90111 Vietnam SABER Country Report WORKFORCE DEVELOPMENT 2012 Status Strategic Framework Strategic framework is assessed at a high “emerging” level. Vietnam’s leaders are strongly committed to enhancing skills as part of its strategy for economic development. The government recognizes the challenges of aligning the workforce development system to the needs of a rapidly growing economy and has articulated an explicit set of policies and strategies, with specific targets and operational plans, to strengthen the system. Yet many of the new initiatives are at an initial stage of implementation and lack the support of in-depth analyses. System Oversight System oversight is assessed at the “emerging” level, reflecting the fact that while articulation mechanisms enable training institutions to create diverse learning pathways they do little to assure the quality of training programs; that funding for vocational training is not based on explicit criteria with performance indicators; that partnerships between WfD authorities and other stakeholders are ad-hoc; that training providers lack incentives to seek and retain accreditation; and that occupational standards required for competency-based testing and certification are still a work-in-progress. Service Delivery Service delivery is assessed at the “emerging” level, consistent with the fact that while the government’s policy of encouraging non-state provision of vocational training has stimulated an impressive expansion in the number and diversity of private vocational training institutions, the quality of service provision remains low. In addition, the monitoring and evaluation system is not well developed; and training institutions are not adequately motivated to respond to employers’ demand for skills. THE WORLD THE WORLD BANKBANK VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Table of Contents 1. Executive Summary……………………………………………………………………………………………………………………... 3 2. Introduction………………………………………………………………………………………………………………………………… 4 3. Country Context…………………………………………………………………………………………………………………………... 7 4. Summary of Benchmarking Results…………………………………………………………………………………………….... 14 5. Detailed Results | Strategic Framework ……………………………………………………………………………................. 16 Policy Goal 1 | Articulating a Strategic Direction for WfD ……………………………………………………………... 17 Policy Goal 2 | Prioritizing a Demand-led Approach …………………………………………………………….……..... 19 Policy Goal 3 | Strengthening Critical Coordination ………………………………………………………….....……….. 21 6. Detailed Results | System Oversight..………………………………………………..…………………………………..………. 23 Policy Goal 4 | Diversifying Pathways for Skills Acquisition ………………………………………………………..... 24 Policy Goal 5 | Ensuring Efficiency and Equity in Funding ……………………………………………………………. 26 Policy Goal 6 | Assuring Relevant and Reliable Standards …………………………………………………………….. 28 7. Detailed Results | Service Delivery…..………………………………………………………………………………………….... 30 Policy Goal 7 | Fostering Relevance in Training Programs ……………………………………………………………. 31 Policy Goal 8 | Incentivizing Excellence in Training Provision ……………………………………………...………. 34 Policy Goal 9 | Enhancing Accountability for Results .…………………………………………………………..………. 36 8. Vietnam’s Results in Comparison with those for Singapore and South Korea………………………….………. 38 Annex 1 | Analytical Framework of SABER-WfD ………………………………………………………………………………. 42 Annex 2 | Benchmarking Scores ………………………………………………………………………………………………………. 43 Annex 3 | Documents ……………………………………………………………………………………………………………...………. 44 Annex 4 | Informants ………………………………………………………………………………………………………………………. 47 Annex 5 | Vocational Training Institution Survey ……………………………………………………………………..………. 48 Annex 6 | Benchmarking Rubrics …………………………………………………………………………………………….………. 54 Annex 7 | List of figures, boxes and tables………………………………………………………………………………..……….. 63 Authorship and Acknowledgments…………………………………………………………………………………………..………. 65 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 2 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 1. Executive Summary and Service Delivery. These findings mask nuances revealed “…while the An Opportunity to Advance Vietnam’s Skills by closer examination of the political Agenda underlying scores. They show that the Strategic Framework commitment for Since Vietnam launched its economic reforms in 1986, dimension is somewhat more the country has enjoyed more than two decades of enhancing developed than the other two, rapid economic growth with concomitant reductions in workforce skills reflecting a very strong political poverty. In the coming years, as Vietnam looks to commitment to align workforce strengthening its global competitiveness and sustaining is very strong, the development to the country’s its record of rapid growth, it faces critical