​There are a myriad of challenges and opportunities to consider when deciding where to locate a new facility: costs, infrastructure, proximity to suppliers, to name a few. This article will discuss the importance of educating yourself on the local labor market, competition and community.

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Understanding Vietnam’s workforce characteristics

Building a high quality and experienced workforce is essential for any new venture, but it's not always straightforward. Here are some factors that can influence the success or failure of your business:

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Why workforce demographics matter

Demographics shape your ability to create an inclusive and productive workplace. Here’s how key factors impact your business:

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Age distribution

• Diversity in experience: An age-diverse workforce offers a broad range of experiences and perspectives. Younger employees tend to be more tech-savvy and open to new ideas, while older workers provide valuable experience and mentorship. It is therefore crucial to maintain a diverse workforce.

• Adaptability and innovation: Different age groups contribute to a more adaptable and innovative work environment. Younger workers often drive innovation, while older workers offer stability and a wealth of knowledge, which are crucial for successful innovation.

• Generational differences: Each generation, such as Gen Z, Gen X, and Baby Boomers, has distinct values and working styles. For more insights on attracting Gen Z – the future workforce shapers, read the report World of Work for Generation Z in 2025.

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Gender diversity

• The balance: Is your workforce predominantly male or female? If your current location has 70% female workers, but your new location in Vietnam has a male labor participation rate of 83.3%, you'll need to adjust your talent attraction strategies.

• Why it’s important: It is advisable to have a balanced gender representation. This helps you better understand and serve a diverse customer base and enhances the company's image.

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Education and Skills

• Skill levels: Vietnam’s high education levels support skilled roles, but make sure to align your job requirements with local talent pools. This knowledge helps set realistic job expectations and plan effective training programs. Note that if the community or a specific area has a high percentage of college-educated office workers, staffing for manufacturing or warehouse jobs may be challenging.

• Economic benefits: Educated workers tend to have higher earning potential, which drives local purchasing power and economic stability.

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Cultural diversity

• A diverse population makes it easier to achieve your Diversity, Equity, and Inclusion goals. A multicultural environment in Vietnam with 54 ethnic groups provides valuable insights into consumer behaviors, which is crucial for marketing and customer service efforts.

• Inclusive environment: Promoting ethnic diversity greatly enhances employee satisfaction and retention.87% of employees believe that companies should actively implement DEIB initiatives to reduce social inequalities and foster inclusive workplaces.

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Psychographic insights: What drives Vietnamese talent?

Understanding workforce motivation is essential for attracting and retaining top employees. Foreign businesses should tailor their strategies to meet the specific needs and preferences of the local workforce. Here are some psychographic insights into what drives Vietnamese talent

• Work habits: Younger employees in Vietnam increasingly favor hybrid work models that combine remote and in-office work. They are also more inclined towards using digital-first tools and technologies, which enhance productivity and flexibility. 

• Purpose-driven Careers: A Vietnam Report reveals that a staggering 99% of employees seek purpose in their careers, and 85% consider a company’s social responsibility when selecting an employer. Businesses with strong ESG (Environmental, Social, and Governance) initiatives are more attractive to today’s workforce.

• Aspirations: A survey by Jobs_that_makesense Asia and Manpower found that 40% of respondents prioritize salary and job stability when searching for new roles. As living costs rise, employees seek structured salary growth and long-term financial incentives. That is why consulting average salary levels and key players offerings to ensure attracting talent while maintaining cost efficiency is crucial when setting up new business in Vietnam.

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Other workforce characteristics for consideration

Vietnam's labor market differs greatly between the northern, central, and southern regions, each with unique economic activities, workforce demographics, and wages. Recognizing these differences is essential for businesses to create effective recruitment and workforce planning strategies.

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Regional labor market overview

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Minimum wage variations by region

As of March 2025, Vietnam’s minimum wage structure is divided into four regions, reflecting the economic activity (exchange rate: 25,250 VND/USD).

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Key industrial zones across regions

Well-planned industrial zones can boost local economies by attracting investments, creating jobs, and fostering economic growth.

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Enhancing your workforce strategy with Manpower Vietnam

Foreign companies setting up new business in Vietnam often face challenges such as understanding regulatory requirements, accessing qualified candidates, and competing for top talent. The fast-growing industrial landscape has led to talent shortages in certain regions, making workforce needs even more challenging.

Manpower Vietnam has been providing workforce solutions since 2008, with the backing of more than 77 years of global experience. We are fully licensed by the Ministry of Labor, Invalids and Social Affairs to deliver recruitment, staffing, outsourcing and HR consulting services in Vietnam. Partnering with Manpower Vietnam ensures businesses can confidently navigate the labor market complexities and secure the right talent for industrial success.

Ready to grow? Visit our Services page or fill in the contact form below, and we will get back to you in 15 minutes during our working hours.

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