.28% increase compared to the same time last year. The rise in job openings suggests a vibrant service sector that is actively seeking new talent to support business expansion and service delivery.

3. Outlook for Q4: Demand for Over 83,000 Workers

Looking ahead, Ho Chi Minh City is expected to continue this positive trend, with a projected need for up to 83,300 labourers in the fourth quarter of 2024. This demand is being driven by the city’s ongoing efforts to develop its socio-economic landscape and support business activities through a favourable policy environment. Skilled employees are expected to fill 87.46% of these openings, emphasising the need for talent equipped with specialised skills and expertise.

4. Key Factors Driving Labour Market Growth

Several factors have contributed to this sustained growth in HCMC’s labour market:

• Favourable Business Climate: The Government’s acceleration of reforms to create a business-friendly environment and international integration has had a positive impact on the economy, encouraging more businesses to expand and invest in HCMC.
• Economic Diversification: The city’s efforts to diversify its economy by promoting both traditional and emerging industries have helped create a broad range of job opportunities, making it an attractive destination for both local and international talent.
• Support for Workforce Development: The implementation of flexible solutions to develop the socio-economy, as well as active measures to support workforce development, have created a more vibrant job market.

5. Key Workforce Insights for 2024

The workforce in Vietnam is undergoing a period of transformation, with workers increasingly focused on skill development and career fulfilment. According to PwC’s Asia Pacific Workforce Hopes and Fears Survey 2024, 92% of Vietnamese workers are willing to adapt to new work practices, and 73% are actively seeking opportunities to grow in their roles. This proactive mindset is crucial for businesses looking to retain and develop talent in a competitive market.

Furthermore, Vietnamese employees are particularly keen on enhancing their skills, with 71% expressing confidence in fully utilising their capabilities—significantly higher than the regional average of 57%. Companies that support continuous learning and professional development are likely to have a competitive edge in attracting and retaining top talent.

6. Implications for Businesses and Workers

For businesses, the increasing job demand and the evolving workforce priorities present both opportunities and challenges. To attract the right talent, companies must offer not only competitive salaries but also opportunities for personal growth, work-life balance, and meaningful work experiences. Embracing digital transformation and sustainability initiatives will also be key to positioning themselves as employers of choice.

For workers, the current labour market offers ample opportunities to explore new roles and career paths. However, staying ahead of market trends and continuously upgrading skills will be essential to succeed in this dynamic environment.

Remain Agile

Vietnam’s labour market in 2024 is marked by resilience, transformation, and an eagerness to embrace new opportunities. With Ho Chi Minh City at the forefront of this growth, the outlook for Q4 remains promising. Businesses looking to tap into this vibrant market must remain agile, invest in workforce development, and align with the evolving priorities of employees. As we move towards the end of the year, the focus will be on sustaining this momentum and supporting both businesses and workers to thrive in an ever-changing landscape.

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Reference Links:

https://en.vietnamplus.vn/hcm-city-adds-nearly-60000-jobs-in-q3-post297010.vnp

https://english.molisa.gov.vn/topic/239637

https://www.vietnam-briefing.com/news/insights-into-the-vietnam-workforce-in-2024-key-takeaways-for-businesses.html/

https://vietnamnews.vn/economy/1661857/world-bank-forecast-that-vn-s-economy-will-expand-by-6-1-per-cent-in-2024.html