Year Growth rate 6.9% 7.08% 7.34% 7.69% 8.4% GDP/capita US$ 410 US$441 US$482 US$514 US$638

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1 introduction of Sustainable career development throughout working life in vietnam Mr. Do Nang Khanh Deputy Director, Department of Vocational training quality Accreditation, General Department of Vocational training(gdvt), Vietnam I. OVERVIEW OF SOCIO-ECONOMIC DEVELOPMENT AND NATIONAL EDUCATION SYSTEM IN VIETNAM Vietnam is located in south east Asean. Totaling 229,314 square kilometers with a coastal line spanning approxematching 3,200 kilometers from North to South. The population of Vietnam is 84 million (in 2006), in which male proportion is 49.2% and female 50.8%; 26.8% are living in urban, the remain are living in rural areas. In 2005 the working labour force: million, 17.9 % working in the industry, 25.3% working in services and 56.8% working in agriculture. Administratively, the country is divided into 64 provinces and cities under the government. With a low per capita income of US$640 in 2005 and about 20 percent of the households are at poverty level, Vietnam is grouped among the less developed countries. However, its human development index (HDI) is well above that of other countries in the group and compares well with those of middle income. Viet Nam's transition to a market oriented economy had paid early dividends. According to the general statistics office, Gross Domestic Product (GDP) grew at annual rate of 8.4 percent during the period 1991 and In the period of the development index as follows: Year Growth rate 6.9% 7.08% 7.34% 7.69% 8.4% GDP/capita US$ 410 US$441 US$482 US$514 US$638 HDI 101/ / / / / Education system in Vietnam The formal education system in Vietnam: 1. Pre-school education (Cre ches and kindergartens); For children from 1 to 5 years old; 2. Primary education: (grades 1-5) for children from 6 to 11 years old; 1

2 3. Lower secondary education: (grades 6-9) for children from 12 to 15 years old; 4. Upper secondary education: (grades 10-12) for children from 16 to 18 years old; 5. Technical and vocational Education: vocational secondary schools. profesional secondary schools, vocational colleges; 6. Higher education: universities. There are also informal education activities focused on adults for improving literacy and skills. Viet nam nat ional educat ion syst em ACADEMIC TRAINING VOCATIONAL TRAINING The technical vocational education and training ( TVET) is an important part of the national education systeuniversities m. Since 1998, the technical, Vocational Education and training in Vietnam is under the administration of Ministry of Labour, Invalids and Social Affairs (MOLISA). General Colleges Department of Vocational Training Vocational (GDVT) is under MOLISA, it has function of state management of all vocational institutions colleges in Vietnam. The TVET system is characterized by many training providers at central and local levels of Government since the system was developed in the past as a supply-driven one to serve a variety of state Upper ministries secondary Professional Vocational and enterprises. secondary These line ministries are responsible for direct school secondary school management of vocational institutions. In addition, comschools panies operated under many line ministries also administer vocational institutions. At the provincial level, provincial Department of Labour, Invalids and Social Affairs are in charge of vocational training of Vocational province. There Lower are secondary also vocational and technical training education Centersinstitutes operated by Associations and U school nions. At the time being, a number of joint-venture and private operators also provide training services. Primary School Kindergartens Crèches 2

3 St a t e ma na g ement o n vo c a t io na l training Line minist r ies MOLISA pr ovinces Enterprises District Vocational Institutions Vocational Institutions Vocational Institutions Vocational Institutions Vocational Institutions II. NATIONAL PLAN STRATEGY POLICY AND LAW ON VOCATIONAL TRAINING 1. National plan and strategy policy The Vietnamese Government has approved the Vocational Training Education Development Strategy with the following main objectives: - Creating basic change in education quality aiming at reaching the regional and global level and being suitable with Vietnam s factual situation, serving for the socioeconomic development of the country; - Improving intellectual standards: completing lower secondary compulsory education by 2010 in the whole country and completing higher secondary compulsory education in economically developed cities and provinces; - Human resources training: increasing human resources training quality, particularly focusing on high scientific technological resources, managerial staff, good businessmen and skilled technicians; increasing trained labor force of all levels to 40% in 2010; 3

