Vietnam's Labour Market Transitions Towards Greater Global Connections

Vibrant Progress in Vietnam's Labor Market

HÀ NỘI - Vietnam's labor market has made a remarkable leap forward, expanding in scale and quality as it embraces modernization, sustainability, and deeper global integration – all underpinned by proactive government policies.

By implementing strategic measures such as more job-matching programs, employment fairs, and job creation loans, the Government has successfully connected provinces rich in human resources with major economic hubs, ensuring a stable workforce for industrial parks, export processing zones, and key economic areas.

According to the National Statistics Office, Vietnam's labor market in 2024 regained its pre-pandemic pace, with the workforce aged 15 and above reaching close to 53 million, marking a 1.1% increase over 2023. This translates to a grand total of 51.9 million employed workers [1][3][4]. The unemployment rate shrank to a commendable 2.24%.

Moreover, over 700,000 Vietnamese workers found employment overseas under contractual agreements, contributing an impressive annual $3.5–4 billion in remittances [1][2][4].

The Party and State are resolute in fortifying the labor market through strategic reforms, including improved coordination of employment, social, and unemployment insurance policies, and accelerated digital transformation [1][4]. They are also working on establishing a national labor and employment database, integrated with the population database, to bolster public employment services.

As Vietnam refines its legal framework for vocational skills, labor relations, and wage systems, they aim to meet both domestic and international demands. Robust state oversight ensures labor organizations operate within their mandates, maintaining political stability and public order [1][3][4].

Looking ahead to 2026-2030, the Government plans to modernize the labor structure by minimizing informal employment and expanding sustainable job opportunities [1][2][4]. Social policy credit programs will be expanded to buttress vulnerable groups, including the poor, ethnic minorities, people with disabilities, and those impacted by natural disasters, pandemics, or climate change [1][2][4]. The aim is to create a skilled, agile workforce while addressing socioeconomic disparities. Global integration is another significant objective, with labor policies aligning with international standards to boost competitiveness and attract foreign investment [1][3][4].

[1]: Vietnam's Labour Market Recovering, Modifying to Global Challenges[2]: Overseas Workers Quietly Shoring Up Vietnam's Economy[3]: Number of Vietnamese Laborers Overseas Expected to Increase[4]: Vietnam's Labor Market Reforms to Create Opportunities for Vietnamese Overseas Laborers

Workers at a textile company in HCM City. - VNA/VNS Photo

The government is addressing the challenges posed by the pandemic and climate change by expanding social policy credit programs to help vulnerable groups, such as the poor, ethnic minorities, people with disabilities, and those affected by natural disasters.
With a focus on global integration, the government aims to align its labor policies with international standards to boost competitiveness and attract foreign investment, thereby making Vietnam's labor market more attractive to AI-focused companies.
In an effort to create a skilled, agile workforce, the government plans to modernize the labor structure by reducing informal employment and increasing sustainable job opportunities in key economic areas like sports industries.
The government's proactive policies, such as job-matching programs and employment fairs, have fostered a stable workforce, linking provinces rich in human resources with major economic hubs and industrial parks.
As part of their climate change policy, the government is fortifying the labor market through strategic reforms, including improved coordination of employment, social, and unemployment insurance policies, and accelerated digital transformation to reduce the workforce's reliance on traditional sectors like textiles.