Vietnam’s manufacturing growth is creating new opportunities, but building the skilled workforce needed to support that expansion remains a critical challenge. Photo by ChatGPT
Vietnam attracted US$54.85 billion in registered foreign direct investment in the first 10 months of 2026. Yet for many manufacturers, finding the right people to support that growth remains a challenge.
New factories, expanding production lines and foreign investment are creating opportunities across Vietnam’s manufacturing sector. But investment alone does not guarantee that companies can find the engineers, technicians, production supervisors and skilled workers they need.
For employers, this creates a growing concern: what happens when business expansion moves faster than workforce development?
As Vietnam strengthens its position as a manufacturing and investment destination, recruitment strategies must evolve alongside it.
Vietnam’s FDI Growth in 2026: The Numbers Behind the Expansion
Vietnam continues to attract significant foreign investment, particularly in manufacturing and processing.
According to the National Statistics Office, total registered foreign direct investment (FDI) reached US$54.85 billion as of 31 October 2026, representing a 74% increase compared with the same period in 2025.
The figures highlight several important developments:
- US$54.85 billion in total registered FDI during January–October 2026.
- US$14.61 billion in newly registered investment directed towards manufacturing and processing, representing 47.5% of newly registered capital.
- 3,478 newly licensed foreign-invested projects during the period.
- US$24.08 billion in estimated disbursed FDI, reflecting investment actually implemented during the first 10 months.
Singapore was also the largest source of newly registered foreign investment, contributing US$9.52 billion during the period.
These developments reinforce Vietnam’s attractiveness to international manufacturers, particularly those seeking to expand production capacity and strengthen regional supply chains.
However, registered investment represents commitments, not immediate operational activity. New projects may be implemented over several years, and their workforce requirements vary considerably.
The challenge for employers is to ensure that recruitment and workforce planning keep pace as these investments translate into operating facilities and production capacity.
Why Are Manufacturers in Vietnam Still Facing Recruitment Challenges?
Vietnam has a substantial workforce, but the availability of workers does not necessarily match the specific capabilities employers require.
This challenge extends beyond manufacturing.
ManpowerGroup’s Q4 2026 Employment Outlook Survey, involving 285 employers in Vietnam across multiple industries, found that 52% planned to increase headcount during the final quarter of the year.
However, approximately half of surveyed employers reported recruitment difficulties related to insufficient candidates with the required skills or shortages of qualified talent. Another 43% identified mismatches between candidate expectations and job requirements.
Source: ManpowerGroup — Vietnam Hiring Outlook Strengthens in Q4 as Skills Shortages Persist, September 2026.
For manufacturers, several interconnected challenges deserve attention.
- A Shortage of Job-Ready Technical Talent
Manufacturing is becoming increasingly dependent on specialised technical capabilities.
As factories introduce more advanced equipment, automation and digital production systems, employers may need workers with experience in areas such as equipment maintenance, production engineering, quality assurance and process improvement.
The challenge is not always finding applicants. It is finding candidates who can perform the required work with an acceptable level of training and supervision.
This distinction is especially important for manufacturers operating in precision engineering, electronics and semiconductor-related industries.
The OECD’s 2026 review of Vietnam’s investment environment also highlights the importance of technical, digital and managerial skills as the country moves towards higher-value industries.
Source: OECD — FDI Qualities Review of Viet Nam, 2026.
- Greater Competition for Experienced Workers
Foreign investment can create opportunities for both employers and jobseekers. However, when multiple manufacturers expand within the same industrial region, they may compete for similar groups of experienced employees.
This can be particularly challenging when recruiting production supervisors, maintenance technicians, engineering specialists and middle-management professionals.
Employers may respond by offering higher salaries or recruitment incentives.
While compensation remains important, competing on salary alone may not address longer-term retention challenges.
Workers also consider career progression, workplace conditions, leadership, training opportunities and job stability.
For manufacturers, the objective should be to create a compelling employment proposition rather than relying exclusively on higher wages to attract talent.
- Recruitment Timelines Do Not Always Match Production Schedules
Manufacturing recruitment often operates under time pressure.
