Vietnam’s Labor Market: Trends for European Employers in 2025

In the context of globalization and international economic integration, Vietnam’s labor market is undergoing significant transformations, creating numerous opportunities and challenges for employers, especially those from Europe. The year 2025 is expected to be a pivotal time with several noteworthy trends.

Vietnam Human Resources – Solutions for the European Human Resources Industry

1. Recovery and Growth of the Labor Market

According to a report by the Ministry of Labor, Invalids, and Social Affairs, in 2024, Vietnam’s labor market showed strong recovery, with the urban unemployment rate below 4% and the proportion of trained workers reaching 69%, of which 28.1% had certificates or diplomas. This positive signal highlights the labor market’s strong post-pandemic recovery.

2. Enhancing Vietnam’s Workforce Reputation in the International Market

Vietnamese workers have gradually built a solid reputation in the international labor market. Europe has always been regarded as a key market with a high demand for foreign labor, including workers from Vietnam (dantri.com.vn). The cooperation between Vietnam and European countries in labor supply is strengthening and expanding.

3. Job Opportunities in Europe for Vietnamese Workers

In 2025, numerous job opportunities in Europe are expected for Vietnamese workers, especially skilled professionals. For example, Finland has signed a Memorandum of Understanding with Vietnam’s Ministry of Labor, Invalids, and Social Affairs to recruit Vietnamese workers to address its aging population and labor shortages (dantri.com.vn). This presents an opportunity for Vietnamese workers to gain international work experience and enhance their professional skills.

Signed a Memorandum of Understanding (MOU) on cooperation on labor migration between Vietnam and Finland. (Photo: PV/Vietnam+)

4. Challenges in Labor Productivity

Despite significant progress, Vietnam’s labor productivity remains lower than that of many regional countries. According to the Asian Productivity Organization (APO), Vietnam’s labor productivity is approximately $6.4 per hour worked—only two-thirds of the Philippines, less than half of Thailand, and one-tenth of Singapore. This presents a major challenge for Vietnam in improving workforce quality to meet the expectations of international employers.

5. Efforts to Improve Workforce Quality

To address these limitations and meet international labor market demands, Vietnam is implementing various initiatives to enhance workforce quality. Starting in 2025, Vietnam will adopt a new labor supply-demand forecasting model, developed with the support of the International Labour Organization (ILO), to tackle labor market imbalances (dantri.com.vn). Additionally, vocational training and skills development for workers are being prioritized.

6. Recruitment Trends and European Employer Demands

European employers are increasingly interested in hiring Vietnamese workers, especially in sectors such as information technology, engineering, healthcare, and services. Strengthening labor cooperation between Vietnam and European nations will not only help alleviate labor shortages in Europe but also provide Vietnamese workers with better income and career development opportunities.

Recruitment trends of highly skilled workers of European employers

Conclusion

By 2025, Vietnam’s labor market is expected to continue its recovery and growth, creating vast opportunities for both workers and employers, especially those from Europe. However, to fully capitalize on these opportunities, Vietnam must persist in improving workforce quality, increasing labor productivity, and fostering stronger international labor cooperation.

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