1. Overview of labor supply

1.1 Vietnam Demographics

Vietnam is one of the most populous countries in Southeast Asia, with abundant labor resources. Understanding Vietnam’s demographics is crucial for companies to invest and operate in Vietnam. Here are the details of Vietnam’s labor supply:

Total population within 50 km of the Vietnam Park

Most of Vietnam’s industrial parks are concentrated in economically developed cities and provinces, such as Ho Chi Minh City, Hanoi, and Haiphong. Taking Ho Chi Minh City as an example, the total population within 50 kilometers around the industrial park is about 15 million, covering a large labor market. These areas have a high population density, providing companies with sufficient labor resources. In addition, the industrial parks around Ho Chi Minh City have convenient transportation and complete infrastructure, which helps to attract more labor.

Vietnam’s working-age population (15-64 years old)

According to data from the General Statistics Office of Vietnam, Vietnam’s working-age population (15-64 years old) accounts for about 70% of the total population. This means that Vietnam has a broad labor force base that can meet the employment needs of various companies. Vietnam has a high proportion of young labor force population, with strong learning and adaptability, providing good human resource guarantees for companies.

Age structure distribution in Vietnam

15-24 years old: about 16% of the total population. This part of the population has just entered the labor market, has a high learning ability and innovation consciousness, strong adaptability, and can quickly master new technologies and new knowledge.

25-34 years old: about 20% of the total population. The labor force in this age group usually has accumulated a certain amount of work experience, mature skills, high stability, and is an important source of backbone forces for enterprises.

35-44 years old: about 15% of the total population. This group of people has rich work experience and management experience, and is qualified for middle and senior management positions in the company, providing stable management and operational support for the company.

45-54 years old: about 12% of the total population. The workforce in this age group is very mature in technology and management, and although they may be slow to adapt to new technologies, their experience and stability are important assets for companies.

55-64 years old: about 7% of the total population. Although this group of people is close to retirement age, they still have rich experience and a strong sense of responsibility, and are suitable for roles such as consultants or technical guides in enterprises.

Vietnam gender ratio

Vietnam has a relatively balanced gender ratio. According to the latest statistics, men account for 49.3% of the total population and women account for 50.7%. This gender ratio provides companies with a variety of labor options. Women have a high degree of participation in the Vietnamese labor market, especially in the service, manufacturing and electronics industries. Male labor is more concentrated in areas such as construction, transportation and heavy industry.

1.2 Vietnam’s labor force participation rate

Vietnam’s overall labor force participation rate

According to the latest data from the General Statistics Office of Vietnam, Vietnam’s labor force participation rate (i.e. the proportion of the working-age population participating in the labor market) has stabilized at around 70%. This ratio shows that 70% of the working-age population are actively participating in economic activities, including employment and seeking employment opportunities. This high participation rate reflects the activeness of Vietnam’s labor market and the healthy development of Vietnam’s economy.

Vietnam’s labor force participation rate by age group

Vietnam’s labor force participation rate varies by age. Here are the details by age group:

15-24 years old: The labor force participation rate in this age group is relatively low, at about 50%. The reason is that many young people are still receiving education or vocational training and have not yet fully entered the labor market. However, with the improvement of Vietnam’s education level and the increase in vocational training programs, this proportion has a tendency to gradually increase.

25-34 years old: This age group has the highest labor force participation rate, reaching about 90%. Individuals in this stage have usually completed education or training, entered the workplace, and are in the rising stage of career development. Their high participation rate reflects the high participation of people in this age group in economic activities.

35-44 years old: The labor force participation rate for this age group has declined slightly, but remains at around 85%. Although some individuals may temporarily withdraw from the labor market due to family responsibilities (such as raising children), most people remain actively working during this stage.

45-54 years old: The labor force participation rate in this age group is about 80%. As they age, some individuals may gradually reduce their working hours or retire early, but most people are still active in the workplace.

55-64 years old: The labor force participation rate in this age group drops significantly to around 60%. As they are approaching retirement age, many people choose to retire early or switch to part-time work. However, in Vietnam, there is still a considerable number of people in this age group who remain economically active, especially in some industries that require experience and expertise.

Vietnam’s labor force participation rate by gender

There are some differences in Vietnam’s labor force participation rate by gender, but overall, the participation rate is high for both men and women:

Men: The male labor force participation rate is stable at around 75%. Men play an important role in all industries in Vietnam, especially in industries that require high physical labor, such as construction, manufacturing and transportation.

Women: The female labor force participation rate is about 65%. Although slightly lower than that of men, women’s participation in Vietnam’s labor market is still very high, especially in the service industry, manufacturing industry and education. In addition, the Vietnamese government and society have gradually increased their support policies for women’s employment, which has promoted women’s enthusiasm for participating in the labor market.

Overall, Vietnam has a high labor force participation rate and good gender balance. This provides companies with a rich and diverse labor resource in Vietnam to meet the employment needs of various industries. With the continued development of Vietnam’s economy and the further opening of the labor market, it is expected that Vietnam’s labor force participation rate will remain stable and may further increase in the future.

1.3 Unemployment rate in Vietnam

Vietnam’s overall unemployment rate

According to the latest data from the General Statistics Office of Vietnam, Vietnam’s overall unemployment rate remains at a low level of about 2-3%. This low unemployment rate reflects the healthy development of Vietnam’s economy and the stability of the labor market. The Vietnamese government has taken a number of measures to promote employment, including promoting economic structural transformation, attracting foreign investment, and developing manufacturing and service industries. These policies help maintain a low unemployment rate.

Vietnam youth unemployment rate (15-24 years old)

Although Vietnam’s overall unemployment rate is low, the youth unemployment rate (15-24 years old) is relatively high, at about 7-8%. The main reasons for the high youth unemployment rate include:

Disconnect between education and the job market:After completing their studies, many young people find that their majors do not match market demand, which makes it difficult for them to find suitable jobs.

Insufficient professional experience:Many employers prefer experienced job seekers when recruiting, and young people are often at a disadvantage in the job market due to their lack of work experience.

Impact of economic fluctuations:Although Vietnam’s economy is generally stable, global economic fluctuations or domestic economic adjustments may have a significant impact on young people’s employment opportunities.

In order to address the high youth unemployment rate, the Vietnamese government and relevant agencies have taken a number of measures, such as strengthening vocational education and training, promoting cooperation between universities and enterprises, providing employment guidance and entrepreneurship support, etc., to help young people better integrate into the labor market.

Vietnam’s long-term unemployment rate (unemployed for more than 12 months)

Vietnam’s long-term unemployment rate (unemployment for more than 12 months) is relatively low, at around 1-2%. The reasons for the low long-term unemployment rate include:

Rapid economic development:Vietnam’s economy continues to grow, and various industries have a strong demand for labor, providing more employment opportunities for the unemployed.

Government policy support:The Vietnamese government promotes employment through a variety of policy measures, including employment subsidies, vocational training, and entrepreneurship support, to help the long-term unemployed re-enter the labor market.

Social Security System:Vietnam’s gradually improved social security system provides certain financial support for the unemployed, alleviates their life pressure and increases their motivation to find re-employment.

Although the overall long-term unemployment rate is low, some specific groups, such as older workers or workers with only one skill, still face certain challenges in finding a job. The Vietnamese government is working to help these long-term unemployed better integrate into the labor market by providing more targeted training and employment support.

In summary, Vietnam’s unemployment rate is generally low, but youth unemployment and long-term unemployment among specific groups still require attention. Through continued economic development and effective employment policies, Vietnam is expected to further reduce unemployment and improve the activity and stability of the labor market.

2. Skill level analysis

2.1 Distribution of education level in Vietnam

Vietnam’s education system is constantly improving, and the education level is gradually improving, providing various types of parks with multi-level skilled talents. The following is the distribution of education levels in Vietnam:

Primary school and below

In Vietnam, the proportion of labor force with primary education or below is about 20%. Most of this population is engaged in basic, manual labor-intensive jobs, such as some low-skilled jobs in agriculture, construction and manufacturing. Although the skill level of these workers is relatively low, their diligence and pragmatism provide a large number of basic labor for enterprises.

junior high school

The proportion of the workforce that has completed junior high school education is about 30%. This part of the population usually has basic reading and writing skills and certain technical knowledge, and is competent for some low-tech positions that require certain operating skills, such as simple machine operation and assembly workers. When recruiting, companies can use short-term training to enable this part of the workforce to quickly adapt to their jobs.

high school

The workforce that has completed high school education accounts for 25% of the total population. This level of workforce usually has good basic knowledge and learning ability, and can adapt to more complex operations and management work. The workforce with high school education occupies an important position in the manufacturing, service and retail industries. Their learning and adaptability enable them to quickly become competent in their positions and improve production efficiency.

