What Do We See as Talent Moves from Ho Chi Minh City to Hanoi?

Over the past two to three years, companies in the North have become increasingly proactive in recruiting professionals from Ho Chi Minh City. While the southern market is becoming more crowded and intensely competitive, the North is opening up fresh growth headroom, with pressing demand for high-quality professionals and mid-level managers. To attract talent returning or relocating north, many employers are offering more compelling compensation packages.

For employees, the strongest driver is often financial optimization. Differences in income levels and living costs – especially in Hanoi’s satellite provinces – allow for better savings compared to the high-cost pressures in Ho Chi Minh City. Many young professionals are also drawn to a four-season climate, a less hectic pace of life, and the chance to become early “core contributors” in emerging markets.

Hanoi Companies Competing for HCMC Talent

Ms. Đặng Thúy Hà, Head of Northern Region, Strategic Business and People Advisor at Talentnet, observes that many northern enterprises – both Vietnamese firms and multinational corporations – are entering a phase of strong transformation, rebuilding operating models to be leaner and more sustainable.

This has led them to prioritize candidates with solid management capabilities, high pressure tolerance, and experience in fast-changing environments – strengths often found among Ho Chi Minh City professionals thanks to their exposure to multinational organizations and international operating standards.

Talentnet has also recorded a sharp increase in hiring requests from northern businesses, particularly for projects involving HR system development and the standardization of compensation and benefits. This level of investment has become a notable attraction for southern talent.

Based on recent recruitment needs, the highest demand comes from manufacturing, processing, construction, and real estate – sectors expanding factories, launching new projects, or restructuring operations, all of which require managers experienced with fast-paced markets.

Notably, several northern banks are open to hiring candidates from non-banking backgrounds, especially FMCG. These professionals bring adaptable skill sets, broad market thinking, and strong agility – qualities aligned with banks’ transformation strategies. In addition, roles related to digital skills, automation, data analytics, and process optimization are in high demand amid rapid digital transformation.

Competition among Hanoi-based companies for mid- to senior-level talent from Ho Chi Minh City is intensifying for three reasons:

• Firstly, post-downturn restructuring has increased the need for experienced managers to improve operational efficiency.
• Secondly, candidates are becoming more selective, prioritizing clear strategies, stable growth paths, and competitive rewards. Talentnet’s salary report shows base pay in Hanoi is about 10% lower than in Ho Chi Minh City, pushing northern employers to enhance total packages to stay attractive.
• Thirdly, the rise of remote work has removed geographic limits, forcing Hanoi companies to compete not only locally but nationwide – and even internationally.

Changes to the Labor Market Structure

This mobility may affect occupational structure, regional labor distribution, and workforce quality. Strong growth among northern technology companies such as Vingroup, FPT, and Viettel is drawing talent from other regions, particularly Ho Chi Minh City and the southern provinces.

First, regional labor distribution is likely to shift, with workforce growth in the North and Central regions – especially in technology, tourism, and services. The expanding tech presence may also accelerate movement from traditional industries (manufacturing, construction) toward high-tech and service sectors such as software, data, and semiconductors – marking a significant structural change.

Startup and business models may evolve as well. With increased efforts to attract talent from Ho Chi Minh City, Hanoi’s startup ecosystem – particularly in technology and services – could scale faster, supported by a high-quality workforce and government backing.

In response, companies are adjusting talent strategies. Firms expanding in the North need to refine approaches to attract skilled professionals from the South, improve compensation and benefits, and introduce internal mobility programs that allow employees to develop across regions, especially in high-tech environments.

How Should Employees Prepare for Relocation?

According to HR expert Linda Nguyễn, employees should prepare carefully – both mentally and financially – before relocating, particularly from South to North.

Clarifying career goals is the first prerequisite: whether the move is a short-term experience or a long-term commitment, and how it aligns with one’s development plan. The new role should offer appropriate compensation, advancement opportunities, and a supportive work environment; decisions should be rational rather than emotional.

Financial readiness is equally important. Employees should budget for travel, relocation, and unexpected costs such as health issues related to climate changes. For those without employer housing support, securing suitable accommodation near the workplace can help optimize early living costs.

Researching the new living environment is essential – climate, local culture, and access to healthcare, education, and transportation – to minimize culture shock and ease adaptation.

Finally, psychological readiness matters. Employees may need to communicate with and gain support from family members, particularly when relocating together. Arranging housing, jobs, or schooling for dependents can be complex; transparent discussions with employers about available support are encouraged.

As younger generations increasingly prioritize sustainable quality of life and stability amid uncertainty, this talent flow is likely to shift from a “novel phenomenon” to a normal, flexible dynamic of Vietnam’s national labor market.

Source: Zing News