The role of education is significant
With the rise of technology that allows people to capture a wide range of information, the amount of data used by individuals and businesses has exploded globally. More than 463 exabytes of data will have been created by us every day by 2025.
The immense amount of information present is one of the reasons why teaching critical thinking skills is essential. The World Economic Forum believes that people with critical thinking skills and creativity will be in demand in 2022 and the near future.
It might seem that workers must learn IT skills to remain relevant in today’s digital age. And although the demand for IT personnel remains high (with companies worldwide advertising 81% more jobs in 2021 than last 2019), another labor sector is also facing a significant shortage: skilled trades.
As the world remains optimistic about a post-pandemic global economic recovery, long-term projections for industries like construction and renewable energy continue to be positive. The need, therefore, for skilled technicians that can repair air conditioning units, install solar panels, or set up electrical panels, will grow. For example, the job growth for solar panel installation technicians in the United States is 105% through 2026.
Why Vietnam needs skilled labor
According to the Observatory of Economic Complexity, the country ranked 16 in total exports, with goods worth more than $300 billion sent to countries like the United States, China, Japan, and South Korea in 2020. Vietnam is also ranked 19th in the same year by the UN Conference on Trade and Development in attracting foreign direct investment.
However, a small part of the country’s labor force—around 22.6%—is trained. A World Bank survey in 2019 also mentions that 68% of its sampled Vietnamese firms have difficulties recruiting employees with job-specific technical skills.
How Decree No. 24/2022/ND-CP improves the country’s labor competitiveness
As part of its initiatives to help workers improve their job prospects and modernize the country’s economy, the Vietnamese government has revised and added relevant regulations for investors looking to set up vocational schools.
The law stipulates the investment capital requirements (excluding land values) for various purposes, like:
- 50 billion VND for firms building vocational intermediate schools
- 100 billion VND for companies setting up vocational colleges
Firms must also ensure that the school branches are located differently from their headquarters.
In addition, students who took joint training courses will be provided certifications from Vietnamese and foreign schools. In contrast, programs designed solely by foreign schools will obtain certifications from such organizations.
Companies seeking to open a vocational intermediate school can submit the required documents to the provincial-level Department of Labor, Invalids, and Social Affairs. Investors looking to start a vocational college must pass requirements to the General Directorate of Vocational Training.
Firms that engage in the following acts will be suspended:
- Committing fraud in the pursuit of obtaining a permit
- Organizing activities without receiving the necessary certificate
- Not updating certificates and diplomas in line with regulations set by the General Department of Vocational Education
Why is this important?
Businesses looking to improve their operations in the country will need to train workers to manage technical jobs.
There is also the cultural factor: Vietnamese parents are spending a significant chunk of the family’s income, up to 47% in some cases, according to the market research firm Nielsen. The need for quality education is one of the reasons why the country ranked 6th in the list of countries with the most international students in the United States.
Firms looking to invest in Vietnam’s education sector will find a ready market seeking to improve their employment opportunities and financial stability.
