Cost-cutting: Vietnam and The Philippines become alternatives for employers - Recruitery reports
SINGAPORE, May 11, 2023 /PRNewswire/ -- With the economic continued downturn, companies of all sizes felt the squeeze and reduced their workforce. However, Vietnam and the Philippines' talents remain resilient and attract thousands of jobs from APAC.
Recruitery reported a 300% growth in their EOR and payroll services for companies hiring from these countries in Q1 2023 compared to the first quarter of the last year. However, jobs from domestic employers are down 51%.
"While Vietnam attracts jobs in software, product, marketing, and accounting roles, businesses are sourcing educational expertise, customer service and sales from the Philippines." said Toan Nguyen, founder and CEO of Recruitery.
The key drivers of this trend are:
- Cost savings: Companies worldwide are downsizing to cut costs. Hiring from developing countries like Vietnam, India, and the Philippines allows them to tap into a skilled yet affordable talent pool.
- Proximity and culture: Companies from Singapore, Japan, South Korea, and Hong Kong etc. have regional proximity and cultural ties with Vietnam and the Philippines. This makes employment and collaboration easier.
- Growing talent pool: With a population of over 97 million people, Vietnam boasts a large and youthful demographic, with more than 50% of its citizens under the age of 30. The Vietnamese government has set an ambitious target of creating a pool of 1.3 million IT workers by 2025, underscoring the country's commitment to developing a skilled workforce. Similarly, the Philippines offers a pool of over 100 million people, with more than 60% of its population under the age of 30. With a strong emphasis on English-language education, the country presents a particularly attractive option for businesses seeking an English-speaking labor force in a range of fields.
With the help of global payroll and Employer of Record (EOR) solutions such as Deel, Recruitery, and Remote, companies can now form teams in any country without the need for a local entity. This approach has unlocked the full benefits of geo-arbitrage, a strategy that has become increasingly popular in the aftermath of the Great Financial Crisis. As businesses seek to cut costs, many are now layoffs and pursuing hiring opportunities in developing countries.
Tech Companies Shifting Production From China due to geopolitical tensions
Southeast Asia, especially Vietnam, has emerged as a popular alternative to China for companies looking to relocate their operations. With its skilled and cost-effective workforce, a stable government, and a growing focus on high-tech industries. The low labor costs, abundant talent pool, and pro-business policies have drawn suppliers of Apple, Google and Amazon making progress in expanding to neighboring Asian countries.
Samsung has just launched a $220-million R&D centre in Hanoi, while German technology giant Bosch is planning to have 6,000 engineers for R&D and high-tech agriculture in Vietnam by 2025.
The trend is expected to continue as companies diversify their supply chains away from China due to rising costs and geopolitical tensions.
About Recruitery
Recruitery is all-in-one hiring solution that simplifies the process of searching for candidates, hire and pay local talent compliantly across APAC.
With the Recruitery headhunting solution, you can easily work with recruiters and headhunters who have access to a vast network of potential candidates, making it easier to identify and recruit top talent faster.
The Recruitery EOR solution provides a comprehensive suite of payroll management features, including automated tax calculation, payment processing, and reporting. With its expertise, you can rest assured that your hiring and payroll needs are in good hands.
SOURCE Recruitery
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