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More than half of Vietnamese companies cut jobs: survey

More than half of Vietnamese companies cut jobs: survey

Thursday, December 14, 2023, 16:03 GMT+7
More than half of Vietnamese companies cut jobs: survey
Jobseekers learn about new employment opportunities during a job fair held at an export processing zone in Ho Chi Minh City. Photo: Q. Linh / Tuoi Tre.

Fifty-six percent of Vietnamese enterprises have been forced to lay off staff, according to a recent survey conducted by Ho Chi Minh-based Navigos Search

The survey, part of Navigos Search's 2024 report on salaries and the labor market in Vietnam, involved 555 companies.

The somber findings underscore the challenging economic climate. 

On a positive note, 59 percent of these companies expressed optimism about the future.

They revealed plans to reinvigorate their workforce by recruiting approximately 25 percent more employees in the coming year.

Massive impact

Navigos Search recently conducted a comprehensive survey involving 4,000 employees and 555 enterprises nationwide, shedding light on the widespread effects of mass lay-offs in Vietnam.

The survey encompassed diverse industries across the northern, central, and southern regions.

Among the 311 companies that reduced their workforce, those in the stock market sector were hit the hardest, dismissing 25-50 percent of their employees.

Similarly, businesses in construction, real estate, and consulting services fired about 50-75 percent of their staff, with five percent of the consulting firms laying off a staggering 75 percent of their employees.

The report indicates that a little over one percent of the companies surveyed anticipated the need to hire a significant number of new employees in the coming year.

Prioritized areas for recruitment include business (62 percent), sales (26 percent), production (20 percent), as well as communication and marketing.

Customer service, research and development, and information technology teams are also highlighted for recruitment, while technical and administrative groups are expected to see limited hiring.

Employers expressed a preference for experienced individuals capable of adapting to various situations and handling emerging challenges.

Key criteria sought in new employees include 1-3 years of work experience, effective communication skills, proficiency in foreign languages, and adaptability to change.

The survey revealed that nearly 70 percent of the 4,000 individuals polled have retained their positions, while almost 20 percent have faced lay-offs. 

Among the affected workers, only 6.5 percent have successfully secured new employment, leaving more than 11 percent still seeking opportunities.

Notably, the construction field represents the most significantly impacted group of workers.

Navigating global waves of mass lay-offs

The impact of mass lay-offs has reverberated across industries worldwide, as reported by Navigos Search.

Bloomberg News estimated that in 2023 alone, global enterprises have collectively released nearly half a million employees from their positions.

From a global perspective, various industries have experienced significant waves of firing, including technology, non-essential consumer goods, finance, industry, communication, healthcare, essential spending, real estate, energy, materials, and utilities.

Among these sectors, technology companies have borne the brunt of the economic downturn, with approximately one-third of their total workforce being axed.

The survey underscored that security and stability in employment are top priorities for many workers.

While the rate of new employment tends to be lower, there is a notable increase in internal turnover within enterprises in certain industrial segments.

This can be observed through higher rates of promotions or internal redeployment.

On the global labor market stage, Singapore, Canada, and India stand out as the three countries witnessing the most significant reduction in recruitment, with figures exceeding 40 percent.

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Vu Thuy - Kim Thoa / Tuoi Tre News


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