A company may need to expand its workforce to accommodate new equipment, additional production lines or confirmed customer orders.
However, recruiting qualified employees takes time, particularly when candidates require technical assessments, multiple interviews or specialised experience.
When hiring begins only after manpower becomes urgently needed, employers may face difficult trade-offs between recruitment speed and candidate suitability.
For example, filling vacancies quickly may support immediate operations, but insufficient screening or onboarding can create additional training requirements and performance issues.
This is why recruitment should form part of production and business planning rather than being treated solely as an administrative response to vacancies.
- Employee Turnover Creates Hidden Recruitment Costs
Hiring difficulties do not necessarily end when a candidate accepts an offer.
Manufacturers must also consider whether employees remain long enough to become productive contributors.
When employees leave shortly after joining, businesses may need to repeat recruitment, onboarding and training activities.
This can place additional pressure on HR teams, supervisors and existing employees.
A low recruitment cost per hire may appear attractive initially, but it becomes less meaningful if the company repeatedly replaces employees in the same positions.
Employers should therefore assess recruitment effectiveness beyond vacancy fulfilment.
Metrics such as employee retention, time to productivity and early-stage turnover can provide a more complete picture of workforce stability.
The Bigger Problem: Companies Are Hiring for Today’s Vacancies, Not Tomorrow’s Workforce
One important lesson from Vietnam’s manufacturing expansion is that recruitment and workforce development cannot operate independently.
A company may be able to recruit production workers for its existing operations but still struggle to develop the technical specialists and supervisors required for future expansion.
Similarly, automation may reduce the need for certain repetitive tasks while increasing demand for employees who can operate, maintain and improve more advanced systems.
The real workforce challenge is not simply how many employees a company can hire. It is whether the company has the right capabilities to support its next stage of growth.
This requires manufacturers to look beyond immediate vacancies and consider how their workforce requirements may change over the next 12 to 24 months.
It also calls for closer collaboration between HR, production, engineering and senior management.
Five Recruitment Strategies for Manufacturers Expanding in Vietnam
As recruitment becomes more competitive, companies should reconsider how they identify, attract and retain talent.
- Plan Recruitment Around Business Expansion
Workforce planning should begin before a new production line becomes operational.
HR teams should work with business and operations leaders to identify upcoming manpower requirements, critical positions and potential skills gaps.
This allows employers to prioritise harder-to-fill roles and begin recruitment earlier.
- Prioritise Skills Over Job Titles
A candidate’s previous job title does not always reflect their actual capabilities.
Manufacturers can widen their talent pool by assessing relevant technical knowledge, transferable skills and practical experience.
A structured, skills-based recruitment process can also help employers identify candidates from adjacent industries who may adapt successfully to the role.
- Strengthen Candidate Screening
Recruitment speed matters, but so does candidate suitability.
Employers should establish clear job requirements and assessment criteria before beginning recruitment.
For technical positions, practical assessments or structured competency interviews may help validate a candidate’s abilities.
A consistent screening process can reduce unnecessary interviews and improve hiring decisions.
- Build a Long-Term Talent Pipeline
Employers should avoid relying entirely on recruitment activities initiated only when vacancies arise.
Maintaining relationships with potential candidates, technical institutions and recruitment partners can help companies prepare for future workforce requirements.
For specialised positions, early talent mapping can provide insight into candidate availability, expected compensation and recruitment timelines.
- Improve Retention Alongside Recruitment
Recruitment and retention should be evaluated together.
Manufacturers can strengthen workforce stability by reviewing onboarding, supervisor support, employee development and workplace expectations.
Tracking why employees leave, particularly during the first three to six months, can help organisations identify whether problems arise from candidate suitability, job expectations, working conditions or management practices.
Reducing avoidable turnover may create more sustainable results than repeatedly increasing recruitment activity.
How a Vietnam Recruitment Agency Can Support Manufacturing Expansion
For foreign-invested manufacturers, recruitment challenges can become more complex when entering a new market or expanding operations across multiple locations.