challenges. national economic priorities. system’s capacity Poor labor market outcomes and low productivity The slightly lower scores on the remain important concerns that stem in part from the to deliver results System Oversight and Service paucity of job-relevant skills among workers and the Delivery dimensions indicate remains weak.” limited opportunities for workers to acquire or enhance that while workforce their skills. The government’s response to these development is a high political priority in Vietnam, the challenges is encapsulated in two key documents which system’s capacity to deliver results remains weak. To align closely with the country’s Strategy for the government’s credit it acknowledges these Socioeconomic Development approved by the National challenges and has articulated specific policies and Assembly. The first is the Human Resource strategies to expand access and equity, to foster a Development (HRD) Strategy (2011—2020), approved demand orientation in the VET system, to enhance in 2011, which defines strategic targets for workforce training quality and to secure funding for the sector. development and offers guidance and solutions to Based on the SABER-WfD assessment, advancing these meet the targets. The second document, the Vocational goals will require attention to selected strategic Training Development (VTD) Strategy (2011—2020), priorities, including (a) ensuring that the VET reform is approved the following year, sets forth a roadmap for integral to the system-wide effort to strengthen the achieving specific targets in vocational education and education system at all levels; (b) focusing on a few key training (VET). economic sectors with high growth prospects; (c) encouraging genuine partnerships between training In an effort to deepen dialogue on Vietnam’s providers and industry; (d) specifying minimum challenges in workforce development, a research team accreditation standards to ensure quality; and (e) comprising the Central Institute for Economic strengthening monitoring and evaluation by Management (CIEM) and staff at the World Bank used a establishing instruments and indicators for assessing new diagnostic tool, the SABER-WfD, to assess the VET institutions’ performance. institutional bottlenecks that stand in the way of progress. The results of the assessment presented in Putting Vietnam’s SABER-WfD results in a comparative this report are expected to help clarify priorities among perspective provides additional insights. In particular, the actions identified in the HRD and VTD Strategies. the Strategic Framework dimension in Vietnam’s WfD They classify the WfD system according to four stages system in 2010 is rated at level that is comparable to of maturity in policy and institutional development, as both Singapore’s and South Korea’s in 1970. These follows: (1) latent, (2) emerging, (3) established and (4) countries’ experience suggests that, starting with a advanced. strong Strategic Framework, it is possible to make significant progress on all three functional dimensions Prioritizing Next Steps for Impact identified in the SABER-WfD framework. Vietnam can The SABER-WfD assessment results, summarized on the moreover take advantage of their experience as well as cover of this report, rates Vietnam’s system at the that of other countries to accelerate the development emerging level for all three functional dimensions of of a strong and responsive WfD system as part of its policies and institutions in the SABER-WfD analytical socioeconomic strategy in the coming years. framework: Strategic Framework, System Oversight SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 3 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 2. Introduction to the objective of aligning WfD in critical areas to priorities for national development; Over the last two decades, the Vietnamese Government has followed a successful policy of (2) System Oversight which refers to the modernization of the economy that has produced arrangements governing funding, quality assurance impressive results in terms of economic growth and and learning pathways that shape the incentives and poverty reduction that have resulted in an expansion information signals affecting the choices of in employment. However, the employment situation individuals, employers, training providers and other of large parts of the population is still precarious and stakeholders; and their income is low. Poor labor market outcomes and low productivity are often attributed to workers (3) Service Delivery which refers to the diversity, either lacking the skills or having limited organization and management of training provision, opportunities to enhance their skills and productivity both state and non-state, that deliver