Vocational and Technical Schools

The workforce that graduates from vocational and technical schools accounts for 15% of the total population. These graduates have specific skills and expertise, such as electrician, machinery maintenance, computer operation, etc. Their professional skills make them occupy an important position in technical positions in industrial parks, such as machine tool operation, equipment maintenance, technical support, etc. Vocational and technical school graduates are usually the first choice for enterprises in mid-level technical positions.

College

The proportion of the workforce with a college degree is about 7%. These people usually have high professional skills and theoretical knowledge and are qualified for high-tech positions such as engineering technology, quality control, production management, etc. The role of college graduates in industrial parks is becoming increasingly important. They not only play a key role on the production line, but also participate in the technological innovation and improvement of enterprises.

Bachelor degree and above

The labor force with bachelor degree or above accounts for about 3% of the total population. This part of the labor force usually holds management, R&D and senior technical positions, such as project managers, R&D engineers, financial analysts, etc. They have strong theoretical knowledge and practical ability, and can provide important intellectual support and technical guarantee for the development of enterprises. Talents with bachelor degree or above are an important force for enterprises in technological innovation, management improvement and market development.

In summary, the skill levels of the labor force in Vietnam’s industrial parks are diverse, ranging from primary school and below to undergraduate and above, and the labor force at all levels together constitutes a complete human resource structure. When enterprises set up industrial parks in Vietnam, they can flexibly select and allocate labor with different skill levels according to their own needs to achieve the best production efficiency and competitive advantage. With the continuous improvement of Vietnam’s education level, it is expected that the proportion of high-skilled labor will further increase in the future, providing enterprises with better human resources.

2.2 Vietnam Skills Assessment

Vietnam’s skills assessment is mainly analyzed from the aspects of language ability, computer skills, proportion of technical workers and proportion of management talents. The following is a detailed analysis of these aspects:

Languages

Vietnamese

Vietnamese is the official language of Vietnam and is widely used by people across the country. For the daily operation and management of enterprises in Vietnam parks, employees who are proficient in Vietnamese are essential. This not only helps communication and collaboration with the local workforce, but also helps maintain the relationship between enterprises and local governments and communities.

English

With the development of globalization, the popularity of English in Vietnam has gradually increased, especially among young people and people with higher education. According to statistics, about 30% of the Vietnamese workforce has a certain ability to communicate in English. Especially in foreign-funded enterprises and the tourism industry, English has become an important working language. For international companies, the English proficiency of Vietnamese employees is conducive to the smooth development of cross-border business and the expansion of international markets.

Other foreign languages

In addition to English, some of Vietnam’s workforce also master other foreign languages, such as Chinese, Korean and Japanese. These foreign language abilities are mainly concentrated in industries that have close economic ties with these countries, such as manufacturing, services and trade. These foreign language abilities provide greater convenience for companies to conduct cross-border business in Vietnam.

Computer skills

The level of computer skills in Vietnam is gradually improving, especially among the younger generation. According to the Ministry of Information Technology, about 40% of the Vietnamese workforce has basic computer skills, such as using office software, Internet search and email communication. Graduates of higher education and vocational and technical schools usually have higher computer skills, such as programming, data analysis and information system management. These computer skills are of great significance to the development of enterprises in modern production, data management and e-commerce.

Proportion of skilled workers

Vietnam has a high proportion of skilled workers, especially in the fields of mechanical operation and electronic assembly. According to data from the Ministry of Labor of Vietnam, skilled workers account for about 25% of the total workforce. Among them, skilled workers such as mechanical operators, electronic assemblers, welders, and electricians occupy an important position in industrial parks. These skilled workers have received training in vocational and technical schools or enterprises, and have strong practical operation capabilities and technical levels, and are an important support for industrial production.

Management talent ratio

The proportion of management talents in Vietnam is relatively low, but it is gradually increasing. Management talents are mainly concentrated in people with higher education background and rich work experience, accounting for about 5% of the total labor force. These management talents usually hold middle and senior management positions in enterprises, such as production managers, project managers, quality control managers, etc. They have strong leadership, organizational coordination and decision-making abilities, and play a key role in the operation and development of enterprises. The Vietnamese government and enterprises actively cultivate and improve the comprehensive quality and management level of local management talents through various training and development projects.

In summary, Vietnam’s labor force has strong language skills, computer skills and a high proportion of technical workers, providing enterprises with a diverse talent pool. Although the proportion of management talents is relatively low, with the improvement of education level and the strengthening of vocational training, Vietnam’s management talent team is gradually growing, providing strong support for the long-term development of enterprises in Vietnam.

2.3 Industry Experience

Workforce distribution by major industries

Vietnam’s economy is diversified, and the workforce is distributed across a number of major industries. The workforce distribution in each industry is as follows:

Manufacturing:Manufacturing is one of Vietnam’s most important economic pillars, absorbing about 40% of the labor force. Vietnam has significant advantages in manufacturing fields such as electronics, textiles, footwear, and furniture. Most of the labor force in the industrial park is engaged in manufacturing-related jobs, including production line workers, technicians, quality inspectors and other positions. The rapid development of the manufacturing industry has not only provided employment opportunities for a large number of workers, but also promoted the training and skills improvement of technical workers.

Services:The service industry employs about 30% of the workforce, mainly in retail, catering, finance, tourism and information technology. As Vietnam’s economy modernizes and urbanizes, the proportion of the service industry continues to rise. Jobs in the service industry include sales staff, waiters, customer service representatives, financial staff and software developers.

Agriculture:Although the proportion of agricultural labor in Vietnam is gradually decreasing, about 20% of the labor force is still engaged in agriculture-related work. Vietnam’s main agricultural products include rice, coffee, rubber, aquatic products, etc. Agricultural labor is mainly distributed in rural areas, engaged in planting, breeding and primary processing. With the advancement of agricultural modernization, more and more laborers are turning to mechanized and intensive agricultural production.

Construction Industry:The construction industry absorbs about 10% of the labor force, mainly concentrated in the fields of urban infrastructure construction, real estate development and industrial park construction. Construction workers, engineers, project managers and other positions play an important role in the construction industry, promoting the process of urbanization and industrialization.

Average working years

The average working years of the labor force in various industries in Vietnam vary, reflecting the stability and experience accumulation of the labor force in each industry:

manufacturing:The average working years are 5-7 years. The technical workers and operators in the manufacturing industry have been in their posts for a long time and have accumulated rich working experience and operating skills. These workers usually work in the same position for many years, which helps the company maintain stable production efficiency and product quality.

Services:The average length of service is 3-5 years. The service industry has a high mobility, and employees usually move between different positions and companies to accumulate diverse work experience. Nevertheless, some key positions in the service industry, such as management and technical positions, have a relatively long average length of service for employees.

agriculture:The average working years is more than 10 years. Most of the agricultural labor force is family-based, with high stability and experience accumulation. The labor force engaged in agricultural work for a long time has a deep accumulation of planting and breeding technology, which promotes the stable development of agricultural production.

Construction Industry:The average working experience is 5-8 years. Workers and technicians in the construction industry usually have many years of construction and project management experience and are able to cope with complex construction projects and project challenges.

Salary level analysis

There are large differences in salary levels across industries in Vietnam, reflecting the labor intensity, technical requirements and market demand of different industries:

manufacturing:The average monthly salary is between $300 and $500. The salary level in the manufacturing industry is relatively stable, but the salaries of skilled workers and management positions are relatively high. With the upgrading of the manufacturing industry and the improvement of technology, the salaries of skilled workers are expected to increase further.

Services:The average monthly salary is between $400-600. The service industry has a higher salary level, especially in finance, information technology and high-end service industries. The service industry has a diverse salary structure, and highly skilled and high-quality employees usually receive higher salaries.

agriculture:The average monthly salary is between 200 and 400 US dollars. The salary level of agricultural labor is relatively low, but some high-value-added agricultural product producers and modern agricultural operators have higher incomes. With the process of agricultural modernization, the income level of agricultural labor is expected to gradually increase.

Construction Industry:The average monthly salary is between $350-600. The salary level in the construction industry is relatively high, especially for skilled workers and project managers. The high labor intensity and technical requirements of the construction industry determine its high salary level.

In summary, Vietnam’s labor force is widely distributed in major industries, with rich industry experience and diverse skill levels. The average working years and salary levels in different industries reflect the labor market characteristics and economic development status of each industry. When investing and operating in Vietnam, enterprises can formulate effective human resource management strategies based on industry characteristics and labor resources to ensure a stable labor supply and reasonable salary levels.

