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    Vietnam’s Workforce Faces Both Surplus and Shortages

    ### The Human Resource Challenge in Vietnam

    While Vietnam strives to develop a robust economy, a significant gap in the labor market persists—there is a pressing shortage of skilled and experienced workers. This deficiency impacts productivity and poses challenges for businesses seeking to grow and innovate.

    ### The Importance of Skilled Workers

    Human resources are often termed as the most critical asset of a nation, emphasizing that investment in people is paramount to socio-economic development. Highly-skilled workers contribute significantly to increasing production efficiency, minimizing waste, and optimizing processes. They are crucial in creating new products and enhancing existing ones, thereby adding value to businesses and the economy. This skilled workforce is also vital in attracting foreign investment, with many international companies looking to Vietnam for its potential but facing the challenge of finding qualified candidates.

    ### Alarming Statistics

    As of 2023, only 27% of Vietnamese workers have received formal training or hold degrees and certifications. This situation leaves an estimated 38 million workers untrained across the country. Comparatively, Vietnam’s labor productivity lags behind its regional neighbors, largely due to the educational background of its workforce, which often corresponds to junior high school levels. Approximately 75% of workers are involved in primary training programs lasting less than three months, which do little to equip them for complex roles.

    ### The Demand for High-Level Skills

    According to Associate Professor Đinh Trọng Thịnh from the Academy of Finance, foreign investors in Vietnam often seek a workforce skilled in management and administration across both production and business sectors. Despite competitive salaries and favorable working conditions, companies still struggle to secure highly trained employees. The issue lies not solely in the educational system but extends to the need for a combination of theoretical instruction and practical management experience.

    ### Rethinking Education and Training

    Thịnh emphasizes the need for education and training programs to adapt to current market demands. While traditional training meets foundational educational needs, it often lacks the practical components necessary for success in various occupations. Workers must engage in self-study and continuous learning to enhance their skills and maintain competitiveness in an evolving job market.

    ### Surplus and Scarcity

    Dr. Đinh Việt Hòa, chairman of the National Start-up Association, notes the paradox within the Vietnamese labor market—while there’s a critical shortage of high-quality talent, a surplus of unskilled workers also exists. Millions graduate yearly from universities that focus heavily on academic instruction without providing real-world experience. Consequently, many graduates can only fulfill basic job requirements, leaving businesses longing for more capable candidates.

    ### Youth in the Workforce

    With 99% of the Vietnamese workforce under 40, there is a unique opportunity for innovation. However, many companies tend to focus on simple service and production tasks that do not require high-level intellectual resources. This focus limits the opportunities for young workers to develop and refine their skills in a meaningful way.

    ### The Role of Businesses

    To overcome these challenges, businesses must prioritize human resource training within their own environments. Offering training programs that meet both foreign and local demands could enhance the skill levels of workers, making them more competitive in the job market. Companies must also align their workforce needs with educational institutes to ensure graduates are equipped with the necessary skills and knowledge.

    ### A Path Forward

    Dr. Hòa suggests that universities should tailor their training programs based on industry orders and consumer needs, closing the gap between education and employment. Additionally, a greater emphasis on language proficiency and communication skills would further empower workers and improve their competitiveness in the global workforce.

    In summary, Vietnam’s labor market presents both challenges and opportunities. By addressing the skills gap through targeted education and business collaboration, the nation can develop a workforce ready to meet the demands of a rapidly changing economy.

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