Why Japanese Companies in Vietnam Have a Talent Advantage They Are Not Using

Market Context

Japan remains one of Vietnam's most significant foreign investment partners. Across manufacturing, technology, services, and trading, Japanese-affiliated companies form a substantial and growing portion of the foreign-invested business community in both Ho Chi Minh City and Hanoi. As Vietnam's professional workforce continues to mature and become more discerning in its employment choices, the strategic position of Japanese employers in this market deserves closer examination.

The Vietnam Worker Sentiment Study 2026, conducted by Reeracoen Vietnam across 254 professionals in the first half of 2026, contains a set of findings that should be of direct interest to every Japanese-affiliated company operating in Vietnam. The data identifies a structural talent advantage that most organisations in this category are not yet fully leveraging.

What the Data Shows

Three in four Vietnamese workers prefer a foreign-owned employer

75% of respondents say they prefer working for a foreign-owned company over a locally-owned Vietnamese firm. Only 5% actively prefer a Vietnamese employer, and 19% see no meaningful difference. This preference is driven by perceptions of clearer career structures, stronger governance, better working environments, and the opportunity for international exposure.

For Japanese companies, this represents an inherent positioning advantage at the very first stage of the employment consideration process. Before compensation is discussed, before job descriptions are compared, three in four Vietnamese professionals are already predisposed to consider a foreign employer more favourably than a local one.

Japan leads as the top overseas destination for Vietnamese professionals

65% of Vietnamese workers are open to or actively considering working overseas within the next three years. Among those expressing interest, Japan leads clearly as the preferred destination with 66 mentions, ahead of Europe (40 mentions), Singapore (31), and Australia (22). Japan leads in both Ho Chi Minh City and Hanoi.

This finding reflects the depth of the Vietnamese-Japanese professional relationship that has been built over decades of investment and labour mobility. It also reflects sustained demand for Japanese language skills among Vietnamese professionals, and the established networks and pathways that have developed around Vietnam-Japan career mobility.

The alignment is underutilised

The study's advisory team characterises the alignment between Vietnamese workers' overseas aspirations and Japan's talent needs as a compelling bilateral opportunity that the market is significantly underutilising. Many Japanese companies in Vietnam have not yet activated their international identity as a talent advantage in recruitment and employer branding communications.

Why This Matters Strategically

Japanese companies in Vietnam are competing for talent in the same market as every other foreign-invested enterprise. They face the same salary pressure (86% of employers cite rising salary expectations as their top hiring challenge in the parallel Vietnam Employer Hiring Study 2026), the same mid-level management shortage, and the same retention pressures.

What they have that many competitors do not is a pre-existing and genuine connection to something Vietnamese professionals aspire toward: an international career pathway with Japan as a credible destination. This is not a manufactured marketing claim. It is a real advantage backed by real data about real professional aspirations.

The strategic question is not whether the advantage exists. The data is clear that it does. The question is whether individual Japanese companies are communicating it effectively in their recruitment marketing, employer brand positioning, and candidate conversations.

Where Most Japanese Companies Leave Talent on the Table

In conversations with HR leaders and hiring managers at Japanese-affiliated companies across Vietnam, a consistent pattern emerges. The international pathway, career development opportunities, and cultural advantages of working for a Japanese organisation are typically communicated late in the hiring process, if at all. Job advertisements focus on role requirements. Interview processes focus on skills and cultural fit assessment. The employer brand story, if it exists, sits in corporate materials that candidates rarely see.

The data suggests this sequencing needs to change. If 75% of Vietnamese professionals are already predisposed to favour foreign employers, and Japan is their top overseas destination, the employer brand narrative that connects working at a Japanese company in Vietnam with an international career trajectory should be front and centre in recruitment communications, not buried in the offer conversation.

Practical Actions for Japanese Companies in Vietnam

Make the international pathway visible and explicit

If your organisation offers the opportunity for Vietnamese professionals to work on cross-border projects, take on secondments in Japan, or develop skills transferable in a global context, communicate this clearly and early. This is not a vague aspiration. It is a concrete differentiator that directly addresses the overseas career ambition expressed by 65% of your potential candidates.

Develop culturally intelligent retention strategies

The study found that cultural fit with management style ranks fourth among candidate selection criteria for employers in Vietnam (49%). For Vietnamese professionals at Japanese companies, the quality of the manager relationship and the degree to which the working culture is perceived as respectful, developmental, and merit-based is a significant determinant of whether high performers stay or leave.

