minh hoai do - skills development for the disadvantaged in vietnam

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    Skills Development for the Disadvantaged and for Inclusive Growth in Vietnam: The Role of

    Policy, Partnerships and Programs

    Do Minh HoaiGeneral Directorate of Vocational Training

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    Contents

    Policies and Programs

    Legal Framework for Provision ofTraining for the Disadvantaged

    Some Statistics

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    Labor Force

    Labor force by sex (as of July 2011)

    48.3%51.7%

    WomenMen

    Labor force by urban/rural (as of July 2011)

    71.5%

    28.5%

    Rural

    Urban

    As of July 2011, there was a total of 51.3 million inlabor force, accounting for 58.4% of total population

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    Labor Force by Sector (1997-2015)

    0

    20

    40

    60

    80

    Agriculture 69 57.3 53.9 39.6

    Industry 11 18.2 20.3 27.7

    Services 20 24.5 25.8 32.7

    1997 2005 2009 2015

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    GDP Growth Rate

    GDP Growth Rate

    8.23 8.46

    6.31

    5.32

    6.78

    0.001.002.003.004.005.006.007.008.009.00

    2006 2007 2008 2009 2010

    %

    GDP growth rate (2006-2010): Average 7% per annum

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    GDP Growth Rate

    US$ 101.6billion

    (in currentprice 2010)

    GDP

    US$ 3,400

    (in 2010)

    GDPPer Capita(PPP)

    US$ 1,168(in 2010)

    GDPPer Capita

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    Share of GDP by Sector

    05

    10

    1520253035

    4045

    %

    2006 2007 2008 2009 2010 2015

    GDP by economic sector

    Agriculture, Fishery and Forestr

    Industry and Construction

    Services

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    Poverty in Vietnam

    % of poor households

    15.514.8

    13.4

    11.3

    9.5

    0.0

    2.0

    4.0

    6.0

    8.0

    10.0

    12.0

    14.0

    16.0

    18.0

    2006 2007 2008 2009 2010

    %

    Projected decremental rate of poor households: 2%per year during 2011-2015

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    Labor Force Receiving Training

    % of labor force receiving training

    27.8 30.537 38

    40 43 4649 52

    55

    0.0

    10.0

    20.0

    30.0

    40.0

    50.0

    60.0

    2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

    %

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    Legal Framework

    Law on Vocational Training

    HRD Plan 2011-2020

    Vocational TrainingDevelopment Strategy 2011-2020

    Due attention is givento delivery of vocationaltraining for disadvantaged

    groups with a view toensuring inclusive

    growth

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    Law on Vocational Training

    Supporting thefollowing targetgroups: the

    poor, disabled,homeless,orphans,

    landlessagriculture

    workers, ethnicminorities,

    veterans

    Paying dueattention to

    disadvantagedareas

    Stresses Equity

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    HRD Plan 2011-2020

    Calls for an expansion of vocational traininginstitutional network to cover all the country

    and so provide favorable conditions fortrainees, especially rural workers, ethnic

    minority people and the disabled

    Coverage

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    Vocational Training Development Strategy2011-2020

    Dual Objectives

    Gives priorityto high-tech

    training whereeconomic

    payoff is likelyto be high

    Does notignore the

    need toprovide skills

    developmentfordisadvantaged

    people

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    Policies and Programs

    1. Rural Labors

    2. The Disabled

    4. Youths

    3. WomenSpecific policiesand programs

    for target groups

    5. Ethnic Minorities

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    1. Vocational training for rural labors

    Provide vocational training for an average of about one million ruralworkers per year, including training &

    upgrading for 100,000 village civil servants

    Improve the quality and efficiency of vocational training in order to generate

    employment, increase incomes, contributeto restructuring the rural economy and

    labor force, support the industrialization &modernization of agriculture and rural areas

    Develop a pool of qualified villagecivil servants to support industrialization &

    modernization of agriculture and rural areas

    Improve qualityof ruralworkforce andgradually shifteconomic andlabor structure

    The Rural TrainingProgram is a tangible

    expression of the overallpriority accorded to

    assisting disadvantagedpeople and regions

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    2009-2010

    2011-2015

    Train 800,000 rural laborersOf which: training orders: 12,000Employment rate after training: 80%

    1. Vocational training for rural labors

    Train 4.7 mil rural laborersOf which: training orders: 120,000Employment rate after training: 70%Train 500,000 civil servants

    2016-2020

    Train 5.5 mil rural laborersOf which: training orders: 380,000Employment rate after training: 80%Train 500,000 civil servants

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    1. Vocational training for rural labors

    Subsidy for short-term training cost,meals allowance and travel cost

    for rural laborers, who are the poor,ethnic minorities, the disabled, who

    lost arable land.

    1 2Subsidy forshort-term

    training cost

    3Access to

    preferentialcredits for self-

    employment

    Access tostudent loans.100% interest

    subsidy for

    those who gainstableemployment in

    rural areas

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    2. Vocational training for the disabled, invalids

    Vocational Training Institutions that enroll

    the disabled and invalids

    Incentives

    Acquisitionof land

    on long-termrental basis

    Acquisitionof landfor free

    Access topreferential

    credit

    Taxexemption

    or rebate

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    2. Vocational training for the disabled, invalids

    The disabled and invalids

    Incentives

    Free career guidanceservices

    Exemptedfrom public

    services fees

    Tuition feesexemptionor rebate

    Scholarships

    and subsidies

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    3. Vocational training for women

    Subsidy forshort-term

    training costfor all women

    Subsidy forshort-term

    training cost,meals

    allowance,travel cost for

    women whoare the poor,

    ethnicminorities,

    who lost arable

    land and job

    Special program on Supports for women on vocational training and

    employment generation during2010- 2015

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    4. Vocational training for youths

    Access topreferential

    credit to attendvocational

    training, self-employment

    and overseasemployment

    Access tocareer

    guidance andjob placementservices, and

    training onbusiness start-

    up

    Special program on Supports for youths on vocational training and

    employment generation during2008- 2015

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    5. Vocational training for ethnic minorities

    Ethnic minorities

    Incentives

    Other

    subsidies

    Travel cost

    subsidy

    Tuition feesexemptionor rebate

    Scholarships

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    Conclusion

    To avoid middle-income trap, development of vocational

    training in Vietnam is a priority. With a view to ensuringsustainable and inclusive growth as well as the developmentof a highly-skilled workforce, priority is accorded to assistingthe disadvantaged in Vietnam so that they can have anequal opportunity for access to skills development.

    As the market mechanism cannot solve the equity issuein vocational training, the role of the government in settingpolicies in support of the disadvantaged people is indispensable .

    Many policies, programs are in place in Vietnam to support the disadvantagedin order to bring them into the formal training and learning system and givethem an open door for further training and recognition.

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