HR Recruitment in Vietnam: Strategies, Challenges, and Opportunities in 2025

Vietnam is quickly establishing itself as a standout economy in Southeast Asia, thanks to its young workforce and strong inflow of foreign investment. With the pace of change accelerating, businesses are feeling the pressure to sharpen their recruitment strategies and adapt to an increasingly competitive market.

Vietnam’s economy is gaining momentum, powered by a young, energetic workforce and steady foreign investment. As the business environment grows more competitive, companies are finding it essential to rethink how they attract and retain talent to stay ahead.

Need help with HR recruitment in Vietnam? Check out InCorp Vietnam’s HR & Payroll Services in Vietnam

Overview of Vietnam’s Labor Market in 2025

As of 2025, Vietnam’s labor force stands at over 52 million individuals, with a labor force participation rate exceeding 76%. The country’s unemployment rate remains low, averaging around 2.4%, thanks to robust economic development and government-backed employment policies. However, underemployment persists in certain rural areas, indicating an imbalance between job availability and skill alignment.

Vietnam’s economic engine is powered by diverse sectors, including manufacturing, technology, financial services, and renewable energy. The IT sector, in particular, has seen explosive growth, driven by global demand for tech talent and Vietnam’s rising reputation as a software outsourcing hub. Additionally, the logistics and e-commerce sectors are expanding rapidly, supported by a growing middle class and urbanization.

Urban centers like Ho Chi Minh City and Hanoi dominate the labor market in terms of job volume and salary competitiveness. However, secondary cities such as Danang and Hai Phong are emerging as attractive alternatives due to cost-effectiveness and improved infrastructure. In contrast, rural areas still face limited job opportunities outside agriculture, although government initiatives aim to boost rural employment through vocational training and SME development.

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Legal Framework for Recruitment in Vietnam

The foundation of Vietnam’s employment legal framework is the Labor Code 2019, which came into effect in January 2021. It governs labor relations, employment contracts, probation periods, and termination procedures. Employers must be aware of and comply with these regulations to avoid legal disputes and penalties.

Foreign enterprises operating in Vietnam must register their labor needs with local labor authorities and obtain work permits for expatriate staff. They are also required to prioritize Vietnamese candidates for job vacancies, except in cases where local talent cannot meet the required qualifications. Regular audits and inspections ensure adherence to employment laws.

Vietnamese labor law mandates that employment contracts be provided in written form, clearly outlining job roles, compensation, benefits, and working hours. Probationary periods range from 6 to 60 days depending on job complexity, during which either party may terminate the contract with minimal notice. Employers must convert probationary agreements into official contracts upon successful completion.

Read Related: HR Outsourcing in Vietnam: Optimizing Operations for Business Success

Popular Recruitment Methods in Vietnam

1. Job Portals

Online job boards like VietnamWorks, CareerBuilder, and MyWork are among the most commonly used platforms for advertising vacancies. These sites offer wide reach and advanced filtering options, enabling employers to connect quickly with relevant candidates.

2. Recruitment Agencies and Headhunters

Many businesses turn to recruitment agencies and executive search firms to source top-tier professionals, particularly for managerial and specialist roles. These agencies provide market insight, vetted candidates, and time-saving services, making them a valuable partner for complex hiring needs.

3. Social Media and Networking

Social platforms such as LinkedIn and Facebook are increasingly popular tools for employer branding and passive candidate engagement. Companies often use these platforms to share job postings, promote workplace culture, and reach candidates who may not actively be searching through traditional job boards.

Recruitment Trends in Vietnam for 2025

• Emphasis on Soft Skills and Digital Fluency: Employers seek candidates with strong interpersonal skills and tech adaptability.
• Employer Branding and Candidate Experience: Transparent, engaging employer brands and streamlined hiring processes attract top talent.
• Data-Driven Hiring Decisions: Analytics guide smarter recruitment choices, improving efficiency and hiring quality.
• Focus on Employee Retention and Internal Mobility: Companies prioritize growing and promoting internal talent to reduce turnover.
• Diversity, Equity & Inclusion (DEI) Initiatives: Inclusive hiring practices are gaining momentum to build more balanced workplaces.
• Gig and Project-Based Hiring: Short-term, flexible roles appeal to specialized professionals and evolving business needs.
• Personalized Candidate Engagement: Tailored communication and feedback improve applicant experience and brand perception.
• Mobile-First Recruitment Strategies: Mobile-friendly applications and interviews cater to Vietnam’s digitally active workforce.
• Sustainable and Purpose-Driven Employer Messaging: Candidates are drawn to employers with clear values and social or environmental impact.

Challenges in HR Recruitment in Vietnam

1. Lack of Skilled Labor

The Ministry of Labour, Invalids and Social Affairs reported that approximately 38 million workers remained untrained by year-end. Besides, compared to regional peers, Vietnam’s labor productivity remains relatively low, largely due to the limited education levels among its trained workforce: as of 2023, only 27% of Vietnamese workers held formal training, degrees, or certifications; around 75% of workers receive only short-term vocational training lasting less than three months.

This presents significant challenges not only in terms of productivity but also in recruitment. Manufacturing businesses are finding it increasingly difficult to identify and secure qualified talent through traditional recruitment channels. The shortage of skilled labor limits the effectiveness of recruitment strategies, inflates hiring costs, and prolongs vacancy periods for technical roles. Moreover, the outdated training structure and misalignment between education and industry needs continue to weaken the talent pipeline, making strategic recruitment planning more critical than ever.

2. Limited Upskilling and Cross-Training Programs

Compounding the talent gap is the limited access to structured upskilling and reskilling initiatives. A 2025 TalentNet report found that 39% of foreign-invested enterprises (FDIs) in Vietnam cited the absence of effective training programs as a major operational challenge. As industries increasingly undergo digital transformation, this issue becomes more pronounced. The World Economic Forum projects that by 2025, half of all manufacturing roles will require new technical skills yet 59% of manufacturers globally still lack reskilling strategies.

For recruitment teams, this means greater competition for a limited pool of qualified candidates and higher dependency on external recruitment agencies or workforce solutions. Without internal development pipelines, businesses face rising costs and longer lead times in their recruitment processes. Investing in comprehensive training programs not only enhances retention but also supports more sustainable and strategic recruitment planning.

3. Employee Retention, Engagement, and Recruitment Impact
Low employee engagement continues to undermine productivity in the manufacturing sector. According to the Manufacturing Institute’s 2024 Engagement Study, only 25% of manufacturing employees are actively engaged. This lack of engagement correlates with 81% higher absenteeism and 41% more quality defects, resulting in significant operational and financial impacts.

Employee turnover presents a major cost burden, with direct replacement expenses averaging $50,000 per voluntary departure. Disengaged employees also contribute to a 23% decline in overall productivity. These trends directly influence recruitment budgets and workforce planning cycles, as HR teams are pressured to fill vacancies more frequently. The root of this issue lies in shifting workforce expectations: 83% of employees now prioritize job satisfaction, and 69% value family-oriented cultures and work-life balance. These evolving preferences often clash with traditional manufacturing environments, creating a disconnect that complicates recruitment strategies.

Conversely, companies that prioritize employee engagement and offer career development opportunities experience up to 70% lower turnover rates and 44% higher profitability. This also enhances employer branding and improves recruitment outcomes by attracting candidates who align with modern workplace values. In today’s competitive labor market, aligning engagement, development, and recruitment efforts is essential to building a resilient and future-ready workforce.

Read Related: Top 10 Challenges of Doing Business in Vietnam: Notes and Advice for Foreign Investors

Outsourcing HR Recruitment in Vietnam

Outsourcing recruitment through Recruitment Process Outsourcing (RPO) is an effective strategy for companies looking to scale hiring quickly and efficiently, especially during periods of growth or market expansion. RPO providers manage the entire hiring process—from talent sourcing and screening to onboarding—often leveraging local expertise and advanced recruitment technologies to streamline outcomes and enhance candidate experiences.

Selecting the right RPO partner requires careful consideration of their industry experience, success record, and alignment with your company’s values and goals. Key qualities of a reliable provider include transparent communication, adaptability, and data-driven reporting. Though there may be upfront investment, outsourcing often leads to faster hiring, better-quality candidates, and reduced HR workload, making it a strategic move for businesses with high-volume or specialized hiring needs.

Conclusion

Vietnam’s recruitment landscape in 2025 is vibrant, competitive, and rapidly evolving. As the country cements its position as a regional business hub, the need for strategic, compliant, and forward-thinking HR recruitment practices is more critical than ever. Employers must adapt to legal frameworks, leverage digital tools, and offer compelling employer value propositions to attract and retain talent in a fast-changing market.

Organizations that invest in their recruitment strategy—through technology, training, outsourcing partnerships, and a clear understanding of market dynamics—will be well-positioned to secure top talent and drive sustained business success in Vietnam.

To succeed in Vietnam’s modern hiring environment, HR leaders should:

• Stay informed on labor laws and compliance updates.
• Use a mix of traditional and tech-driven recruitment channels.
• Emphasize culture, career development, and digital skills in job offerings.
• Continuously refine recruitment processes based on feedback and data.

By aligning hiring strategies with market realities and candidate expectations, businesses in Vietnam can build agile, high-performing teams ready to thrive in 2025 and beyond.

Foreign Recruitment in Vietnam: Top 10 Questions

1. Does Vietnamese labor law require a specific ratio of foreign to local employees?

No, there is no mandated ratio under Vietnamese labor law. However, not all company positions can be filled by foreign employees.

2. Can foreign employees hold any position within a company in Vietnam?

Not all roles are open to foreign nationals. Employers may only hire foreigners for positions requiring specialized skills, and must demonstrate that no qualified local candidates are available. While this limits foreign hires for general roles, there are minimal restrictions when it comes to middle- and senior-management positions.

3. What skills are currently in shortage in Vietnam and often require foreign employees?

The Vietnamese government favors hiring foreign professionals who possess:

• Strong language skills, especially in English
• Expertise in IT, digital technologies, Blockchain, or Fintech
• Skills that are in limited supply locally
• International experience and global industry exposure

4. What must a company do to legally hire a foreign employee in Vietnam?

Employers must submit a foreign labor usage report detailing the reason for hiring a foreign national. This report must be filed at least 30 days before the employee’s intended start date.

5. What permits or visas are required for a foreigner to work or start a business in Vietnam?

To work or do business legally in Vietnam, a foreigner needs:

• A valid business visa or temporary residence card
• A work permit for employment lasting more than 3 months

6. What is the validity period of a business visa, work permit, and residence card in Vietnam?

• Business Visa: Valid for up to 12 months
• Work Permit: Valid for up to 24 months
• Temporary Residence Card: Valid for up to 24 months, matching the work permit duration

7. What are the requirements for each type of permit or visa?

• Business Visa:
  • For employment or business stays under 3 months
  • Requires an invitation or sponsorship letter from a Vietnamese entity
  • Suitable for partners, investors, or short-term assignees
• Work Permit:
  • Mandatory for employment over 3 months
  • Can be renewed once upon expiration
  • Requires higher education and relevant work experience:
    • At least 3 years for managerial roles
    • At least 1 year for director roles
• Temporary Residence Card:
  • Issued only after obtaining a valid work permit
  • Applied for separately once the work permit is granted
  • Matches the validity of the work permit

8. Do foreign investors need a work permit in Vietnam?

No, work permits are not required for foreign investors unless they hold an operational role as a director or employee within a company.

9. How long does it take to obtain a work permit in Vietnam?

The typical processing time ranges from 15 to 30 days, depending on document readiness and local authority procedures.

10. What documents are needed to apply for a work permit?

Applicants must prepare the following:

• Completed application form
• Valid medical examination certificate
• Proof of relevant work experience
• Certified copy of passport
• Criminal record certificate