LABOR DEMAND RISING FAST, SUPPLY CAN’T KEEP UP
VIETNAM ONLINE EMPLOYMENT INDICATOR – QUARTER III – 2007
LABOR DEMAND RISING FAST, SUPPLY CAN’T KEEP UP
Ho Chi Minh City – Today (8 November, 2007), VietnamWorks.com, Vietnam’s largest job website, has released the Vietnam Online Employment Indicator Quarter III of 2007. This is a quarterly review of labor demand and supply, based on the amount of jobs advertised (labor demand index) and resumes posted (labor supply index) on Vietnamworks.com.
Strong labor demand keeps the supply tailing slowly
The 3rd quarter Vietnam Online Employment Indicator of Vietnamworks.com shows that while the labor demand index made a significant upsurge this quarter with the growth reaching 152% over the past 18 months, the labor supply index tailing after slowly with the growth of only 119% for the same period. These changes made no surprise to HR experts as the trend has been predicted since the early of this year given that the economy is booming and there are huge numbers of companies recruiting. There is a shortage of qualified staff, especially at the management level, and in some categories the supply of workers is decreasing.
In particular, the Vietnam Online Employment Indicator of this quarter shows the decline in labor supply in the categories of Executive Management, Accounting/Finance, Marketing and Telecommunications. These changes strongly demonstrate that there has been a severe shortage of managers and technical skilled workforce. Jonah Levey, CEO of Navigos Group which owns Vietnamworks.com comments: ”We observe that this year Vietnam has attracted a huge amount of foreign investment capital but it is unlikely that the local market can provide an adequate labor force”.
In addition, it is possible that the changes in the labor demand and supply indexes are a consequence of the competition for talent in which big companies have fished out the best candidates from the labor pool. If this is the case, it would raise a big challenge for the recruitment efforts of other companies. “Vietnam is not the only Asian nation struggling with a big shortage of skilled labor. Like in other emerging markets, Vietnam’s booming economy combined with the failure of the education system to produce enough qualified graduates to meet the requirements of recruiters, has led to a rising “talent fever”. To address this looming crisis, companies must develop long-term HR and recruitment strategies to attract and retain the best employees, and should remember “prevention” is always better and easier than “cure””, continues Jonah.
Expat and Real Estate categories lure more jobseekers
After a slight decrease in quarter II, number of resumes posted by Expat has increased which results in the growth of the Expat category reaching to 104% against the last quarter. It is predicted that if the Government passes the Decree eliminating the limitation on number of foreigners working for a company, the number of foreigners working in Vietnam would be increased considerably. To a certain extent, hiring foreigners would be a solution for the current shortage of candidates for executive management positions.
The wakening of the real estate and land development industry recently has lured more jobseekers for this promising industry. Indeed, the Real Estate category actually took the second place in term of growth in labor supply index by volume. As compared with the second quarter of this year, the supply in the Real Estate category increased 18%.
Strong demand on Engineering and Manufacturing categories
In the demand index, Engineering and Manufacturing lead among all categories in term of labor demand, particularly the demand indexes rose 164 and 141 points respectively against the indexes in the second quarter. It is easily explained for this demand rise as the industrial production sector remained the most attractive area for foreign direct investment, accounting for 54.6%. Jonah adds “It is foreseen that the shortage of technical skills would be the big problem in the years to come. Let’s take an example of Intel alone, when its plant comes into operation, at least 2,000 technically skilled workers are required.
Furthermore, there are many projects worth billions of US dollars, awaiting implementation, and there is no doubt these projects will require a large number of highly skilled laborers”. This would be the main reason leading to the recent salary increase in the Manufacturing industry. Indeed, Ms. Nguyen Thi Van Anh, Director of Executive Search and Selection Department of Navigos Group reveals “In practice, we observe that Manufacturing would be the second industry having high payment rises after the Finance industry”.
Although the categories in the top six of labor demand remain unchanged as compared with the last quarter, there is a slight change in term of priority, in which Engineering took over the third place of IT-Sofware.
Ho Chi Minh City and Hanoi are still the great pools of talent
Ho Chi Minh City and Hanoi remain the leaders in term of job location distribution across Vietnam, accounting for 46% and 34% respectively. In the near future, there would possibly be no change regarding the leading positions of Ho Chi Minh City and Hanoi even other local cities and provinces have made great efforts in attracting investment capital and creating jobs for labor. Following Ho Chi Minh City and Hanoi are Binh Duong, Dong Nai and Hai Duong province. According to investment data, within this year Ba Ria-Vung Tau has attracted US$1.06 billion, topping among 50 local cities and provinces in attracting foreign direct investment. It is expected that Ba Ria-Vung Tau would be in the top five list of job location distribution in the coming time.
VietnamWorks.com is the largest job website in Vietnam, and a web-recruiting pioneer, matching people with jobs, and matching companies with top talent over the Internet since 2002. We provide richly featured recruiting services for thousands companies and hundreds of thousands of jobseekers that utilize our job-posting and candidate resume databases. For jobseekers, VietnamWorks.com provides access to the most jobs, the best companies, and the best resources for career advancement. For employers, VietnamWorks.com provides job posting services, a searchable database in which nearly three-hundred-thousand jobseekers have posted CVs, and print job advertisement in popular Vietnamese and English newspapers.
For more information please contact:
Nguyen Thi Minh Tam
Director, Corporate Marketing & Communications
Navigos Group Ltd./VietnamWorks.com
130 Suong Nguyet Anh Street
Ben Thanh Ward, District 1
Ho Chi Minh City, Vietnam
Tel: (84 8) 404 1373, ext: 170
Fax: (84 8) 404 1372
Mobile: (84) 90 395 9749