Việt Nam is currently in the "golden demographic" phase, expected to last until around 2038. Seizing this opportunity and leveraging the advantages of the young workforce by enhancing their skills to adapt to the labour market's requirements is crucial to improve labour productivity and the overall development of the nation.

Low skills = barrier

Experts emphasise the vital role of youth in a country's development, constituting a significant portion of the labour force.

Current statistics from Việt Nam's General Statistics Office reveal a dual demographic scenario — both a golden population structure and ageing population. In 2023, the country's labour force aged 15 and above comprises 52.4 million individuals. Among them, the number of unemployed youth (15-24 years old) is around 437,300, representing over 41 per cent of the total unemployed population. Additionally, in 2023, 27 per cent of the workforce holds diplomas and certificates, posing a notable challenge in enhancing the professional and technical skills of the young workforce.

Addressing challenges faced by young workers, it is widely acknowledged that low skills pose a significant hurdle for Vietnamese youth in the job market. Consequently, improving the skills of young workers and facilitating their participation in the global labour supply chain is deemed crucial.

The International Labour Organization (ILO) forecasts that every five years, 30 per cent of the existing professional skills will become obsolete, necessitating the acquisition of new skills. This underscores the importance of equipping young workers not only with professional skills, but also with adaptability skills to navigate changes effectively.

The ILO believes that in the context of the Fourth Industrial Revolution (Industry 4.0), many traditional professions are disappearing, but new occupations and jobs will emerge, creating employment opportunities for young workers.

In this context, it is essential not only to provide young people with professional skills through vocational training for secure employment, but also to equip them with soft and adaptive skills suitable for the Industry 4.0 environment. These skills showcase the ability to navigate circumstances, especially non-traditional risks. The dynamic and technology-savvy young workforce, constituting a substantial part of the labour force through vocational training, can actively acquire skills and meet market labour demands.

Trương Minh Huy Vũ, deputy director of the Institute for Research and Development in Hồ Chí Minh City, highlights an existing gap between the skills of the labour force and the skills demanded by the labour market in Việt Nam. This mismatch results in low utilisation of trained labour and a shortage of skilled workers in the market.

International organisations argue that vocational skills will become the "new international currency" in the future labour market, enhancing competitiveness and labour productivity. In the current scenario, a skilled labour force significantly influences the productivity of both workers and businesses. For young workers, professional skills are increasingly crucial, enabling them to thrive in the current and future job market and contribute effectively to the economy.

Anticipating the market

According to experts, the Fourth Industrial Revolution and the restructuring of the economy demand an improvement in the quality of the workforce, with a focus on young people. The desire for a high level of vocational skills and the ability to secure stable, high-income employment is the legitimate aspiration of young people.

Representatives from the Ministry of Labour, Invalids and Social Affairs believe that low skills are a barrier for young workers in Việt Nam in the Industry 4.0 job market. Improving the skills of young workers and providing conditions for them to participate in the global labour supply chain is a pressing requirement for the economy. This poses a significant challenge, requiring a substantial change in the vocational education system in Việt Nam.

It is necessary to enhance labour market forecasting, particularly in training for emerging sectors. Locally, Đặng Minh Thông, deputy chairman of the Bà Rịa-Vũng Tàu People's Committee, highlights the province's significant economic role in the South and its high demand for labour. The province is actively promoting vocational training and skills improvement for the labour force, with a special focus on young workers. Various sectors and organisations are intensifying efforts to inform the youth about the role of vocational education and the importance of acquiring labour skills. Additionally, relevant agencies are closely coordinating to assist learners in finding suitable jobs after completing their training.

Bà Rịa-Vũng Tàu aims to reach 30 per cent of the labour force having vocational certificates by 2025, 80 per cent having information technology skills, and to attract 40 per cent to 50 per cent of high school graduates to vocational education, directly contributing to a young and dynamic workforce for businesses and units.

The province is concentrating on enhancing the quality of vocational education to meet the demand for skilled labour in a developing, modern industrial nation. It is creating favourable conditions for training institutions to participate in the international labour training market, investing in developing the Lilama 2 International Technology College to become a high-quality training and practical vocational centre accessible to ASEAN-4 and G20 countries' standards.

Meeting the labour market demand for the semiconductor and carbon credit sectors, Lilama 2 International Technology College signed a transfer agreement for semiconductor technology and carbon credit training programmes with BTEC Pearson (United Kingdom) in early 2024. The college will enrol the first cohort in these specialties in 2024. The semiconductor technology programme lasts for three years, while the carbon credit specialisation involves short-term training, lasting from three to six months, focusing on training skills for carbon credit applications in factories. VNS