ADB pours US$78 million to boost Vietnam's labor force in remote regions
Though having enjoyed sustained economic growth in recent years, Vietnam is currently facing a shortage of skilled labor.
Accordingly, the bank has approved a US$78 million financing package to help Vietnam’s labor force meet market demands by improving the quality of national technical and vocational education and training (TVET) institutions.
The project is expected to benefit about 75,000 students by improved teaching and learning environment. At least 2,500 adults and out-of-school youths are expected to take part in short-term skills training courses to help them find better-paying jobs or start their own businesses.
“With more than 60% of the population under age 35, Vietnam has the potential to help deliver high and sustainable economic growth,” said ADB Senior Social Sector Specialist Sakiko Tanaka. “To help realize this potential, this project aims to help ensure Viet Nam’s labor force has the skills and knowledge necessary to increase their competitiveness and productivity for the global market.”
Vietnam has enjoyed sustained economic growth in recent years, becoming one of the fastest growing economies in Southeast Asia. But the country is currently facing a shortage of skilled labor, and its labor productivity is lower than its neighbors in Southeast Asia - 7.5% of Singapore’s and 17% of Malaysia’s in 2015, for instance. A survey by Vietnam’s Chamber of Commerce and Industry said TVET graduates lack industry-specific skills and other soft skills.
