Navigos Group, the leading company in Vietnam’s recruitment industry, operator of the biggest job portal VietnamWorks and an executive search firm Navigos Search, has issued the report on recruitment demands for senior management level in Vietnam through Navigos Search’s clients’ hiring needs in Q2/2019. This quarter recorded many changes by events related to the impact of trade agreements, investment wave from FDI.
Recruitment for industrial real estate rises as a result of an increase in FDI investment
As noted, within 6 previous months, due to FDI inflows into the construction of the factory and plant, it has led to the rise of industrial real estate (Industrial real estate includes: All land utilized or suited for industrial activities: factory, industrial zone, office,…). Additionally, many company expansion projects also impact on the demand for real estate leasing. Besides, FDI enterprises that directly invest in commercial real estate also partly stimulate the strong development of this segment. In the second quarter of 2019, big cities such as Hanoi, Da Nang, and Ho Chi Minh City are no longer the only destinations of real estate investors, instead, there has been a strong rise of new markets like Quang Ninh, Hai Phong, Thanh Hoa, Binh Thuan, Vung Tau,…
Corporations that need to recruit key positions, or alternative ones because the current candidate has not met the requirements. It is predicted that in the second half of the year, the recruitment demand of this sector will continue to be stable, corporations that intend to expand will recruit more senior positions. Foreign experts are also “hunted” for positions related to Engineering and Real Estate Operation Management.
The auxiliary chemical for manufacturing industry increased strongly in recruitment due to the impact of factory development
Regarding the wave of factory shift from China to Vietnam in the last 6 months and from FDI investment into the manufacturing industry, the auxiliary chemical industry for production also increased dramatically in recruitment demand. Accordingly, compared to the previous quarter, the recruitment demand for this segment has increased more than 3 times.
Also, Navigos Search recorded a shift from North to South of auxiliary chemical companies, due to strong demand for expansion and development of factories in the North. The main vacancies are related to Commercial and Back office.
The wave of shifting from China is showing signs of slowing due to fluctuating US-China trade negotiations and competition on labor costs
For the textile and footwear industry, Chinese importers shifted production orders to other countries such as Malaysia, Bangladesh, Indonesia, etc. due to more competitive production costs (including labor cost which is lower than Vietnam). Accordingly, sustainable revenues from the Vietnamese market bring to these enterprises, being evaluated to stop at potential levels.
In the South, the demand for recruiting in supporting industries and processing/production also showed signs of slowing down, the related cause is that the US-China trade negotiations are showing signs of resuming. Major US companies in the field of high-tech materials are also surveying the market and acquiring knowledge on Vietnamese laws for factories relocation. However, they are only exploring the market because they are still waiting for final decisions from trade talks. However, forecasting in the third quarter, the wave of a shift from China in these areas continued to restart because trade talks returned to the original situation.
Trade agreements promote the recruitment needs of export-import factories and open up great potential for professional services.
Currently, many high-tech zones in the South are producing demand accounting for 90% only for export to foreign markets. The recruitment demand of these industrial zones in Binh Duong and Bien Hoa continues to increase and stabilize.
According to observations, the emerge of free trade agreements are related to opening up many potential investments in professional services (after-sales, advertising, HR consulting, health services,…). As noted by Navigos Search, companies are in the process of exploring the market for new opening and looking for recruitment services has increased dramatically, up to 50% compared to the previous months.