Viet Nam Technical and Vocational Education and Training Sector Assessment

By Asian Development Bank

Viet Nam has achieved rapid economic growth in Southeast Asia. In 2009, it became a lower-middle-income country. However, labor productivity has remained low even with ample foreign direct investment.Technical and vocational education and training (TVET) must now respond to increase skilled workers in the labor market. This report examines Viet Nam's challenges and opportunities in TVET. It recommends reforms in governance structure, organization, and management of TVET; effective teaching of the right skills; greater enterprise-based training and financial support; and equal access to higher quality training particularly for the disadvantaged population such as ethnic minority students.

• Language: English
• Publisher: Asian Development Bank
• Release date: Jan 1, 2020
• ISBN: 9789292619947

Book preview

VIET NAM

TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING SECTOR ASSESSMENT

JANUARY 2020

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

© 2020 Asian Development Bank

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Some rights reserved. Published in 2020.

ISBN 978-92-9261-993-0 (print), 978-92-9261-994-7 (electronic)

Publication Stock No. TCS200002-2

DOI: http://dx.doi.org/10.22617/TCS200002-2

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Notes:

In this publication, $ refers to United States dollars.

ADB recognizes Laos as the Lao People’s Democratic Republic, China as the People’s Republic of China, Korea as the Republic of Korea, and Vietnam as Viet Nam.

About the cover: Students learning at technical and vocational education and training institutions in Viet Nam (Photos by Sakiko Tanaka).

Contents

Tables, Figures, and Boxes

Acknowledgments

This report provides an assessment of the trends, strengths, and issues of technical and vocational education and training (TVET) in Viet Nam. It updates the Asian Development Bank (ADB) 2014 TVET assessment report and highlights the policies, strategies, and achievements of the country toward fundamental human resources development and TVET reform, which began in 2011 and has reached the final phase toward completion by 2020.

Like its predecessor, this assessment focuses on skills development programs under the Ministry of Labour–Invalids and Social Affairs (MOLISA), specifically the Directorate of Vocational Education and Training (DVET), which was merged with the TVET subsystem governed in parallel by the Ministry of Education and Training. The DVET became the single central state management agency for the entire TVET sector since 1 January 2017.

Thomas Russell, a TVET lead consultant under Regional–Capacity Development Technical Assistance 8813: Information and Communication Technology for Development Initiative Facility in Asia and the Pacific, prepared this report. He conducted the assessment with the assistance of Thuy Nguyen Thi Xuan, a national TVET consultant under by the same technical assistance. Senior Social Sector Specialist Sakiko Tanaka of the Southeast Asia Department (SERD) of ADB, former Principal Social Sector Specialist Wolfgang Kubitzki of SERD, and Associate Social Sector Officer Vinh Quang Ngo of the ADB Viet Nam Resident Mission provided significant inputs and guidance to complete the report. Ayako Inagaki, Director of Human and Social Sector Development Division (SEHS) and Eric Sidgwick, Country Director, Viet Nam Resident Mission, SERD provided overall guidance and direction.

Phan Chinh Thuc, former Director General of the Directorate of Vocational Education and Training (DVET) under MOLISA, gave valuable input on all TVET-relevant topics and assisted in arranging meetings and organizing workshops involving a broad range of stakeholders, including official representatives of the DVET and the National Institute for Vocational Training.

We are grateful for the important advice of many experts and representatives of resident offices of international organizations, such as GIZ, the World Bank, and the International Labour Organization. Special appreciation to Britta van Erckelens, GIZ Deputy Programme Director, Ha Noi, Viet Nam and Lisa-Marie Kreibich, ADB Education Specialist, a former GIZ Head of Component, Ho Chi Minh City, Viet Nam, who reviewed the draft report and provided helpful advice to the team. The managers and teachers of TVET colleges and schools also participated in the assessment by contributing to interviews. This report was edited and proofread by Tuesday Soriano. Michael Cortes did the layout, cover design, and typesetting. Two consultants were supported under Regional-Policy and Advisory Technical Assistance 8977: Knowledge Development Support for Southeast Asia.

Abbreviations

Currency Equivalents

(as of 4 December 2019)

NOTES

(i)The fiscal year (FY) of Viet Nam and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2016 ends on 31 December 2016.

(ii)The school year (SY) in Viet Nam officially starts in September and ends on 31 May. SY before a calendar year denotes the year in which the school year ends, e.g., SY2016 ends on 31 May 2016.

Executive Summary

1. Macroeconomic Context

In 2009, Viet Nam became a lower-middle-income country. It has since doubled its gross national income per capita and continues to be one of the fastest growing economies in Southeast Asia. Despite an ongoing shift from agriculture to more value-added industry sectors and services and a buoyant foreign direct investment (FDI) capital inflow, the country’s economic growth has rested mainly on its large pool of cheap but low-skilled labor and is still constrained by a huge informal business sector. Labor productivity has remained lower than other countries in the region. Relative annual productivity growth rates in some industry sectors even declined. Already, a shortage of skills is affecting Viet Nam’s ability to absorb new FDI and limiting prospects for more productive employment. To become globally competitive and industrialized, Viet Nam must develop highly skilled workers who can increase industrial productivity, produce demand-oriented product quality, and provide internationally accepted service standards. The technical and vocational education and training (TVET) system needs to be improved while guaranteeing equitable access for the young poor and disadvantaged citizens in remote rural regions. Despite ambitious reform efforts during past decades, state-managed TVET and labor market support systems have remained weak, fragmented, and inadequately funded, most of them still performing poorly and lacking in ability to adapt to changing market demands.

2. Technical and Vocational Education and Training System and Coverage

Up to the end of 2016, a dual TVET governance structure offered two distinct tracks in parallel. Institutions supervised by the Ministry of Labour–Invalids and Social Affairs (MOLISA) offered formal vocational education and training at three levels for secondary school graduates: (i) elementary TVET (3–12 months) at vocational training centers (VTCs), (ii) intermediate TVET (3–4 years or 1–2 years depending on entrance qualifications of lower secondary and upper secondary graduates) at vocational secondary schools, and (iii) higher TVET at vocational colleges (3