Vietnam Struggles to Recruit Workers for Japan as Labor Shortages Grow

by | Nov 3, 2026 | albertpham, Asia, Economy_finances | 0 comments

Vietnam faces growing difficulties recruiting workers for Japan as a weaker yen, rising domestic wages and competition from Taiwan reshape overseas employment trends.

Focus Keyword: Vietnam workers in Japan

Additional Keywords: Vietnamese migrant workers, Japan labor shortage, Vietnam overseas employment, Japan foreign workers, Vietnamese recruitment agencies, Japan yen weakness, Taiwan labor market


Vietnam's Overseas Employment Industry Faces a Recruitment Crisis

Vietnam, traditionally one of Japan's largest sources of foreign labor, is experiencing growing difficulties recruiting workers for Japanese companies as economic conditions, currency movements and changing employment preferences reshape overseas labor migration.

Vietnamese recruitment agencies that previously attracted seven or eight applicants for every available Japanese job position are now struggling to find even two candidates. Some companies have started traveling to rural communities and mountainous provinces to recruit young workers directly, while also relaxing certain selection requirements to fill vacancies.

The situation highlights a significant shift in the relationship between Vietnam's expanding labor market and Japan's continuing demand for foreign workers. Although Japan remains an attractive destination for many Vietnamese employees, the financial benefits of working abroad have become less compelling.

According to a November 2 report by VnExpress, recruitment companies are increasingly struggling to meet their employment quotas despite maintaining partnerships with Japanese businesses across manufacturing, food processing, agriculture, automotive production and mechanical engineering.

The challenges could become more significant as Japan prepares to introduce a new foreign-worker development system in 2027.

Japan Remains a Major Destination for Vietnamese Workers

Japan has long been among the most important overseas employment destinations for Vietnamese citizens, offering opportunities in industries experiencing persistent labor shortages.

Vietnamese workers have become particularly important to Japan's manufacturing, food production, construction, agriculture and technical sectors.

As of June 2026, approximately 176,865 Vietnamese citizens were working in Japan under the technical intern training program, making Vietnam the largest nationality group in that category. Another 176,915 Vietnamese workers were employed under Japan's specified skilled worker framework.

However, recent recruitment figures suggest that the flow of Vietnamese workers heading to Japan is facing increasing pressure.

Vietnam sends nearly 28,500 workers to Japan during the first half of 2026, compared with approximately 35,240 during the same period a year earlier.

By the end of August, Taiwan had overtaken Japan as the leading destination for Vietnamese overseas workers, receiving approximately 39,890 Vietnamese employees compared with 35,837 for Japan.

These figures demonstrate how quickly overseas employment preferences can change when workers compare salaries, recruitment conditions, departure schedules and the amount of money they can ultimately send home.

A Weaker Japanese Yen Reduces the Financial Appeal of Working Abroad

One of the most important factors affecting recruitment is the depreciation of the Japanese yen against the Vietnamese dong.

For Vietnamese workers considering overseas employment, the amount of money they can save and transfer to their families is often more important than their headline monthly salary.

Recruitment industry representatives cited in the VnExpress report said that the yen previously traded at approximately VND200–220, while its value has declined to around VND160–170.

Consequently, the purchasing power of money earned in Japan has weakened when converted into Vietnamese currency.

Although workers' overall incomes have increased by approximately 1.2 to 1.5 times compared with a decade ago, their savings have not grown at the same pace.

Previously, workers earning approximately VND30–40 million monthly could send home around VND20–25 million. Today, the amount they can save and remit remains broadly similar despite the passage of a decade.

This creates a difficult economic calculation for Vietnamese households.

Working overseas traditionally represented an opportunity to accumulate savings, purchase property, support relatives and improve living standards. However, when currency depreciation reduces the value of overseas earnings, the financial advantages become less obvious.

For younger Vietnamese workers, domestic employment opportunities are increasingly competitive.

Rising Wages in Vietnam Encourage Workers to Stay Home

Another important development is the improvement of employment opportunities within Vietnam.