3.1 Overall salary level

Average monthly salary around Vietnam Industrial Park

Most of Vietnam’s industrial parks are concentrated in economically developed cities and provinces, such as Ho Chi Minh City, Hanoi, and Haiphong. The average monthly salary in these areas is relatively high, and the specific salary level varies by industry and position. According to the latest data from the General Statistics Office of Vietnam and relevant economic research institutions, the following is an overview of the average monthly salary around Vietnam’s industrial parks:

Ho Chi Minh City:As Vietnam’s largest economic center, the average monthly salary in Ho Chi Minh City is about 7-8 million VND (about 300-350 USD). The city’s industrial parks have attracted a large number of foreign-funded enterprises, providing abundant employment opportunities and driving up salary levels. Manufacturing, service and high-tech industries are the main salary drivers in Ho Chi Minh City.

Hanoi:The average monthly salary in Hanoi, the capital of Vietnam, is about 6-7 million VND (about 260-300 USD). Hanoi is not only a political center, but also an important economic and cultural center. The development of industrial parks has led to an increase in overall salary levels. Hanoi’s main industries include manufacturing, information technology and financial services.

Coastal defense:As an important port city in Vietnam, the average monthly salary in Haiphong is about 5.5-6.5 million VND (about 240-280 USD). Haiphong’s industrial parks are concentrated in the manufacturing and logistics industries. The rapid development of these industries has provided relatively stable and high-paying job opportunities for the local workforce.

Median salary

The median salary is an important indicator of the wage level in the labor market. It means that half of the workers earn less than this value, and the other half earn more than this value. The median salary around the industrial parks in Vietnam is usually slightly lower than the average monthly salary, reflecting the reality of income distribution. The following are the median salaries around industrial parks in major cities in Vietnam:

Ho Chi Minh City:The median salary is about 6 million VND (about 260 USD). This means that in Ho Chi Minh City, half of the workers earn less than 6 million VND per month, and the other half earn more than this. Although the average monthly salary is high, the median is slightly lower than the average monthly salary because some high-paying jobs have raised the average.

Hanoi:The median salary is about VND5.5 million (about USD240). Hanoi’s median salary is consistent with its economic development level and reflects the actual income of most workers. Similar to Ho Chi Minh City, high-paying jobs in Hanoi also have an impact on the average monthly salary, but the median is more representative of the income level of ordinary workers.

Coastal defense:The median salary is about 5 million VND (about 215 USD). The median salary in Haiphong is lower than the average monthly salary, which shows the actual situation of local income distribution. The rapid development of manufacturing and logistics industries has provided a relatively stable source of income for ordinary workers, but the overall salary level is still affected by high-paying jobs.

In summary, the average monthly salary and median salary around Vietnam’s major industrial parks reflect the actual situation of the local labor market. The high average monthly salary is mainly driven by foreign-funded enterprises and high-tech industries, while the median salary better reflects the income level of ordinary workers. When setting up parks in Vietnam, companies can formulate reasonable salary policies based on these data to attract and retain excellent labor.

3.2 Salary Range by Job Category

In Vietnam’s industrial parks, salary levels vary by position category, work experience, industry and region. The following is the salary range by position category in Vietnam’s industrial parks:

Ordinary workers

Ordinary workers usually engage in basic production and assembly work, such as assembly line operation, material handling and simple manual operation, etc. The salary range for this position is relatively low, but there are certain differences between different regions and industries.

Monthly salary range: VND5 million to VND8 million (approximately USD215 to USD345)

Regional differences: In economically developed areas such as Ho Chi Minh City and Hanoi, the salary of ordinary workers may be higher, while in remote areas it is relatively lower.

Industry differences: The wages of ordinary workers in the manufacturing and electronic assembly industries are generally higher, while the wages in traditional agriculture and light industry are relatively low.

Technical workers

Skilled workers have specific skills and expertise and are responsible for operating and maintaining complex equipment, performing technical processes, and resolving technical problems in production. This position is paid more than general workers, reflecting the value of their skills and knowledge.

Monthly salary range: VND8 million to VND12 million (approximately USD345 to USD520)

Skill requirements: The salaries of different technical jobs will also be different, such as welders, electricians, mechanical repairers, etc. The higher the skill requirements, the higher the salary level.

Industry differences: Skilled workers in high-tech manufacturing and heavy industry have higher salaries, while skilled workers in the service industry and light industry have relatively lower salaries.

Junior Management

Junior managers are responsible for grassroots management work, such as team leaders, workshop supervisors, etc., coordinating and managing daily work on the production line to ensure the smooth completion of production tasks.

Monthly salary range: VND12 million to VND15 million (approximately USD520 to USD650)

Responsibilities: including production plan execution, quality control, personnel management, etc. Junior managers need to have certain management capabilities and production experience.

Regional and industry differences: Salaries for management positions will also vary by region and industry, with higher salaries in economically developed regions and high value-added industries.

Mid-level managers

Middle managers hold higher-level management positions, such as department managers, production managers, etc., and are responsible for broader management responsibilities and more complex work tasks.

Monthly salary range: VND15 million to VND25 million (approximately USD650 to USD1,080)

Responsibilities: including formulating and implementing production plans, managing and training employees, optimizing production processes, etc., requiring strong management skills and rich experience.

Industry and enterprise size: The salaries of mid-level managers in large enterprises and technology-intensive industries are generally higher, while those in small and medium-sized enterprises and labor-intensive industries are relatively lower.

Senior Management

Senior management personnel, including general managers, vice presidents and other senior positions, are responsible for the overall operations and strategic decisions of the enterprise, and directly affect the development and performance of the enterprise.

Monthly salary range: VND25 million to VND50 million (approximately USD1,080 to USD2,160)

Responsibilities: Formulate company strategy, manage senior teams, external communication and cooperation, make decisions on major issues, etc., which requires excellent leadership and rich industry experience.

Company type and industry: Senior executives in multinational corporations and high-tech industries have higher salary levels, while local SMEs and traditional industries have relatively lower salaries.

In summary, the salary ranges for various job categories in Vietnam Park reflect the responsibilities, skill requirements and job complexity of the positions. Ordinary workers and technical workers are the basis of production, junior and middle managers ensure the effective management of production, and senior managers are responsible for strategic decision-making and corporate development. Salary levels vary in different regions and industries, and companies need to consider these factors when formulating salary policies to attract and retain the right talents.

3.3 Salary levels by industry

In Vietnam, the salary levels of different industries vary greatly, which is closely related to factors such as the industry’s economic development level, technical content, and labor demand. The following is an overview of the salary levels of major industries in Vietnam:

manufacturing

Manufacturing is an important part of Vietnam’s economy, attracting a lot of foreign investment and providing many employment opportunities. The salary level in the manufacturing industry is relatively low, but with the improvement of technology and production efficiency, the salary is also gradually increasing.

Average monthly salary: approximately between US$250-350.

Factors that influence salary levels: Salary levels are affected by factors such as the location of the factory, the size of the company, and the skills and experience of the employees. The manufacturing departments of large multinational companies usually offer higher salaries and better benefits.

Electronics Industry

The electronics industry is one of Vietnam’s rapidly developing high-tech fields, especially in attracting foreign investment and technology transfer. The salary level in the electronics industry is relatively high because the industry has high requirements for technology and skills.

Average monthly salary: approximately between $400-600.

Influencing factors: Salary levels depend on the specific position, the employee’s technical level, work experience and the nature of the company (for example, foreign-funded enterprises usually pay higher salaries).

Textile and clothing industry

The textile and garment industry is a traditional advantageous industry in Vietnam, absorbing a large number of laborers. Due to the relatively low technical content of the industry, the salary level is also relatively low, but with the increase in global market demand and industry upgrading, the salary level has a tendency to gradually increase.

Average monthly salary: approximately between US$200-300.

Influencing factors: Salary levels are mainly affected by factors such as factory size, order volume and worker skills. Salary levels in foreign-funded enterprises and export-oriented enterprises are relatively high.

IT Industry

The IT industry is a rapidly emerging industry in Vietnam in recent years, attracting a large number of young technical talents. Since the IT industry has high requirements for professional skills and innovation capabilities, the salary level is also relatively high.

Average monthly salary: Approximately between $700-1,500.

Influencing factors: Salary levels depend on the employee’s professional skills, work experience, job responsibilities and the nature of the company (e.g. international IT companies and large local companies have higher salaries).

