Only 10% of firms in Vietnam looking to cut staff in 2023: survey

Only 9.72% of firms in Vietnam plan to cut staff in 2023, according to a survey conducted in January by talent solutions and advisory company Adecco.

Of this, no firms plan to reduce their headcounts by more than 50%, while 1.39% target a reduction between 25% and 50%, and 8.33% are looking to cut fewer than 25%.

Meanwhile, 47.22% are looking to maintain worker numbers, and 43.05% are aiming to employ more staff.

The survey had about 10,000 respondents with 40% as employers.

The top sectors planning increased headcounts this year are supply chains, logistics, and transportation; manufacturing; healthcare, medical & science.

For employees, only 37% want to break from their current companies, including 28% wanting to take relevant jobs in other firms, 4% targeting to switch to other sectors, and 5% aiming for a break or startup.

The survey also shows that salary is the most influential factor in career decisions, with 57% of respondents; followed by a good work-life balance, company culture, and career prospects with 30% each; company benefits with 28%, and co-workers with 26%.

Adecco firmly believes that the labor market in Vietnam will improve by the end of this year after previous turbulence. However, in the short term, production will continue facing difficulties due to a lack of orders, possibly until the end of the first or second quarter of this year.

Manufacturing, especially in wood production, footwear and apparel, is forecast to make a recovery or even a breakthrough at the end of 2023. With higher purchasing power as well as higher living standards in the domestic market, consumer goods and healthcare remain well-performing sectors with stable and even booming demand, Adecco said.

Adecco also highlighted the labor market’s problems last year, including backlogs of orders with labor shortages in early 2022 due to workers leaving for their hometowns during the Covid-19 pandemic and not returning. The situation then reversed at the end of the year with a surplus of workers but order shortages due to the slowing global economy.