GoinGlobal

September 18,2018
By GoinGlobal

The country’s labor force is growing at more than 1 million people per year, yet its unemployment remains at a low 2.4 percent. Vietnam’s economy needs foreign workers to plug skill gaps in many areas, particularly managers, executive directors and experts in such fields as technology and banking. Many non-citizen professionals are contracted by foreign firms with established investment projects in the country. It is estimated that there are around 74,000 foreign workers in Vietnam.
 
To work in Vietnam, non-citizens need long-term visas and, once in the country, work permits. Work permits are valid for three years. Some foreign workers are exempt from work permits. These include heads of representative offices, non-governmental organizations and projects of international organizations, as well as owners of limited liability companies. Many companies are also trying to attract skilled Vietnamese nationals working abroad to return home. Returning Vietnamese can often command salary increases of 50 percent.

Short Term 

Vietnam’s GDP grew by around 6 percent last year, and it is expected to grow by another 6 percent this year. The unemployment rate is expected to remain at a low 2.4 percent and to increase only slightly to 2.6 percent by 2020.
 
The heaviest recruiting has been, and is expected to continue to be, in the information technology, manufacturing, services, and consumer goods and fast-moving consumer goods (FMCG) industries. 

Long Term 

Future trade agreements, such as the European Union-Vietnam Free Trade Agreement (EUVFTA), set to go into effect next year, are expected to further boost the economy. The World Bank forecasts Vietnam’s economy will grow at an average rate of 6.3 percent in the next three years, bolstered by a strong manufacturing export market and foreign investments. In fact, a recent PricewaterhouseCoopers study forecasts that Vietnam will experience some of the strongest economic growth in the world over the next 30 years. Its GDP is expected to grow an average of 5 percent annually to 2050. 

By Sector 

To maintain the forward momentum of its economy, Vietnam is actively encouraging foreign investment –
especially in the sectors of biotechnology, IT, infrastructure, education, and research and development (R&D).  All of these sectors will need qualified professionals to fill the growing slots. 

By Region

As Vietnam’s economy becomes more modernized, its labor needs are shifting from mostly manual labor to more jobs demanding higher-level skills. This is especially true in the cities. The largest cities in Vietnam are Hoh Chi Minh City (HCMC) and Hanoi. The northern city of Hanoi remains Vietnam’s cultural and political capital. The economic hub of Vietnam, Hoh Chi Minh City is located in the southeast and is much larger than Hanoi. It has attracted the majority of recent foreign investment and has strong energy and manufacturing sectors.
 
Most jobs in the country are to be found in the North and South Central Coast regions, followed by the Mekong Delta region. These three regions account for nearly two-thirds of the country’s workforce. Ho Chi Minh City has greater demand for white-collar workers than Hanoi. White-collar salaries in Ho Chi Minh City are 10 to 20 percent higher than in Hanoi.