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Navigos: Recruitment demand impacted by FDI wave

Released at: 14:29, 12/08/2019

Navigos: Recruitment demand impacted by FDI wave

Illustrative image (Photo: Viet Tuan)

Recruitment demand up as result of investment shift from China to Vietnam.

by Hoang An

The Navigos Group, the operator of the largest job portal in the country, VietnamWorks, and also executive search firm Navigos Search, recently released a report on recruitment demand at the senior management level in the country based on hiring needs in the second quarter of the year. The report also identified trends in real estate based on information from its clients.

Events during the quarter stemming from the impact of trade agreements and FDI investment waves resulted in certain changes.

In the last six months, FDI inflows into the construction of factories and plants led to a rise in industrial real estate (land utilized or suited for industrial activities like factories, industrial zones, office space, etc.).

The expansion projects of many companies also impacted demand for real estate leasing.

FDI enterprises directly investing in commercial real estate also stimulated the strong development in the segment.

Major cities such as Hanoi, Da Nang, and Ho Chi Minh City are no longer the only destinations for real estate investors, with a strong rise seen in new markets like Quang Ninh, Hai Phong, Thanh Hoa, Binh Thuan, Ba Ria Vung Tau, and elsewhere during the second quarter.

Corporations need to recruit new key positions or replace departing staff, but recruitment demand in these positions is expected to continue to be stable overall.

Foreign experts are also “hunting” for personnel in positions related to Engineering and Real Estate Operations Management.

Regarding the wave of factories shifting from China to Vietnam in the last six months and the level of FDI in the manufacturing sector, the auxiliary chemical industry for production also increased dramatically in terms of recruitment demand, which rose more than three-fold against the previous quarter.

Navigos Search also noted a shift from the north to the south by auxiliary chemical companies, due to strong demand for expansion.

Most vacancies related to Commercial and Back Office positions.

In the textile and footwear industry, Chinese importers have shifted production orders to other countries such as Malaysia, Bangladesh, and Indonesia, due to their competitive production costs, including labor costs, compared to Vietnam. Revenues are considered to have reached their potential already in Vietnam and will not rise further.

In the south, recruitment demand in support industries and processing and production also showed signs of slowing down, primarily due to ongoing US-China trade tensions.

Major US companies in high-tech materials are also surveying the market and acquiring knowledge about Vietnamese laws on factory relocations.

They are only exploring the market at the moment, however, as they are still waiting for a final decision from trade talks.

From the fourth quarter of 2018 to the first quarter of 2019, the shift away from China to Vietnam was quite clear. In the second quarter of this year, however, this shift began to slow down as enterprises preferred to wait for an easing of trade tensions. If negotiations were positive, they will remain in China. But if negotiations are unfavorable, the shift to Vietnam will restart in the third quarter.

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