The country's expanding manufacturing, construction, logistics and service industries are creating alternatives to overseas employment.

Recruitment representatives cited by VnExpress noted that some unskilled construction workers in Vietnam can earn approximately VND20 million per month.

For potential migrant workers, remaining in Vietnam offers several advantages, including avoiding international recruitment expenses, lengthy preparation periods, language requirements and the uncertainty of adapting to another country's working environment.

Domestic employment also allows workers to remain closer to their families.

Vietnam's economic development is therefore gradually changing the country's position in the international labor market. Rather than relying exclusively on overseas employment as a pathway toward higher incomes, more workers can consider opportunities within their own economy.

This trend could become increasingly important as Vietnam continues attracting foreign investment and expanding industrial production.

Long Recruitment Periods and Language Barriers Create Additional Problems

Beyond financial considerations, the recruitment process itself is becoming a significant obstacle.

According to the report, migrant workers typically wait approximately six months between beginning their preparation and departing for overseas employment.

For Japan, the preparation period can reach around seven months, compared with approximately four months for other Asian destinations.

During this period, candidates may need to complete language training, medical examinations, professional preparation and administrative procedures.

The lengthy process creates financial pressure, particularly because more than half of migrant workers borrow money to finance their overseas employment journey.

Without regular income during preparation, workers may accumulate additional debt before even beginning their jobs abroad.

Japanese language requirements also present challenges for candidates seeking positions in manufacturing and other entry-level industries.

Although language proficiency can improve employment opportunities and workplace integration, the time and financial investment required to learn Japanese can discourage potential applicants.

For workers who want to start earning money quickly, destinations with shorter recruitment procedures can become more attractive.

Taiwan Emerges as an Increasingly Competitive Alternative

Taiwan has strengthened its position as a destination for Vietnamese overseas workers, particularly because of its relatively shorter recruitment and departure process.

Some candidates can leave for Taiwan within approximately one or two months, compared with the longer preparation period associated with Japan.

The requirements can also be less demanding for certain employment categories, including workers with limited foreign-language experience.

Taiwan's electronics manufacturing industry is particularly important in attracting foreign employees.

The growing semiconductor and electronics supply chains across Asia continue generating demand for factory workers, creating additional employment opportunities for Vietnamese citizens.

However, Taiwan is not completely immune to recruitment difficulties.

One Vietnamese recruitment company cited in the report said its supply of candidates for Taiwan had declined by approximately 30%, while it could meet only 60% to 70% of its annual electronics recruitment demand.

This suggests that the issue extends beyond Japan. Changing worker expectations and stronger domestic employment opportunities are affecting the wider overseas labor recruitment industry.

Meanwhile, some Vietnamese workers are also considering European destinations, broadening competition among international labor markets.

Manufacturing and Technical Industries Face Greater Recruitment Pressure

Not all employment categories experience the same level of recruitment difficulty.

Food processing and warehousing positions generally attract more interest from younger Vietnamese candidates because they are perceived as relatively accessible employment opportunities.

By comparison, mechanical engineering, welding and machine-operation positions can be more difficult to fill.

These jobs often require specialized technical skills, physical strength and the ability to operate industrial equipment under demanding conditions.

Recruitment agencies previously received three or four applications for every available position in certain technical occupations. Today, the number has declined to approximately one or two candidates.

Employers also face limitations when adjusting recruitment standards because Japanese companies establish mandatory requirements for specific positions.

Consequently, recruitment agencies are increasingly relying on local networks, employee referral incentives and community outreach programs to find qualified candidates.

Some companies have even relaxed certain physical selection criteria where Japanese employers allow flexibility.

Nevertheless, these efforts have not been sufficient to restore the recruitment levels experienced a decade ago.

Japan's 2027 Labor Reform Could Reshape Recruitment

Japan is preparing to introduce its Employment for Skill Development system in April 2027, gradually replacing the existing Technical Intern Training Program.

