Ho Chi Minh city, December 8th 2023 – Navigos Group officially releases the Talent Guide 2024, providing job seekers and employers an overview of the current recruitment market and salary survey during this challenging time. The report is based on the opinions of more than 4,000 candidates working in Vietnam, and more than 550 businesses with diverse nationalities such as America, China, Europe, Korea, Japan and Vietnam, providing trends. work & necessary skills as well as comments and advice from human resources experts for two main target groups: Employees and Businesses. 

SECTION 1: LABOR MARKET OUTLOOK IN 2023

The labor market situation in 2023 remains challenging: half a million employees around the world were laid off and 82.2% of businesses in Vietnam were affected.

1. Global labor market

Global shocks and risks such as: the tightening of global financial conditions; purchase power decline in export markets; political conflict; inflation; rising prices;.v.v. causing indigenous businesses to cut orders, making manufacturing even more difficult. As a result, this situation is holding back the labor market' recovery. 

To cope with the above challenges, business executives in a variety of industries have laid off nearly half a million employees worldwide, especially in the IT industry which has the most immense layoffs, accounting for almost one-third of all discharges. 

Hiring continuously slows down worldwide and  internal mobility tends to increase in some industries (through promotions or internal transfers). Singapore, Canada, and India saw a recruitment loss of more than 40% of the 17 nations referred to data for the report.

2. Labor market in Vietnam

Similar to the general fluctuations in the world recruitment market, the labor situation in Vietnam also faces many difficulties. Noticeably, according to the survey results, up to 82.2% responded that they were affected by market fluctuations in 2023. For businesses affected by market fluctuations in 2023, the most chosen solution is employee reduction, with 68.7% of votes. 

SECTION 2: OVERVIEW OF THE LABOR MARKET IN VIETNAM IN 2023

1. Current situation of businesses in the market

1.1. Market fluctuation impact on Businesses in 2023

82% businesses in Vietnam in the survey were affected by market fluctuations in 2023

According to the survey results, up to 454/ 555 businesses responded that they were affected by market fluctuations in 2023, accounting for 82.2%. These Businesses, which span several industries and have varied degrees of effect, including Banking; Transportation/ Forwarding/ Logistics; Japan Desk - Industrial Manufacturing; Automotive Construction/ Real Estate; FMCG/ Food and Beverage; Electronics; E-commerce/ Online service & Fintech. 

1.2. Human resource solution that businesses have been taking to adapt to market fluctuations

Most businesses in Vietnam choose to cut less than 25% of their staff, with some industries cutting up to 75%.

For businesses affected by market fluctuations in 2023, the most chosen solution is employee reduction, with 68.7% of votes. The second one is stopping recruiting new employees, with 52.6% of the vote. Others are providing professional and soft skills training for employees (46.9%), internal transfer (43.2%), and reducing employee work hours (14.1%).

In Vietnam, businesses cut down with a scale of less than 25%, accounting for the majority of sectors, including Banking, Transportation/ Forwarding/ Logistics, Automotive, Chemical/ Building Materials & Packaging/ Printing/ Plastics, Pharmaceutical, Healthcare Services, Energy/ Renewables & Oil/ Gas, Insurance, Japan Desk - Trading & Services.

According to survey results, very few businesses choose to reduce staff on a large scale. The two industries of Construction/Real Estate and Business consulting services show a reduction in staff from 50% to 75% with the same ratio of 10.0% of Businesses. Only Business consulting services had a reduction of over 75% of personnel (5.0%). 

1.3. Businesses' recruitment plan in the next one year

More than 50% of businesses still recruit more staff in the next year and give priority to candidates having problem-solving skills.

Despite recent fluctuations in the recruitment market, 59.1% of Businesses participating in the survey responded that they would recruit less than 25% of personnel in the next one year. In the volatile market, businesses prioritize hiring candidates with good problem-solving skills, having 1 - 3 years of work experience (non-manager), and candidates above Fresher/ Entry level and Manager. The sales department will be focused on recruiting the most by Businesses, followed by manufacturing and marketing departments. 

“Not only in Vietnam, but also businesses and employees around the world are currently trying to undertake many solutions to cope with economic fluctuations, make changes in thinking, business operation, necessary skills equipment, recruitment and job search activities. It is essential for businesses and employees to keep themselves updated with a detailed picture of the current situation and expectations from both sides to be best prepared to adapt and keep up with changes.”, Mr. Ryosuke Kanemoto, CEO Navigos Group said.  