Services

The service industry plays an important role in Vietnam’s economy, covering tourism, catering, retail, finance and other fields. Salaries in the service industry vary greatly, depending on the industry category and the nature of the job.

• Tourism and catering industry: The average monthly salary is approximately between US$200-350.
• Retail industry: The average monthly salary is approximately between US$250-400.
• Financial Industry: Average monthly salary is approximately USD 600-1,200.
• Influencing factors: Salary levels are affected by industry category, job responsibilities, employee experience, and company size. Salaries in high-end service industries such as finance are significantly higher than those in traditional service industries such as tourism and catering.

In summary, there are significant differences in salary levels across industries in Vietnam, which are affected by a variety of factors. Salaries in the manufacturing and textile and garment industries are relatively low, while salaries in high-tech industries such as electronics, IT and finance are higher. When investing in Vietnam, companies should formulate reasonable salary strategies based on industry characteristics and labor market conditions to attract and retain outstanding talents and improve competitiveness.

3.4 Salary growth trend

Average annual salary growth rate in the past five years

Over the past five years, Vietnam’s economy has continued to grow rapidly, driving the active labor market and rising wages. According to data from the General Statistics Office of Vietnam, Vietnam’s annual wage growth rate remains at around 6-8%. This growth rate reflects changes in the following aspects:

Economic Development:Vietnam’s GDP has an average annual growth rate of about 6-7%, and the steady economic growth has provided a solid foundation for salary increases. The rapid development of the manufacturing and service industries is particularly obvious, which has promoted the increase in labor demand and thus increased salary levels.

Foreign investment inflow:A large number of foreign-funded enterprises have set up factories in Vietnam, bringing advanced technology and management experience, while also driving competition in the local labor market. This competition has prompted companies to increase wages to attract and retain excellent employees.

Improvement of workforce quality:With the improvement of education level and popularization of vocational training, the skills and quality of Vietnam’s labor force are constantly improving. This increases the value of labor in the market, and companies are willing to pay higher salaries to obtain highly skilled talents.

Policy support:The Vietnamese government has implemented a series of policies to encourage employment and increase wages, such as raising the minimum wage standard and protecting the rights and interests of workers. These policies provide institutional guarantees for wage growth.

Salary growth forecast for the next three years

Looking ahead to the next three years, Vietnam’s salary growth trend is expected to continue to rise steadily, with an average annual growth rate of 5-7%. This forecast is based on the following factors:

Sustained Economic Growth:Despite the uncertainties in the global economy, Vietnam’s economy is expected to maintain relatively solid growth. The government’s economic development plan and the advancement of various infrastructure projects will continue to drive the development of various industries, thereby promoting wage growth.

Industrial upgrading and transformation:Vietnam is actively upgrading its industries, promoting the transformation of manufacturing to high value-added areas, while vigorously developing high-tech and service industries. This transformation will require more highly skilled labor, thereby pushing up overall salary levels.

Increased labor market demands:As Vietnam’s demographic dividend is gradually released, the labor market will face a tight supply and demand situation. In order to attract and retain employees, companies will need to provide more competitive salaries and benefits.

Minimum wage increase:The Vietnamese government plans to gradually increase the minimum wage in the next few years to ensure the basic living needs of workers. This will directly drive up the wages of low-income groups and also have a pulling effect on the overall wage level.

Inflationary pressures:Although Vietnam’s inflation rate remains within a relatively controllable range, there is still some upward pressure. Companies need to take inflation into account when adjusting salaries to ensure that employees’ actual purchasing power is not affected, which will also drive nominal salary growth.

In summary, Vietnam’s salary growth trend has maintained a high growth rate in the past five years and is expected to continue to rise steadily in the next three years. When investing and operating in Vietnam, companies should fully consider this trend and remain flexible and forward-looking when formulating salary strategies to attract and retain excellent labor and ensure that companies maintain their advantages in the highly competitive market.

4. Educational resources

4.1 Higher Education Institutions

Vietnam’s higher education system continues to develop and grow, providing a solid talent base for the country’s economic growth and scientific and technological progress. The following is a detailed analysis of Vietnam’s higher education institutions:

Number and type of universities

Vietnam’s higher education institutions include comprehensive universities, universities of science and technology, universities of teacher training, universities of economics and management, etc. As of 2023, there are more than 240 universities and colleges in Vietnam. These universities are distributed throughout the country, with the largest number of universities in Hanoi and Ho Chi Minh City, forming two important education and technology centers.

Comprehensive universities:Such as Vietnam National University, Hanoi, Vietnam National University, Ho Chi Minh City, etc. These universities cover multiple disciplines, provide a wide range of undergraduate and graduate education, and cultivate a large number of comprehensive talents.

Polytechnic universities:For example, Hanoi University of Technology and Ho Chi Minh City University of Technology focus on engineering technology, information technology, mechanical manufacturing and other fields, and have provided a large number of professional talents for industrial and technological innovation.

Normal universities:Such as Hanoi Normal University and Ho Chi Minh City Normal University, they mainly cultivate talents in the field of education and support the development of national education.

Universities of Economics and Management:For example, Hanoi National Economic University and Ho Chi Minh City Economic University focus on economics, management, finance and other majors, providing a large number of high-quality talents for the country’s economic development and corporate management.

Number of graduates per year

Vietnam’s higher education institutions train a large number of graduates every year, providing fresh blood for all walks of life. According to statistics, the annual number of graduates from universities and colleges across Vietnam will be about 500,000 in 2023. These graduates not only occupy an important position in the domestic job market, but also gradually enter the international market, demonstrating the strength of Vietnam’s education system and the competitiveness of its graduates.

Major distribution

Vietnamese universities offer a variety of majors, covering natural sciences, engineering technology, social sciences, economics and management. The following is the distribution of some major majors:

Engineering Technology:Including mechanical engineering, electrical engineering, civil engineering, chemical engineering, etc. These majors are particularly prominent in science and engineering universities, and have trained a large number of engineers and technicians, providing important support for Vietnam’s industrial development.

information Technology:Including computer science, software engineering, information systems, etc. These majors have developed very rapidly in Vietnam. Many universities have established special computer schools or information technology departments, trained a large number of IT talents, and supported the country’s informatization process and scientific and technological innovation.

Economic Management:Including business administration, finance, accounting, marketing, etc. Economic management majors occupy an important position in comprehensive universities and economic management universities, and have trained a large number of management talents and financial experts, providing intellectual support for the development of Vietnam’s economy and the operation of enterprises.

Natural Sciences:Including physics, chemistry, biology, geography, etc. These basic science majors are widely established in comprehensive universities, cultivating research talents and educators, and laying the foundation for the country’s scientific and technological progress and educational development.

Social Sciences and Humanities:Including sociology, psychology, law, linguistics, history, etc. These majors are widely available in comprehensive universities and normal universities, and have trained social science researchers, legal experts and educators, providing important support for the country’s social governance and cultural heritage.

In summary, Vietnam has a rich variety of higher education institutions, diverse professional settings, and a large number of annual graduates, providing high-quality talents for various industries in the country. With the continued development of Vietnam’s economy and the acceleration of its internationalization process, higher education resources will continue to provide strong guarantees for the country’s innovation and competitiveness.

4.2 Vocational and Technical Schools

Number of schools

Vietnam’s vocational and technical education system has developed and expanded significantly in recent years. Currently, there are more than 400 vocational and technical schools in the country. These schools are distributed in various provinces and cities in Vietnam, especially in economically developed areas such as Hanoi, Ho Chi Minh City, Haiphong and Da Nang. The existence of these schools provides a large number of technical talents for local industrial parks and enterprises, and promotes the development of the local economy.

Number of graduates per year

Vocational and technical schools occupy an important position in Vietnam’s education system, and they train a large number of graduates with professional skills every year. According to statistics, the number of students graduating from vocational and technical schools each year is about 200,000. The addition of these graduates provides a steady stream of skilled workers and professionals for various enterprises, which helps to improve the production efficiency and technical level of enterprises. In addition, the employment rate of graduates from vocational and technical schools is relatively high, and they can usually quickly find jobs that match their majors after graduation.

Main training directions

The main training directions of vocational and technical schools cover a wide range of industries and fields to meet the diverse needs of various enterprises and parks in Vietnam. The following are some of the main training directions:

Machinery and Manufacturing:Including machine tool operation, machinery maintenance, industrial equipment maintenance, etc. Graduates of this direction mainly serve in the manufacturing and industrial production fields and are competent for various types of machinery operation and maintenance work.

