Foreign capital flows into technology…

The expansion of foreign investment in the technology sector, coupled with the optimization of business processes, is expected to increase the demand for technology workers.

Bosch Global Software Technologies announced the opening of a new branch in Hanoi in February, after seeing its HCMC branch working with more than 2,600 engineers. Bosch Vietnam said it will continue to recruit hundreds or thousands of new engineers to more than double its workforce to 6,000 by 2025.

Samsung Vietnam, which already operates six factories in Bac Ninh, Thai Nguyen and HCMC, is building a research and development (R&D) center in Hanoi with a total investment of $220 million to increase its R&D capacity in the medium term and long-term projects. The center is expected to focus on new technology trends including artificial intelligence (AI), big data and the Internet of Things (IoT), so it will need more engineers on its payroll.

Other tech investors in Vietnam are also planning to expand their reach, so the demand for tech workers is expected to be high. For example, Intel Group said it would develop its second phase at Saigon Hi-Tech Park (SHTP), while Goertek, a leading AirPods assembler, raised capital to set up a factory in the province. of Nghe An which will boost the production of electronic items, network devices and multimedia products quintupled to $500 million.

In recent years, Vietnam has seen many Taiwanese technology companies, such as Foxconn, Winstron, Compal and Pegatron, invest in many major projects. Most of the projects aim to meet the growing demand from many groups, including Dell, Apple and Cisco, for electronics. A number of companies active in Quang Trung Software City in HCMC, such as BTM Global and SPS, have started recruiting since the beginning of 2022.

Investment by foreign-funded enterprises in the development of data centers is also expected to increase the demand for technology workers and software engineers. Singapore-based Worldwide DC Solution has invested $70 million in a data center called OneHub Data Center at SHTP. Once operational in 2025, the center will serve customers and businesses active in finance and the digital economy. Another Singaporean company, Infracrowd Capital, has signed an investment agreement with a company in the city of Danang to develop a data center costing around $100 million. The center will be operational in 2024.

…on-demand digitization

According to many career service centers in HCMC and Hanoi, despite the problems created by the Covid pandemic, the demand for IT staff is still on the rise and companies are struggling to recruit talent. During the social distancing period, computer software and services remained operational on the Internet, and there was an increase in hiring after the social distancing period.

The post-Covid digitalization boom is expected to increase the demand for IT workers, several experts have predicted. Additionally, IT personnel are necessary for many business activities focused on digital transformation. For example, fruit sellers or bakery owners tend to use technology and social networks to increase their income, while schools need it to design administrative solutions to improve learning efficiency and virtual education. Thus, job openings are expected to be plentiful for IT workers.

A Navigos Search survey showed that companies continue to recruit workers, but are focusing on highly skilled workers and the latest technologies to improve the competitiveness of products and services.

As for the global market, due to the impact of the Covid pandemic and the fourth industrial revolution, up to more than 80% of companies are expected to implement remote working and digitize business processes in the next five years. years. At the same time, the automation rate is expected to climb to 50%, leading to a strong need for retraining and recruiting workers, according to a recent report by the World Economic Forum.

Local Labor Market Hiring Challenges

TMA Solutions announced that it was trying to recruit 500 engineers for two projects in HCMC and Binh Dinh province. The recruiting is part of its plan to hire 1,000 workers this year. However, Nguyen Huu Le, president of TMA Solutions, said he expects hiring to slow down.

TMA Solutions needs experienced workers, but manpower in the IT sector is limited, while many large foreign-funded groups that expand their reach and open new representative offices or R&D centers are willing to pay high salaries to attract talent, Le said.

Additionally, the demand for digitization from businesses is increasing due to the Covid pandemic, contributing to an increase in labor demand.

According to many companies, the demand for IT workers has increased since the government boosted digitalization. In addition, the creation of several IT companies has led to a severe shortage of manpower. Over the past few years, researchers have pointed to the continued growth of the sector.

Navigos Group said hiring in the IT and information and communications technology (ICT) sectors remained high. In the fourth quarter of last year, when many companies stepped up recruitment of skilled workers in AI, big data, crypto and blockchain technologies, the limited labor supply led to fierce competition among recruiters.

Currently, the job market faces a shortage of computer programmers, computer engineers, technicians and designers, Navigos said. In the past, IT companies always recruited more men than women. However, currently, there is an equal demand for male and female recruits, which shows that gender-related recruitment criteria are no longer important. The main requirements for job seekers are now qualifications and adaptability.

“Over the next 10 to 20 years, the demand for IT workers will continue to soar,” Le predicted.

Source: SGT

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