The Skills and Knowledge for Inclusive Economic Growth Project, supported by a $75mn loan from ADB, will provide advanced training equipment to 16 national TVET institutes.
Collaborating with the business community, these upgrades will enhance the quality of training programs for advanced skills in key growth areas like: electronics, mechanics, biotechnology, automation and automotives.
In addition, a $3mn grant financed by the Government of Japan will complement these activities by strengthening the quality of the so-called soft skills—such as the ability to communicate, teamwork, and problem-solve—and developing demand-driven short-term skills programs for women and youth in disadvantaged communities.
“With more than 60% of the population under age 35, Viet Nam has the potential to help deliver high and sustainable economic growth,” stated ADB Senior Social Sector Specialist Ms. 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.” She added.
Vietnam has enjoyed sustained economic growth in recent years, and has become one of the fastest growing economies in Southeast Asia. However, the country is currently facing a shortage of skilled labor, and its productivity is lower than its neighbours in Southeast Asia—7.5% of Singapore and 17% of Malaysia in 2015.
A survey by Vietnam’s Chamber of Commerce and Industry said TVET graduates lack industry-specific skills and other soft skills.
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.