Electronics and Electrical:Including electrician, electronic repair, electrical equipment installation and maintenance, etc. Training in the field of electronics and electrical engineering provides a large number of technical talents for the power industry, electronic manufacturing industry and infrastructure construction.

information Technology:Including computer operation, software development, network maintenance and management, etc. With the development of information technology, IT-related vocational and technical training has become an important part of Vietnam’s vocational education, providing technical support for the informatization and digital transformation of enterprises.

Automotive Technology:Including automobile maintenance, automobile electronics, automobile manufacturing and assembly, etc. The training in automobile technology has cultivated a large number of professional and technical talents for Vietnam’s rapidly developing automobile industry.

Architecture and Engineering:Including building construction, civil engineering, building equipment maintenance, etc. Training in construction and engineering provides technical support for Vietnam’s infrastructure construction and real estate industry.

Hospitality and Tourism Management:Including hotel management, tourism services, catering management, etc. With the vigorous development of Vietnam’s tourism industry, vocational and technical training in the direction of hotel and tourism management has provided a large number of high-quality service personnel and management talents for the industry.

Agriculture and food processing:Including agricultural technology, food processing and safety, etc. The training in agriculture and food processing provides professional talent support for Vietnam’s agricultural modernization and food industry development.

In summary, Vietnam’s vocational and technical schools have provided strong talent support for the country’s economic development and industrial upgrading through diversified training directions and professional settings. With the continuous improvement and development of vocational and technical education, it is expected that more highly skilled technical talents will join Vietnam’s labor market in the future, injecting new vitality into the growth of enterprises and industrial parks.

4.3 Training Center

Number of short-term vocational training institutions

Vietnam’s vocational training system has developed significantly in the past few years, aiming to improve the skills level of the workforce and meet the needs of various industries. According to statistics from the Ministry of Labor, Invalids and Social Affairs of Vietnam, Vietnam currently has about 500 short-term vocational training institutions. These institutions are distributed throughout the country, especially in industrially developed cities and provinces such as Ho Chi Minh City, Hanoi, Haiphong, Da Nang, etc. These training institutions not only provide basic skills training for new employees, but also provide skills improvement and job transfer training for employees in the workforce.

Main training courses

Short-term vocational training institutions in Vietnam offer a wide variety of courses covering various industries and skill requirements. The following are some of the main training courses:

Mechanical and Electrical Engineering:These courses cover knowledge in mechanical operation, equipment maintenance, electronic circuit design, etc., and are aimed at cultivating skilled workers needed in manufacturing and heavy industry.

information Technology:Including courses such as computer basics, programming, network management, software development, etc., to meet the talent needs of the rapidly growing information technology industry.

Business and Management:We offer courses such as marketing, financial management, and human resource management to help students master modern business management skills and adapt to the needs of corporate management positions.

Service Industry Skills:It covers training in hotel management, tourism services, catering services, etc., providing high-quality practitioners for the service industry.

Building and Construction:Including courses such as architectural design, construction management, and building materials, it cultivates construction technology and management talents for the construction industry.

Medical care:We offer courses such as nursing basics, first aid skills, and elderly care, aiming to improve the professional level of medical care personnel and meet the needs of the medical industry.

These training courses focus on the combination of theory and practice, helping students quickly master the required skills and be able to take up relevant jobs in a short period of time.

Annual training number of people

The number of people trained by Vietnam’s vocational training institutions is increasing year by year. According to statistics, Vietnam’s short-term vocational training institutions train more than 500,000 people each year. These trainings mainly come from the following aspects:

New employees:Enterprises provide pre-job training to new employees through vocational training institutions to ensure that they have the necessary professional skills and job requirements.

Skill improvement of employees:Provide skills improvement training for employees in service to help them master new technologies and knowledge and improve work efficiency and job competitiveness.

Job transfer training:For employees who need to change jobs due to industrial adjustment or corporate transformation, we provide corresponding training courses to help them adapt to new positions smoothly.

Re-employment training for unemployed persons:Provide free or low-cost vocational training to the unemployed to improve their employability and promote reemployment.

These training programs have effectively improved the overall skill level of Vietnam’s labor force, enhanced the competitiveness of enterprises and their ability to adapt to market changes. With the continuous development of the economy and the increasing demand of enterprises for high-quality labor, Vietnam’s vocational training system will continue to play an important role in further promoting the optimization of the labor market and the sustained growth of the economy.

5. Labor market dynamics

5.1 Talent Mobility

Vietnam’s labor market is full of vitality, and the mobility of talent reflects the supply and demand of the market, the stage of economic development, and regional development differences. The following is a detailed analysis of Vietnam’s talent mobility:

Talent inflow rate

Vietnam’s talent inflow rate has remained at a high level. With the rapid development of Vietnam’s economy and the continuous increase in foreign investment, many domestic and foreign talents choose to come to Vietnam to work. In particular, some economically developed regions, such as Ho Chi Minh City, Hanoi, Haiphong, etc., have attracted a large number of highly skilled and professional talents. These regions provide abundant employment opportunities and high salary levels, attracting outstanding talents from all over the country.

Ho Chi Minh City and Hanoi, as the economic centers of Vietnam, have a large number of multinational companies and emerging enterprises, providing broad development space for highly skilled talents. In addition, the Vietnamese government vigorously promotes technological innovation and industrial upgrading, providing more career development opportunities and platforms for professionals. These factors have jointly promoted Vietnam’s talent inflow rate to remain at a high level.

Talent outflow rate

Although Vietnam has a high talent inflow rate, its talent outflow rate cannot be ignored. Some high-skilled and professional talents in Vietnam choose to go to more developed countries and regions to seek better career development opportunities and living conditions. The main outflow destinations include Japan, South Korea, Singapore, Australia, Europe and the United States and other countries and regions.

The main reasons for the outflow of talent include the following:

Higher salary levels:Developed countries and regions usually offer higher salaries and benefits, attracting highly skilled Vietnamese talents.

Better career development opportunities:Developed countries and regions have more career development platforms and opportunities, which attract Vietnamese talents to seek broader development space.

Education and Training Opportunities:Some talents choose to go to developed countries and regions to receive higher levels of education and professional training in order to improve their competitiveness.

To address the problem of talent outflow, the Vietnamese government is taking a series of measures, such as raising domestic salary levels, improving the working environment, providing more career development opportunities and strengthening international cooperation, to attract and retain domestic talents.

Main sources of talent

The source of talent in Vietnam is mainly concentrated in major cities and economically developed regions in the country, such as Ho Chi Minh City, Hanoi, Haiphong and Da Nang. These regions have good educational resources and employment opportunities, and have cultivated a large number of highly skilled and professional talents. In addition, some well-known universities and vocational and technical schools in Vietnam have also supplied a large number of outstanding talents to the market.

Major talent outflow destinations

Ho Chi Minh City and Hanoi:As Vietnam’s economic centers, the two cities have attracted a large number of talents from all over the country, especially in the fields of information technology, manufacturing, finance and services.

Japan, South Korea and Singapore:These developed Asian countries and regions are the main destinations for Vietnamese talent, attracting a large number of highly skilled and professional talents to seek employment and development.

Europe, America and Australia:Europe, the United States and Australia are also important outflow destinations for Vietnamese talent, offering higher salaries and better career development opportunities.

In summary, Vietnam’s labor market dynamics reflect the stage of economic development and regional differences. Although the talent inflow rate is high, the talent outflow rate cannot be ignored. By taking effective measures to attract and retain talents, Vietnam is expected to further enhance the competitiveness and stability of the labor market and provide a solid human resource guarantee for the sustainable development of the economy.

5.2 Labor demand trends

Top 10 Jobs in High Demand

Manufacturing workers:With the rapid development of Vietnam’s manufacturing industry, especially in electronics, textiles and footwear manufacturing, the demand for manufacturing workers continues to grow. These positions include production line operators, assembly workers and quality inspectors.

software developer:The IT industry is booming in Vietnam, and the demand for software developers has increased dramatically. These positions include front-end development, back-end development, and mobile application development.

Mechanical Engineer:Mechanical engineers play a key role in manufacturing and heavy industry, designing, testing and maintaining mechanical equipment.

Electronics Engineer:As Vietnam’s electronics industry expands, the demand for electronics engineers is also increasing, especially in the design and development of electronic products.

Marketing Professionals:As Vietnam’s economy opens up and market competition intensifies, there is an increased demand for marketing professionals who are responsible for brand promotion, market analysis and sales strategy development.

Accounting and Finance Experts:Vietnamese businesses are increasingly in need of professional accounting and finance experts, who play an important role in financial management, budgeting and tax planning.

Project Manager:Project managers are in high demand across industries and are responsible for the planning, execution and oversight of projects, ensuring they are completed on time and within budget.

