Japan remains top destination for Vietnamese workers as deployment reaches 60 per cent of annual target

Vietnam has surged ahead in its 2026 labor export goals, sending nearly 60% of its annual target of 112,000 workers abroad in the first half of the year, with Japan firmly holding its spot as the top destination. Despite an 11% dip in deployments compared to the same period last year—a decline attributed to global conflicts and a weakening Japanese yen—Japan absorbed 28,488 Vietnamese laborers, underscoring its continuing reliance on foreign talent. This robust outflow of Vietnamese workers directly addresses Japan intensifying demographic crisis and severe labor shortages, particularly in sectors like manufacturing, nursing, and construction. Tokyo is actively reshaping its foreign labor policies, expanding the Specified Skilled Worker (SSW) program to 19 sectors and introducing the new Employment for Skill Development (ESD) program, set to replace the controversial Technical Intern Training Program (TITP) in 2027. However, the depreciating yen and rising competition from markets like South Korea are making Japan a less attractive financial prospect for some, even as Vietnam seeks to protect its workers and increase remittances, which hit approximately USD 7 billion in 2025. Looking ahead, Vietnam Department of Overseas Labour Management (DOLAB) is pushing to meet its ambitious annual target of 112,000 workers, potentially reaching 150,000, by focusing on institutional reforms and expanding into higher-income markets beyond traditional destinations. Japan, meanwhile, will continue refining its ESD and SSW programs, aiming to attract 805,000 skilled workers by March 2029, though it faces the challenge of making these roles more appealing amidst economic shifts and calls for better worker protections. The delicate balance between Japan labor needs and Vietnam export goals will define this critical migration corridor in the coming years.