Vietnam’s labour market is entering a new stage of development. The country continues to benefit from a large workforce, expanding manufacturing capacity, growing service industries and strong participation in global supply chains. At the same time, employers and workers are facing new challenges related to skills shortages, informal employment, automation, artificial intelligence and changing employee expectations.
In the first quarter of 2026, Vietnam’s labour force aged 15 and above reached approximately 53.6 million people. Although the number declined slightly compared with the previous quarter, the National Statistics Office described the overall labour and employment situation as stable.
Understanding these developments is important for businesses, job seekers, educators and policymakers preparing for the future of work in Vietnam.
A Large and Resilient Workforce
Vietnam has one of Southeast Asia’s largest labour markets. In the fourth quarter of 2025, approximately 52.7 million people were employed, while the total labour force was close to 53.8 million. Employment increased by nearly 656,000 people compared with the same period of the previous year.
The structure of employment also reflects Vietnam’s ongoing economic transformation. Services accounted for about 40.8% of employment in late 2025, followed by industry and construction at 33.8%. Agriculture, forestry and fisheries represented approximately 25.4%.
This shift demonstrates the movement of workers from traditional agricultural activities toward manufacturing, construction and service-based employment. However, agriculture still provides livelihoods for a significant part of the population, particularly in rural areas.
Manufacturing Remains a Major Source of Employment
Vietnam’s position as a competitive manufacturing and export centre continues to influence its labour market. Electronics, textiles, garments, footwear, food processing, machinery and transport equipment provide employment for millions of workers.
Foreign investment and supply-chain diversification have helped create jobs in major industrial areas such as Hanoi, Ho Chi Minh City, Bac Ninh, Hai Phong, Dong Nai and Binh Duong. Vietnam’s continued appeal as a manufacturing base is expected to support economic activity, although the country remains exposed to changes in global demand and trade policy.
The International Labour Organization notes that Vietnam’s expanding role in global supply chains creates employment opportunities but also requires policies that improve resilience, inclusion and working conditions. External shocks, weaker export demand and international trade uncertainty can quickly affect factory orders, working hours and recruitment.
Employers must therefore focus not only on increasing production capacity but also on developing a workforce capable of adapting to new technologies and higher-value manufacturing.
The Rapid Growth of Service-Sector Jobs
The service sector has become the largest source of employment in Vietnam. Recruitment opportunities are expanding in areas such as:
- Retail and e-commerce
- Banking and financial services
- Tourism and hospitality
- Logistics and transportation
- Information technology
- Healthcare and education
- Marketing and professional services
Urbanisation, rising incomes and changing consumer behaviour are supporting this growth. Digital services are also creating new roles in online sales, digital marketing, software development, customer support and platform-based work.
However, service-sector employment varies significantly in quality. Some workers have stable contracts, insurance and career-development opportunities, while others depend on temporary, seasonal or informal arrangements.
Informal Employment Remains a Major Challenge
Vietnam has maintained a relatively low unemployment rate, but low unemployment does not always mean that every worker has a secure or high-quality job.
In the fourth quarter of 2025, informal employment represented approximately 51.4% of non-agricultural employment. Informal workers may lack written contracts, social insurance, paid leave, job security and access to formal workplace protections.
Informal employment is common among self-employed workers, household businesses, street vendors, casual labourers and some platform workers. These jobs provide income and flexibility, but workers may face greater financial risks during illness, economic downturns or periods without work.
Improving job quality will require stronger social-protection coverage, easier business registration, better enforcement of labour standards and greater support for small businesses moving into the formal economy.
A Growing Demand for Skilled Workers
Vietnam’s future competitiveness increasingly depends on the quality of its workforce rather than labour availability alone.
Employers are seeking workers with technical expertise, digital literacy, foreign-language ability, problem-solving skills and practical industry experience. Demand is particularly strong in fields such as:
- Semiconductor and electronics engineering
- Software and data analysis
- Artificial intelligence
- Cybersecurity
- Automation and robotics
- Renewable energy
- Advanced manufacturing
- Logistics and supply-chain management
The World Bank has highlighted the need for Vietnam to build a stronger pipeline of high-tech talent, including not only STEM graduates but also experienced researchers, laboratory leaders and specialists capable of turning ideas into commercial products.
Closer cooperation among universities, vocational institutions, government agencies and businesses will be necessary to ensure that education and training programmes reflect real labour-market needs.
The Skills Mismatch
One of the most persistent issues in Vietnam’s labour market is the difference between the skills employers need and the skills available among job seekers.
Some graduates struggle to find suitable employment because their education is too theoretical or does not match workplace requirements. At the same time, businesses report difficulty recruiting workers with specialised technical skills and practical experience.
Research by the ILO indicates that education and qualifications can improve earnings and increase the likelihood of moving from informal to formal employment. However, qualifications must be connected to relevant skills and genuine employment opportunities.
