Labor Market Paradox: Domestic Layoffs, Global Shortages – What Opportunities for Vietnamese Workers?

The wave of domestic layoffs

According to financial reports and HR surveys, in just the first six months of 2025, more than 2,500 banking employees were downsized. Some banks cut deeply: LPBank reduced nearly 2,000 workers, VIB over 1,100, and Sacombank more than 1,100.

The technology sector was also hit. FPT cut nearly 500 employees for the first time, while VNG reduced over 90 jobs. In retail, Mobile World (Thế Giới Di Động) laid off more than 1,300 workers.

A labor market survey (Q2/2025) showed:

• 77.4% of enterprises admitted recruitment was more difficult than in the same period last year.

• 72.7% of laid-off workers returned to the job market, but only 24.7% found suitable employment in the short term.

The main reasons cited include business restructuring, cost-cutting, and digital transformation. Many traditional roles—especially in operations and administration—have become redundant in the face of AI and automation.

Shortages across industries and abroad

While some sectors are cutting back heavily, others are in dire need of labor. In Vietnam, enterprises in manufacturing, processing, logistics, and direct services (hospitality, restaurants) continue to struggle with recruitment, especially for skilled blue-collar workers.

Globally, the picture is even clearer:

• In the first half of 2025, the global tech sector cut 72,000 jobs, and retail lost more than 64,000.
• Yet international reports forecast that by 2030, Southeast Asia will lack millions of tech professionals. Vietnam alone could face a shortage of 150,000–200,000 technology engineers per year.
• Other fields such as healthcare, renewable energy, logistics, and fintech are also projected to see soaring demand for labor during 2026–2030.

The paradox of labor supply and demand

The current paradox can be summarized as:

• High unemployment among workers, but businesses still complain they “cannot recruit.”
• Blue-collar and service jobs are easier to find than white-collar positions.
• Globally, there is a shortage of tech talent, while in Vietnam, many IT staff are being laid off.

The key issue is a skills mismatch. Businesses need digital, data, cybersecurity, and AI skills, but many workers have not yet equipped themselves with these, leading to a situation where “supply exists – demand exists – but they do not meet.”

What opportunities for Vietnamese workers?

Experts argue this is both a challenge and an opportunity:

• Domestically: Workers must quickly upgrade digital skills, foreign languages, and service capabilities to meet new requirements. Direct services and manufacturing remain fertile ground for stable jobs.
• Internationally: With a global shortage of tech talent, Vietnamese workers have advantages if they can leverage training partnerships and skilled labor export programs. Fields like healthcare, green energy, and international logistics also present open pathways.
• Policy-wise: Stronger promotion of reskilling and upskilling programs is needed, along with digital platforms to better connect labor supply and demand. Short-term support should be provided to help unemployed workers access new opportunities more quickly.

Vietnam’s labor market in 2025 is facing a dual paradox: massive layoffs on one side and severe shortages on the other. Yet opportunities remain wide open if workers proactively upgrade their skills and seize the momentum of global shifts.