On 14 April, the Australian Embassy in Vietnam and Vietnam’s Ministry of Labour, Invalids and Social Affairs (MOLISA) launched a new project to promote logistics industry engagement in vocational education, valued up to AUD 13.8 million (VND 246 billion in equivalent). At the event, VLA committed to being a strategic partner in implementation of the project.
The ceremony was held online and offline in Hanoi on 14 April 2022. Photo by: VLR
The Australian Government is supporting Vietnam with phase 2 of a technical assistance project to promote linkages between the logistics industry and vocational education in Vietnam, valued up to AUD 13.8 million (about VND 246 billion) until 2025.
Australia is a world-leader in demand-driven, competency-based vocational education and training. Speaking at the launch ceremony, Ms. Bridget Collier, Australia’s Acting Deputy Ambassador to Vietnam, noted that labour demand in Australia’s logistics industry has increased rapidly in recent years, as has also been the case in Vietnam. The COVID-19 epidemic also brought about a change from outsourcing labour to instead using complex labour and automation to lower product costs.
Vietnam has experienced remarkable economic growth over the past two decades as it has transitioned to a modern, digital economy. Continued growth will come from increasing productivity, especially through improved skills across the Vietnamese workforce. Therefore, building skills and workforce capacity in the logistics sector is a priority for Vietnam’s human resource development and economic recovery, particularly following the COVID-19 pandemic. It is also a mutual economic priority for Australia and Vietnam.
Ms. Bridget Collier, Australia’s Acting Deputy Ambassador to Vietnam. Photo by VLR
MOLISA Deputy Minister Le Tan Dung commented that the logistics industry in Vietnam has an average growth rate of 12-14% per year, contributing 4-5% of Vietnam’s GDP, and is on the rise. He said he expects the logistics industry to contribute between 8%-10% of total GDP by 2025, as Vietnam works towards its ambitious goal of becoming a high-middle-income country by 2045.
The new project promotes logistics industry engagement with vocational education in Vietnam. Australia’s assistance, provided through the Aus4Skills programme, will focus on continued cooperation with MOLISA’s Directorate for Vocational Education and Training, the Vietnam Chamber of Commerce and Industry, colleges and industry partners. The project will support professional development for Vietnamese vocational teachers, managers and leaders, and frameworks to ensure quality training and curriculum that matches the needs of industry, all underpinned by strong industry engagement. The project will also continue to encourage access to training and employment to women and people with disabilities in the logistics sector, which has traditionally been viewed as an industry for men.
The project will improve Vietnam’s vocational education and training policy as well, by applying an industry-led skills development model that equips VET graduates with the competencies for working in logistics after graduation.
Delegates kick off the project. Photo by VLR
The Logistics Industry Reference Council (LIRC) was established in phase 1 of the project, and allowed the Vietnam Logistics Business Association (VLA) to connect industry members interested in training. VLA in conjunction with Aus4Skills organised periodic workshops on human resources for the logistics industry.
The project started in 2021 and will expand the industry engagement model over coming years, while helping Vietnam upskill its workforce in logistics sector.
VLA committed to continue to be a strategic partner to support the second phase of the project. According to Mr. Nguyen Duy Minh, VLA General Secretary, the Association will always support industry-led vocational education and training initiatives, which help improve the quality of human resources for industry. With nearly 600 member businesses across the country, VLA can connect logistics service businesses engaged in vocational training with the project. In addition, as a member of the National Association of ASEAN Federation of Forwarders Associations (AFFA), and the International Federation of Freight Forwarders Associations (FIATA), VLA can also connect with other ASEAN Logistics member in AFFA and FIATA to share and update trends in logistics vocational training. In addition, VLA is a national association representing industry in policy critique at national and subnational levels.
Mr. Nguyen Duy Minh proposed adding the “Draft Resolution of the Government on promoting synchronous implementation of measures to improve the competitiveness and the development of logistics services in Vietnam” to MOLISA’s proposal to the Prime Minister regarding the establishment of a specialised department on the Logistics Industry Reference Council in the Ministry.
On the sidelines of the event, experts warned that the logistics industry is facing a range of challenges, including a shortage of human resources, particularly for positions such as long-distance truck drivers and forklift drivers that are not attractive to potential candidates especially as employees have to work away from home, and the resulting cost increases from hiring the wrong people.
Over the past four years, Aus4Skills strengthened the engagement of Vietnam’s logistics industry in VET to help ensure students graduate with the skills required by logistics employers.
Since 2017, more than 5,300 Vietnamese vocational students have benefitted from improved teaching quality in colleges supported by Aus4Skills. Enrolments in logistics courses in these colleges have increased eight-fold. Graduates from these colleges are in higher demand due to their job readiness.
Objectives of the phase 2 of the project include:
Source: VLA
