### The Current State of Vietnam’s Labor Market: Surplus and Scarcity
In recent years, Vietnam has made significant strides in developing high-quality human resources. However, despite these efforts, the labor market is facing a striking paradox: a shortage of skilled workers amidst a surplus of untrained individuals. This dissonance has profound implications for the country’s economic productivity and future development.
### The Importance of Skilled Labor
Skilled human resources are often regarded as a nation’s most valuable asset. Investment in education and training is critical to socio-economic development. A workforce equipped with the right skills can dramatically boost production efficiency, minimize waste, and optimize work processes. Furthermore, skilled experts and engineers play a vital role in product development and process innovation, contributing significantly to the overall economic value. This factor is crucial for attracting foreign investment, positioning Vietnam as a promising destination for global investors.
### The Training Gap
Despite these advantages, data reveals a concerning reality: by the end of 2023, only 27% of Vietnamese workers had received formal training, holding degrees or certifications. The Ministry of Labour, Invalids and Social Affairs estimates that around 38 million workers in Vietnam remain untrained. This discrepancy severely hampers productivity, especially when compared to other nations in the region, where the workforce is generally better educated.
Most of those who are trained have only completed short courses, with an alarming 75% undergoing training that lasts less than three months. This lack of extensive education leaves the workforce underprepared for the complexities of modern industries and reduces overall labor productivity.
### The Insights of Experts
Associate Professor Đinh Trọng Thịnh from the Academy of Finance highlights the challenges faced by foreign investors seeking a skilled workforce in Vietnam. Even in the face of attractive salaries and good working conditions, finding competent employees remains a daunting task. Many local companies struggle to recruit high-quality staff, emphasizing the urgent need for educational and training reforms that effectively blend theory with practical skills.
Thịnh stresses that education systems must evolve, focusing on hands-on management and encouraging self-improvement. Graduates must navigate a rapidly changing job market, necessitating continuous self-study to remain competitive.
### A Dual Challenge: Surplus of Unskilled Workers
Dr. Đinh Việt Hòa, chairman of the National Start-up Association, notes that Vietnam’s labor force experiences both a surplus and a shortage. Countless graduates enter the workforce each year, often ill-prepared for the demands of modern employment. University programs typically prioritize academic knowledge over real-world skills, leaving graduates capable only of meeting basic corporate needs.
This skills gap is especially troubling, given that a vast majority of the workforce is under 40. As young enterprises mostly concentrate on simplified service elements and production tasks, opportunities for skill enhancement become increasingly scarce. Consequently, many Vietnamese workers find themselves in positions that do not reflect their potential, contributing to cycles of underemployment.
### The Role of Businesses in Training
To bridge the gap between labor demand and supply effectively, businesses must play an active role in developing their workforce. Human resource training should occur within organizations rather than solely relying on external educational institutions. By nurturing high-quality employees, companies can better meet the expectations of foreign firms, which often offer more competitive salaries.
### Aligning Education with Market Needs
Dr. Hòa advocates for a more responsive educational system that aligns closely with market demands. Universities are encouraged to tailor their programs based on business needs and consumer trends. This alignment can significantly enhance the relevance of education and prepare graduates more effectively for real-world challenges.
Furthermore, he emphasizes the importance of focusing on skills such as foreign language proficiency and effective communication. These competencies are increasingly vital in a globalized job market and can open additional doors for practical experience and career advancement.
### Conclusion
The challenges facing Vietnam’s labor market underscore a crucial crossroads in the nation’s economic development. Addressing the training gaps, enhancing education systems, and fostering collaboration between businesses and educational institutions are essential steps in creating a workforce that is well-equipped to meet both local and international demands.