This shift poses a significant challenge for the labor market in 2025, prompting calls for enhanced job-matching services and workforce training programs.

At the start of 2025, Tran Van Nen, a longtime government employee in Hanoi, began searching for a new job after his agency announced plans to merge and streamline operations.

Despite years of service, Nen is among those facing redundancy as the agency implements workforce reductions.

"I’m over 45 now, and finding a new job outside the public sector isn’t easy. The challenge is huge, but I have no choice but to adapt. I must secure a job at all costs to support my family," Nen said.

Unlike Nen, Tran Van Du has decided not to seek new employment but to establish his own technology company in the same field he has been working in.

However, Du's biggest challenge is securing capital. After 20 years as a public-sector specialist, he has little savings to start a business. As a result, he is considering using his house as collateral for a bank loan.

"Stepping out of the public sector at this stage of life means leaving my comfort zone, but it is also an opportunity to adapt and grow in a more competitive business environment," Du shared.

While workforce streamlining aims to improve the efficiency and effectiveness of government agencies, the shift of an estimated 100,000 workers from the public to the private sector will create a significant labor market challenge.

Support for displaced workers

A representative from the Ministry of Labor, Invalids, and Social Affairs acknowledged that surplus workers from the government sector will put pressure on job-matching services.

To address this, labor authorities need to closely monitor employment trends, enhance labor market information, and strengthen job-matching programs by increasing the frequency of job fairs and online job exchange platforms between different localities.

A labor expert emphasized that the government must introduce specific financial aid policies and job transition support programs, including vocational training and career-switching initiatives. These measures are crucial to protecting the rights and livelihoods of affected workers.

"Currently, these policies are being developed and are expected to be announced soon. Ensuring that displaced workers can successfully transition to new jobs is essential for managing labor market shifts after government restructuring," the expert said.

Beyond helping workers find new jobs, another crucial priority is improving the business and investment environment. Creating favorable conditions for entrepreneurship, self-employment, and business expansion will help absorb displaced workers into the private sector.

Vu Diep