What Causes the Job-Hopping Trend in Vietnam: Is It Generational or Market-Driven?

In recent years, Vietnam has witnessed a noticeable increase in job hopping across industries. Many wonder whether this trend is driven by generational differences in attitudes towards work or by external market factors. To answer this question, we need to examine the motivations behind job mobility in the Vietnamese workforce and consider both generational mindsets and economic conditions.

Generational Factors

Different generations have distinct attitudes toward work, which play a significant role in job-hopping trends. In Vietnam, the workforce is made up primarily of three generations: Baby Boomers, Generation X, and Millennials (Gen Y), with Gen Z increasingly entering the workforce.

• Baby Boomers (born 1946-1964): This generation tends to value job stability and long-term commitment to a single employer. However, as Baby Boomers retire, their influence on the labour market is waning, and younger generations are taking the lead.

• Generation X (born 1965-1980): Gen Xers grew up during a period of rapid economic change in Vietnam. While they still value stability, many are more open to job changes if it means better career opportunities or improved work-life balance.

• Millennials (born 1981-1996): Millennials tend to prioritise personal growth, development opportunities, and meaningful work. Studies have shown that Millennials in Vietnam are less afraid to switch jobs if they feel their current employer doesn’t provide clear paths for advancement or align with their personal values. According to a study by PwC, 38% of Millennials in Southeast Asia believe job hopping helps them learn new skills faster.

• Gen Z (born 1997-2009): The youngest generation in the workforce is highly dynamic and entrepreneurial. They tend to have shorter attention spans for long-term commitments and are attracted to companies offering flexibility, modern work environments, and strong leadership. In Vietnam, Gen Z is increasingly embracing freelancing and remote work, making traditional job loyalty less appealing.

Top 5 Market-Driven Factors

While generational attitudes certainly contribute to job-hopping behaviour, the labour market dynamics in Vietnam also play a significant role. Here are some key market factors fuelling this trend:

• Economic Growth and Talent Demand: Vietnam’s economy has grown rapidly in recent years, particularly in sectors such as technology, manufacturing, and finance. This growth has created a strong demand for skilled workers. With more opportunities available, employees feel empowered to explore new jobs. A report by the World Bank indicated that Vietnam’s GDP grew by 8% in 2022, and such robust growth fosters a competitive job market.

• Wage Disparities: Salary is a significant driver for job changes in Vietnam. Many workers leave their current roles for higher-paying positions at competitors. A 2023 survey conducted by the General Statistics Office (GSO) of Vietnam found that the average wage growth in tech-related fields was around 12% year-on-year. Workers, particularly in sectors with high talent shortages, often seek job changes as a way to secure better pay.

• Work-Life Balance: As companies expand their operations, work pressure has increased. According to a study by the Asia Foundation, 45% of Vietnamese workers cited poor work-life balance as a reason for leaving their jobs. Younger workers, in particular, expect more flexible work arrangements, such as remote work or reduced working hours. Employers unable to meet these demands are at a higher risk of losing talent to more progressive companies.

• Career Advancement: Career development is another crucial factor. According to a survey by Deloitte, 67% of Vietnamese employees said they left a job because of a lack of advancement opportunities. Younger generations, especially Millennials and Gen Z, prioritise learning new skills and want to see tangible pathways to promotions. When these opportunities are lacking, they are quick to seek better prospects elsewhere.

• Influence of International Companies: The influx of multinational companies into Vietnam has introduced new expectations in terms of benefits, corporate culture, and work environments. These global players often offer better compensation packages and training programs compared to domestic companies, encouraging workers to leave local firms for foreign enterprises.

Job Hopping: Generational or Market-Driven?

While both generational attitudes and market conditions play a part, it’s difficult to isolate one as the sole driver of job hopping in Vietnam. However, we can observe that younger generations (Millennials and Gen Z) are more prone to frequent job changes due to their desire for personal growth, flexibility, and rapid career advancement.

At the same time, market factors such as salary disparities, economic growth, and increased competition for talent create an environment conducive to job hopping for all generations.

It is essential for employers in Vietnam to address both the generational needs of their workforce and the shifting dynamics of the market. Offering competitive salaries, clear career progression, flexible work options, and a strong corporate culture can help mitigate the risk of high employee turnover.

In conclusion, the job-hopping trend in Vietnam is the result of a complex interplay between generational mindsets and market forces. Employers who adapt to these changes will have a better chance of retaining their talent in a competitive and fast-evolving landscape.

Disclaimer:
The information provided in our blog articles is intended for general informational purposes only. It is not a substitute for professional advice and should not be relied upon as such. 
While we strive to provide accurate and up-to-date information, the ever-evolving nature of certain topics may result in content becoming outdated or inaccurate over time. Therefore, we recommend consulting with qualified professionals or experts in the respective fields for specific advice or guidance. Any actions taken based on the information contained in our blog articles are solely at the reader's discretion and risk. We do not assume any responsibility or liability for any loss, damage, or adverse consequences incurred as a result of such actions.
We may occasionally provide links to external websites or resources for further information or reference. These links are provided for convenience and do not imply endorsement or responsibility for the content or accuracy of these external sources. Our blog articles may also include personal opinions, views, or interpretations of the authors, which do not necessarily reflect the views of our organisation as a whole. We encourage readers to verify the accuracy and relevance of information presented in our blog articles and to seek professional advice when needed. 
Your use of this website and its content constitutes acceptance of this disclaimer.

Sources:

PwC Southeast Asia Workforce Insights

World Bank Vietnam Economic Outlook 2023

General Statistics Office of Vietnam Wage Report 2023

Asia Foundation Workplace Study in Vietnam 2022

Deloitte Global Talent Survey 2023