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Vietnam’s labor market last year
was marked by a substantial fall in
recruitment demand in almost all
industries, but positive signs have
recently come into view.

T KHANH CHI rEPOrTS

ore than 32 million workers in Viet-
nam were negatively affected by
M the Covid-19 pandemic last year,
losing their jobs or having their working
hours cut, according to figures from the Gen-
eral Statistics Office (GSO). Though the labor
market showed signs of improvement in the
fourth quarter compared to the third, many
workers still suffered job losses or lower PHOTO: VIET TUAN
incomes. The year also saw a fall in recruitment
demand at the senior management level across
industries, but there was still a hike in recruit-
ment in certain sectors. gone through and how the situation was man- “Requests still came in, but closing the role
aged during the pandemic.” became harder. On the candidate side, a lot
Demand rising and falling He has observed that demand for new of counter-offers were seen as many of the
2020 was an extremely difficult year, with positions and positions at new companies roles are hard to replace. To summarize, we
the pandemic buffeting the global economy was on the lower side. However, as Vietnam saw a number of middle management jobs
and profoundly impacting employment. In remains a dynamic and attractive market, coming in, but people became more cautious
Vietnam, according to headhunters the Nav- people are still being headhunted for new when moving and companies were more pro-
igos Group, millions lost their jobs between jobs and are leaving, which means replace- tective about letting their employees go.”
March and December. ments still need to be found. The state of affairs at the end of 2019 con-
“Our clients, who are mostly multinational “On the employer side, many of them firmed that Vietnam was emerging as a major
companies, are facing a host of difficulties,” became reserved and protective around hiring manufacturing platform for a range of indus-
said Ms. Ngo Thi Ngoc Lan, Regional Director in 2020 and wanted to better understand tries, including electronics, garments, and
at Navigos Search North. “Some have frozen whether a role was critical,” he explained. furniture. These industries were looking to
their hiring activities for a long period and grow significantly, especially in terms of
have no plans to resume recruitment, while export markets. As many countries locked
others have only now started to cautiously CHANGING RECRUITING PLANS down, though, exports became problematic,
recruit new staff. We are asked to hire foreign AND TARGETS IN 2020 with customers ordering less and factories
candidates in certain industries, but they 6.8% producing less, making the manufacturing
cannot come to Vietnam to work given the and processing sector the most affected by
border closures, casting something of a shadow Covid-19 in the first half of the year, after the
over the recruitment market, but some sectors 14.3% sector’s hiring market held the most promise
are doing better than others.” at the end of 2019, according to Robert Walters

Looking back over last year, the first half Vietnam. The situation began to improve
saw the usual slowdown around the Tet (Lunar 34.8% slightly in the second half but ended up
New Year) holiday in the first quarter, and nowhere near where it was meant to be. Can-
then Covid-19 struck in the second, Mr. Adrien 37.1% didates with expertise in manufacturing,
Bizouard, Country Manager of recruiters including technical roles and support functions
Robert Walters Vietnam, told VET. “Things 7.0% (finance or HR), were very much affected.
started going back to normal in the second Manufacturing and processing also suffered
half of the year,” he said. “Vietnam proved Unchanged Up Under 20% from global supply chain disruptions. Never-
attractive, as regional leaders saw the country theless, the sector also witnessed a number of
as an investment hub and a way to save the Down under 30% Down 30-50% textiles companies expanding their operations,

year, given the Covid-19 outbreak here was Down 50-70% building new factories, moving plants from
contained quite quickly. We should be very elsewhere into Vietnam, or transferring orders
glad and optimistic about what Vietnam has Source: Topdev, July 2020 from overseas to Vietnam for production.

14 | VIETNAM ECONOMIC TIMES | FEBRUARY 2021