Why Retention Will Define Vietnam’s 2026 HR Agenda

Why Retention Will Define Vietnam’s 2026 HR Agenda

This article is written in English for readers in Vietnam. Vietnamese and Japanese translations are available on our website. 

1. The Rising Cost of Turnover

Employee turnover is becoming one of the biggest HR cost drivers in Vietnam. According to AON’s 2025 SEA HR Trends Report, replacing a mid-level employee can cost 1.5–2 times their annual salary, factoring in recruitment fees, training time, and productivity loss.

In fast-growing sectors like manufacturing, IT, and logistics, where competition for skilled professionals is intense, early attrition (within the first six months) is now a recurring pain point. The Reeracoen Vietnam Salary Guide 2025 found that over 40% of new hires consider leaving during probation due to weak onboarding or lack of development opportunities.

This means retention isn’t a “soft” HR issue anymore — it’s a bottom-line business challenge.

2.  Why Employees Leave — and How to Stop It

Poor Onboarding

A weak onboarding experience sets the tone for early exits. HRSEA’s 2025 study found companies with structured 30-60-90 day onboarding plans retain 82% of new hires long term.

➡️ Related: [Cracking Retention in Vietnam 2026 – Onboarding Matters]

Career Plateauing

Top performers often leave when they see no clear growth path. Offering job rotations, mentorship, and visible promotion frameworks can reduce mid-career attrition.

Lack of Purpose

The Reeracoen × Rakuten Insight APAC Whitepaper revealed that 72% of Vietnamese professionals want to work for companies with strong social impact. Purpose-driven work reduces disengagement and improves loyalty.

Managerial Burnout

Retention starts with leadership. PwC’s 2025 data shows teams with empathetic managers are 1.8× more likely to stay even without pay increases.

3. Retention Metrics Every HR Should Track

Metric	Why It Matters	Target Benchmark (Vietnam 2026)
First-Year Attrition Rate	Reflects onboarding and engagement quality	≤15%
Employee Net Promoter Score (eNPS)	Measures internal advocacy	≥40
Manager Effectiveness Index	Tracks feedback, empathy, and leadership	≥70% satisfaction
Internal Mobility Ratio	Indicates promotion and growth pathways	≥20% yearly movement

Tracking these indicators quarterly helps HR teams predict resignations before they happen.

4. Strategic Levers for Retention in 2026

🧩 Build Career Maps: Link performance reviews with visible promotion timelines.

🤝 Invest in Manager Training: Focus on soft skills like empathy, communication, and feedback delivery.

🌱 Embed CSR & ESG in Culture: Employees stay where they feel part of a meaningful mission.

📚 Personalise Learning: Offer micro-learning budgets and cross-functional exposure.

💬 Recognise Early: Public recognition in the first 90 days drives belonging.

❓ FAQ

Q1. What is the average turnover rate in Vietnam for 2025?

Between 12–15%, higher in tech and logistics sectors.

Q2. How much does poor onboarding cost employers?

Roughly 20–25% of annual salary per exit, excluding opportunity loss.

Q3. What retention strategies work best in Vietnam?

Continuous learning, transparent career mapping, and CSR-driven engagement programmes.

Q4. Is remote or hybrid work helping retention?

Yes — hybrid setups reduce burnout and improve retention by up to 30%, especially among Gen Z professionals.

✅ Final Author Credit

• By Valerie Ong (Regional Marketing Manager)

• For Vietnamese translations, add: Translated by Nguyen Le (Anna) (Senior Marketing Executive)

• Published by Reeracoen Vietnam — a leading recruitment agency in APAC.

📚 References

• AON Southeast Asia HR Trends Report 2025

• Reeracoen Vietnam Salary Guide 2025

• Reeracoen × Rakuten Insight APAC Workforce Whitepaper 2025

• PwC Future Workforce 2025 Report

• HRSEA Onboarding Impact Study 2025

🔗 Related Articles

• [Cracking Retention in Vietnam 2026 – Onboarding Matters]

• [Beyond Pay: What Vietnamese Professionals Want in 2026]

• [Vietnam 2025 in Review: Lessons for 2026 Recruiters]

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