results on the through training. This is a major challenge for ground by enabling individuals to acquire market- Vietnam to be able to strengthen its competitiveness and job-relevant skills. (see Figure 1). in the global economy. Therefore, education and training is recognized in Vietnam as a priority area of Figure 1: Functional Dimensions of WfD Policies development intervention. This report takes advantage of a new World Bank diagnostic tool to establish a baseline for implementing the Vocational Training Development Strategy that will be approved this year and its underlying policy architecture. This benchmarking tool will assist Vietnam with measuring its progress and monitoring the implementation of the vocational training development strategy in the context of international experience and global good practice. The findings are intended to contribute to the on-going policy dialogue on workforce Source: Tan et al. 2012. development and support the improvement of productivity, competitiveness and faster and sustainable economic growth. From the perspective of the line ministries, typically education and labor, strategy is about sensing, A New Diagnostic Tool influencing, and responding to the external environment for WfD; oversight is about governing The tool, known as SABER-WfD, is a product of the the activities of all stakeholders with a direct interest World Bank’s initiative on Systems Approach for in WfD activities; and delivery is about managing the Better Education Results (SABER), which focuses on activities of those responsible for training provision. several policy domains, including workforce development (WfD). 1 SABER-WfD aims to document These three dimensions constitute a closed policy- and assess a country’s policies and institutions in making loop and, when taken together, allow for light of global good practice. It focuses on three analysis of the functioning of a WfD system as a broad functional dimensions of policies: whole. Each functional dimension is composed of (1) Strategic framework which refers to the praxis of Policy Goals (see Figure 2) spanning three broad advocacy, partnership, and coordination in relation areas governance, finance and information. Each of the Policy Goals is in turn further defined by three tangible Policy Actions, making a total of nine Policy 1 Goals and 27 Policy Actions. For details on SABER see http://www.worldbank.org/education/saber SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 4 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Figure 2: Analytical Framework of SABER-WfD evidence as well as interviews with knowledgeable informants. Data Processing and Scoring: For each of the 27 Policy Actions, the information gathered by the PIs is scored according to standard rubrics. These rubrics correspond to four stages of maturity in policy and institutional development for WfD, as follows: (1) latent, (2) emerging, (3) established and (4) advanced. A summary description of the rubrics appears in Figure 3 while the details are explained in Annex 6. Box 1: A Note on Documentary Sources This report is based on data from various documents collected through a desk study. The most important of these are:  Decision No 630/QD-TTg dated 29/5/2012 on approving the Vocational Training Development strategy for the period of 2011-2020;  Draft Education Development Strategy for the period of 2011-2020, proposed by the MOET and MPI;  Decision No 579/QD-TTg dated 19/4/2011 on approving the Human Resource Development Strategy for the period of 2011 – 2020;  Decision No 1216/QD-TTg dated 22/7/2011 on Source: Tan et al. 2012. See Annex 1 for more details. approving the Master plan of Human Resource Development for the period of 2011-2020; The SABER-WfD tool uses the foregoing analytical  Education Law (2005) and Vocational Training Law framework to create a structured data collection (2006); This report is also based a survey of vocational training instrument for gathering information on a country’s institutions implemented by CIEM. Information on the policies and institutions for WfD. For each of the 27 methodology used in the survey is available in Annex 5. Policy Actions, the Data Collection Instrument (DCI) poses a set of questions relating to the Complete information on all sources appears in Annexes 2 and 3. corresponding aspect of the WfD system. Each question is answered by choosing from a list of The scores on the Policy Actions form the basis for closed options corresponding to stages of scoring the nine Policy Goals. The approach involves development. The choice is substantiated either by the application of simple weights to aggregate the documentary evidence or by information supplied scores on the Policy Actions that relate to each Policy and