Leverage JLPT as a bilateral bridge

Japanese language proficiency (JLPT) ranked as an upskilling priority for 12% of respondents, a niche but high-value segment. Vietnamese professionals who have invested in Japanese language skills are among the most motivated and internationally oriented in the market. Visible investment in supporting JLPT development, or hiring specifically for Japanese language capability, signals to this cohort that their bilingual ambition is valued.

Calibrate your strategy by city

In Ho Chi Minh City, 37% of workers with overseas aspirations name Japan as their top destination, followed by Singapore at 23%. In Hanoi, Japan also leads at 31%, with Europe second at 24%. The Japan advantage holds across both markets, but the supporting messaging around international career mobility may need to be calibrated differently given the different secondary preferences in each city.

Looking Ahead

Vietnam's professional workforce will continue to grow in sophistication and in its awareness of global career options. The organisations that position themselves credibly as international gateways, rather than simply as competitive local employers, will have a meaningfully stronger talent proposition in both attraction and retention.

For Japanese companies specifically, the raw material for this positioning already exists in the real career pathways and cultural connections between Vietnam and Japan. The work is in making it visible, credible, and consistent across the entire candidate and employee experience.

Frequently Asked Questions

Do Vietnamese workers prefer working for Japanese companies?

75% of Vietnamese workers prefer working for foreign-owned employers, and Japan leads as the top overseas destination for Vietnamese professionals considering an international career. Japanese companies benefit from a structural preference advantage among Vietnamese talent, driven by perceptions of clear career structures, governance quality, and international exposure opportunity.

Why is Japan the top destination for Vietnamese workers wanting to work overseas?

The Vietnam Worker Sentiment Study 2026 found that Japan received 66 mentions as a preferred overseas destination, ahead of Europe, Singapore, and Australia. This reflects established Vietnamese-Japanese professional networks built through decades of investment and labour mobility, sustained demand for Japanese language skills, and real career pathways that Vietnamese professionals recognise and aspire to.

How should Japanese companies in Vietnam improve their employer branding?

The most effective action is to make the international career pathway explicit and visible early in the recruitment process. If your organisation offers cross-border project exposure, secondment opportunities, or career development connected to Japan, communicate this clearly in job advertisements and employer brand materials. This directly addresses the overseas career aspiration expressed by 65% of Vietnamese professionals.

What do Vietnamese workers value about working for foreign companies?

Vietnamese professionals associate foreign-owned employers with clearer career pathways, stronger governance and management quality, better working environments, and international exposure opportunities. These advantages are perceived to be more consistently delivered by foreign employers than by locally-owned companies. For Japanese companies, cultural reputation for professionalism and long-term commitment adds a further layer of perceived reliability.

Is Japanese language ability a competitive advantage for Vietnamese workers?

Yes, particularly in roles at Japanese-affiliated companies. The study found that 12% of Vietnamese workers identify Japanese language development (JLPT) as a priority upskilling area. Vietnamese professionals with Japanese language proficiency are among the most internationally oriented in the market, and tend to be specifically motivated by the Vietnam-Japan career pathway.

Related Articles

You may also find these useful:

• Vietnam's Workforce in 2026 Is Not Waiting: Six Findings Every Employer Needs to Know

• 67% of Vietnamese Workers Would Take a Pay Cut for Better Conditions: What That Means for Your Hiring Strategy

• Why Retention Is Now a Revenue Issue, Not Just an HR Metric

About the Author

Valerie Ong

Regional Marketing Manager, Reeracoen Group

Valerie leads content and market insights for Reeracoen across Asia. She works closely with Reeracoen's specialist recruitment consultants to translate hiring data, salary benchmarks and labour market trends into practical guidance for Vietnam's employers and professionals. Her work draws on Reeracoen's proprietary research including the annual Salary Guide, Hiring Pulse, and Hiring Manager Survey.

Language note: This article is published in English. Reeracoen Vietnam also publishes selected content in Vietnamese and Japanese for our local and bilingual professional community.

References

Reeracoen Vietnam. (2026). Vietnam Worker Sentiment Study 2026. Reeracoen Vietnam Co., Ltd. Survey conducted 1H 2026.

Reeracoen Vietnam. (2026). Vietnam Employer Hiring Study 2026: Talent Intelligence for a Competitive Market. Reeracoen Vietnam Co., Ltd. Survey conducted March 2026.

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