Consistently in the top markets to consider for business expansion into the Asian Pacific, Vietnam is a favorable market for new or increased investment. However, lack of highly skilled workers has Vietnam losing economic ground to China. However, new tax breaks for high-tech transfers assist with skilled workforce development through industry-specific training for the local workforce.
Employee engagement is on the rise in manufacturing as new orders increased for the 19th consecutive month. Factory output and productivity also grew at a faster rate than in months past. With 43% of the nation’s workforce considered informal, Vietnam may be the first APAC market to cross the 50% threshold in the midst of a growing trend of global employment termed as the ‘gig economy.’ As offshoring and outsourcing are being redefined by employers seeking to target specific skills and functions in the right markets, from a hiring strategy perspective Vietnam is becoming known as one of those ‘emerging markets’ that is just now being utilized as a resource.
With no major contract restrictions on holiday or night work, Vietnam remains a popular market for organizations prioritizing high productivity. In this market, IT is an umbrella term for any organization that produces or provides services for software, hardware, enterprise, networking or telecommunications. Vietnam is quickly becoming an investment and tech hub for both local and international IT companies. Universities are being overwhelmed with interest in IT skills training, and new graduates are being recruited straight out of universities to try to accommodate demands and adjust the workforce to address technology-driven engagements.