Logistics and supply chain managers:As Vietnam becomes an important link in the global supply chain, the demand for logistics and supply chain managers who are responsible for the transportation, warehousing and distribution of goods has increased significantly.

Human Resources Manager:As businesses grow in size and labor regulations become more complex, the demand for human resources managers, who are responsible for recruiting, training and employee relations management, is also increasing.

Customer Service Representative:The importance of customer service is increasing day by day, and companies need a large number of customer service representatives to handle customer inquiries, complaints and after-sales services.

Emerging job roles and skills needs

Data Analyst: With the development of big data and artificial intelligence technology, the demand for data analysts has increased significantly. They are responsible for collecting, analyzing and interpreting complex data to help companies make data-driven decisions.

Cybersecurity Experts:As cybersecurity threats increase, there is a growing demand for cybersecurity experts who are responsible for protecting a company’s networks and data.

Digital Marketing Expert:Digital transformation has driven demand for digital marketing experts who are responsible for marketing and brand building through online platforms.

Renewable Energy Technicians:As Vietnam places more emphasis on renewable energy, demand for related technicians is increasing, including solar and wind energy technicians.

E-commerce Operation Manager:E-commerce is developing rapidly in Vietnam, and e-commerce operations managers are responsible for managing online sales platforms, optimizing user experience and improving sales performance.

Forecast of labor demand in the next 3-5 years

In the next 3-5 years, Vietnam’s labor market is expected to continue to grow, especially in the following areas:

Manufacturing: Due to the re-arrangement of the global supply chain, Vietnam’s manufacturing industry will continue to expand, and the demand for manufacturing workers and engineering technicians will further increase.

information Technology:As digital transformation progresses, the demand for software developers, cybersecurity experts and data analysts will increase significantly.

Services:As Vietnam’s economy develops, the demand for professional talent in the service industry (especially finance, education and healthcare) will continue to rise.

Renewable Energy:As government investment in renewable energy increases, demand for related technicians and engineers will grow significantly.

Logistics and Supply Chain:Growth in global trade will drive demand for logistics and supply chain managers.

Labor Laws and Policies

The Vietnamese government has adopted a series of labor laws and policies to ensure the healthy development of the labor market:

Labor Law:Vietnam’s labor law stipulates the basic rules of the labor market, including employment contracts, working hours, wage standards, work-related injury insurance, etc., aiming to protect the legitimate rights and interests of workers.

Minimum wage standards: The government regularly adjusts the minimum wage standards to ensure workers’ basic living standards. The minimum wage standards may vary in different regions and industries.

Vocational Training:The government improves the skill level of the workforce through vocational training programs, especially providing relevant skills training and career guidance for emerging industries and high-demand positions.

Employment promotion policies:Through various employment promotion policies, the government supports enterprises in creating jobs, especially in the manufacturing and service sectors, by providing incentives such as tax breaks and subsidies.

Employment policy for foreign-invested enterprises:In order to attract foreign investment, the government has a relatively relaxed employment policy for foreign-invested enterprises, allowing them to use workers flexibly and providing convenient visa and work permit procedures.

6. Employment Contract

6.1 Contract type (fixed term, indefinite term, seasonal)

In Vietnam, there are three main types of employment contracts: fixed-term contracts, open-ended contracts and seasonal contracts. Different types of contracts are suitable for different work situations and legal regulations.

Fixed-term contracts:A fixed-term contract is one that clearly states the start and end dates of the contract. Usually, the duration of such contracts is 1 to 3 years. Fixed-term contracts are suitable for positions with a clear work cycle, such as project work or temporary positions. When the contract expires, the company and the employee can choose to renew or terminate the contract.

Open-ended contract:An open-ended contract is a contract that does not specify an end date. This type of contract is suitable for long-term jobs and stable positions. An open-ended contract provides employees with a high level of job security, and employees can only be fired in certain circumstances (such as serious violations of company regulations or poor performance).

Seasonal contracts:Seasonal contracts are for seasonal work or temporary assignments, such as work that changes with the seasons in industries such as agriculture and tourism. Such contracts are usually for a shorter period of time and are signed and terminated according to seasonal needs. Seasonal contracts are highly flexible, but they also need to comply with relevant labor laws.

Probationary period regulations

In Vietnam, the probation period is part of the labor contract and is used to examine the employee’s work ability and adaptability. According to the Vietnamese Labor Law, the specific provisions of the probation period are as follows:

Length of trial period:The length of the probation period usually varies according to the position and job title. For general positions, the probation period is up to 60 days; for management or professional and technical positions, the probation period is up to 180 days.

Trial period salary:During the probation period, the employee’s salary shall not be less than 85% of the regular salary. When signing a probation contract, the company must clearly stipulate the probation salary to protect the basic rights and interests of employees.

Trial period evaluation:Before the end of the probation period, the company needs to evaluate the employee’s work performance and decide whether to make him a regular employee or terminate the contract. The evaluation must be fair and transparent to ensure that the employee can understand the evaluation results and relevant basis.

Termination conditions

In Vietnam, the termination of a labor contract must comply with specific legal conditions and procedures to protect the legitimate rights and interests of both parties. The following are the main conditions for termination of a contract:

Contract expiration:Fixed-term contracts automatically terminate when the contract expires. If both parties agree to renew the contract, they must negotiate and sign a new contract before the contract expires.

The Parties agree that:The parties agree to terminate the contract by mutual agreement. In this case, the agreement needs to be confirmed in writing, with the termination date and related arrangements clearly stated.

Termination of the contract:In certain circumstances, the company or the employee can unilaterally terminate the contract. This usually applies to the following situations:

Enterprise termination of contract:Companies can terminate contracts with advance notice if employees seriously violate company regulations, perform poorly, or need to lay off employees due to financial difficulties. It should be noted that companies must provide reasonable reasons and evidence to terminate contracts and notify employees in advance.

Employee termination of contract:Employees can notify the company in advance and terminate the contract if the working environment is bad, the salary is unfair, or there is a better job opportunity. Employees need to notify the company 30 days in advance (3 days in advance during the probation period).

Force majeure: When force majeure (such as natural disasters, war, etc.) makes it impossible to continue the work, the contract can be terminated early. Both parties need to negotiate to handle subsequent matters and protect the basic rights and interests of employees.

In short, Vietnam has a variety of labor contracts, and the probation period and termination of contracts are clearly defined to ensure the stability of the labor market and the legitimate rights and interests of both parties. Enterprises must comply with relevant laws and regulations when signing and terminating contracts with employees to avoid unnecessary labor disputes and legal risks.

6.2 Working Hours and Overtime Provisions

Standard working hours

In Vietnam, standard working hours are strictly regulated by labor laws. Usually, the standard working hours are no more than 48 hours per week, that is, 8 hours per day and 6 days per week. This arrangement is very common in the manufacturing and service industries. However, for certain specific industries or positions, enterprises and employees can negotiate different working hours arrangements, but the daily working hours shall not exceed 10 hours and the total working hours per week shall not exceed 48 hours.

Vietnam’s labor law also stipulates that continuous working hours per day shall not exceed 4 hours, and a rest period of at least 30 minutes must be arranged after 4 hours. In addition, employers must ensure that employees have at least one day off per week, usually Sunday.

Overtime Limits and Overtime Pay Calculation Methods

Vietnam’s labor law has clear restrictions and regulations on overtime. Normally, overtime should not exceed 12 hours per week, 30 hours per month, or 200 hours per year. However, in special circumstances, such as busy production seasons or unexpected tasks, overtime can be extended to 300 hours per year, but it must be approved by the labor department.

Overtime pay is calculated as follows:

Overtime during normal working hours:Overtime pay for work on a working day is 150% of the normal wage. For example, if an employee’s normal wage is VND 100,000 per hour, the overtime pay is VND 150,000 per hour.

Weekend overtime:Overtime pay for weekend work is 200% of the normal wage. For example, if an employee’s normal wage is VND 100,000 per hour, the weekend overtime pay is VND 200,000 per hour.

Overtime on public holidays and paid leave:Overtime paid during public holidays or paid leave is 300% of the normal wage. For example, if an employee’s normal wage is VND 100,000 per hour, the overtime pay for public holiday work is VND 300,000 per hour.

Employers must pay overtime pay in accordance with the above standards and clearly list the amount and calculation method of overtime pay when paying wages.

Paid Vacation Policy

Vietnam’s labor law stipulates a detailed paid vacation policy to protect employees’ right to rest. The details are as follows:

annual leave:All employees who have worked in the same company for 12 consecutive months are entitled to 12 days of paid annual leave each year. If the employee works in a particularly difficult and dangerous working environment, the annual leave days will be increased to 14 or 16 days.