4 - Training talents: The socio-economic development plan approved by the National Assembly has confirmed that: Continuing to reform training and education comprehensively; reasonably developing the scale and strengthening socialization, standardization, modernization in order to improve training and education quality; ensuring the quality; reforming school education and tertiary education programs; giving priority to vocational training, ensuring suitable human resources structure, meeting the demand of industrialization and modernization of the country; concentrating investments in prioritized objectives, national education development programs; giving support to social welfare beneficiaries, ethnic minorities, children, the disable and people in especially difficult regions, mountainous areas, islands and border areas; giving important attention to training of efficient students and pupils as well as scientific talents. The vocational training development plan aims at training 7.5 million people, in which 75% are of the primary level, and 25% are of secondary and diploma level. 2. Law With the effort to reform the training and education including vocational training in order to meet the demand of the country s socio-economic reform and the process of modernization and industrialization, in June 2005 the National Assembly of the Socialist Republic of Vietnam approved Education Law 2005, which defines that the vocational training system will have 3 levels: primary, secondary, diploma in order to train technicians with practical skills serving directly for the manufacturing sector and the service sector. The Vocational training Law regulates Objectives of vocational training include training of a technical workforce in direct production and service provision, who have practical capabilities compatible to their qualifications, have work ethics and conscience, have professional working style, are disciplined and healthy so that after graduation, they can find a job or be self-employed, or acquire further education, meeting the national requirements for industrialization and modernization. TVET in Vietnam is operating based on Education Law 2005 and Vocational Training Law TVET includes three qualifications (elementary level, Intermediate level and diploma level) and two models of training (regular training and continuing training). 4

5 III. CURRENT STATUS OF CAREER DEVELOPMENT AND CURRENT TASK 1. Establishing and creating favorable facilities and equipment for state-owned vocational training institutions The Government has approved the vocational training school network mapping for the period of in order to quickly increase the number of state-owned and private vocational training schools, improve facilities for state-owned vocational training schools to increase the training scale and quality of training. Up to 30 June 2007, Vietnam vocational training institution network consists of 55 vocational colleges, 228 vocational secondary schools, 616 vocational training centers and other institutions. State owned vocational training institutions have been established under the Decision of Ministries and Provincial Authorities in order to meet the demand of technical human resources development of industries or localities and to be suitble with the vocational training school network mapping by the Government. State-owned vocational training schools are provided with regular operation expenses based on annual assigned vocational training recruitment target in order to ensure teacher salaries, facilities and equipment, vocational training materials The national bugdet allocated yearly for vocational training is the main finance source for state-owned vocational training schools. The allocation for vocational training in the total national budget allocation for education and training has increased yearly. In 2002, it accounted for 5% of the total allocation; in 2003: 6%; in 2004: 6.5%; in 2005: 8%; in 2006: 10% and in 2007: 12%. The national budget provides 60% of total vocational training finance resources. Along with the provision of regular expenses, the Government aslo invests other finance resources for state-owned vocational training schools throught ODA Projects funded by governments such as: Japan (JICA), Germany, Korea and others and target program has invested in improving facilities and equipment for 42 vocational training schools and 82 state-owned vocational training centers. In the period of , the Government will continue to invest in this project. - Tution fee: Tution fee charged by state-owned vocational training schools is VND/month per student. Tution fee will be used as supplement resources for improving teaching and training facilities (not more than 45%) and for training activities (exams, tests, materials designs), for teacher supports and other activities. Disable students, students from poor and ethnic families as wellas entitlement families. 5

