Key Highlights Of Webinar: “Vietnam Market Entry: Labour And Intercultural Management“

Esteemed speaker: Mr. Andree Mangels – Deputy CEO, Vietnam & International Market Growth, Talentnet, shared valuable insights and expert knowledge.

Vietnam: The investment destination of Southeast Asia

Vietnam is not only a major manufacturing hub, especially in key sectors such as electronics, textiles and garments, and food processing, but is also rapidly advancing in digital transformation and e-commerce. In parallel, the tourism industry is making a strong recovery, evidenced by consistently crowded airports and the implementation of large-scale infrastructure projects such as new airports and expressways.

Moreover, Vietnam is placing increasing emphasis on green manufacturing and renewable energy to meet ESG standards, while maintaining an impressive rate of economic growth. With a GDP nearing USD 500 billion (2024) and a population of approximately 100 million, Vietnam stands out as an ideal destination for international enterprises.

In the current global context, the U.S. – China trade war has served as a catalyst positioning Vietnam as a strategic destination within the global supply chain. The shift in trade flows and relocation of manufacturing facilities have fueled a strong wave of foreign direct investment (FDI) and provided a significant boost to exports, particularly in key sectors such as electronics, textiles and garments, and furniture.

Opportunities and challenges in Vietnam’s labor market

Vietnam vs. Singapore: Key similarities and differences in business culture and labor costs

Business culture in Vietnam and Singapore shares several commonalities, such as a clear power distance and a strong sense of collectivism. However, critical distinctions in communication styles and management models significantly influence how businesses operate in each country.

These cultural distinctions profoundly impact relationship-building, talent development, and the implementation of management strategies. For international businesses—particularly those from Singapore—understanding and adapting to local cultural dynamics is essential for operating effectively and sustainably in the Vietnamese market.

Vietnam labor market overview and the rise of localization in workforce

The final segment of the webinar delved into Vietnam’s labor market, providing a comprehensive view of the growing localization trend that is reshaping the country’s talent landscape. No longer a mere hypothesis, this shift has become increasingly evident – mirroring the transformation Singapore underwent a decade ago.

An increasing number of multinational companies operating in Vietnam are now appointing local professionals to mid- and senior-level management roles positions that were traditionally held by expatriates. Today, expat hiring is primarily limited to positions requiring highly specialized expertise or niche technological knowledge, such as CEOs and CFOs in major FDI corporations, or engineers in electric battery development, renewable energy, and ESG-related fields areas where local talent supply still faces both qualitative and quantitative limitations.

Despite Vietnam’s young, dynamic, and high-potential workforce, a significant challenge persists in the shortage of highly skilled labor—especially in major industrial hubs such as Binh Duong, Bac Ninh, and Ho Chi Minh City. The rapid influx of FDI in sectors like semiconductors, electric vehicles, and green energy is exerting considerable pressure on the vocational training system, intensifying the talent competition across industries.

Moreover, talent retention dynamics in Vietnam are undergoing a marked transformation. For the emerging generation of knowledge workers, salary and bonuses are no longer the sole drivers of commitment. Corporate culture, flexible work models (remote/hybrid), opportunities for personal development, and a creative work environment have become the new “magnets” for talent attraction and retention. In contrast, blue-collar labor remains largely influenced by competitive wages, safe working conditions, and facility amenities.

During the webinar, the speaker received nearly 30 questions about market entry strategies, labor laws, employee benefit policies, and emerging business trends. The dynamic interaction between Mr. Andree Mangels and attendees underscored the strong demand among international businesses for in-depth, practical understanding when entering and expanding operations in Vietnam.