Vietnam tackles labour market modernisation

Vietnam’s labour market has experienced steady growth in both size and quality, moving towards modernisation, sustainability, and deeper international integration. As a key pillar of the national economy, the sector requires ongoing reforms to enhance flexibility, efficiency, and long-term stability.

The Ministry of Labour, Invalids, and Social Affairs has introduced measures to develop the labour market to meet businesses’ needs. These include bridging the labour supply and demand gap by linking regions with abundant manpower to key economic hubs. Job fairs, employment loan programmes, and preferential credit sources have supported efforts. Employment service centres have been restructured to improve labour supply-demand regulation and strengthen connections between employees and employers. Labour management is increasingly integrated with national population databases and other systems to ensure greater coordination.

With these coordinated efforts, the labour market has remained stable, providing the workforce required for industrial parks, export processing zones, and other key economic areas, reported Vietnam+. According to the General Statistics Office, Vietnam’s labour force reached nearly 53 million in 2024, marking an increase of over 575,000 people from the previous year. The number of employed workers rose to 51.9 million, an increase of 1.1%.

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However, challenges persist. Despite significant strides in developing a structured labour market, there are concerns about high levels of informal employment and a lack of formal vocational training. Approximately 38.7 million employees do not have formal qualifications, with only 28.1% holding certifications. Some industrial parks have reported mild labour shortages, particularly in low-skilled sectors like textiles and electronics assembly.

Minister of Labour, Invalids, and Social Affairs Dao Ngoc Dung has highlighted the need for better policies to integrate employment programmes with social insurance and unemployment benefits. The government is accelerating digital transformation to improve labour market connectivity and public employment services. Over the next five years, the development strategy will focus on modernising labour structures, reducing informal employment, expanding access to sustainable job opportunities, and ensuring inclusive economic growth.