Nghe An boasts workforce potential for industrial growth

With its youthful population, strong education network, and competitive wage levels, Nghe An is positioning itself as an attractive destination for domestic and international investors.

A dynamic population and workforce age advantage

Nghe An boasts a population of 3.4 million, with nearly 65 per cent in the working-age bracket. This means over 2.2 million people in the province are available to support industrial and economic expansion – a demographic advantage that promises a steady labour supply and reinforces Nghe An’s appeal as a sustainable, long-term investment destination.

The province sees an influx of 33,000-35,000 new working-age individuals annually, which swells the available talent pool with approximately 60,000-70,000 new jobseekers each year. These include recent graduates, discharged military and police personnel, workers returning from overseas contracts, and those impacted by shifting economic policies. This steady labour inflow ensures a broad spectrum of talent available to meet evolving industry demands.

Educational strengths and training resources

Nghe An is home to numerous universities and vocational institutions, forming a comprehensive educational network that continuously supplies skilled and qualified workers. Remarkably, 69 per cent of the local workforce has received formal training, with 28.6 per cent holding certifications, underscoring the province’s commitment to skill development and adaptability to industrial demands. The proximity of these institutions to local businesses also enables partnerships that align curricula with employer needs, further enhancing the skill-readiness of the workforce.

Wage competitiveness and proximity to key industrial zones

One of Nghe An’s most compelling competitive advantages is its relatively low wage level. With an average monthly wage of VND6.63 million ($260.51), local salaries are notably below the national average of VND8.49 million ($333.6) and significantly less than wages in major industrial cities like Ho Chi Minh City, where the average stands at VND11.4 million ($447.94). Compared to neighbouring Thanh Hoa (VND7.85 million, $308.45) and Ha Tinh (VND7.63 million, $299.8), Nghe An’s labour cost remains attractive to investors looking to optimise operational expenses without compromising workforce quality.

This affordability, coupled with a large population residing within 50 km of key industrial zones, such as WHA Industrial Zone, facilitates convenient access to a young, reliable workforce, while also reducing commuting costs and enhancing employee retention.

Overview of WHA Industrial Zone - Nghe AN

Labour supply and recruitment channels

With a labour force of 1.6 million people across various sectors, Nghe An offers a well-rounded mix of skills and experience. To streamline recruitment, Nghe An has established strong partnerships with local educational institutions, hosts regular job fairs, and leverages digital platforms and social media outreach to connect job seekers with prospective employers. In addition, a provincial task force aligns workforce training programmes with recruitment needs, especially focusing on remote and mountainous areas where talent remains untapped.

Nghe An also taps into the expertise of its overseas contract workers returning home, who bring international exposure and are readily available to integrate into local industries. This approach to recruitment not only ensures that Nghe An meets the labour needs of expanding industries but also attracts skilled and experienced workers who can drive productivity.

Meeting demand in key sectors

As industries rebound post-2023, labour demand in Nghe An is projected to soar. The second half of 2024 alone is expected to require nearly 30,000 additional workers, with high demand anticipated for the electronics, green energy, automotive, and textile sectors. By 2025, over 40,000 workers will be needed, with long-term projections indicating a workforce demand of nearly 98,700 in the next five years, fuelled by foreign-invested projects, particularly in electronics and renewable energy.

Addressing challenges and advancing worker retention

While Nghe An’s labour market is strong, challenges remain. Major employers have faced turnover challenges, with reports of significant resignation rates as workers seek higher wages or relocate for personal reasons. Addressing these issues, local authorities are trying to improve working conditions, with planned investments in transportation, social infrastructure, and worker housing to attract and retain talent. Wage adjustments and benefits enhancements are also underway, with targeted policies to increase average wages by 10-15 per cent to improve retention.

Conclusion: Nghe An’s strategic advantage in workforce

With its growing labour supply, cost-effective wages, educational support, and robust recruitment channels, Nghe An province offers a comprehensive and sustainable workforce solution for investors seeking long-term, competitive operations in Vietnam. As industries grow and the demand for skilled labour rises, Nghe An’s strategic advantages will continue to strengthen its position as a key player in Vietnam’s economic future.

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