Labour Training System in Vietnam: Catching up with Economic Growth

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In- depth investment

According to the Vocational Training Head department’s statistics, 2007 is the first year that students at college, intermediate and elementary levels have got enrolled for training. The implementation of Laws on vocational training since June 1^st 2007 with three training levels and inter-study create an exciting and appealing enrolling season for the youth wishing to attend a training labour course. The total number of enrolled students is 30,185 students, among which colleges account for 20,490 students.

The profession with highest number of students attending training courses include industrial electricity (40 schools), welding (32 schools), automobile technology (26 schools), metal cutting and whittling (22 schools), etc. According to Mr Nguyen Hong Minh, Head of profession standard department, up to now, a system of vocational colleges has been successfully set up based on the upgrading of all the vocational schools across nationwide economic zones so as to implement labour training courses at college level. The system of vocational colleges enjoys a rapid development upon the improved infrastructure of schools with vocational courses, especially of schools under management of the Ministry and localities. At the same time, a system of private vocational schools has been set up, which has helped meet the requirement of enrolment at college level. Professions with highest enrolment include wielding, industrial electricity, automobile technology and metal cutting and whittling, etc. These professions are of high demand on labour market.

In Ho Chi Minh City , vocational training development is characterized by the socialization of investment and development. The whole city is home to just 320 vocational training bases, locating across 24 districts, capable of providing more than 350,000 students with short-term/elementary vocational training courses. Currently, the city is running five vocational colleges, two of which are private ones. In 2007, the city establish two brand new vocational schools at elementary level and four non-public vocational centres and conduct registration procedures for 49 vocational organizations of enterprises, individuals and social organizations involved in vocational training activities at elementary level.  To meet market demand, some new professions have recently emerged such as professions of fashion model, bodyguard, housemaids, computer technology and graphic design, etc.

According to Ms Nguyen Thi Thu Ha, Deputy Chairwoman of People’s Committee of Ho Chi Minh City, vocational training is both an urgent, basic and long-term task so as to raise the quality of human resource. The city has approved to hand over land for many projects of expanding and establishing new vocational training base. None of the project is subject to obstacles caused by policies of land hand over. In terms of financial policies, beside the budget for direct investment in public vocational training centres, the city also implements the programme of granting public and non-public vocational training centres loans at a favourable interest rate, according to the method: the State pays the interest rate, vocational training centres are responsible for paying the principal (the average maturity period ranges between seven and ten years).

One billion USD for vocational training for 50 per cent labourers

At the conference of implementing vocational training plan, jobs and labour export period 2007-2010, Prime Minister Nguyen Tan Dung says that one of the greatest challenges of the country when entering WTO is the too low quality of human resource which hinders the competitiveness of Vietnam in many areas. It is, therefore, necessary that the Ministry of Labour, War Invalids and Social Affairs cooperate with ministries and branches to establish and submit the project of vocational training with the goal of supplying 50 per cent of labourers already trained by 2010. The government is willing to spend US$1 billion for vocational training and job creation activities for labourers.

In the US$1 billion project (the project of consulting, providing vocational training and solving employment issue for the youth period 2007 – 2010), the method receiving interest include pushing the system of vocational training, public and non-public; establishing the ties between enterprises and vocational centres; supporting students attending training courses in two ways: either enterprises pay the fee for students who will pay back the amount when they graduate and find jobs or the State grant loans to the students, develop more enterprises and processing zones to create jobs for labourers, etc.

Mr Nguyen Tien Dung, Head of the Vietnam General Department of Vocation Training says that in the global trend, the race of developing human resource in nations and regions across the world is taking place toughly. For , to carry out the career of industrialization and modernization of the country successfully, and make a breakthrough in economic growth, the issue of developing human resources to meet the demand of the economy is of great importance. Vocational training is, therefore, required to be in line with the labour market. In 2008, the General Department of Vocational Training will further improve the state management mechanism of the training system, make investments in and upgrade vocational training centres and give aids to the establishment of education and training department at six vocational training colleges. 

In 2008, vocational training schools will support the training of some 400,000 labourers from rural areas, ethnic minorities or invalid youths, etc, helping to eradicate hunger and alleviate poverty, ensuring social equality and encourage socialization. If enterprises do not stand out, considering the labour training career part of their responsibility, having cooperation with vocational training schools, the training quality is sure to be improved. Enterprises, therefore, have chances to recruit skilled workers for them.

 Kim Bao