Understanding Vietnam’s labour laws and workforce is essential for businesses hiring and managing employees in the market. Employers need to consider recruitment requirements, pay, local talent conditions and changing workforce expectations when building their teams. This guide looks at Vietnam’s workforce in 2026, including labour market trends, in-demand skills, hiring challenges and practical considerations for recruitment and HR operations.
Vietnam’s economic growth continues to reshape its workforce. In Q2 2026, the labour force reached 53.8 million people, up 693,500 from the same period a year earlier. Vietnam’s average population stood at 102.3 million in 2025, giving businesses access to a large and growing labour pool.
Industry and services remain important drivers of Vietnam’s labour demand. In the first half of 2026, services accounted for 43.52% of the economy, while industry and construction accounted for 37.66%. Foreign investment also remained strong, with US$34.65 billion in registered FDI during the period.
Vietnam’s large labour force continues to support growth in manufacturing and services. In the first half of 2026, employment reached 52.6 million people, while the working-age unemployment rate remained low at 2.22%.
The workforce is adaptable to new technologies, bolstered by young Vietnamese returning with international education. However, Vietnam faces challenges in talent, particularly in advanced language and tech skills. The government is addressing this through reforms in technical and vocational training, prioritising IT skills, to align with labour market demands.
Vietnam continues to offer a large and relatively young workforce. In Q2 2026, the labour force reached 53.8 million people, giving employers access to a broad talent pool across different age groups, skill levels and sectors.
Additionally, there are clear patterns in the distribution of gender and age in the Vietnamese labor market. Approximately 46.6% of the working force is made up of women, who represent a sizable share of the workforce. Through several legislation and initiatives, efforts are being made to advance gender equality and empower women in the workforce.
Vietnam’s large workforce is supported by a competitive employment cost base, helping businesses manage workforce costs as they grow.
Salary levels in Vietnam vary by location, role and skill level. From 1 January 2026, the regional minimum monthly wage ranges from VND 5,310,000 in Region I to VND 3,700,000 in Region IV, with the applicable rate determined by where the employer operates.
This reflects the most recent updates from the government. It must also be mentioned that for employees with university degrees, an additional 7% should be added.
Vietnam has made steady progress in improving its education system, leading to an increase in the overall standard of education. The literacy rate among the Vietnamese population stands at an impressive 96.13%, surpassing the global average of 83.5%. Moreover, Vietnam ranks 7th out of 19 Asian countries in terms of English speaking skills, reflecting a growing emphasis on language proficiency.
Vietnam’s workforce is becoming increasingly skilled, supporting the country’s shift towards higher-value and technology-driven industries. In the first half of 2026, 29.7% of workers held recognised degrees or certificates, up from the previous year.
In the second quarter of 2026, 29.8% of workers held recognised degrees or certificates, up 0.2 percentage points from the previous quarter and 0.7 percentage points year-on-year. Across the first half of 2026, the figure reached 29.7%, 0.8 percentage points higher than the same period in 2025.
To support the development of a skilled workforce, Vietnam has implemented numerous vocational training programs across various fields such as mechanics, electronics, hospitality, and information technology. Current priorities include practical training, digital skills, technology-related disciplines and closer links between training providers and businesses, helping workers develop skills for changing industry needs.
Vietnamese individuals possess a notable level of skill and precision when it comes to tasks that demand meticulousness and accuracy. Many are proficient in repairing household electrical systems, and plumbing, and attending to minor issues with their motorbikes or bicycles. However, when it comes to their professional work, maintaining this level of ingenuity can be challenging. While they initially exhibit focused dedication, the Vietnamese workforce often struggle-need help to uphold the same level of attention to detail throughout the production process.
Vietnam’s workforce brings adaptability, a willingness to learn and an openness to new ways of working. With clear guidance and the right training, employees can build new skills quickly and adapt to changing processes, technologies and business needs.
In the first half of 2026, agriculture, forestry and fisheries accounted for 25.2% of total employment in Vietnam. Employment in the sector fell by approximately 202,600 workers year-on-year, reflecting the continued shift of labour towards industry, construction and services.
On the other hand, in the first half of 2026, the industry and construction sector is expected to employ around 17.7 million individuals, accounting for 33.9% of the total workforce. This was an increase of approximately 474,100 workers year-on-year.
The service sector has employed around 21.6 million people, accounting for 40.9% of total employment. This was an increase of approximately 400,900 workers year-on-year.
These statistics reflect the distribution of Vietnam's employed workforce across different sectors during the first half of 2026, highlighting changes in employment trends compared to the previous year.
Vietnam's workforce market is supported by a large and diverse workforce. According to the General Statistics Office, statutory working-age employed workers were estimated to be 53.7 million in numbers as of Q2 2026, while employment rose to 52.6 million, an increase of 672,500 workers year-on-year.
It’s safe to say that Vietnam is on the fast track to fully recover from the effects of COVID-19, with unemployment rates dropping by 34.9% from the last quarter, and people negatively impacted by the pandemic dropping by 52.7%. Vietnam is anticipated to surpass 100 million citizens by 2023, placing it as the world's 15th most populated nation. Vietnam's workforce market is significantly shaped by the demography of the population.
