Resolving labour shortage vital to bolster logistics industry

Vietnam's logistics industry is rapidly developing so it needs a large supply of skilled labour

This was shared at a forum on human resources development for the logistics industry in Ho Chi Minh City. The forum discussed concrete actions to close the gap between skills supply and demand in Vietnam’s logistics industry.

Le Duy Hiep, chairman of the Vietnam Logistics Association, said that the domestic logistics industry is undergoing fast-paced development with the annual compound growth rate exceeding 10 per cent. The logistics industry contributes 5 per cent to the country’s GDP. The government has approved an action plan which would grow the logistics sector to contribute 10 per cent of the country’s GDP, with annual growth of 15-20 per cent by 2025.

He further noted that the ongoing trade war between the US and China will prompt American consumers to buy more Vietnamese products, thereby contributing to rising export turnover and creating additional demand for logistics.

Despite the positive outlook, many logistics firms are facing HR shortages from senior management personnel to unskilled workers. In addition, vocational schools also have difficulties in providing training and improving the skills of students. Thus, fresh graduates often get low positions with modest salary at logistics companies and need retraining from their employers.

According to a survey by VLA, in 2017-2020, the logistics industry needs around 200,000 high-quality workers, with professional qualifications, skills, and English proficiency. By 2039, the figure is expected to surge to 2 million. Future workers need to be equipped with professional, ICT, and English skills to meet the field’s requirements in the Fourth Industrial Revolution.

Tran Thanh Hai, deputy director of the Import and Export Department under the Ministry of Industry and Trade, said that human workforce plays an important role in developing the logistics industry. To meet the demand, the training needs to be in line with international training standards.

He pointed out that the weaknesses of Vietnam's HR in logistics are discipline and teamwork. Besides providing knowledge and skills, he suggested training institutions need to pay more attention to improving discipline and professionalism for future employees.