The reform is intended to improve the development of foreign workers' skills and establish a more structured employment framework.

For Vietnamese recruitment companies, however, the transition could introduce additional challenges.

According to industry representatives cited by VnExpress, improvements in working conditions and higher workforce standards could also mean more demanding recruitment criteria.

Companies sending workers to Japan may therefore need to invest more heavily in language education, professional training and candidate preparation.

At the same time, competition among recruitment agencies could intensify as businesses attempt to secure sufficient workers to fulfill existing contracts with Japanese employers.

Japan's broader demographic challenges make the issue particularly important. An ageing population and shrinking domestic workforce have increased the country's dependence on foreign employees across several industries.

Maintaining access to workers from Vietnam and other Asian countries will remain an important component of Japan's employment strategy.

What This Means for Vietnam and Japan's Economic Relationship

The difficulties recruiting Vietnamese workers illustrate a broader transformation in labor migration across Asia.

For many years, Japan benefited from its reputation as a destination offering relatively stable employment, higher wages than those available in Vietnam and opportunities to acquire professional experience.

However, international labor markets are becoming increasingly competitive.

Vietnam's improving domestic economy, the weaker yen and changing expectations among younger workers are gradually reducing Japan's traditional advantages.

For Vietnamese businesses, the recruitment difficulties could affect their ability to fulfill overseas employment contracts and maintain relationships with Japanese partners.

For Japan, the situation highlights the importance of improving compensation, working conditions, recruitment procedures and opportunities for foreign employees.

Companies that can offer more competitive employment packages and better long-term career prospects may have an advantage in attracting international workers.

The transition toward a more skills-oriented foreign employment system could also create opportunities for Vietnamese workers with stronger technical qualifications and Japanese-language abilities.

Ultimately, the future of Vietnam-Japan labor migration will depend not only on Japan's demand for foreign employees but also on whether working in Japan continues to provide meaningful financial and professional advantages compared with alternatives at home and elsewhere in Asia.

As Vietnam's economy develops and competition for international workers intensifies, Japan may need to work harder to maintain its position as one of the country's preferred overseas employment destinations.


Frequently Asked Questions (FAQ)

1. Why are Vietnamese workers becoming less interested in working in Japan?

The weaker Japanese yen, improving employment opportunities in Vietnam, lengthy recruitment procedures and Japanese-language requirements are reducing the financial and practical appeal of working in Japan.

2. How many Vietnamese workers are employed in Japan?

As of June 2026, approximately 176,865 Vietnamese workers were employed under Japan's technical intern training program, with another 176,915 under the specified skilled worker framework.

3. Why is Taiwan attracting more Vietnamese workers?

Taiwan offers relatively shorter recruitment procedures, with some workers able to depart within one or two months. Certain employment categories also have less demanding entry requirements.

4. When will Japan replace its Technical Intern Training Program?

Japan plans to introduce its Employment for Skill Development system in April 2027, gradually replacing the existing technical intern framework.

5. Will Japan continue recruiting Vietnamese workers?

Yes. Japan continues to face demographic and workforce challenges, making foreign employees important to its manufacturing, agriculture, food processing and other industries. However, recruitment companies may face stronger competition for Vietnamese candidates.

Conclusion

Vietnam's growing recruitment difficulties represent an important shift in Asian labor migration. Japan remains a major employment destination, but the weaker yen, rising domestic opportunities and competition from Taiwan are changing how Vietnamese workers evaluate overseas employment.

As Japan prepares for its 2027 labor-system reforms, improving wages, working conditions and professional opportunities could become increasingly important to attracting Vietnamese employees.

The changing relationship between the two countries offers a wider indication of how economic development in Southeast Asia is reshaping international workforce mobility.


Sources and Further Reading

Editorial note: This article is an independent news analysis based on the reporting and figures cited above. Currency values, recruitment statistics and program timelines reflect the reporting available at publication.

Written By Albert Pham

Written by Albert Pham, News Curator and Blogger

Related Posts

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *