Deep Insight Report on Vietnam’s Logistics Talent

Vietnam’s logistics sector is undergoing rapid growth like never before. According to the Ministry of Industry and Trade of Vietnam, the logistics market size reached around $57 billion in 2021 and is projected to surpass $100 billion by 2025. However, this explosive growth contrasts sharply with a growing shortage of skilled professionals.

This report aims to provide a comprehensive overview of Vietnam’s logistics talent market, including current trends in recruitment, salary levels, challenges faced, and future directions. It offers valuable insights for industry stakeholders.

Current Demand for Talent in the Logistics Sector

The demand for logistics talent in Vietnam is increasing rapidly. A recent survey by the Vietnam Logistics Association (VLA) indicates that the logistics sector faced a talent gap of about 300,000 people in 2022, which is expected to widen to 1.5 million by 2030. This gap includes all levels, from entry-level positions to senior management roles.

Regarding the structure of this demand, the survey shows:

  • Entry-level operational staff account for 60% of the total demand.
  • Mid-level technical and management personnel make up 25%.
  • Senior management and specialized talent constitute 15%.

There is a notable shortage of highly skilled professionals in specialized areas such as supply chain management, logistics planning, and international freight forwarding.

Analysis of the Recruitment Market

1. Recruitment Hotspots

Data from VietnamWorks, the largest online job platform in Vietnam, shows a 35% year-on-year increase in logistics-related job postings in 2022. The most sought-after positions include:

  • Supply Chain Manager: 18% of total demand
  • Warehouse Supervisor: 15%
  • Transport Coordinator: 12%
  • Customs Declaration Specialist: 10%
  • Logistics Analyst: 8%

Notably, positions related to digitalization and e-commerce logistics, such as e-commerce logistics specialists and data analysts, have seen the fastest growth, with demand increasing by more than 50% year-on-year.

2. Geographic Distribution of Recruitment

Recruitment demand is mainly concentrated in Vietnam’s economic centers and major port cities. The distribution is as follows:

  • Ho Chi Minh City: 40% of total demand
  • Hanoi: 25%
  • Haiphong: 15%
  • Danang: 10%
  • Other areas: 10%

This distribution reflects the geographical concentration of logistics activities in Vietnam and highlights a shortage of logistics talent in second-tier cities.

Salary Levels in the Logistics Sector

Salaries in Vietnam’s logistics sector have steadily increased in recent years, although significant differences exist between positions. According to Adecco Vietnam’s 2022 salary report, the salary range in the logistics industry is as follows:

1.Entry-Level Positions (0-2 years of experience)

  • Warehouse Administrator: 4,000,000 – 6,000,000 VND per month (about $175 – $260 USD)
  • Logistics Coordinator: 6,000,000 – 9,000,000 VND per month (about $260 – $390 USD)

2.Mid-Level Positions (3-5 years of experience)

  • Supply Chain Specialist: 15,000,000 – 25,000,000 VND per month (about $650 – $1,090 USD)
  • Transport Manager: 20,000,000 – 35,000,000 VND per month (about $870 – $1,520 USD)

3.Senior Positions (6+ years of experience)

  • Supply Chain Manager: 35,000,000 – 60,000,000 VND per month (about $1,520 – $2,610 USD)
  • Logistics Director: 60,000,000 – 100,000,000 VND per month (about $2,610 – $4,350 USD)

It is important to note that multinational companies often offer salaries 20-30% higher than domestic firms to attract and retain top talent. Additionally, professionals with digital skills and international experience typically command higher salaries.

Education and Training Landscape

1.Higher Education

Currently, about 25 universities in Vietnam offer logistics-related programs, producing around 6,000 graduates annually. However, this number is far from meeting market needs. According to the Ministry of Education and Training of Vietnam, enrollment in logistics-related programs increased by 20% in 2022 compared to 2021, reflecting awareness of the talent shortage.

However, universities face challenges such as outdated curricula and insufficient practical training. A VLA survey indicates that only about 30% of logistics graduates are immediately job-ready, while the remaining 70% require 3-6 months of on-the-job training by companies.

2.Vocational Education

To address the shortage of mid-level technical talent, the Vietnamese government is actively promoting vocational education in logistics. Currently, around 40 vocational training institutions nationwide offer logistics courses, with an annual training capacity of about 10,000 people. The government plans to double this number to 20,000 by 2025.

3.Corporate Training

Under pressure from talent shortages, Vietnamese logistics companies are increasing their internal training efforts. According to VLA’s survey, 65% of logistics companies increased their training budgets in 2022, with an average increase of 15%. Large companies like Gemadept and Transimex have set up their own training academies to offer systematic skill development courses for their employees.

Key Challenges in the Talent Market

1.Imbalance in Skill Structure

Despite an overall shortage of logistics talent, some areas face a structural imbalance. For example, there is an oversupply of talent in traditional areas like warehousing and transportation, while high-end fields such as supply chain management and logistics planning suffer from severe shortages. VLA estimates a 70% shortage rate for high-end logistics talent.

2.Talent Turnover

The logistics industry faces a high rate of employee turnover. A survey by Navigos Group shows that the annual turnover rate in logistics is 20%, significantly higher than the 12-15% rate in other industries. The main reasons include high work pressure, limited career advancement opportunities, and slow salary growth.

3.Digital Transformation Pressure

With the rapid growth of e-commerce and the emergence of smart logistics, the logistics sector faces immense pressure to go digital. However, there is a shortage of logistics professionals with digital skills. According to a VLA survey, only about 10% of logistics workers possess digital skills such as data analysis and IoT applications, which is insufficient to meet the industry’s transformation needs.

Future Trends and Recommendations

1.Enhancing Industry-Education Collaboration

To bridge the gap between education and industry practices, Vietnam is actively promoting collaboration between educational institutions and businesses. For example, Ho Chi Minh City University of Technology has partnered with DHL Vietnam to develop logistics management courses and provide internships. This model is expected to be adopted by over 50% of logistics programs nationwide in the next five years.

2.Developing Digital Talent

The Vietnamese government has prioritized the development of digital logistics talent. The Ministry of Education plans to add 10 new smart logistics programs nationwide between 2023 and 2025. Moreover, the government will offer training subsidies to logistics companies to encourage digital skill development among their employees.

3.Attracting International Talent

To quickly elevate the industry standard, Vietnam is stepping up efforts to attract international logistics talent. The government has introduced policies offering work visas and tax incentives for senior logistics professionals. Data from the Vietnam Foreign Investment Agency shows a 25% year-on-year increase in the number of foreign senior professionals in the logistics sector in 2022, and this trend is expected to continue.

Conclusion

Vietnam’s logistics talent market is at a pivotal stage, characterized by rapid growth but also facing multiple challenges. Issues such as talent shortages, skill imbalances, and high turnover remain significant. However, through initiatives like enhancing industry-education collaboration, fostering digital talent, and attracting international expertise, Vietnam is poised to improve its logistics talent supply significantly over the next 5-10 years.

For companies, establishing robust internal training systems, offering competitive compensation and benefits, and creating clear career paths are crucial for attracting and retaining top logistics talent. For educational institutions, updating curricula, enhancing practical training, and promoting international exchange are key to improving the quality of talent development.

With these measures being gradually implemented, Vietnam’s logistics talent market is set to make substantial progress, providing a solid foundation for the continued rapid growth of the country’s logistics industry. However, considering the fast pace of industry development and the ever-evolving technological landscape, staying attuned to new trends in the talent market will be an ongoing task for all stakeholders.

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