Upskilling the logistics workforce and promoting industry linkages in the digital era

On the 50th anniversary of the Vietnam-Australia diplomatic relations and Vietnam Labour Skills Day (October 4th), the Directorate of Vocational Education and Training and the Australian Embassy in Vietnam are hosting the Vocational Education and Training (VET) International Forum.  The Forum, “Upskilling the Logistics Workforce and Promoting Industry Linkages in the Digital Era”, is part of the Aus4Skills program.

The Forum aims to share models and experiences from Australia and Vietnam in upskilling the logistics workforce, and equipping students with required competencies and readiness in the digital era. It has identified challenges and propose policies and solutions to VET development in Vietnam, with a focus on promoting industry engagement and investment in VET, digital transformation and inclusion in VET. The Forum included stakeholders in VET and the logistics sector from Vietnam, Australia, and ASEAN.

Human resource development is one of three strategic breakthroughs in Vietnam’s socio-economic development strategy. With an annual growth rate of 14%-16%, logistics is one of the fastest growing industries in Vietnam – ports, warehouses, freight are seeing increased demand. The sector is continuously requiring skills development for its workforce including to meet the demands of digitalisation.

Mr Le Tan Dung, Deputy Minister of Labour, Invalids and Social Affairs delivers opening remarks at the forum.

Mr Le Tan Dung, Deputy Minister of Labour, Invalids and Social Affairs, emphasised: “Vietnam aims for the logistics sector to reach 8-10% in contribution to GDP and its growth rate to reach 15-20% per annum towards 2025. To meet this target, the logistics sector must grow in all aspects, and human resource development is a top priority. As such, I greatly appreciate the cooperation and support from the Australian government in human resource development and policy advisory towards an industry-VET model, with inclusivity in mind to equip students with the most relevant skills in Logistics.”

Australian Ambassador to Vietnam H.E. Mr Andrew Goledzinowski delivers opening remarks at the forum.

Australian Ambassador to Vietnam H.E. Mr Andrew Goledzinowski shared his vision for logistics workforce development: “Australianand Vietnamese governments will partner to develop the most effective VET system for the future.  Australia has a very well-developed vocational education and training system, which is important for countries like Vietnam with long supply chains. So, we’re focusing on the logistics industry, and we’re helping Vietnam bring together businesses, government and colleges so students have the skills they need upon graduation.”

The Government of Vietnam is prioritising VET to support the country’s socio-economic development. However, despite positive changes in VET, the sector has some way to go to provide sufficient qualified labour necessary for Vietnam’s economic development into a high-income country.

Dr Truong Anh Dung, Director General of DVET said: “As estimated, Vietnam will have a shortage of 200,000 logistics workers by 2030. Therefore, capacity building and industry engagement in VET is essential. Australia is supporting the VET sector in Vietnam to achieve many important results, especially the development of an industry-led VET model. From my time in Australia, I could observe that the VET system in Australia is remarkably open, flexible and practical. These are among many valuable lessons we can learn from Australian experience. “

The forum focused on promoting industry engagement and investment in VET, digital transformation and inclusion in VET.

According to Mr Vu Ninh, Chairman of the Logistics Industry Reference Council (LIRC): “Through Aus4Skills, Australia has supported the VET sector in Vietnam to establish the LIRC, the first industry-led model of its kind in Vietnam that helps provide industry skills forecasts, occupational and skills standards, and contributes to new qualifications for VET teachers and students. “

Logistics is a global industry with rapidly changing workforce requirements. “The linkages and up-to-date market information provided through the LIRC have supported VET colleges in Vietnam to design and update their study programs. This is attractive for students who enrol in logistics courses and upgrades the quality of the workforce.” Ms Tran Thi Lan Anh, Secretary General of Vietnam Chamber of Commerce and Industry stated.

Rector of College of Maritime I, Mr Luu Viet Hung, shared that the industry-led skills development model has successfully equipped their students with competencies that meet market needs: “Since joining the Aus4Skills project in 2020, we have received much support in teacher training and piloting two new training modules. Most of our students who participated in this project are recruited by enterprises before their graduation. 100% of our students have jobs after graduating with high salary. The application of the competency-based training and assessment approach introduced by the project has significantly increased the number of students enrolled in our college.”

Through the Aus4Skills program, Australia is sharing its VET approaches and lessons to assist Vietnam build an industry-led training model designed for Vietnam’s context. This model is transferable to other sectors to improve human resource capacity across Vietnam.