In early 2023, despite being still affected by waves of mass lay-offs and economic fluctuations, foreign direct investment in Vietnam in January was positive. Compared to the same period last year, although the total registered capital decreased by nearly 20 per cent, the number of projects saw a 48.5 per cent increase. Ventures came from many diverse fields, promising new opportunities for cooperation and work.

Tieu Yen Trinh - CEO, Talentnet Corporation

Along with positive changes in the economy, the labour market also showed better signs after a slew of lay-offs. According to the Ho Chi Minh City Labour Forecasting and Information Center, in 2023 the city needs about 300,000-320,000 workers, and the demand for labour in Q1 also increased compared to Q4, reaching 72,000-79,000 workers. Recruitment demand in Hanoi reached about 100,000-120,000.

After a series of lay-offs by large companies in Vietnam, the number of freelancers has increased, including many high-quality personnel. Foreign-invested enterprises can now look to this group of personnel to supplement their current resources.

The increase in recruitment demand, especially amid the general economic difficulties, can be seen as a positive signal for the labour market. The flexibility and openness of both businesses and labourers to adapt and embrace new opportunities in business models and career prospects are extremely necessary.

For foreign enterprises that have just experienced a period of personnel upheaval, strengthening internal resources is crucial. There are three changes that businesses can consider reorganising their teams and improve morale: a circular management model, outsourcing or technology application, and a total wellbeing care plan.

Activating the circular management model helps optimise productivity while the internal workforce is being restructured. Management can also promote different skills and build a common skill set for employees. However, while the internal team is still being restructured, human resources outsourcing, or using technology is a temporary but effective solution.

In parallel, businesses need to prioritise the overall health of their employees because this is a crucial factor in creating a healthy business. Employees are the first to experience pressure from disruptions and are responsible for implementing solutions to help the business grow.

For foreign-led groups that were not affected by the lay-off wave, this is the time to leverage their advantages to attract talents in the labour market. Two factors that help companies score points are a comprehensive recruitment process and a transparent benefits scheme.

According to reports from SEEK, BGC, and The Network, over half of Southeast Asian workers reject job offers if the company does not have a clear recruitment process. Therefore, the clearer the recruitment process is, from job application and interview process to onboarding, the easier it is to attract potential candidates.

Benefits policies are also something that companies need to consider. According to a report by Mercer-Talentnet conducted at the end of 2022, salary is not the most important factor, but a first condition that workers consider. Companies need to have a more competitive salary and bonus strategy and may have to compromise and supplement certain benefits to attract freelance talents.

However, companies must think about comprehensive salary, bonus, and benefits policies that are standardised for all employees based on common criteria, to avoid creating imbalances in benefits among employees and inadvertently affecting the overall work environment.

For workers who are directly affected by major events, the ABCDE model offers them a competitive advantage.

Agility: the ability to learn, unlearn, and seize opportunities. This is one of the important factors determining personal growth.

Business: getting more knowledge about your job and the industry to see the bigger picture of the market as well as competitors.

Connection: expanding connections with partners both domestically and internationally to create an ecosystem and maximise their network effect.

Digitalisation: equipping and upgrading digital skills to earn yourself a competitive advantage in the job market of Industry 4.0.

Empathy: the ability to understand oneself and others, and establish true and empathetic connections with one another. This helps to enhance both relationships with your colleagues and drive impactful performance.

An employee with the above characteristics will be confident in experiencing and learning, ready to step out of their comfort zone, and become a potential candidate with unique values.

The job market in 2023 will thrive, but in order to succeed, both workers and businesses need to prepare themselves mentally and resourcefully to be ready when opportunities come.