Last week, SAP launched its SAP Labs Vietnam research and development center in Ho Chi Minh City, with a planned investment of over 150 million euros over the next 5 years. Since September 2024, the center has hired over 200 employees and plans to recruit 350 more this year.
Nguyen Hong Viet, managing director of SAP Vietnam, stated that the abundant and high-quality human resources were key investment motivators. "The rapid pace of digital transformation combined with a young, tech-savvy workforce makes Vietnam a crucial pillar in our global vision for long-term growth and comprehensive innovation," he said.
According to the second quarter recruitment market update from Adecco, a recruitment, payroll, and outsourcing firm, the technology sector saw a nearly 30% increase in labor demand in Hanoi and Ho Chi Minh City. This demand is partly driven by the expansion of technology centers in Vietnam by foreign corporations.
Beyond technology, foreign companies across various sectors are also maintaining hiring needs. In early August, the Honda factory in Phu Tho province recruited hundreds of production staff as they began selling electric two-wheelers in Vietnam.
Simultaneously, Foxconn continued to advertise numerous positions at its Quang Chau and Que Vo industrial parks in Bac Ninh province, ranging from engineers of various specialties to production supervisors and warehouse staff.
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Production of ICON e: electric motorcycles at the Honda Vietnam factory in Vinh Phuc, 27/3. Photo: Nguyen Linh |
Production of ICON e: electric motorcycles at the Honda Vietnam factory in Vinh Phuc, 27/3. Photo: Nguyen Linh
Two main drivers for foreign investors are the long-term vision of existing businesses and new investment capital. The American Chamber of Commerce in Vietnam (AmCham) reported stable staffing trends within its community during the first half of the year, with 45% of companies increasing staff and 16% maintaining current levels.
"The results show that many businesses are still aiming for long-term development, even if short-term revenue performance is uneven," AmCham noted.
In addition to technology, Adecco reported that recruitment demand in the manufacturing and engineering sectors increased by 15% compared to the first quarter and 59% compared to the same period in 2024, largely driven by foreign investment.
In the first 7 months of this year, foreign direct investment (FDI) into Vietnam exceeded 24 billion USD, a 27.3% increase year-on-year. Implemented capital reached 13.6 billion USD, the highest 7-month figure for the 2021-2025 period.
In northern Vietnam, new factories are driving high demand for experienced Vietnamese management personnel in construction and operations. Meanwhile, established facilities are focusing on key technical positions such as product engineers and quality managers, accounting for nearly 70% of the total workforce demand in the region, according to Adecco.
The renewable energy sector is also experiencing a surge in recruitment due to projects under the adjusted Power Development Plan VIII. The number of job openings at solar, wind, and liquefied natural gas projects in Ninh Thuan, Thanh Hoa has increased by 62%.
"Although most large-scale projects are still awaiting approval, the demand for technical personnel has begun to rise, focusing on design, engineering, and project development roles," the Adecco report stated.
In the electronics sector, large exporters to the US are postponing recruitment for non-essential positions.
However, foreign companies' continued hiring is brightening the labor market outlook. According to a second-quarter report by the Vieclam24h platform, 26.4% of surveyed businesses reported streamlining their operations in the past 12 months, with nearly 70% reducing their workforce by less than 10%.
The Vietnamese labor market is currently caught between a wave of downsizing and cautious recruitment. Businesses are prioritizing team stability and focusing on positions that deliver tangible value," the report stated.
Forecasting the third quarter situation, Vieclam24h reported that 56.2% of surveyed businesses plan to expand their teams, but most will be selective. The percentages for maintaining and reducing staff are over 22% and 7%, respectively.
The market is still in a "wait-and-see" phase, according to Vieclam24h's report. Current demand is concentrated in positions directly linked to growth and actual production, such as sales and business development, production/technical engineers, or skilled laborers.
Chuong Nguyen, director of recruitment services at Adecco Vietnam, expects the market to remain stable in the third quarter, thanks to global economic recovery, stabilizing trade relations, and promoting investment and infrastructure development domestically.
"Companies' recruitment strategies will continue to be selective," he said. Key positions and skills aligned with future trends will be prioritized to help businesses comply with regulations, optimize operations, and increase adaptability.
Vien Thong