Ryosuke Kanemoto, CEO of Navigos Group

2. Current status of Vietnam's labor market from the perspective of employees

2.1. Employment loss status

Most employees still have stable jobs.

Although 69% of employees are not being laid off and still working steadily, the rate of employees getting laid off and not finding a new job is still relatively low (11.4%). In addition, Energy/ Renewables & Oil/ Gas, Garment/ Textiles/ Footwear, and Chemical/ Building Materials & Packaging/ Printing/ Plastics are at the highest risk of job loss.

2.2. The status of salary, bonus & benefits of labor at companies 

Many employees still received salary increases and full mandatory benefits.

According to our report, 43.3% employees receive pay raises in 2023, with a salary increase from 5% to less than 10%. Employees whose salaries were reduced in 2023, the reduction from 15% to less than 20% accounts for the majority with 38.8% of choices

Nearly 70% of workers still receive full mandatory benefits from the Organization/Enterprise they are working for. For employees affected by the wave of layoffs, full and timely salary payment is the most received support in addition to unemployment benefits and severance benefits.

2.3. Changes in attitudes and opinions of employees regarding the labor market

Employees’ attitude is still quite positive and they are willing to improve competitiveness.

In the context of a volatile market, in general, employees show positive attitudes. According to Navigos Group’s public survey in Q3.2023, up to 55.2% choose to accept and look for new jobs and 22.5% responding that they're confident that they're not affected when asked about their attitude to the layoff wave. 

Each employee is also aware of the necessity of equipping themselves with solutions to increase competitiveness in the labor market. Upskilling soft-skill is the measure that most employees apply (61.7%), followed by actively looking for job opportunities in advance, even when there is no need (53.9%).

Financial factors are equally important in the current environment, with 51.3% of candidates/ employees choosing Effective personal financial management as their solution. 

2.4. New expectations and concerns of employees regarding job quality

Salary is the most crucial element for employees while looking for a new job. 

83.4% of employees said that when looking for a new job, the first priority is salary. 70% of them stated salary is the factor that has the strongest impact on their decision to quit their current job if they are not satisfied with the company.

Followed by other factors such as company culture, promotion opportunities at work, and bonus scheme. In particular, given the various economic swings and the labor market in particular, employees expect business stability and place a high value on financial support from employers with getting paid on time ranking as their top concern.

In the face of many market fluctuations, many employees have high expectations for commitment and job security from businesses in the face of market fluctuations. This accounted for 45.7% and ranked 5th according to survey results.

SECTION 3: VIETNAM LABOR MARKET OUTLOOK IN 2024

1. Employment trends that employees are interested in 2023, extending to 2024

The employment trend that employees are most interested in in 2023, extending to 2024, is flexible working (49.1%). Secondly, concern for mental health is also acknowledged, as work-life balance ranks second with 43.7%. 

Other factors include remote working (40.1%), the use of AI (37.7%), and worker empowerment (35.8%). 

2. Emerging job positions in industries/ fields in Vietnam

New job positions gradually appear, focusing on artificial intelligence, digitalization, data analysis, and business analysis.

In particular, positions related to artificial intelligence are the most popular answers to the question about emerging jobs in most industries, including Information Technology/ Telecom, Construction/ Real Estate, Banking, Education, Financial Services & Consulting, and Business consulting services. In addition, new job positions in data processing are also gradually emerging in Construction/ Real Estate, Electronics, Information Technology/ Telecom, Banking, Business consulting services, and Insurance. 

3. Core skills employees need to hone in 2023-2024

Foreign languages and critical thinking are the top skills that employees believe they should focus on developing in 2023, extending to 2024, with an identical rate of 55.1%. To increase competitiveness in the labor market, Candidates/ Employees also enhance creative thinking (48.2%), problem-solving (42.2%), and effective communication (39.5%). 

