Tết is not only Vietnam’s most important cultural holiday—it is also one of the most challenging periods for talent retention. As employees reassess their career goals and explore new opportunities after receiving year-end bonuses, turnover rates typically spike.

For companies looking to maintain stability, the weeks leading up to Lunar New Year require carefully planned strategies that combine financial rewards, employee development, and culturally aligned HR practices. For those working with a recruitment agency in Vietnam, this period is a critical test of how effectively they can maintain engagement and reduce unnecessary workforce movement.

Fine-tuning Financial Incentives That Matter Most

Studies consistently show that immediate financial rewards are the strongest motivators for workers in Vietnam’s high-turnover sectors. According to a 2025 Hanoi and Haiphong multi-university study, bonuses are a powerful retention tool in retail, hospitality, and manufacturing—industries where employees rely heavily on short-term income stability. Tết bonuses serve as both cultural tradition and financial lifeline, making them a major factor in whether employees stay or leave after the holiday.

Profit sharing also boosts job satisfaction, with the study showing statistically significant positive effects as they reinforce fairness, strengthen the effort–reward relationship, and promote mutual commitment. However, the research also highlights that workers in labour-intensive industries often prefer immediate rewards over long-term gain-sharing schemes.

Stock options hold limited value for low-wage or operational workers, who typically prioritise tangible financial benefits and may lack the financial literacy or long-term planning mindset to maximise equity-based incentives. Retirement benefits, although beneficial to more senior staff, also play a secondary role compared to immediate cash rewards.

Tết-Specific Cultural Considerations That Influence Retention

According to Vietnam Briefing, Tết bonuses are deeply expected—often equivalent to one month’s salary—and play a critical role in whether employees remain loyal. Many companies announce bonus frameworks between December and January. With Statista forecasting year-end bonuses between 0.8 and 1.5 months of salary depending on industry performance, employees are more informed than ever about what fair compensation looks like.

Companies also provide transportation support for employees returning home and even practical Tết gifts such as household appliances or motorbikes. These gestures reflect cultural expectations and demonstrate care beyond basic compensation.

Improving Employee Experience Beyond Bonuses

Today’s Vietnamese professionals are placing greater emphasis on fairness, transparency, and meaningful career development. In a 2025 APAC Workforce study, employees also want structured performance reviews and clear criteria for bonuses—especially before Tết, when emotions and expectations are highest.

Companies are now focusing on boosting employee engagement within daily work experience. Motivators such as recognition, workplace energy, emotional connection, and a sense of purpose have become key factors in retention.

Career development is also a major driver. In the same study, 81% of Vietnamese workers plan to pursue new skills by 2026, with 64% saying they are more likely to stay if employers invest in their training. Companies that provide learning pathways—digital training, job rotations, or co-certified programs—are more likely to keep their staff long-term.

Ensuring Leadership Continuity

Strong retention also depends on organisational stability at the leadership level. In Robert Half’s report on “Success in Succession: Building a Leadership Pipeline to Keep Your Business Thriving”, many Vietnamese companies lack effective succession plans. Vague procedures, talent shortages, and cultural expectations, such as respect for hierarchy or familial influence in decision-making, further complicate leadership transitions.

Vietnam’s aging workforce and younger generations’ reluctance to pursue leadership roles intensify these challenges. Without clear development paths, high-potential employees may leave—especially after Tết, when hiring activity is at its peak.

Companies that work closely with headhunting firms in Vietnam should collaborate to identify critical roles, assess internal talent, build personalised development plans, and review succession strategies regularly. Strengthening internal leadership pipelines reduces their reliance on external hires during high-turnover seasons.

Strategies to Strengthen Retention Ahead of Tết

In summary, companies should adopt a multi-dimensional approach to ensure employee retention before the Tết season.

✅ Prioritise immediate, transparent financial rewards

• Performance bonuses tied to clear metrics
• Relevant profit-sharing schemes that employees understand
• Short-term retention bonuses during peak turnover periods

✅ Provide structured feedback and clear career growth

• Transparent performance reviews
• Defined advancement tracks
• Regular check-ins before bonus discussions

✅ Invest in development and upskilling

• Subsidized certifications
• Micro-learning platforms
• Cross-functional training or job rotations

✅ Refine leadership and succession planning

• Develop high-potential talent early
• Implement structured succession frameworks
• Use external experts—such as a talent search agency Ho Chi Minh—when needed

✅ Honor Tết cultural traditions

• Fair and timely bonuses
• Travel support
• Meaningful Tết gifts for staff

Level-up Your Tết-Season Workforce Strategy with ASW Consulting

For employers operating in Vietnam, understanding Tết traditions is essential to building trust and retaining talent. These cultural nuances play a significant role in employee loyalty, and companies that respect and adapt to these expectations are better positioned for long-term success.

As you plan your workforce needs during this crucial period, partnering with a local expert can make all the difference. ASW Consulting helps businesses navigate Vietnam’s HR landscape with tailored recruitment support, market insights, and talent strategies designed to meet seasonal demands, including Tết-related staffing challenges.

If your organisation needs c-suite recruitment in Ho Chi Minh City or guidance on hiring, retention, and other local employment practices, contact us today. Our HR agency in Vietnam is ready to help you build strong, sustainable, and culturally aligned teams for your workforce.

 

Related blogs:

2026 Career Success Starts Now: Top Tips for Jobseekers in Vietnam

Win the Talent Race: Finance & Banking Recruitment Insights for Employers in Vietnam

How to Manage Salary Expectations in Vietnam’s Job Market