In Q2 2026, Vietnam’s labour force reached 53.8 million people, an increase of 175,600 from the previous quarter and 693,500 year-on-year. Across the first half of 2026, the labour force averaged 53.7 million people, up 690,700 from the same period in 2025.
In 2026, hiring demand in Vietnam is increasingly centred on AI, IT and software, alongside emerging areas such as semiconductors and high-tech manufacturing. Technology and IT Services currently lead hiring demand, while businesses continue to invest in digital transformation, increasing competition for specialised technical talent.
In 2026, demand has shifted towards AI, IT and data-related skills, with AI literacy now among the most sought-after capabilities in Vietnam. Employers are also looking for candidates with traditional IT and data skills, while limited experience in newer technologies means training and upskilling remain important for closing talent gaps.
Current 2026 recruitment data shows strong employer demand across business and sales, IT and software, and marketing, communications and advertising. Technology and IT services also continue to lead hiring expectations, while finance, trade and logistics remain important areas of recruitment activity.
Skills currently in high demand in Vietnam
| Technology & IT | Sales & Marketing | Finance |
|---|---|---|
| AI, ML & Data | Business Development | Financial Planning & Analysis |
| AI & Cybersecurity Engineering | Sales Management | Finance Business Partnering |
| Senior Software Engineering | E-commerce | Corporate Finance |
| Digital Transformation | Market Management | Financial Control |
| IT & Data Skills | Brand Management | Data & Automation Skills |
Talent shortages remain a challenge across several sectors in Vietnam, particularly where companies are having a hard time finding candidates with the right qualifications.
Additionally, other research has also listed digital marketing, construction, advanced manufacturing, food technology, hospitality, and counseling psychology as high-demand careers in the upcoming years.
Human resources and recruitment are also among the numerous industries reaping the benefits of technological advancements as of late. Technology in recruitment helps streamline the recruitment process, from screening resumes and scheduling interviews to updating information and storing data, thereby saving the business time and effort. It also helps the recruitment process to be more efficient with both quality and quantity.
By taking advantage of new technologies such as AI and machine learning, recruitment professionals can reduce paperwork and administrative burdens and focus on more critical tasks. Therefore, the application of technology helps to enhance the job quality of recruiters.
Career Path: It is surprising to see that job seekers nowadays care more about their career development than their salary range. Top talents are now in search of a position where their leader or manager can map out their future growth and create realistic goals.
Avoiding High Turnover Rates
Employee retention remains an important consideration for employers in Vietnam. In 2026, more than 70% of workers were either actively looking for a new role or open to moving for the right opportunity, increasing competition for experienced talent. Vietnam is also placing greater emphasis on attracting and retaining highly skilled professionals, including overseas Vietnamese experts.
Once your business is established in Vietnam, there are various options to find and hire skilled personnel.
The recruitment process can also be outsourced to a third party, which is the most practical method if you want to do it quickly and effectively. Recruitment partners can also broaden access to both local and international talent pools.
Hiring foreign employees can involve additional requirements, particularly around work permits, immigration and visa compliance. The restrictions on foreign work permits and visas have recently become more strict, intending to bring in relevant and skilled workers that will contribute to the economy and not compete with local existing talent.
A visa, visa waiver or residence card alone does not authorise a foreign national to work in Vietnam. Under Vietnam’s current rules, foreign workers generally need a valid work permit before starting employment.
Certain foreign workers may be exempt from the work permit requirement if they meet specific conditions. This can include owners or capital-contributing members of limited liability companies, and certain board members of joint-stock companies, subject to the applicable capital and eligibility requirements.
A work permit and a Temporary Residence Card (TRC) are separate documents. Foreign workers who require a work permit must follow the applicable work permit process, while eligible employees may separately apply for a TRC through Vietnam’s immigration authorities, generally with employer sponsorship.
Foreign nationals who are not exempt generally require a work permit to work legally in Vietnam. A work permit may be valid for up to two years and can be extended once for a maximum of two additional years, subject to the applicable conditions.
A business visa (DN1 or DN2) may be issued to foreign nationals entering Vietnam for eligible business activities and can be valid for up to 12 months, depending on the circumstances. Applicants generally require sponsorship or an invitation from an eligible organisation in Vietnam. A business visa does not replace a work permit where one is required for employment.
A Temporary Residence Card (TRC) may be available to eligible foreign workers and can allow them to reside in Vietnam and enter or exit the country without applying for a new visa each time. TRCs for eligible LD1 and LD2 workers can be valid for up to two years.
Vietnam offers businesses access to a large and evolving workforce, supported by growing skills in technology, engineering, finance and other specialist areas. At the same time, talent shortages, changing candidate expectations and competition for experienced professionals mean employers need a clear approach to recruitment, workforce planning and retention.
Building the right team in Vietnam also requires an understanding of local salary expectations, recruitment practices and employment requirements, particularly when hiring foreign workers. Clear role requirements, relevant market insight and the right support can help businesses make better hiring decisions and build teams for long-term growth.
At Ascentium, we support businesses with recruitment, HR and workforce requirements in Vietnam, helping you find the right talent and manage your people operations with greater clarity and confidence.