Public Holidays:Vietnam has a total of 10 public holidays, including New Year’s Day, International Labor Day, National Day, Independence Day, etc. These holidays are statutory paid holidays, and employees enjoy full wages during this period.

Marriage leave:When employees get married, they can enjoy 3 days of paid marriage leave.

Bereavement Leave:When an employee’s immediate family member (such as parents, spouse, or children) dies, he or she can enjoy three days of paid bereavement leave.

Maternity Leave:Female employees are entitled to 6 months of paid maternity leave. In the case of multiple births, the maternity leave is extended by 1 month for each additional child. During the maternity leave, female employees can receive a full subsidy equivalent to their average salary in the 6 months before the maternity leave.

In addition, enterprises can formulate more flexible and humane holiday policies according to their own circumstances and the specific needs of employees, but they must not be lower than the minimum standards stipulated in the Labor Law. These regulations ensure that employees enjoy adequate rest time and necessary holidays in Vietnam, which helps to improve work efficiency and the overall happiness of employees.

6.3 Social Insurance and Welfare

Vietnam’s social insurance and welfare system aims to protect the basic rights and interests of workers and ensure their quality of life during work and after retirement. When companies hire employees in Vietnam, they must understand and comply with local social insurance and welfare regulations. The following are details of Vietnam’s social insurance and welfare:

Compulsory social insurance contribution ratio

In Vietnam, social insurance is mandatory, and both employers and employees are required to pay social insurance premiums according to the prescribed ratio. The specific ratios are as follows:

• Employer payment: Employers are required to pay 17.5% of employees’ wages as social insurance premiums, including pension insurance, work-related injury insurance, and maternity insurance.
• Employee contributions: Employees are required to pay 8% of their wages as social insurance premiums. Employee contributions are mainly used for pension insurance and maternity insurance.

In general, employers and employees together need to pay 25.5% of employees’ wages as social insurance premiums. This system ensures that workers can obtain the necessary financial protection during retirement, work-related injuries and childbirth.

Medical Insurance

• Medical insurance is also an important part of Vietnam’s social insurance system, with a wide range of coverage. Employers and employees are required to jointly pay medical insurance premiums:
• Employer payment: The employer is required to pay 3% of the employee’s salary as medical insurance premium.
• Employee contribution: Employees are required to pay 1.5% of their salary as medical insurance premium.

In total, medical insurance costs account for 4.5% of employees’ wages. Through medical insurance, workers can enjoy reimbursement of medical service costs when they are sick or injured, effectively reducing their personal medical burden.

Unemployment Insurance

Unemployment insurance is intended to provide economic support and re-employment training to workers during unemployment. The unemployment insurance contribution rates in Vietnam are as follows:

• Employer payment: The employer is required to pay 1% of the employee’s salary as unemployment insurance premium.
• Employee contributions: Employees are required to pay 1% of their wages as unemployment insurance premiums.
• Overall, unemployment insurance premiums account for 2% of employees’ wages. Unemployment insurance provides unemployment benefits and job training support to unemployed people, helping them find employment again as soon as possible.

Other benefit requirements

• In addition to social insurance and medical insurance, Vietnam also stipulates some other welfare requirements to protect the comprehensive rights and interests of workers:
• Work Injury and Occupational Disease Insurance: Employers are required to pay the full amount of Work Injury and Occupational Disease Insurance, usually 0.5% of the employee’s salary. This insurance provides medical reimbursement and financial compensation to employees who are injured or contract occupational diseases at work.
• Maternity insurance: Maternity insurance is paid by the social insurance fund and covers maternity leave wages and related medical expenses for pregnant women. Maternity insurance helps to ensure the financial stability of female employees during the childbearing period.
• Annual leave and sick leave: According to Vietnam’s labor law, employees are entitled to at least 12 days of paid annual leave each year. In addition, employees are also entitled to sick leave during illness and receive corresponding sick leave pay according to social security regulations.

In summary, Vietnam’s social insurance and welfare system is relatively complete, covering social insurance, medical insurance, unemployment insurance and other welfare requirements. When companies hire employees in Vietnam, they must strictly abide by these regulations to ensure that the basic rights and interests of employees are protected. This not only helps to improve employees’ work enthusiasm and loyalty, but also lays a solid foundation for the sustainable development of enterprises.

7. Case Analysis

In order to better illustrate the characteristics of the labor market in various regions of Vietnam, we will provide specific case studies of three different regions:

7.1 Northern Region – Taking Industrial Parks around Hanoi as an Example

Labour supply overview

Hanoi and its surrounding areas are important economic centers in northern Vietnam with abundant labor resources.

• Total population within 50 km: about 8 million
• Proportion of working-age population: 68%
• Labor force participation rate: 76%

The abundant labor supply in the industrial parks around Hanoi provides a broad human resource base for enterprises. These areas are not only densely populated, but also have a high proportion of young labor force with strong productivity and learning ability.

Skill Level

• Proportion of high school education and above: 65%
• Proportion of skilled workers: 35%
• English proficiency: Moderate

The workforce around Hanoi is highly educated, with 65% having high school education or above, which provides a solid foundation for enterprises in high-tech production and management. In addition, 35% of the workforce are skilled workers who have professional skills that can meet the needs of manufacturing and high-tech industries. Although English proficiency is moderate, the gradually improving English education level enables the workforce to better adapt to the needs of international companies.

Salary Level

• Average monthly salary for workers: $250-350
• Monthly salary for skilled workers: 400-600 USD
• Junior management monthly salary: $800-1200

Salaries in Hanoi are relatively high, but still competitive by international standards. Salaries for general and skilled workers are attractive to a large workforce, while junior management salaries reflect the emphasis placed on advanced education and management experience.

Educational Resources

• Higher education institutions: 15
• Vocational and technical schools: 30
• Annual graduates: about 100,000

Hanoi and its surrounding areas have rich educational resources, with 15 higher education institutions and 30 vocational and technical schools training a large number of talents for local enterprises. About 100,000 graduates enter the labor market every year. These graduates not only meet the needs of enterprises in terms of quantity, but also have high skills and knowledge levels in terms of quality.

Features

The labor market in industrial parks around Hanoi has the following characteristics:

• The labor force supply is sufficient and the education level is high:Abundant labor resources and high education level make Hanoi an ideal choice for corporate investment.
• The proportion of skilled workers is relatively high, which is suitable for the development of high-tech industries:The 35% proportion of skilled workers provides strong support for the development of high-tech industries, and enterprises can rely on these skilled workers to carry out efficient production and technological innovation.
• Salaries are relatively high but still competitive:Although Hanoi’s salary level is higher than other parts of Vietnam, it is still competitive on an international scale, providing companies with an advantage in controlling costs and attracting talent.

Overall, the labor market in industrial parks around Hanoi is not only sufficient in quantity, but also of high quality. Good educational resources and high skill levels provide an ideal employment environment for enterprises, while competitive salary levels give enterprises a cost advantage in the global market.

7.2 Central Region – Taking Da Nang Industrial Park as an example

Labour supply overview

Da Nang is an important economic center in central Vietnam with abundant labor resources. The following is the labor supply situation in the Da Nang Industrial Park and its surrounding area within 50 kilometers:

• Total population: The total population within 50 kilometers of the Da Nang Industrial Park is about 2 million. This population provides sufficient labor resources for enterprises to support the development of various industries in the park.
• Proportion of working-age population: Among the 2 million people, the working-age population (15-64 years old) accounts for 65%, which means that there are about 1.3 million people of working age who can provide a large number of labor forces for enterprises.
• Labor force participation rate: The labor force participation rate in Da Nang is 72%. This means that 72% of the working-age population is actively involved in economic activities, including employment and seeking employment opportunities. The high participation rate indicates that the labor market in the region is relatively active and companies can easily find the labor they need.

Skill Level

The skill levels of the workforce in Da Nang Industrial Park are diverse, as follows:

• Proportion of high school graduates and above: About 55% of the workforce has high school graduates and above. This high proportion indicates that the workforce in the region has a good basic education level and strong learning and adaptability.
• Proportion of skilled workers: Skilled workers account for 25% of the total workforce. Although this proportion is relatively low, it is expected to gradually increase as local education and training resources continue to develop, providing companies with more workers with professional skills.
• English proficiency: Overall, the English proficiency of the workforce in Da Nang is below average. However, with the acceleration of internationalization and the improvement of education level, more and more young workers are improving their English proficiency, and the language communication barriers for enterprises will gradually decrease in the future.