A similar result can be drawn when referring to the factors that businesses prioritize in recruiting. Specifically, foreign languages, effective communication, and problem-solving are all top skills in both surveys. Furthermore, employees and businesses take a great interest in adaptability in the light of current market fluctuations

SECTION 4: ADVICES FROM NAVIGOS GROUP

1. For Businesses

In such a context, Businesses must be well-prepared in this setting, comprehending market economic news, recruitment trends, and employee psychology to successfully develop strategies to attract, recruit, and retain talent. In details:

• Build a transparent and attractive salary and bonus mechanism; Focus on Salary as a factor to attract candidates when recruiting; Pay special attention to assuring employee bonus and salary policies; Increase/diversify bonuses or financial sponsorship…

• Invest in creating a corporate culture whose core values align with the goals of the company; utilizing recruitment branding initiatives that express corporate culture to a variety of candidates and employees; Diversify recruitment channels to maximize access to potential candidate sources;

• Build a clear promotion path for each employee; Regularly recognize and evaluate employee capabilities based on the value of work performance; Pay special attention to  employee mental health; pay attention to their staff, have greater faith in them, and grant them the freedom to act and make decisions on their own within a specific framework.

• Consider focusing on skill training and transferring internal employees to new positions in the organization instead of new recruitment.

2. For Candidates/ Employees

To be well prepared when the market economic situation stabilizes and develops again, as well as meeting new recruitment requirements, employees need to:

• Continuously update market news, recruitment trends, and grasp employer requirements;

• Search for job opportunities at various recruitment sources, especially online recruitment sites, or through personal relationships (internal referrals) and network with recruitment experts;

• Actively learn to develop and demonstrate good problem solving skills, effective communication, foreign languages and adapting to change,...

• Grasp new working trends, know how to apply AI to work to improve labor productivity, etc.

SECTION 5: DETAILED SALARY SCALE OF 23 INDUSTRIES BY EACH DEPARTMENT, POSITION IN HO CHI MINH CITY & HANOI

Navigos Group Talent Guide 2024 synthesizes and provides a detailed salary survey of 23 industries, spanning across key industries, with minimum and maximum salary information in 2 major cities: Ho Chi Minh and Hanoi of all working levels from interns - experienced - to managers or directors.

The salary guide also shows the new trend of the market when positions in Environment, Society and Management are playing important roles in businesses, when the salary for these departments in the Electronic Equipment, Chemicals/Materials; Construction & Packaging/Printing/Plastic, Agriculture, Japanese-invested manufacturing tend to increase compared to the same period last year.

The importance of ensuring database security is enhanced when this year's payroll sees businesses increasingly investing in salaries for Data departments in the Information Technology - Telecommunications, Banking, and Financial Services industries. Commodities, Energy/Renewable Energy & Oil & Gas.

• Link to the Vietnamese report: Khảo sát lương 2024
• Link to the English report: Talent Guide 2024

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About NavIgos Group

Navigos Group is the leading human resources recruitment service provider in Vietnam, and its mission is to help job seekers and companies achieve their dreams through professional recruitment services. Navigos Group is known for its ecosystem that includes VietnamWorks - the largest online recruitment portal and Navigos Search - a mid-level and high-level personnel recruitment service. Since 2013, Navigos Group Vietnam has officially become a member of en Japan Group specializing in providing human resources recruitment services with headquarters in Tokyo, Japan. Up to now, Navigos Group has marked 20 years of operation in the Vietnamese market.

About VietnamWorks

With over 9 million monthly visits, VietnamWorks is the leading and longest-operating job website in Vietnam. Every day, VietnamWorks brings countless new jobs to over 5 million experienced candidates and is always at the forefront of providing the best recruitment solutions for over 60,000 companies, mostly multinational corporations and leading brands in Vietnam. The rich database of experienced candidates and reputable employers of VietnamWorks is a valuable asset in the competitive recruitment market in Vietnam. VietnamWorks InTECH is VietnamWorks' recruitment website dedicated to fully supporting IT candidates in their career development, at all levels, from fresh graduates to senior candidates, thanks to the combination of online services and high-level personnel recruitment consulting services from Navigos Search.

About Navigos Search

Navigos Search is Vietnam's leading executive search brand. With more than 20 years of experience in the HR field, Navigos Search offers a team of motivated, market-savvy consultants, and the most comprehensive database of applicants at all levels. According to Navigos Group's new philosophy - Human Growth - Navigos Search is delighted to assist Companies in finding the best talents, as well as be a trustworthy partner for candidates to choose the "Right Fit" and "Go Further" in their professional journey.