Positive Signals from the Southern Economic Region Labor Market

According to a report from the People’s Committee of Binh Duong Province, significant progress was made in attracting both domestic and foreign investment in the first eight months of 2024. The province drew approximately VND 50.67 trillion (equivalent to USD 202.68 billion) in domestic investment, while foreign investment surged to USD 1.097 billion. This included 129 new projects and additional investment in over 90 existing projects. These figures indicate a positive trend in trade and production activities in the region.

This economic growth has led to a marked increase in recruitment demand for companies in Binh Duong. Currently, the province has 29 industrial parks and 12 industrial clusters, creating about 1.3 million jobs. As companies in sectors such as wood processing, textiles, and mechanical engineering gradually resume production activities—especially with an increase in year-end orders—many businesses are experiencing significant recruitment needs.

According to the Binh Duong Employment Service Center, positive labor market trends are expected to continue in the third and fourth quarters of 2024. Regions with numerous industrial parks, convenient transportation, and business services are seeing particularly strong labor demand. Both skilled and unskilled workers are in high demand, and many companies are not only recruiting new employees but also implementing training programs to enhance workers’ skills, thus creating a sustainable and modernized labor market.

Labor Market Status in Ho Chi Minh City and Dong Nai Province

The labor market in Ho Chi Minh City also maintains positive momentum. According to the Ho Chi Minh City Employment Service Center, the city is expected to have a recruitment demand of approximately 153,500 to 161,500 new employees in the second half of 2024, primarily in the trade, construction, agriculture, forestry, and fishery sectors. Skilled labor accounts for 87.7% of the total demand. Over the past month, the city’s employment platform recorded about 3,600 job seekers, with approximately 8,650 job vacancies, mostly in labor-intensive industries such as leather footwear, textiles, manufacturing, food, and beverage sectors.

Dong Nai Province’s labor market is also following a similar trend. According to the Dong Nai Employment Service Center, the province’s businesses will need to recruit about 40,000 workers in the final months of 2024. A recent job fair attracted 20 companies with recruitment needs totaling nearly 1,400 employees, mainly in the apparel, footwear, and service industries.

Tran Anh Tuan, Vice President of the Ho Chi Minh City Vocational Education Association, pointed out that the city’s labor market is evolving toward greater diversification and modernization, with increasing demands for both the quantity and quality of the workforce. National management agencies should enhance labor market forecasting efforts to better connect employers with employees.

Positive Trends Nationwide in Vietnam’s Labor Market

According to the General Statistics Office of Vietnam, the labor market across the country showed positive signs in the first six months of 2024. In the second quarter of 2024, the labor force aged 15 and above reached 52.5 million, an increase of 148,600 compared to the previous quarter, and 217,300 higher than the same period last year. The labor force participation rate was 68.6%.

The total number of employed workers in the second quarter of 2024 exceeded 51.4 million, representing an increase of 126,600 workers from the previous quarter, a growth rate of 0.25%. Compared to the same period in 2023, the number of employed workers increased by 217,400, a growth rate of 0.42%. Overall, the total employment in the first half of 2024 grew by 195,800 people compared to the first half of 2023.

Additionally, the proportion of workers with degrees or certifications continues to rise. In the second quarter of 2024, 28.1% of workers had a degree or certificate, an increase of 0.3 percentage points compared to the previous quarter and 1.3 percentage points compared to the same period in 2023. This demonstrates the ongoing improvement in the overall quality of Vietnam’s labor force as the economy and industrialization process accelerate.

Challenges and Future Needs of Vietnam’s Labor Market

Despite the positive signals, Vietnam’s labor market still faces several challenges. Pham Hoai Nam, Director of the Population and Labor Statistics Department at the General Statistics Office, pointed out that the quality of the current labor supply remains insufficient, particularly in meeting the demands of a modern, flexible, and sustainable labor market that integrates internationally. Data shows that over 70% of workers have not received elementary-level or higher vocational training.

To address this challenge, the growing industrialization of Vietnam’s economy has heightened the need for highly qualified labor. Pham Hoai Nam emphasized that Vietnam’s workforce increasingly recognizes the importance of continuous learning and skill development to keep up with the evolving demands of the labor market. As industrialization progresses, Vietnam will require a greater number of skilled and professionally trained workers to meet the needs of future economic development.