Foreign direct investment (FDI) is increasingly reshaping Vietnam’s labor market in 2026, driving strong demand for skilled workers in sectors such as technology, manufacturing, and automation, said Ngo Thi Ngoc Lan, a regional director at Navigos Search.
Ngo Thi Ngoc Lan, a regional director at Navigos Search. Photo courtesy of the company.
What challenges are businesses facing in recruiting workers after the Lunar New Year holiday (Tet)?
Typically, the period after Tet is when recruitment activities become very active. Many companies implement hiring plans prepared at the end of the previous year. It is also the time when businesses need to replace employees who leave after receiving Tet bonuses. Consequently, the surge in hiring demand increases competition for qualified candidates, presenting the first significant challenge for businesses.
Additionally, many companies struggle to find candidates who fully meet experience and capability requirements, especially in sectors facing shortages of high-quality talent. The third challenge relates to salary costs. Many candidates, when changing jobs, expect higher pay than their current positions. This compels companies to expand salary budgets to recruit new employees or replace departing staff.
Is there a shortage of highly-skilled technical workers in high-tech industries, and is this shortage more severe than that of unskilled labor?
Companies are increasingly prioritizing the recruitment of highly skilled technical workers, particularly in technology sectors. For instance, one of our clients, a U.S. company, plans to double or triple its recruitment scale, focusing mainly on technical positions rather than unskilled labor.
However, attracting candidates with the correct specialization is challenging due to the lack of tailored training programs in Vietnam. Consequently, foreign companies often adjust their recruitment strategies by hiring candidates with basic foundational skills and placing them in internal training programs, sometimes sending them abroad for further training. This shift reflects the growing emphasis on skilled technical personnel over unskilled labor, marking a significant change in recruitment practices.
Some say companies are prioritizing automation-related jobs rather than manual labor. What is your view on this?
In my view, hiring priorities depend on two main factors. First is macro-level direction and government policy, including mandates for companies investing in Vietnam to integrate higher levels of technology into production instead of relying on labor-intensive industries. The second factor is the company’s own transformation strategy. Vietnam has focused on attracting foreign investment into high-tech manufacturing while limiting labor-intensive industries that may harm the environment. Hence, companies investing in Vietnam increasingly seek workers with technical expertise proficient in operating machinery.
Nonetheless, long-established businesses in labor-intensive industries still express strong demand for unskilled workers. However, with the acceleration of automation in production to reduce labor costs and improve productivity, demand for engineering positions involving automation has surged significantly in recent years.
What do you think about the view that workers now prioritize stability over salary after the pandemic?
A survey conducted by Navigos with numerous candidates at the end of 2025, published in early 2026, revealed that 42% of candidates were actively seeking new jobs. Additionally, 28.6% stated they were not actively looking but would consider applying if suitable opportunities presented themselves. Only a small fraction indicated no intention of changing jobs or satisfaction with their current positions.
Significantly, when contemplating job changes, salary remains the foremost factor. However, job stability and security have emerged as essential considerations, ranking among the top four factors for workers selecting new positions. This trend indicates a heightened concern for the safety and long-term sustainability of employment, suggesting that workers are cautious about companies lacking development prospects.
Is the trend of waiting for Tet bonuses before quitting still common?
The labor market becomes more active after the Lunar New Year holiday, with this year following suit. Observations show a significant increase in candidates seeking new opportunities or actively applying for jobs just days after Tet. However, in recent years, job changes have become less concentrated solely around this period, with workers making transitions at various times throughout the year.
Despite this, the period after Tet remains a dynamic time, as many companies also roll out recruitment plans to achieve targets for the new year.
Which industries will have the strongest hiring prospects in 2026, in your opinion?
According to Navigos’s latest survey on labor demand by industry, positions related to business development and sales top the recruitment demand. This is understandable, given that every company needs to market their products and services to spur growth.
The second group with high demand includes manufacturing and semiconductors, reflecting the trend of FDI inflows into Vietnam. If investment growth continues as forecasted, around 50-60% of FDI capital is likely to remain concentrated in processing and manufacturing. Additionally, roles related to IT and data continue to be in high demand due to digital transformation trends, although recruitment requirements are becoming stricter regarding both quantity and talent quality.
As the government accelerates public investment and infrastructure development, construction-related sectors are also poised to experience robust labor demand in the coming period.
Workers on an electronics production line in Vietnam. Photo courtesy of Vietnam News Agency.
What is the biggest risk for Vietnam’s labor market in 2026?
Historically, key pillars of Vietnam’s economy have relied significantly on FDI inflows and export activities. In 2025, newly registered FDI reached about $38.4 billion, marking one of the highest levels in recent years, while Vietnam’s total import-export turnover was approximately $930 billion. This reveals a profound dependence on international trade for economic stability.
Thus, in the event of global economic volatility or recession leading to reduced overseas demand for goods or diminished FDI inflows into Vietnam, the domestic labor market would likely face substantial disruptions. Moreover, long-term risks such as a mismatch between workers’ skills and the evolving economic landscape persist. Vietnam is entering a phase of population aging, with projections indicating around 18 million individuals over 60 by 2030, and around 20% of the population reaching this age within the next decade.
This demographic shift may lead to significant challenges for the labor market, including potential shortages of younger workers, rising social costs, and increased pressure on pension systems.
According to a report by the Vietnam General Confederation of Labor (VGCL), shortly after the Lunar New Year holiday 2026, most companies recorded employee return-to-work rates of between 96% and 99%, indicating that the labor market quickly stabilized after the long break.
In some localities, the rate was particularly high, with Vinh Long leading at 99.2%, followed by Thai Nguyen and Thanh Hoa at 98%. Provinces like Cao Bang, Ha Tinh, Hue, Lang Son, Son La, and Phu Tho recorded around 97%, while Hanoi, Hai Phong, and Can Tho saw around 96%, with Quang Tri at 95%. Ho Chi Minh City is expected to achieve a 100% return-to-work rate by early March.
Comparatively, the number of workers returning on time or earlier than scheduled has increased, suggesting a stable sentiment among employees and confidence in the positive production and business outlook for the new year.