The recruitment struggles in Việt Nam’s emerging sectors

01/10/2024 10:24

Sectors such as e-commerce, logistics and warehousing are growing rapidly, yet many companies are being forced to train their own staff due to a lack of formal educational programmes.

Job seekers looking for employment opportunities at the Đồng Nai Employment Service Centre. — VNA/VNS Photo

HÀ NỘI — As Việt Nam's economy continues to recover, certain industries are finding it difficult to keep pace with the demand for skilled labour.

Sectors such as e-commerce, logistics and warehousing are growing rapidly, yet many companies are being forced to train their own staff due to a lack of formal educational programmes.

The challenge, however, is not limited to specialised fields. Even entry-level positions like drivers and warehouse workers are hard to fill.

Data from Việc Làm Tốt, an online job search platform, highlights that recruitment demand in the first eight months of the year increased by 30 per cent compared to the same period in 2023. The demand is concentrated in key southern economic regions and is particularly high in fast-growing sectors such as construction, real estate and logistics.

Despite this surge, 85 per cent of companies surveyed reported labour shortages, with 30 per cent facing severe gaps, some lacking more than half of the workers they require.

A growing mismatch

This labour market imbalance is a persistent issue. According to the Employment Department, over one million working-age individuals are either unemployed or underemployed. Meanwhile, companies across the country are struggling to recruit, with over 836,000 general labour positions still unfilled.

One major barrier is the absence of structured educational pathways for emerging industries like e-commerce and logistics.

Lê Thị Đoan Trinh, Deputy General Director of Human Resources at Scommerce, a start-up with 20,000 employees, spoke of the difficulty in finding qualified recruits. The company, which provides rapid delivery services through its brand Ahamove, primarily serves clients like Tiktokshop and Shopee.

“Many industries aren’t being taught at educational institutions fast enough,” Trinh told the Voice of Việt Nam.

“E-commerce, for instance, is covered in only a few schools. The same is true for logistics and warehousing. These are new industries where most companies have to train their employees internally.

"We’ve had to learn management and goods-sorting techniques ourselves. Training centres don’t offer classes in automated sorting, so we had to figure it out. Only in transportation can we hire workers who have gone through formal training.”

She added that, despite appearing straightforward, roles such as delivery drivers require a high degree of professionalism.

“Shippers need discipline and skills, like using smartphones for sorting goods and handling customer service. It’s not as simple as it seems.”

It’s not just e-commerce and logistics that are facing recruitment issues.

Lê Thị Bích Hằng, from the management board of Printing Company No. 7, described the printing sector’s labour shortage as critical.

With only 100 people nationwide receiving formal training in printing each year, companies are left scrambling for skilled workers.

“We had plenty of orders, but the lack of workers led to a crisis. In response, we developed an in-house training programme,” Hằng said.

This programme, the '40 Skilled Workers Initiative' focuses on hiring workers and training them internally. It takes two to three years for an employee to master printing machines, but the initiative has helped build a skilled workforce that now meets production demands.

Hằng noted that while they once hoped to hire graduates who could begin working immediately, it became clear that retraining was necessary.

“The advantage of today’s young workers is their energy, creativity and enthusiasm. We now recruit third and fourth year university students as paid interns to train them early, which helps alleviate recruitment challenges.”

A warehouse of the Lazada e-commerce platform. — Photo dantri.com.vn

Changing expectations of job seekers

Recruitment difficulties, however, are not solely tied to supply issues. The criteria that job seekers use when selecting jobs have shifted.

According to Hoàng Thị Minh Ngọc, chief operating officer at Chợ Tốt and director of Việc Làm Tốt, companies are facing three key challenges, including recruitment efficiency, optimising applicant screening and increased competition among businesses.

Many recruiters complain about the time-consuming process of sifting through incomplete resumes. Only 14 per cent of applicants meet the full requirements for technical skills, soft skills, and attitude.

Moreover, competition for talent is intense, especially with companies adjusting salaries and benefits to attract applicants. And it’s no wonder, today’s job seekers prioritise three main factors: salaries and benefits (56 per cent), a safe and comfortable work environment (52 per cent) and positive relationships with colleagues and supervisors (44 per cent).

Flexible work arrangements are also gaining popularity, with around 30 per cent of employees opting for part-time, remote, or freelance positions. This trend is reshaping the way businesses approach recruitment, particularly in industries where remote work is viable.

Trust has become a crucial element in the job search process. Job seekers increasingly value the credibility of job listings and companies, with 80 per cent expecting job postings to be authentic.

However, 30 per cent of candidates struggle to present themselves effectively in their resumes, and many find the recruitment process too cumbersome.

A large majority - 60 per cent hope for simpler application procedures.

Ngọc emphasised that while salaries and benefits might draw applicants in, a company’s corporate culture would be what keeps them.

“Salary is the initial attraction, but it’s the company culture that makes employees want to stay.” — VNS

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