6 2. In house training In the traditional handicraft villages, the main forms of training is on the job training and transfer the know how in the family s members. Both trainers and trainee are the member of villages. There are 121 industrial zones and parks in Vietnam and about more than 1 million workers working there. Some of workers have graduated from vocational schools and these can do the job very good. But a lot of employees come from areas near by and they do not have enough qualification to work with new technologies. Beside that, coming of increasing the industrial areas is the problem of the farmers loosing house and cultivate land. They do not have any qualification to work in the enterprise although there is measure from government that enterprises have to recruit these people. This character is one of big questions, that both employers and authorities concerning have to answer and find the solution. Some of industrial zones have stated establishe their own training schools or training centers. But it does t meet the training demand. 3. Socialization vocational training As stated in the development strategy of education and training in period , education and training in general and vocational training in specific is the concern of all society. It is not only task of state, but also the duty of enterprises to enhance the qualification of Labor force. If state can provide the training for new trained people so the enterprises should do the in-house training with the aim of improving the skill and qualification of their worker that are necessary for their production and their business. The government of Vietnam has set up the socialization program to attract all sectors to attend in the vocational training. Year 2004 MOLISA has submitted the socialization program for vocational training As result, Vocational training has gained the interest of all society. Enterprises, especially the cooperation and traditional villages have entered in the vocational training activities and spent many efforts to this activities. 6

7 IV. CURRENT STATUS OF PUBLIC SUPPORT FOR THE DEVELOPMENT OF SUSTAINABLE CAREERS THROUGHOUT WORKING LIFE The Government of Vietnam encourages investment in enlarging the vocational training network, improving the vocational training quality in order to supply human resources for the national industrialization and modernization; helping to sort out graduates from junior high schools and high schools; popularizing vocations among the youth, meeting the demand for vocational training; training workers for overseas employment. The Law on Vocational training identifies two forms of vocational training, these are full-time and regular vocational training. Regular vocational training shall be held in flexible time, venue, and training methods to meet trainees' need, facilitating lifetime study of laborers, improving professional kills to meet the labor market's requirements, giving trainees a chance to find a job or be self-employed. The Government of Vietnam gives priorities in financial investment and land for vocational training institutions, investment incentives for vocational training, tuition, enrollment fees, tax incentives in publishing training documents and producing training equipment. Currently, the Government allocates 10% of the total educational and training budget for vocational training and strives to increase these figures to 15-18% by the year The Government of Vietnam has developed National Target program on education and training in which vocational training is developed in a separate project and concentrating investment for vocational secondary schools and vocational colleges wich contribute to producing high quality human resources to serve for national industrialization and modernization. At the same time, the Government support district vocational training to provide vocational training for rural laborers, ethnic minonity people and other laborers for employment and poverty reduction. The Government provides policies to diversify and be flexible in teaching and learning of vocational training to mobilize all resources for vocational training from State (central and local levels), enterprises, trainees and community. The Government encourages and creates conditions for domestic and foreign investors to invest in vocational training, particularly foreign investors to transfer new technology for vocational training, specifically: a) Diversifies forms of training: provision of full-time vocational training and regular vocational training. Those who graduated from the same term and the same type of profession and at the same levels of vocational training in either full-time or regular form is provided the same certificate. 7

