Vietnam’s labour force is growing rapidly, but workforce capability is not keeping pace with economic ambitions.

According to the National Statistics Office, Vietnam today has a labour force of around 53.6 million people. However, only about 29% of workers hold formal qualifications or certifications, highlighting a significant mismatch between workforce capability and industry needs. This gap is especially visible in high-growth sectors such as IT, engineering, finance, healthcare, and sustainability-related industries, where demand for skilled professionals continues to outpace supply.

Across the Asia-Pacific region, nearly 80% of employers report difficulty finding workers with suitable skills, according to ManpowerGroup’s 2025 Talent Shortage Report. This challenge is reflected strongly in Vietnam, where businesses are struggling to source qualified talent for both technical and leadership roles.

The Chegg Frontline Workers Skills Index further highlights the operational cost of this issue. The survey reveals that 30% of employers lose the equivalent of a full working day each week due to skills gaps, as managers and teams spend time correcting mistakes, covering skill shortages, and managing inefficiencies. These gaps also contribute to burnout, increased overtime, and higher turnover risk.

At the same time, Vietnam’s workforce is becoming more aware of the need for change. In PwC’s Vietnam Hopes and Fears 2025 Survey, workers expect transformation ahead, with 60% anticipating AI will significantly reshape their jobs within the next three years, and 75% viewing skills development as a core part of a good job.

Why Upskilling Is Now a National Priority

Vietnam is actively positioning itself as a regional digital and innovation hub. Government programmes aim to transform the economy through technology, skills development, and workforce modernisation.

Key national initiatives include:

• The recently approved National Digital Economy and Digital Society Development Programme for 2026–2030—a digital economy strategy targeting 30% contribution to GDP by 2030
• Training for over 3 million workers and developing 100,000 digital technology enterprises by 2030
• Expansion of AI, semiconductor, and STEM education pipelines
• Stronger collaboration between government, universities, and private sector employers

Sector-specific initiatives also show how targeted upskilling is being prioritised:

• Semiconductor and AI workforce development programmes
• Vocational education digital transformation
• Healthcare AI training for thousands of professionals
• Public–private partnerships with global technology companies

These initiatives reflect a clear national shift from labour-intensive growth to skills-driven competitiveness.

The Business Impact of Skills Gaps

For employers, the skills gap is not a future problem—it is a current operational constraint.

Businesses face:

• Reduced productivity due to missing capabilities
• Increased training and supervision costs
• Higher employee burnout and turnover
• Delayed project delivery and reduced competitiveness

High-growth sectors such as IT, engineering, finance, healthcare, and sustainability are especially affected due to strong demand for specialised skills.

This is where organisations often engage a recruitment agency in Vietnam to fill critical roles quickly. Demand for talent acquisition sourcing in Ho Chi Minh City, for example, continues to grow as companies compete for scarce skilled professionals. Businesses are increasingly combining hiring with structured capability-building strategies that support both hiring efficiency and workforce planning.

Employer Tips: How to Upskill Your Workforce

To close the talent gap, employers must move from reactive hiring to long-term workforce development.

1. Build structured career development pathways

Employees need clarity on how skills translate into progression. Defined learning pathways help retain talent and improve engagement.

2. Invest in digital transformation skills

AI, automation, and data literacy are now essential across all departments—not just IT teams.

3. Embed continuous learning into company culture

Upskilling should be part of performance reviews, KPIs, and leadership expectations—not a one-off training initiative.

4. Partner with talent specialists

Working with a headhunting company in Vietnam or, for instance, experts in c-suite recruitment in Ho Chi Minh City helps identify skill gaps at leadership level and align workforce planning with business strategy.

5. Strengthen industry–education partnerships

Collaborating with training institutions ensures employees are equipped with job-relevant, practical skills.

Employee Tips: How to Stay Competitive

Upskilling is equally important for individuals navigating Vietnam’s evolving job market.

1. Prioritise digital skills

Understanding AI tools, automation systems, and digital platforms is increasingly essential across industries.

2. Build specialised expertise

Deep technical skills in areas like IT, engineering, finance, and healthcare increase long-term employability.

3. Strengthen soft skills

Communication, adaptability, and problem-solving are critical in fast-changing work environments.

4. Commit to lifelong learning

Online courses, certifications, and workplace training are key to staying relevant.

5. Improve language capabilities

English and other foreign languages significantly expand career opportunities in global companies.

Strategic Recruitment with a Trusted Headhunter Agency in Vietnam

Closing Vietnam’s talent gap requires shared responsibility. Government policy is creating the framework, but employers and employees must drive execution on the ground. Businesses that invest in workforce capability today will be the ones best positioned to grow, innovate, and compete tomorrow.

If your organisation is facing skills shortages or looking to build a future-ready workforce, our ASW Consulting recruitment consultants in Ho Chi Minh can help you. We support organisations in building stronger, more capable teams through expert talent acquisition sourcing and professional recruitment process outsourcing in Vietnam.

Contact us today to close your talent gap and strengthen your workforce for the future of work.

 

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