corroborated by knowledgeable and credible Goal, typically 1/3 for information relating to policy informants. As in the other countries selected for concepts and design and 2/3s to information relating this pilot phase, the collection of data using the to policy implementation. In the interest of SABER-WfD instrument was led by Principal parsimony in data collection, the SABER-WfD study Investigators (PIs) 2 who rely on documentary accepts reviews and evaluations of policies and related follow up actions as evidence of 2 For Vietnam, a team of three PI’s worked together. Dr. Nguyen implementation. Finally, to obtain the scores for the Tu Anh, who hasdone studies on human resources, wage structure, was assigned with collecting data for Dimension 1; Mr. Phan Duc Hieu, who has had very close collaboration with data for Dimension 2; and Dr. Nguyen Thi Tue Anh, who has led employers and had many contributions to policy making for studies on human resource, was entrusted with collecting data improving business environment, was assigned with collecting for Dimension 3. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 5 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 three functional dimensions considered in the SABER-WfD framework, the scores for the Policy Goals that relate to each dimension are aggregated with equal weights. This algorithm yields composite scores on a 1-4 scale for every level of aggregation in the data; naturally, the composite scores are rarely whole numbers. Figure 3: Rubric for Benchmarking WfD Emerging Established Some instances of Systemic good good practice practice Advanced Latent Systemic good Limited practice meeting Engagement global standards Source: Tan et al. 2012 Note that in order to conform to standardized presentation of reports under the overall SABER initiative the dimension-level SABER-WfD categorical ratings shown on the cover of this report are based on the corresponding composite scores which have been converted to the relevant categories. 3 In the rest of the report, the composite scores are presented in the form of a dial, as shown above, in order to retain the detail they reflect. 3 For a given composite score, X, the conversion to the categorical rating shown on the cover is based on the following rule: 1.00 ≤ X ≤ 1.75 converts to “Latent”; 1.75 < X ≤ 2.50, to “Emerging;” 2.50 < X ≤ 3.25, to “Established;” and 3.25 < X ≤ 4.00, to “Advanced.” SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 6 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 9.1 times 4. However, GDP per capita in Vietnam 3. Country Context remains low compared to other countries. In 2010, Vietnam ranked 128th in a total of 181 countries, and The success of reform and international economic it is still among the poorest countries in East Asia. integration of Vietnam over the past 20 years has been widely recognized both domestically and Poverty reduction. Rapid economic growth has been internationally. The economic structure has been the main driver of poverty reduction in Vietnam. gradually modernized and the socio-economic Vietnam's sustained and rapid growth has increased infrastructure has been significantly improved in the size of the domestic market and the national terms of both access and quality. The adjustment of economy and improved most indicators of social the economic structure requires investments in development. On average, each percentage point of workforce development to meet the increasing GDP growth accounts for a 0.37% reduction in the demand for skilled workers. Below we review key poverty rate 5. As the results of Vietnam Household aspects of the economic and social context in which Living Standards Survey (VHLSS) show, Vietnam the skills issue has emerged in Vietnam. continues to make progress in improving the living standards of the population. Vietnam’s poverty rate Economic Trends reduced rapidly from 1993 to 2010 both in urban Growth. Over the past two decades, Vietnam’s GDP and rural areas (see Figure 5). has been growing rapidly. The average annual growth rate of the period 2000-2010 was 7.26%; the Figure 5: Poverty rate, 1993-2011 GDP at current prices in 2011 was over 3.8 times 80 66.4 higher than in 2000 (see Figure 4). GDP per capita in 60 45.5 real terms has also increased substantially, from 35.6 about US$400 in 2001 to US$1,224 in 2010. 