Understanding local talent availability, salary expectations, recruitment practices and employment requirements is important when developing an effective hiring strategy.
Working with an experienced Vietnam recruitment agency can help employers better understand the local talent market and access candidates whose capabilities match their operational requirements.
Depending on business needs, recruitment support may include permanent hiring, executive search, technical recruitment, contract staffing or recruitment process outsourcing.
For businesses managing large or recurring recruitment requirements, a coordinated recruitment approach can also improve visibility over hiring progress and workforce needs.
However, recruitment partnerships should be evaluated on more than the number of candidates supplied.
The quality of shortlisted candidates, communication, understanding of technical requirements and ability to support longer-term workforce needs are equally important.
How Elitez Asia Vietnam Supports Manufacturers and Growing Businesses
At Elitez Asia Vietnam, we understand that successful business expansion depends on having the right workforce in place.
As part of Singapore-headquartered Elitez Group, established in 2010, our Vietnam team supports employers with recruitment and workforce solutions across industries including manufacturing, industrial operations, logistics and technology.
Our services include:
- Permanent Recruitment & Executive Search: Identifying suitable professionals, technical specialists and leadership talent.
- Staffing & HR Outsourcing: Supporting businesses with flexible manpower and outsourced workforce requirements.
- Recruitment Process Outsourcing (RPO): Managing selected or end-to-end recruitment activities to support changing hiring demands.
- Employer of Record (EOR): Supporting eligible employment arrangements, payroll administration and HR compliance for businesses expanding in Vietnam.
With teams in Ho Chi Minh City and Hanoi, Elitez Asia Vietnam combines local market knowledge with a wider regional network.
Our objective is to help employers approach recruitment with a clearer understanding of their business requirements, rather than treating every vacancy as an isolated hiring exercise.
Explore Elitez Asia Vietnam’s Recruitment and Workforce Solutions
Frequently Asked Questions About Manufacturing Recruitment in Vietnam
Why are manufacturers facing labour shortages in Vietnam?
Manufacturers may encounter recruitment difficulties because of competition for experienced workers, shortages of specialised technical capabilities, location-specific labour availability and differences between candidate expectations and job requirements. The extent of these challenges varies by industry, role and industrial location.
What types of manufacturing workers are difficult to recruit in Vietnam?
Recruitment challenges may be more pronounced for roles requiring specialised technical knowledge, engineering expertise, equipment maintenance skills, quality assurance experience or production leadership capabilities. Availability varies across regions and industries.
How can foreign manufacturers recruit employees in Vietnam?
Foreign manufacturers can recruit through internal HR teams, local recruitment agencies, executive search providers or recruitment process outsourcing partners. The appropriate approach depends on hiring volume, role complexity, employment arrangements and operational requirements.
What should companies look for when choosing a recruitment agency in Vietnam?
Employers should assess industry understanding, candidate screening methods, local market knowledge, communication quality and the recruitment provider’s ability to support their specific hiring needs. For manufacturers, familiarity with technical job requirements and production environments can be particularly valuable.
Vietnam’s Next Competitive Advantage Will Depend on Its Workforce
Vietnam’s strong FDI performance reflects continued international interest in the country’s manufacturing and business environment.
But attracting capital and building workforce capabilities are not the same thing.
As manufacturers expand, their ability to recruit skilled employees, develop technical capabilities and retain experienced talent will become increasingly important to operational performance.
For employers, the question is no longer simply “Where can we find more workers?”
It is “How can we build a workforce capable of supporting our next stage of growth?”
The companies that address this question early will be better prepared to translate investment opportunities into sustainable operations.
Planning to Expand Your Workforce in Vietnam?
Whether you are establishing operations, expanding manufacturing capacity or recruiting specialised professionals, Elitez Asia Vietnam can support your recruitment and workforce requirements.
Connect with Elitez Asia Vietnam
Research references: National Statistics Office of Vietnam data reported by Viet Nam News (4 November 2026); ManpowerGroup Employment Outlook Survey Q4 2026; OECD FDI Qualities Review of Viet Nam (2026).