According to the latest statistics from the Ministry of Labor, Invalids, and Social Affairs, the logistics sector is experiencing remarkable growth, with an average annual increase of 14 to 16 percent and a yearly revenue of US$40 to 42 billion. The sector presently ranks 11th among the top 50 emerging logistics markets worldwide. However, the training of logistics personnel has not be up to expected standard.
Projections from the Vietnam Institute of Logistics Research and Development indicated that by 2030, the country’s logistics industry will require an additional 2.2 million personnel, including around 200,000 highly-skilled professionals proficient in both qualifications and foreign languages.
The government has set ambitious goals, to be achieved by 2025, which aim for the logistics sector to contribute eight to 10 percent to the GDP, and to achieve a growth rate of 15 to 20 percent. To attain these objectives, the training and development of human resources is important.
Vu Thi Hai Van, chairwoman of the Council at Maritime College No.1, identified the following reasons for the deficiency in both quantity and quality of logistics training.
- Lack of investment by stakeholders in investing in human resources development.
- There is limited communications and cooperation between training institutes and the industry.
Therefore, because of the deficiency in training, the industry is facing the following consequences.
- The number of training institutes at various levels remains limited.
- Training programs lack depth and specialization, with insufficient practical components that fail to keep pace with technological advancements and real-world industry demands.
- Reference materials and textbooks are inadequate, failing to meet students’ learning needs.
- The pool of qualified trainers is disproportionately small in comparison to the growing number of students.
- Limited information on educational and career paths for students to make informed decision.
A forum in Hanoi on October 24, jointly hosted by the General Department of Vocational Education and the Australian Embassy in Vietnam, aimed to address skills development and to encourage more business engagement in training needs.
Dao Trong Do, director of the continuing training, General Department of Vocational Education, Ministry of Labor, Invalids, and Social Affairs, said: “In developed nations, the ideal human resource structure typically resembles a pyramid, with one person pursuing university education supported by two to three individuals in college, and three to five individuals at the intermediate level.
“In contrast, Vietnam’s human resources distribution deviates from the global developmental model. Presently, the labor force in Vietnam is predominantly concentrated at the university level or higher, accounting for approximately 10.9 percent, with around 3.7 percent at the college level, 4.3 percent at the intermediate level, and 4.7 percent at the primary level.
“Consequently, certain fields and industries have an oversupply of human resources, while highly qualified individuals, particularly those needed for direct participation in production, are conspicuously scarce.”
There is currently only a limited number of universities providing logistics courses, possibly because in Vietnam, logistics, is viewed as an economic activity rather than as an industry. Nonetheless, logistics has become one of the fastest growing sectors in the country, with an approximate 1,000 companies.
Vu Thi Hai Van (third from left), chairwoman, Council at Maritime College No. 1. Photo credit: Vu Thi Hai Van.
Additionally, Van from the Council at Maritime College No.1 said that her school, since 2020, is using the Logistics Industry Reference Council model as part of the Australia-Vietnam Human Resource Development Cooperation Program.
Through this collaboration, the school has received substantial assistance in training instructors and implementing two innovative teaching modules. Notably, a majority of students who participated in this experimental training program secured job offers just before graduation.
Van said: “The application of the Competency-Based Training and Assessment method as part of the project has led to a remarkable surge in student enrollment. Many students have enrolled in these modules and have successfully found well-paying jobs, before and after their graduation.
For students, this approach enhances their career knowledge, provides them with a clear career path right from the beginning of their educational journey, aligns their learning with contemporary programs, and involves active business engagement and support at every stage.
“Consequently, the students’ capabilities closely match real-world business demands, significantly bolstering their prospects of securing high-paying jobs in the field of logistics with ample opportunities for career advancement.”
Photo credit: iStock/ PrathanChorruangsak