40 25.1 25 20.4 18.7 17.4 20 9.2 6.7 6.9 3.6 3.9 3.3 Figure 4: GDP growth and GDP per capita growth (% per 0 annum) 1993 1998 2002 2004 2006 2008 2010 Rural Urban Source: VHLSS 1993-2010, GSO Vietnam has already achieved its Millennium Development Goal of poverty reduction with a total of about 30 million people escaping poverty over the last two decades 6. However, it is worthwhile noting that while the country’s successes in poverty Source: GSO, World Development Indicators (World Bank database) reduction have been significant, they are not completely stable since ‘vulnerability-to-poverty’ is Vietnam is now considered a lower middle income high. A considerable number of households in country and is on-track to meet the Millennium Vietnam who may not be poor in a specific year Development Goals. The development gap between nonetheless remain vulnerable to falling into poverty Vietnam and other regional economies has narrowed. For example, the difference between 4 Source: CIEM’s calculation from World Development Indicators Vietnam’s and Thailand’s GDP per capita in PPP (World Bank database) 5 (current US$) has decreased from 4.4 in 1995 to 2.7 Ministry of Planning and Investment (2010), The Vietnam’s times in 2010. Similarly, the gap with Singapore was Socio-Economic Development Review No.64, December 2010. Available at: http://english.tapchicongsan.org.vn/Home/Print reduced from 33 to 18 times, with Indonesia - from Story.aspx?distribution=154&print=true 2.2 to 1.3 times, and with South Korea - from 12.4 to 6 Oxfam and Action Aid (2011), Participatory Poverty Monitoring in Rural Communities in Vietnam, May 2011 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 7 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 at some point in time. A WB analysis of households Employment rate in the population segment of 15 across three rounds of the VHLSSA shows that at the years and older is high, at 75.1% (in the early 6 national level, only 7 % of panel households were months of 2011). The labor force participation rate among the chronic poor (poor in all three years), of youth (15 – 19 years) increased from 37.1% in despite an end period (2008) poverty rate of 13 %. 7 2007 to 43.8% in 2009 which has been indentifies by the Ministry of Labor, Invalids and Social Affairs Demographics and Employment (MOLISA) as a sign of a high school dropout rate Demographics. Vietnam has a large and young among teenagers. 11 population, with 90% of it below or within working Even though the proportion of labor force in urban age (15-64 years). At the end of 2011, Vietnam’s areas has considerably increased over the past three population was estimated at 87.84 million of which decades, the majority of the labor force (71.5%) still 30% live in urban and 70% in rural areas 8. Population lives in rural areas. The largest sector of employment growth rate has been gradually reducing from 1.17% in Vietnam remains agriculture, forestry and fisheries in 2005 to 1.04% in 2011 9. Still, Vietnam is the third (average annual share of 51.4% for the period 2005- most populous country in South East Asia and the 2011) but the share of this sector has been declining 13th in the world. Data from 2010 shows a young (see Figure 7). population with 24% aged 14 and younger, 70% of working age and only 6% aged 65 and older 10 . Figure 7: Employment Structure by economic activities Vietnam has a “gold population structure” in which 100% the working age population is nearly the double of 33.1 34.8 35.0 37.0 37.8 the dependent population. However, the country 80% will face rapid aging in the near future. 60% 11.8 12.9 13.5 13.5 13.8 Employment. Employment growth in Vietnam lags 40% 55.1 52.3 51.5 49.5 48.4 behind GDP growth. Total employment increased 20% from 44 million in 2006 to 50.6 million in the first 0% 2005 2008 2009 2010 2011 nine months of 2011. The annual employment growth for the period of 2006-2010 was 2.5%. Agriculture, Forestry and Fishing Manufacturing Others Source:GSO Figure 6: Labor force and total employment (millions of people) Unemployment and underemployment rates. For the period of 2006-2011, the unemployment rate in Vietnam slightly increased from 2.1% in 2006 to 2.2% in 2011, while the unemployment rate in urban areas decreased from 5.31% in 2005 down to 3.6% in 2011. Underemployment rate in 2011 is estimated at 2.96%. However, given that Vietnam has a high proportion of self-employment and informal employment, unemployment and underemployment rates may be underestimated. According to the ILO– Employment Trends Report 2009, salaried employees in the formal sector account for only 23% Source: GSO of the total number of workers. The remaining 77% are self-employed or unpaid family workers who work in informal sector, including unregistered 7 World Bank, “Well Begun, Not Yet Done: Vietnam's small-firms and households. In addition, as Remarkable Progress on Poverty Reduction and the Emerging demonstrated by the MOLISA (2010), the proportion Challenges” 8 CIEM’s calculations from GSO database 9 Source: GSO 10 11 Source: World Development Indicators (World Bank database) MOLISA (2010), The Vietnam Employment Trends Report 2010 