Mr. Hai said that by 2025, the number of Vietnamese people working and living in India will not exceed 1,000 people. That's a small number. And I went to find the answer: "Why?
Recent Indian labor
Scale and structure of India's labor force. India's current population is over 1.42 billion people (largest in the world, more than China). The labor force is about 560–600 million people, the second largest in the world after China. The unemployment rate and employment fluctuate between 4–7%, but youth unemployment (15–29 years old) is much higher, at times 15–20%. Informal employment accounts for 80–90% of the total employment. Female labor is a prominent issue, only about 25–30%, the lowest in the group of major economies. The reasons are socio-cultural barriers, lack of suitable and safe jobs for women. But Indian women bear the burden of family work. The big challenge for India is to create enough jobs for 12–15 million people to enter the labor market each year. The large gap between skilled labor and unskilled labor. Low labor productivity, precarious employment, lack of social security. But India is in the "golden population period", a very large and dynamic labor market, but the quality of employment is not commensurate with the scale of labor.
In the process of restructuring the supply chain and strategic competition between developing economies, labor becomes a key factor determining national resilience. Comparing Indian and Vietnamese labor shows not only the difference in scale, but also the two human resource development models with their own advantages and limits. India is currently the most populous country in the world, with an estimated labor force of about 600 million people. India's "golden population" advantage lasts for decades, creating a foundation for long-term growth. However, that huge scale also poses major challenges in job creation, skills training and social governance in a multilingual, multi-religious, multi-class space.
Indian labor stands out at the "peak of knowledge". The country is one of the world's largest suppliers of information technology, software engineers, medicine and finance. Indian intellectual labor is deeply present in global corporations and research institutes. However, the general level of Indian labor is strongly differentiated. A large part of the labor still works in the informal sector, with low vocational skills, uneven access to education and training between states. Conversely, Vietnam does not have many "top" global human resources, but possesses a "relatively uniform skill level", rapid vocational learning ability and good adaptation to imported technology. This is an important foundation for industrial production and FDI attraction.
Nominally, unskilled labor in many Indian states is cheaper than in Vietnam. However, the actual costs that businesses bear – including training, management and social risks – are not necessarily low. Vietnam, although wages are rising rapidly, is compensated by stable performance and a safe investment environment.
India mainly exports high-quality labor to the US, Europe and the Middle East. Vietnam focuses on average technical labor in Japan, South Korea, and Taiwan. These two labor streams do not compete directly but complement each other in the global labor market structure.
Why are not many Vietnamese people going to India to work and live?
In the flow of labor migration and business abroad of Vietnamese people, India is almost a void. While Vietnamese people are present in large numbers in East Asia, Europe, North America and some Middle Eastern countries, in India - the world's most populous country, with long-standing friendly relations with Vietnam - the Vietnamese community is very small. This reality reflects fundamental differences in economic motivation, social structure and living conditions.
First of all, India does not create a clear economic attraction for Vietnamese people. The main motivation for going abroad to do business is to find higher incomes and better accumulation opportunities. While markets such as the US, Japan, South Korea or Europe bring clear income gaps, the average living standard and income in India is not superior to Vietnam, even lower in many regions. For unskilled labor and small businesses, India is not a "promised land". In the fields of trade, services, and small-scale production - where Vietnamese people often seek opportunities when going abroad, latecomers find it very difficult to stand firm if they do not have large capital or specific advantages. Cultural and social barriers are important factors. India is a multi-religious, multilingual society, where life is deeply influenced by local beliefs and customs. For Vietnamese people who are familiar with a relatively homogeneous cultural environment, differences in cuisine, public hygiene, rhythm of life and social space create a significant adaptive shock, especially when living for a long time. Language does not bring clear advantages, although English is very popular in India, but pronunciation, communication context and the parallel existence of many local languages make social integration and sustainable business difficult for Vietnamese people, without long-term preparation. Lack of a Vietnamese community in India as a support. In many countries, the migration flow of Vietnamese people develops thanks to the community effect - the predecessor supports the successor. In India, the Vietnamese community is still very small, mainly diplomats, international students, monks and nuns, and short-term entrepreneurs, not enough to form a livelihood network. In social perception, India is perceived more by Vietnamese people as a cultural - spiritual - academic space, rather than a livelihood destination. This is a respected land, but not yet a popular choice for business and settlement. Thus, the fact that Vietnamese people rarely come to India to live and work does not stem from political distance, but from the lack of compatibility in economic motivation and social conditions. In the current context, India is still a "land of learning, a sacred land" in the perception of Vietnamese people, rather than a "land of livelihood".
But are more and more Indians coming to Vietnam to work?
Contrary to the trend of Vietnamese people, in the past decade, the number of Indians coming to Vietnam to work, invest and live is clearly increasing. This phenomenon reflects the increasing attractiveness of Vietnam in the eyes of Indian workers and entrepreneurs. First of all, Vietnam has emerged as a stable and easily accessible economic destination. Compared to the fierce competitive environment in India, Vietnam brings a "easier" business space: moderate population size, expanding market, increasingly open investment procedures and a safe social environment. Vietnam's labor demand structure coincides with India's strengths. Vietnam is lacking high-quality human resources in fields such as information technology, software, engineering, pharmaceuticals, corporate governance - industries in which India has abundant and experienced human resources. This is why Indian experts can easily find suitable positions in Vietnam. Living costs and the quality of life in India. Compared to megacities such as Delhi, Mumbai or Bangalore, Vietnamese cities have lower costs, less stressful living environments, while still ensuring urban amenities and social safety. With the same income level, Indians can achieve a higher quality of life when working in Vietnam. The Vietnam-India Comprehensive Strategic Partnership also creates a favorable political and legal foundation, helping Indian businesses and citizens to be assured of long-term attachment. In addition, Vietnamese society has fewer religious conflicts, and people are friendly with foreigners, helping the integration process to take place relatively smoothly. Many Indians also consider Vietnam as a springboard to access the ASEAN market, in New Delhi's "Eastward" strategy. From Vietnam, they can flexibly expand their operations to Southeast Asian countries.
The two opposing migration flows between Vietnam and India show that: Labor migration not only depends on population size or political relations, but is determined by the compatibility between human needs and the development structure of each country. Vietnamese people seek places with high income disparities; Indians seek places with stable environments and expanding opportunities. That is the deep logic of the shift in a changing Asia. Comparing Indian and Vietnamese labor, we see that the wave of Indian labor into Vietnam is increasing and it is natural that fewer Vietnamese people work and live in India.
Hanoi, early spring 2026, LTL
