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    Vietnam’s Unskilled Labor Force Reluctant to Pursue Retraining

    ### Unemployment Benefits vs. Vocational Training: A Growing Challenge in Hanoi

    In September, data from the Hanoi Employment Service Centre indicated a stark reality: 8,500 workers were approved for unemployment benefits, yet only 204 chose to enroll in vocational training programs. This striking disparity raises questions about the barriers facing laid-off workers in the current labor market.

    ### Job Cuts and Workforce Dynamics

    According to Vu Quang Thanh, Deputy Director of the Hanoi Employment Service Centre, businesses tend to focus on reducing their workforce, particularly cutting low-skilled manual positions while retaining employees with higher qualifications. This trend further complicates the landscape for those who have been laid off, as many only seek unemployment benefits rather than pursuing further training to improve their employability.

    ### Insufficient Financial Support

    One of the primary reasons for the low enrollment in vocational training programs is the perceived inadequacy of financial support. Thanh points out that current funding doesn’t make a compelling case for workers to invest their time and resources in training, especially when programs are often too short to impart meaningful skills. For many, the benefits of learning a new skill are overshadowed by immediate financial concerns.

    ### Real-Life Experiences: The Struggles of Laid-off Workers

    Take Ha Thi No, for instance, a resident of Bien Hoa city in the southern province of Dong Nai. After being laid off from her job in the wood industry, Ha found herself juggling temporary jobs to make ends meet. She candidly expressed her feelings about vocational training, stating, “Learning a new skill might provide job opportunities, but I do not have time to attend training. The extra costs for transportation and meals make it impossible.”

    Similarly, Le Thuan Nam, a former security guard, had intended to take a driving course but was deterred by the high costs associated with it. At around 20 million VND (approximately 780 USD), the expense far exceeded the 9 million VND (355 USD) cap on available financial support. While lower-cost options, such as cooking or tailoring classes, are available, Nam found them unsuitable for his career goals, leaving him with limited choices.

    ### The Financial Burdens on Workers Seeking Retraining

    Even those who express interest in vocational training, like Duong Thi Ngoc, face significant barriers. After losing her job, Ngoc contemplated a four-month make-up course but found herself struggling financially, receiving just 3.5 million VND (138 USD) in monthly unemployment benefits. The additional costs of training, coupled with her limited income, made her aspirations seem out of reach.

    ### Calls for Systemic Change

    Employment experts are advocating for a comprehensive overhaul of the vocational training support system. Vu Thi Thanh Lieu, another Deputy Director at the centre, emphasized the necessity of adjustments to financial aid, suggesting that support should also cover transportation and meal allowances. Current policies cap training support at 4.5 million VND for three-month courses and 9 million VND for those lasting three to six months. Given the rising cost of living and specialized training programs, these caps often leave unemployed workers struggling to afford retraining.

    ### Legislative Developments on the Horizon

    The Ministry of Labour, Invalids and Social Affairs is actively working on revisions to the Employment Law, aiming to enhance support for vocational training and broaden worker skills. Notably, proposals include extending aid to individuals who aren’t currently receiving unemployment benefits. Recent ministry data reveals that from 2015 to 2023, only 256,350 people nationwide received vocational training support, highlighting a pressing need for reform.

    ### Suggestions for a More Effective Support System

    Experts recommend elevating unemployment benefits to 75% of the average salary earned in the six months prior to job loss. This change, coupled with increased training support and extended course durations, could help create a more robust system for retraining laid-off workers. Although revisions to the Employment Law are anticipated to enhance the situation, many workers still face substantial barriers in accessing vocational training opportunities.

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