A significant number of IT professionals are facing job losses or are being compelled to resign, with reemployment opportunities being scarce amid a waning demand triggered by economic challenges. Quang Vu, an IT manager in Ho Chi Minh City, found himself job hunting after his project was abruptly halted in July when his employer, a prominent tech company, ran into financial constraints. Vu’s situation mirrors that of many colleagues in the sector. “A wave of restructuring is impacting friends of mine in various tech industries such as e-commerce and delivery services,” Vu noted, mentioning that these layoffs are seldom made public.
Dinh Ngo, an IT employee, revealed that his German company has ceased recruitment for certain roles and is not renewing contracts for those positions. “Any unprofitable projects are being put on hold,” he stated. A VietnamWorks study indicated a general cutback in IT recruitment budgets across companies this year. The survey included both tech and non-tech firms in need of IT personnel. According to the report, only 61.3% of tech company employees feel their jobs are secure. In non-tech firms, there has been a 21.6% departure rate among IT staff this year.
The report further highlights that in Ho Chi Minh City, approximately 22.2% of businesses have scaled back on hiring IT professionals, while in Hanoi, 14.7% have reduced salaries and bonuses. The IT sector has experienced one of the most significant recruitment downturns over the past three years, with a 23% decline, as per a Talentnet and Mercer consultancy report. Experts link this trend to the broader global economic adversities.
Cai Dang Son, a director at Navigos Group, pointed out that companies are presently more focused on navigating through these tough times. The steepest hiring slowdown is observed in the e-commerce and ride-hailing sectors. Funding for Vietnamese tech startups has also plummeted by 82% to US$66 million in the first half of this year.
Tung Lam, an unemployed former product manager for six months, observed, “The job market has significantly contracted in terms of both volume and variety since the pre-Covid era.” The VietnamWorks analysis also revealed that over 25% of IT workers are struggling to secure employment, with recent graduates being particularly overlooked.