8 b) Provides continuous training among levels of vocational training. Once vocational trainees move from lower level to higher training level for the same profession or to other profession or other level of training are not required to repeat modules, subjects and contents that they already studied. c) Vocational trainees are allowed to have interval between their study for a training program: when they finished some of the modules and subjects they can go to work for a period of time (including to work outside the country) but not more than 4 years of interval. Then they can continue study the rest of modules and subjects. When they finish all modules, subjects of the training program and are eligible they can seat for final exam and if they pass the exam they will be given certificate or degree on the respective training program. d) Diversifies vocational training establishments (public, private with foreign investment; vocational training centers, secondary vocational schools, vocational training colleges; enterprises, co-operatives, workshops, business, services, universities and other establishments which registered for providing vocational training) provides conditions for trainees to select appropriate vocational training to their needs and specific conditions. The Government encourages enterprise to provide training to laborers. Enterprise shall establish and carry out its plans on training and improving the skills of its workers in order to meet its demand for workforce and the demand for latest technology in production and training. To implement the above-mentioned direction, large Groups such as Vietnam Groups for Coal and Mineral; Boat industry; Electricity Power have received support from the Government to open vocational training establishments at their enterprises to provide conditions for laborers to study in order to improve their professional skills to meet the demand of labor markets in the long-life learning method. The Government has policy to grant or lease land and premises, provide credit incentives, reduce or exempt tax for vocational training centers as permitted by laws; products produced by training activities of these institutions shall be exempted from tax as permitted by laws. V. CURRENT STATUS OF CAREER DEVELOPMENT FOR UNDER- EMPLOYED WORKERS AND THOSE IN THE INFORMAL SECTOR Training for under-employed workers and those lack of jobs in informal sector is a difficult task at present, especially Vietnam now is a member of WTO, the competitive is severer among enterprises, leading to the high number of unemployed and underemployed persons, especially those who are disadvantaged people. Therefore, the Government of Vietnam has policies for disadvantaged groups. Workers who lost the jobs will be given subsidy and support for vocational training, enterprises shall retrain its 8

9 employees once they take over a new job in the enterprise. Retraining costs, remuneration and wages of employees during their training time shall be borne by the enterprise. During the training course, trainees, if leave to serve in the army, or take sick leave, or have an accident or take maternity leave, or have family problems, which prevent them from carrying on the study or work, shall have the right to reserve their studying results and carry on their course. The reservation time is limited to four years. The Government support policy are to be made to policy-enjoying subjects, those who have devoted to the country, veterans, ethnic minority people, the poor, the disabled people, homeless orphans, laborers of agricultural households whose cultivated land was confiscated and other entitlement groups. These are aimed at providing them with a vocation so that they can find a job or be self-employed to earn a living. The Prime Minister has issued the Decision number 267/QD-TTg on 31 October 2005, which stipulates policy and organization of vocational training to ethnic school children at boarding school and Decision number 81/QD-TTg on 18 April 2005, which stipulates the policy to promile financial assistance for short-term vocational training for rural laborers. The Decision regulates that those who are rural laborers at the working age, haven t attend any vocational training and want to have vocational training, are eligible to be considered to enroll in short-term vocational training. Priority shall be given to laborers who lost cultivated land due to the State takes it or because of changing the purpose of land use; laborers from entitlement families, ethnic groups; female laborers and laborers do not jobs, in the following forms of training: training at the vocational training establishments, at enterprises, at handicraft villages, workshops or mobile vocational training. The minimum financial support is VND 300,0000 per person per month and the support does not exceed VND 1,500,000 per person per course. At the same time, the Government encourages and supports enterprises that enroll disable and handicapped people to vocational training and work for enterprises. The Government encourages organizations and individuals to establish vocational training institutions for only the handicapped and congenitally disabled people and other vocational training institutions to train the handicapped and congenitally disabled people. Suggestions to APEC related to TVET for the development of sustainable careers throughout working life - Reinforce the cooperation between countries in regions to share experiences in making TVET policies and strategies. The co-operations may be through special forums, exchanging studies, training of trainers and so on. 9

10 - Early establish a APEC system to acknowledge the necessary knowledge skills, and capacities to meet the requirements of labour exchange in the region. - Support initiactives of institutions, networks and community that address the needs of vocational training./. 10

11 APPENDIX 1: FORECASTS OF LABOR FORCE WORKING IN THE NATIONAL ECONOMY ( ) Unit: 1000 people Year Numbers of labor Agriculture Industry Services

12 APPENDIX 2: Vocational training institutions network and other institutions partycipating in vocational training Up to 31 decem ber 2006 No region Total Vocational training institutions other institutions partycipating in vocational training Total state-owned Total state-owned Total state-owned A B Total Northeast Northwest Red River delta North Central Central Coast Central Highlands Southeast Mekong River Delta

13 APPENDIX 3: Vocational training recruitment scale Long term Short term 13