Explore Vietnam’s labor market trends in Q3/2025, from the sharp increase in recruitment demand to the opportunity to retain talent and apply HR Outsourcing Services to optimize operations. The article suggests strategies for CEOs & HR in the context of digital transformation.

1. Vietnam’s Labor Market Landscape in Mid-2025

In the first half of 2025, Vietnam’s labor market exhibited several positive signs: the workforce expanded to 53 million people, and the employment rate reached its highest level in the past three years. At the same time, average monthly wages rose from 7.7 million to 8.3 million VND.

However, challenges remain: nearly two-thirds of the workforce is still employed in the informal sector; unemployment among the 15–24 age group is nearly four times higher than the average; and employment levels in the Central Highlands and the Mekong Delta lag far behind the national average.

Q3/2025 is expected to mark a strong recovery phase. For instance, in Ho Chi Minh City, enterprises are projected to require an additional 90,000 workers, mainly in textiles, footwear, and assembly. Yet, the persistent shortage of skilled labor continues to pressure HR teams.

2. Key Labor Market Trends in Q3/2025

2.1. Rising Demand in Key Industries

• IT & Artificial Intelligence (AI): Both tech corporations and startups are expanding, seeking talent in AI, big data, and cybersecurity.
• Industrial Production & Export: Shifts in the supply chain from China to Vietnam are driving strong demand for technical staff, supply chain managers, and logistics professionals.
• Renewable Energy & Green Economy: Wind and solar power projects, as well as sustainable material production, require engineers and environmental specialists.
• Finance – Banking – Insurance: Digital transformation is boosting demand for financial analysts, risk managers, and digital banking specialists.

2.2. Flexible & Hybrid Work Models

Following the pandemic, hybrid work has become the preferred choice. Many businesses in Q3/2025 are adopting flexible policies to both retain talent and optimize operating costs.

2.3. The Rise of Soft Skills & Global Mindsets

Beyond technical expertise, soft skills such as communication, change management, problem-solving, and creativity are increasingly prioritized. FDI companies, in particular, place high value on foreign language proficiency and global thinking.

2.4. HR Tech Adoption

HR technology is becoming mainstream: from AI-powered recruitment to HRM software, payroll automation, and employee performance management platforms. These tools not only save time but also improve employee experience.

3. Challenges for CEOs & HR in Q3/2025

3.1. Shortage of High-Quality Talent

The demand for skilled labor is growing rapidly, while the supply has yet to keep pace. Brain drain to foreign corporations remains a pressing issue.

3.2. Rising HR Costs

With higher living standards, average wages in Vietnam rose significantly in Q3/2025. Businesses face pressure to balance payroll costs with operational efficiency.

3.3. Legal & Policy Changes

New labor laws, social insurance regulations, and trade union policies are impacting enterprises. CEOs and HR leaders must stay updated to avoid compliance risks.

3.4. Multi-Generational Workforce Management

With Gen X, Millennials, and Gen Z coexisting in the workplace, designing tailored welfare policies for each group presents a major challenge.

4. What CEOs & HR Leaders Should Do

• Boost Recruitment in Key Regions
  In Ho Chi Minh City, the plan to hire 90,000 workers in Q3 is a huge opportunity. CEOs should direct more investment into manufacturing, while HR should organize job fairs and strengthen connections with nearby provinces to fill labor gaps.
  
• Develop Green Skills & Recruit “Green Talent”
  CEOs should prioritize clean technology, renewable energy, and green logistics projects. HR should proactively source and train green talent to meet sustainable market demands.
  
• Invest in Retaining Talent
  Salary remains the top factor (61%), followed by career growth, company culture, and work-life balance. CEOs and HR must implement competitive pay, strong benefits, and clear development programs.
  
• Hire Experienced Talent First
  Instead of mass hiring, prioritizing candidates with several years of experience ensures productivity, reduces training costs, and aligns with market trends.