Vietnam is among the top five markets in the world in terms of cost efficiency, according to the 2020 Total Workforce Index (TWI) report conducted by ManpowerGroup’s Talent Solutions.

Vietnam jumps one place on Total Workforce Index 2020, according to the latest report. Photo: Pham Hung

The TWI report identified Vietnam, the Philippines, Croatia, Morocco, and Thailand as the leading markets for cost efficiency thanks to labor cost and legal environment as the driving forces. 

Vietnam ranked 56th out of 76 countries and territories globally in terms of regulation, skills availability, cost efficiency and productivity, compared to 57th in 2019, and 43rd in 2018.

According to the report, Vietnamese workers’ average monthly wage was US$321 in 2020, up 32.6% compared to 2019, while the regional average in Asia Pacific was US$1,835 and $1,909 worldwide.

The report made a more thorough assessment of talent readiness, comparing the percentage of employees who are ready to work remotely in different markets, among them the cybersecurity workforce. IT skills, especially those that support remote work such as cybersecurity, continue to be in demand. In addition, positions in healthcare, operations, logistics and other key positions are on the rise.

Source: ManpowerGroup’s Talent Solutions. Screenshot: Nhat Minh

“In the world of rapidly changing work, especially under the impact of a global pandemic, new skills have emerged and well-sought, leading to a major change in the labor market. Today's business owners need a long-term plan to develop their talent pool. We have shown that businesses can operate in a different and efficient way,” Mr. Simon Matthews, General Director of Manpower Thailand, Vietnam and the Middle East said. 

“Not only is it important to identify what are the sustainability factors in the new normal, but also it is the ability to connect skills with technology to maintain effective new working ways,” he said.

Source: ManpowerGroup’s Talent Solutions. Chart: Nhat Minh

New Zealand, Hong Kong, Singapore, Japan and South Korea are the leading markets in the Asia Pacific region. Singapore and Hong Kong are ranked highly for labor productivity. The APAC region's top five markets surpass both India and China, two countries that have attracted a lot of attention from investors, thanks to their large scale of workforce. In order to achieve the top position, the above markets have successfully combined highly skilled workforce, good English skills, workforce readiness and flexible legal environment.