Developing human resources for the logistics industry, using the Logistics Industry Reference Council (LIRC) as a model to promote active engagement among businesses, Government agencies and vocational colleges provides the opportunity for Vietnam to build a dynamic and skillful logistics workforce, while at the same time helping to reduce logistics costs.
Participants at the Forum. Photo by Bùi Tư.
On 28th July, the Vietnam Chamber of Commerce and Industry (VCCI), in conjunction with the Directorate of Vocational Education and Training – DVET (MOLISA), organised a Forum on Sharing Experiences on Promoting Logistics Industry Engagement with Vocational Education and Training: Human Resource Development Solutions Post COVID-19.
In his opening speech, Mr. Hoàng Quang Phòng – Vice Chair of the VCCI commented that with more than 3,000 logistics businesses operating across the country, Vietnam has significant potential to develop the logistics industry in the future when it joins EVTA and other free trade agreements. However, there are many challenges faced by logistics businesses operating in the sector, including outdated seaport and storage systems, small size of investments, and a shortage of skilled workers. In addition, the low level of readiness to absorb incoming flows of FDI and low productivity levels requires a very comprehensive plan for the development of human resources in the logistics sector.
Mr. Trương Anh Dũng – DVET Director – shared that logistics is a very important industry for Vietnam and is considered one of priority sectors to develop by the Government. One of bottlenecks in the development of this sector is human resources. The need to develop a skilled logistics workforce had been discussed for a long time, however the pace of development has not matched growth in this sector.
A recent survey reveals that 53% of businesses are in short of qualified logistics personnel, and less than 10% of businesses are satisfied with the skills of existing human resources. Forecasts indicate that the logistics sector will need a workforce of 300,000 employees in the coming five years. However, there are only 40 vocational education and training institutions across the country, with the capacity of supplying 10,000 workers per year, leaving a big gap between demand and supply.
So, how can the human resource capacity of the logistics sector be improved? Based on the obvious need for engaging the Government agencies, vocational schools, enterprises and business associations to develop a high quality workforce for logistics industry, the Logistics Industry Reference Council (LIRC) was established as part of Australia’s official development assistance to Vietnam. After two years of piloting, the LIRC model has been well received by relevant stakeholders.
Ms. Bùi Thị Ninh – Head of Bureau of Employers Activities, VCCI-HCMC, shared that the LIRC model consists of a series of consecutive activities that aim to build an approach to vocational skills development for logistics sector which is in need of a greater number of formal training programs.
The LIRC model is based on Australia’s industry-led approach to occupational skills development, and adapted to Vietnam’s vocational and training context.
The success of the LIRC model benefits both Vietnam and Australia. A dynamic and skillful workforce will help Vietnam to reduce logistics costs to 20% GDP (in developed countries, logistics costs account for 9 – 14% GDP). It will also help to facilitate the business operations of Australian companies in Vietnam, and strengthen Vietnam’s position in the global supply chain.
Source: Việt Nam Financial Times
