Vietnam's industries struggle as workers chase higher pay abroad

Vietnam's industrial heartland is struggling with a critical labor deficit, as a significant number of its citizens seek better-paying jobs overseas. The nation sees between 130,000 and 150,000 workers depart annually for foreign employment, contributing to a total of approximately 900,000 Vietnamese currently working abroad.

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We have raised wages by 25-30%, but we are still struggling to secure new workers or retain existing ones.

Key sectors such as seafood and apparel are particularly affected. Despite efforts to increase wages by 25-30%, businesses in major production hubs like the Mekong Delta and Ho Chi Minh City report difficulties in attracting new hires or retaining existing staff. The textile and garment industry faces intense competition not only from overseas opportunities but also from the electronics and machinery manufacturing sectors within Vietnam, which offer comparatively higher salaries.

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Many apparel factories are struggling to secure enough workers to meet order deadlines or secure new contracts.

The primary driver for this exodus is the substantial wage disparity. In less affluent regions, local job opportunities are scarce, compelling many to relocate domestically or internationally. While jobs in Vietnam's seafood and apparel industries typically offer $250-$350 per month, working in countries like South Korea or Japan can yield three to five times that amount. However, the actual take-home pay abroad can be significantly reduced by taxes, social insurance, and living expenses. Workers who incur debt for recruitment and training are also vulnerable to exploitation, facing potential abuse, wage theft, or unfavorable working conditions without the means to leave.

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In countries like Japan or South Korea, they can expect incomes three to five times higher than in Vietnam.