Promoting vocational education in logistics

October 25, 2023 | 15:05

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Vietnam has numerous opportunities to drive the development of the logistics industry, yet it still faces a shortage of professionally trained personnel.

Logistics is one of the fastest-growing industries in Vietnam, with an average growth rate of 14-16 per cent on-year. The need for ports, warehouses, and freight forwarding is increasing, along with the need for human resource development.

Promoting vocational education in logistics

At the VET International Forum on October 24, Deputy Minister of Labour, Invalids and Social Affairs Le Tan Dung said that logistics is a vital service industry of the economy. With a scale of $40-42 billion per year, it is currently one of the fastest-growing and most stable industries in Vietnam.

“Vietnam has set a target to increase the contribution of the logistics sector to 8-10 per cent of GDP by 2025. The growth rate of logistics services is expected to be 15-20 per cent, and the cost is anticipated to decrease by around 16-20 per cent. To achieve this goal, Vietnam’s logistics sector needs to develop in all spheres, of which human resource development is the most important aspect,” Dung said.

According to Andrew Goledzinowski, Australian Ambassador to Vietnam, Australia has a well-developed vocational education system, and developing skills in the logistics industry is essential for countries with large supply systems like Vietnam.

“The Australian and Vietnamese governments will continue to work together to ensure that Vietnam has an effective and sustainable vocational education system, allowing the workforce to be fully equipped with the knowledge and skills for the future. We have helped Vietnam connect businesses, governments, and vocational education institutions together to allow students to develop the necessary skills,” he asserted.

The Vietnamese government currently prioritises promoting the field of vocational education by 2030 to contribute to socioeconomic development. Although there have been many changes, the vocational education sector still has a long road ahead before it can provide a high-quality workforce.

Director general of the Directorate of Vocational Education and Training Truong Anh Dung said, "It is forecast that by 2030, the logistics sector will need 200,000 professional workers. Therefore, building labour capacity and connecting vocational education businesses is urgent."

"Australia is supporting the vocational education sector in Vietnam to achieve important results, especially through the building of a modern, enterprise-led vocational education and training model that has broad applications in the workplace. There is much to learn from Australia’s experience," the director general added.

According to Vu Ninh, chairman of the Logistics Industry Reference Council (LIRC), Australia supported Vietnam with the establishment of the LIRC.

"This is an unprecedented model in Vietnam, making forecasts for vocational skills, providing standards, and contributing to the development of new training courses for the lecturers and students," he said.

Tran Thi Lan Anh, general secretary of the Vietnam Chamber of Commerce and Industry said, "Logistics is a global industry that places rapidly changing demands on its workforce. Connecting and capturing market information in a timely fashion through the LIRC helps vocational education institutions design updated training programmes. This attracts more students to participate in the courses and improves the quality of the nation's human resources."

The VET International Forum was organised within the framework of the Aus4Skills human resource development cooperation programme between Australia and Vietnam, marking the 50^th anniversary of diplomatic relations between the two countries.

Australia is supporting the Vietnamese government to promote vocational education for logistics, one of Vietnam’s fastest-growing industries. The main goal of the initiative is to ensure that vocational school graduates meet both the current and future skills requirements, thus supporting Vietnam’s socioeconomic development.