Can Better Employer Branding Solve Talent Shortages in Vietnamese Manufacturing Businesses?

Key takeaways

• Strong employer branding for talent acquisition attracts 50% more qualified candidates and fills jobs twice as fast, giving companies a clear edge in Vietnam’s tight labor market
• Companies with effective employer branding and talent acquisition see 28% lower turnover and 44% higher profits from engaged teams
• A respected company reputation draws talent away from competitors, with 92% of workers willing to switch for better employers
• CEOs must lead employer branding recruitment strategy as core business strategy to secure future workforce needs and growth

This talent crisis needs your immediate attention as a CEO. Building your company’s reputation as a great place to work through strategic employer branding in talent acquisition isn’t just about improving culture—it’s about securing the skilled workers who determine whether you can fill orders, innovate, and grow in today’s competitive market.

How big is Vietnam’s manufacturing talent gap

Vietnam’s manufacturing success has created a talent problem that threatens future growth. According to MOLISA reports, the country could face 2.1 million unfilled manufacturing jobs by 2030. This is hurting businesses today. Nearly half of manufacturing companies already say finding skilled workers is their biggest challenge.

The numbers reveal a deeper issue. About 25% of Vietnam’s manufacturing workers are over 55, meaning many will retire soon without enough young people to replace them. Even worse, research shows 70% of Gen Z workers actively avoid manufacturing jobs, preferring careers in sectors they see as more attractive and modern.

Current hiring challenges facing local manufacturers:

• 20% longer hiring times for technical roles compared to multinational competitors
• Increased competition from tech companies, service firms, and foreign investors
• Higher recruitment costs and project delays due to talent scarcity

The talent pipeline isn’t just slow—it’s actively moving away from manufacturing. Without action, this trend will only get worse as digital-native generations enter the workforce. Understanding why reputation is important for a company becomes critical when competing for scarce talent.

Why should your employer brand be a top priority

The data proves a direct link between employer brand strength and business performance—from recruitment speed to profit margins. Here’s how employer branding helps in recruitment and delivers measurable returns across four critical areas.

Attract more of the right people

A strong employer branding in recruitment transforms how candidates see your company. According to global recruitment research, companies with good employer brands get 50% more qualified applicants and hire twice as fast as competitors with weak reputations. In Vietnam’s tight labor market, this speed advantage can mean winning or losing the best talent.

The psychology behind this is simple but powerful. Studies show 92% of workers would consider leaving their current job for a company with an excellent reputation. This means your strong brand doesn’t just attract active job seekers—it can pull talent from competitors, even workers who weren’t planning to move.

Financial benefits of strong employer branding:

• Up to 50% reduction in cost-per-hire through natural talent attraction
• Decreased spending on job advertisements and recruitment agencies
• Faster time-to-fill for specialized manufacturing roles

Culture matters more than ever in hiring decisions. Southeast Asian employment surveys show 43% of workers consider company culture a major factor when choosing jobs. This demonstrates the importance of employer branding in recruitment as you must show candidates they can grow, feel valued, and contribute meaningfully at your company.

Keep your best staff and boost results

Good employer branding pays even bigger dividends through retention. Research shows organizations with strong employer brands see 28% less employee turnover. In manufacturing, where training skilled operators and engineers requires significant investment, keeping just a quarter more of your workforce saves substantial money and maintains operational stability.

Retention creates a cycle of better performance. Manufacturing workers who feel engaged stay 70% longer and help drive 44% higher profits. A survey found only 25% of manufacturing workers feel truly engaged, while disengaged employees cause 81% higher absence rates and 41% more quality problems.

The cost of losing people is staggering. Industry estimates put the replacement cost for skilled technical workers at around $50,000 each when you factor in recruitment, training, and lost productivity. Companies with strong employer brands avoid these costs while keeping experienced teams that deliver consistent quality and customer service. Effective talent acquisition strategies can help reduce these replacement costs significantly.

Create lasting trust and loyalty

The deepest benefits of employer branding come from emotional connection. When companies genuinely care about their workforce, they create powerful bonds that go beyond paychecks. IBM research found 89% of employees at companies with strong employee experiences feel proud and connected to their employer.

This pride drives real business results. Proud employees become your best recruiters, telling others about opportunities at your company. In Vietnam’s close professional networks, this word-of-mouth can dramatically improve your talent pipeline. Loyal workers also stick with you during tough times, providing stability when market conditions get challenging.

Tiêu Yến Trinh, CEO of Talentnet, highlighted this opportunity during recent disruptions: “This period creates unprecedented opportunities for building employer branding. It is a golden time to establish a thorough employer brand strategy and leap ahead of competitors—even when you don’t urgently need to hire.” Her insight shows how building employer brand creates long-term advantage through trust that lasts through different business cycles.

Drive real growth and beat competitors

Strong employer branding recruitment strategy removes the talent barriers that limit growth. One Vietnamese manufacturer reported they could increase exports 30-40% if they had enough skilled workers. This shows how talent shortages directly cap your revenue potential. Companies with strong employer brands eliminate these limits by ensuring steady access to qualified candidates who can support expansion plans.

The competitive landscape makes this even more critical. Global employer branding surveys show 78% of large companies now prioritize employer branding as a strategic necessity. In Vietnam, where manufacturing competes with tech and service companies for skilled workers, strong employer brands give you first choice of the best candidates while competitors struggle with second-tier talent or empty positions.

Most importantly, employer branding can change how young workers see manufacturing careers. By highlighting growth opportunities, modern technology, and meaningful work, strong employer brands can attract Gen Z workers who currently avoid the sector. This shift is essential for building the workforce pipeline you’ll need as older workers retire.

The companies that master employer branding won’t just survive the talent shortage—they’ll use it to gain market share as competitors fall behind. Strategic talent acquisition becomes a competitive weapon in this environment.

The evidence is clear: employer branding for talent acquisition is now a strategic necessity for Vietnamese manufacturing leaders. Companies that build strong employer brands turn workforce challenges into competitive advantages that drive growth and profitability. Understanding the importance of recruitment strategy on business growth helps CEOs see why this investment matters. Consider partnering with Talentnet’s HR consulting services to develop comprehensive employer branding and talent acquisition strategies that make your company the preferred choice for Vietnam’s best manufacturing talent.