Vocational education will play an increasingly important role. High-quality vocational programmes can prepare workers for technical careers in manufacturing, engineering, maintenance, logistics, construction and industrial technology without requiring every employee to follow a traditional university path.
Artificial Intelligence and Automation Are Changing Work
Artificial intelligence is beginning to influence recruitment, administration, finance, customer service, marketing, manufacturing and many other sectors in Vietnam.
An ILO analysis based on Vietnam’s 2024 Labour Force Survey examined how occupations may be exposed to generative AI. The study emphasises that the effects differ according to education, income, skill level, gender, location and employment formality.
AI is unlikely to affect every occupation in the same way. In many cases, it will automate individual tasks rather than replace an entire job. Employees may use AI to prepare documents, analyse information, communicate with customers, create content or improve operational decisions.
This means businesses should invest in reskilling instead of relying only on workforce reduction. Workers who learn to use technology effectively may become more productive and valuable, while employees who lack access to training could face greater employment insecurity.
Green Jobs Are Creating New Opportunities
Vietnam’s transition toward cleaner energy and more sustainable production is expected to create new types of employment.
Green-job opportunities may emerge in:
- Solar and wind energy
- Energy-efficient construction
- Electric vehicles
- Waste management
- Environmental consulting
- Sustainable agriculture
- Carbon accounting
- Climate-risk management
World Bank research has examined the prevalence and skills requirements of green jobs in Vietnam, highlighting the importance of upskilling and reskilling workers for a low-carbon economy.
The green transition may also reduce demand for some traditional activities. Effective training and employment-support programmes will therefore be needed to help workers move from declining industries into growing ones.
Changing Expectations Among Employees
Vietnamese employees are increasingly evaluating jobs based on more than monthly income. Many candidates now consider:
- Career-development opportunities
- Workplace culture
- Job stability
- Flexible working arrangements
- Health and social-insurance benefits
- Recognition and fair treatment
- Training and promotion pathways
- Work-life balance
Salary remains essential, especially as housing, transportation and living costs increase in major cities. However, employers that offer competitive pay without creating a supportive working environment may still struggle to retain employees.
Clear communication is also becoming more important. Workers want to understand how salaries, performance bonuses and promotions are determined. Transparent and consistent policies can improve trust and reduce employee turnover.
Regional Differences in Employment
Vietnam’s labour market is not uniform. Employment opportunities, salaries and skill requirements differ greatly between regions.
Hanoi and Ho Chi Minh City offer a high concentration of professional, financial, technology and service-sector jobs. Northern and southern industrial provinces attract large numbers of manufacturing workers, while coastal areas generate employment in tourism, logistics and port services.
Rural provinces continue to depend more heavily on agriculture, household businesses and labour migration. Many workers move to cities and industrial zones in search of higher incomes, while others pursue overseas employment.
In 2024, more than 158,000 Vietnamese workers were sent abroad under employment contracts. Japan, Taiwan and South Korea remained major destinations during the first quarter of 2025.
Overseas employment can improve incomes and provide valuable experience, but workers need reliable information, legal contracts and protection from excessive recruitment costs.
What Employers Should Do
Businesses operating in Vietnam should prepare for a labour market where skilled employees have more choices and technology changes job requirements quickly.
Employers should:
- Develop clear workforce and recruitment plans.
- Review salaries against relevant market data.
- Invest in technical and digital training.
- Build partnerships with universities and vocational schools.
- Create transparent career-development pathways.
- Improve employee benefits and working conditions.
- Use technology to support rather than simply replace workers.
- Provide fair opportunities for women, young people and disadvantaged groups.
- Strengthen employee communication and engagement.
- Prepare workers for green and digital transitions.
Companies that treat employee development as a long-term investment will be better positioned to improve productivity and retain skilled people.
What Job Seekers Should Focus On
Workers and students should understand that qualifications alone may not guarantee strong career opportunities. Employers increasingly value practical ability, adaptability and evidence of previous achievement.
Important areas for personal development include:
- Digital and AI literacy
- Foreign-language communication
- Technical qualifications
- Problem-solving
- Teamwork
- Project management
- Industry experience
- Continuous learning
Job seekers should also research the stability, working conditions and development opportunities offered by an employer rather than considering salary alone.
Conclusion
Vietnam’s labour market remains large, active and full of potential. Manufacturing and services continue to create employment, while high technology, digitalisation and green growth are opening new career paths.
However, the market also faces important challenges. Informal employment remains widespread, skills shortages continue, and many workers need better access to training, social protection and stable career opportunities.
The next phase of Vietnam’s development will depend on the country’s ability to create not only more jobs, but better jobs. Strong cooperation among businesses, educators, workers and government agencies will be essential to build a productive, inclusive and future-ready workforce.