Salary Level

The labor wage level in Da Nang is relatively low, which is highly cost-effective, as follows:

• Average monthly salary of workers: Average monthly salary of workers is between US$200 and US$300. This salary level makes the region very attractive for labor-intensive industries.
• Monthly salary of skilled workers: The monthly salary of skilled workers is between US$350 and US$500. The higher salary level reflects the importance of skilled workers in the local area and also encourages more people to receive vocational training and technical education.
• Junior managers’ monthly salary: The monthly salary of junior managers is between US$700 and US$1,000. This salary level is competitive in attracting talents with management experience and leadership ability.

Educational Resources

The rich educational resources in Da Nang provide enterprises with a steady supply of qualified labor, as follows:

• Higher education institutions: Da Nang has 5 higher education institutions, including universities and colleges. These institutions provide a large number of high-quality graduates to the local area, meeting the needs of enterprises for high-level talents.
• Vocational and technical schools: There are 15 vocational and technical schools in Da Nang, which specialize in training skilled workers and professional skilled personnel. These schools supply a large number of skilled workers to the local labor market every year, supporting the development of various industries.
• Annual graduates: Higher education institutions and vocational schools in Da Nang produce about 30,000 graduates each year, providing a rich human resource reserve for enterprises.

Features

The labor market in Da Nang Industrial Park and its surrounding areas has the following characteristics:

• Relatively low labor costs: The low labor costs in the Da Nang area make it cost-effective for businesses to operate in the area, especially for labor-intensive industries.
• The proportion of skilled workers is low, but there is potential for development: Although the current proportion of skilled workers is low, with the continuous improvement of vocational education and training resources, this proportion is expected to gradually increase, providing enterprises with more high-skilled labor.
• Suitable for the development of labor-intensive industries and tourism services: Da Nang’s labor market characteristics make it very suitable for the development of labor-intensive industries, such as manufacturing and processing industries. In addition, as a tourist city, Da Nang also has great potential for the development of tourism services, which can attract a large number of domestic and foreign tourists.

In summary, the Da Nang Industrial Park and its surrounding areas have abundant labor resources, high education levels and low labor costs, providing favorable conditions for the investment and development of various types of enterprises.

7.3 Southern Region – Taking the Industrial Parks around Ho Chi Minh City as an example

Labour supply overview

As the largest economic center in Vietnam, Ho Chi Minh City has abundant labor resources in its surrounding industrial parks. The following is the labor supply within 50 kilometers around Ho Chi Minh City:

• Total population within 50 km: about 12 million

Ho Chi Minh City and its surrounding areas are densely populated, providing companies with ample labor resources.

• Working-age population: 70%

This means that out of the 12 million people, 8.4 million are of working age, aged 15-64.

• Labor force participation rate: 78%

This shows that among the working-age population, 6.552 million people are active in the labor market and participate in various economic activities.

Skill Level

The labor force around Ho Chi Minh City is not only sufficient in quantity but also has a high level of skills, as shown below:

• Proportion of high school graduates and above: 70%

This population has good basic knowledge and learning ability and is competent for various technical and management positions.

• Proportion of skilled workers: 40%

Technical workers have professional skills, such as mechanical operation, electrical work, computer programming, etc., and can meet the needs of high-tech positions.

• English proficiency: High

As Ho Chi Minh City is an international metropolis, many of its workforce have good English skills, which facilitates communication and operations for multinational companies.

Salary Level

Salaries in the industrial parks around Ho Chi Minh City are on the higher end of Vietnam’s salary scale, but are still competitive compared to many other countries:

• Average monthly salary for workers: 300-400 USD

The salary level of ordinary workers is moderate, and they are suitable for basic jobs in manufacturing and service industries.

• Monthly salary for skilled workers: 500-700 USD

Skilled workers receive higher salaries, reflecting their professional skills and the value of their labor.

• Junior management monthly salary: US$1,000-1,500

Junior managers have higher salary levels and are suitable for duties such as management and technical supervision.

Educational Resources

Ho Chi Minh City and its surrounding areas have rich educational resources, providing good training and education opportunities for the workforce:

• Higher education institutions: 25

It includes many well-known universities and colleges, providing higher education and professional training.

• Vocational and technical schools: 50

Vocational and technical schools provide various types of professional skills training for the workforce to meet market demand.

• Annual graduates: about 150,000

Every year, a large number of graduates enter the labor market, providing companies with fresh labor resources.

Features

The labor market in industrial parks around Ho Chi Minh City has the following characteristics:

• The most abundant labor supply and the highest education level

The area surrounding Ho Chi Minh City has a large population, a stable labor market, and a high level of education, which is suitable for the employment needs of various types of companies.

• High proportion of skilled workers and management talents

The proportion of technical workers and management talents in the labor force is relatively high, which can meet the demand for high-tech and management positions.

• Salaries are the highest, but still lower than many other countries

Although the salary level is the highest in Vietnam, it still has obvious cost advantages compared with many developed countries and regions.

• Suitable for the development of various industries, especially high-tech and service industries

With abundant and highly skilled labor resources, industrial parks around Ho Chi Minh City are very suitable for the development of high-tech and service industries, where companies can obtain efficient human resources support and lower operating costs.

In summary, the industrial parks around Ho Chi Minh City have become an ideal choice for the development of various types of enterprises, especially high-tech and service industries, due to their abundant labor supply, high skill levels and competitive salary levels.

8、Recommendations and Conclusions

When investing and building a factory in Vietnam, companies need to comprehensively consider multiple factors in the labor market in order to make the best decision. The following are some specific suggestions and conclusions for companies starting a business and building a factory in Vietnam:

Choose the right region based on your business’s specific needs

Companies should choose the right region based on their specific needs (such as required skills, budget, etc.). The skill level and cost of labor in different regions vary, so companies need to consider:

• Highly skilled workforce demand:If companies need highly skilled labor, such as engineers or technicians, they can choose areas with rich educational resources such as Ho Chi Minh City or Hanoi.
• Cost control needs:If companies focus on cost control, they can choose regions with relatively low labor costs, such as central and northern provinces.

Consider long-term labor supply trends and cost changes

Companies need to pay attention to Vietnam’s long-term labor supply trends and cost changes in order to develop long-term human resource strategies:

• Demographic dividend:Vietnam has a high proportion of young people and sufficient labor supply in the short term, but with economic development and population aging, labor costs may rise in the future.
• Skills Improvement:As education levels improve, the proportion of highly skilled labor will increase, and companies need to adjust their talent strategies in a timely manner.

Emphasis on local talent training and establishing cooperative relationships with local educational institutions

Enterprises operating in Vietnam need to attach importance to local talent training and establish cooperative relationships with local educational institutions:

• School-enterprise cooperation:By cooperating with vocational and technical schools, colleges and other educational institutions, we train professional talents needed by enterprises.
• Training Program:Develop internal training plans to improve the skills of existing employees and meet the needs of corporate development.

Pay attention to changes in labor laws and regulations to ensure compliance with regulations

Enterprises operating in Vietnam need to pay attention to changes in labor laws and regulations to ensure compliance:

Employment Contract:Ensure that all employees sign legal labor contracts that clearly define the rights and obligations of both parties.

Benefits:Comply with Vietnam’s labor laws, provide necessary social insurance and welfare protection, and avoid legal risks.

Develop competitive compensation and benefits packages to attract and retain talent

In the fierce competition in the labor market, companies need to develop competitive salary and benefits packages to attract and retain outstanding talents:

• Salary level:According to market conditions, we provide competitive salaries to attract high-quality talents.
• Welfare Policy:Improve welfare policies, including health insurance, paid leave, training opportunities, etc., to increase employee satisfaction and loyalty.

n conclusion

Through this detailed labor market analysis tool, entrepreneurs who come to Vietnam to start a business or build a factory can fully understand the labor supply situation in various regions, make more informed site selection decisions, and provide a basis for the formulation of human resource management strategies. Specific suggestions are as follows:

• Select the appropriate region:Choose the region that best suits your business based on the skill level and budget you require.
• Consider the long-term trend:Pay attention to long-term changes in labor supply and costs and develop sustainable human resource strategies.
• Emphasis on localization training:Cooperate with local educational institutions to cultivate and attract local talents.
• Ensure compliance with regulations:Pay close attention to changes in labor laws and regulations to ensure that companies operate in compliance with regulations.
• Formulate policies to attract talent:Attract and retain outstanding talent through competitive salary and benefits packages.

These strategies will help businesses operate smoothly in Vietnam and maintain their advantages in global market competition.