HCMC – Vietnam’s labor market is expected to improve after the Lunar New Year (Tet) holiday in 2026, driven by rising hiring demand in manufacturing as companies accelerate production to recover orders and expand operations.
According to the Vietnam Labor Market Bulletin released by the Ministry of Home Affairs, employment in the first quarter of 2026 is forecast to increase by about 300,000 workers, bringing the total number of employed people nationwide to nearly 53 million.
Food manufacturing and processing is projected to see the strongest rise in labor demand, up 3.1% quarter-on-quarter. The sector benefits from stable domestic consumption, particularly for essential and processed food products.
After the Tet break, many food companies are ramping up production to catch up on order schedules and meet both domestic and export demand. Enterprises in major industrial zones have launched recruitment drives for hundreds to thousands of workers, including production workers, processing staff, and line operators.
Beyond headcount, employers are seeking workers with basic technical skills who can adapt quickly to modern production processes and meet food safety and factory discipline standards.
Labor demand in the production of other transport equipment is forecast to rise by 2.6%, while motor vehicle manufacturing is expected to increase hiring by 1.6%. These industries are closely tied to export market trends and regional supply chains.
Recruitment focuses on mechanics, welders, assemblers, maintenance technicians, and engineers in design and production management. Competition for workers within industrial parks has intensified, prompting companies to adjust wages and offer attendance bonuses, housing support, and commuting allowances to retain staff after Tet.
In contrast, labor demand is projected to decline slightly in chemical manufacturing and chemical products (down 0.5%) and in machinery and equipment repair, maintenance, and installation (down 0.7%). This reflects ongoing corporate restructuring, cost optimization, and greater adoption of automation and technology.
Despite signs of recovery, the labor market continues to face structural challenges. In the fourth quarter of 2025, more than 784,000 people were underemployed, accounting for 1.67% of the labor force. About 1.07 million people were unemployed, with an unemployment rate of 2.22%.
Notably, 61.2% of unemployment benefit applicants lacked formal qualifications or certificates, while those with a university degree or higher accounted for only 19.2%. This highlights persistent unemployment risks among low-skilled workers and underscores the need for vocational training and skills upgrading.
As of this period, Vietnam’s labor force stood at 53.8 million people, with average monthly income reaching VND8.7 million, indicating gradual improvements in worker livelihoods.
With rising employment and recruitment demand across processing and manufacturing sectors, Vietnam’s post-Tet 2026 labor market is expected to maintain positive momentum. However, sustainable recovery will depend on parallel efforts to expand job opportunities and invest in workforce training to meet the demands of production transformation and increasing competition.