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 8 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 of vulnerable employment decreased to 4.3% due to billion (estimated). With an annual growth of 21.1% an increase in the number of wage and salary paid for the period 2005-2011, the export sector has employment (2.9%) and self-employed work (8.2%). contributed considerably to job creation. Besides crude oil which accounts for a share of 1/5 of all Employment structure by economic sector. Even exports, exports are dominated by agricultural and though the state sector absorbs nearly half of total labor-intensive low-tech products, such as footwear, investment (40.2% of total investment for the period apparel and electronics. Most of non-oil exporters of 2005-2011) its contribution to employment is are small and medium enterprises and foreign firms. small (annual average of 10.9% of total employment Export contribution of state owned enterprises is for the period of 2005-2011) and its contribution to limited. job creation is decreasing (see Figure 8). In contrast, the non-state (domestic private) sector contributes Figure 9: GDP structure by economic sector to 86% of total employment with only 36.4% of investment. This sector has played the major role in generating jobs and reducing unemployment and underemployment. Employment contribution of the foreign investment sector was modest (3.3% for the period of 2005-2011). Figure 8: Employed population at 15 years and older (as of annual 1 July, by types of ownership) Source: GSO Skills shortages. According to the General Statistics Office (Table 1), out of 50.4 million workers, (including those in the informal sector and/or self- employed) only 7.7 million are trained, which accounts for 15.2% 12 . Only 3.7% of the working population has received formal vocational education and training and there is a gap between urban and rural in terms of access to training. Source: GSO Table 1: Structure of working population by training types (as of July 1, 2011) Demand for skills Economic structure. Over the past 20 years, Vietnam Academic training has been moving towards a modern economic Vocational Technical structure, with an adjustment from agriculture to training secondary College University school industry and services (see Figure 9). The industrial Untrained level growth has been a key factor for economic growth Total 84.8 3.7 3.7 1.7 6.1 and increase in income through job creation. Male 83.1 5.6 3.4 1.2 6.7 However, the decline in the share of the agricultural Female 86.6 1.7 4.0 2.3 5.4 sector has been relatively small (with the average Urban 68.9 6.5 6.0 2.9 15.8 annual share over the past 10 years still as high as Rural 91.0 2.7 2.8 1.3 2.3 38.3%). Exports. Vietnam has rapidly integrated into the According to the employer survey (CIEM-World Bank world economy, especially after the conclusion of 2012), the majority of surveyed firms have had the bilateral trade agreement with the US in 2001. problems with the recruitment of new workers. The The value of exports increased 5.63 times between 2000 and 2011, from US$17.2 billion to US$96.9 12 Source: GSO’s report on Labor and Employment Survey (2011) SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 9 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 picture varies by type of firm but the problem of is very low at about half the Asian average. “Applicants lacked required skills” is commonly VET. In this report the term “VET” covers all kinds of experienced for all occupations. This shows that skills skills development initiatives: public and private, gaps are a major challenge to firms. In addition, the formal, and informal training provided by any kind of CIEM-World Bank’s employer survey 2011 indicates provider. The reform of the VET system started in that the surveyed employers appreciate their 1986 as part of the process of economic reform. employees’ soft-skills, including team-work, Since then, the network of Vocational Training communication and time management skills, which institutions in Vietnam has rapidly developed in are generally missing from WfD programs in terms of quantity, diversity of ownership and areas Vietnam. The findings from CIEM’s training of training. institution survey (CIEM-World Bank 2012) further confirm that practical activities are limited in Figure 10: Gross enrollment ratio vocational training institutions due to a lack of instructional facilities, equipment/machinery and collaboration between institutions and employers. Research from MOLISA (2007) 13 also reports that 44% of foreign investment firms have had to organize re-training courses for their employees, and 25% of vocational training graduates did not satisfy their skills and knowledge requirements. Supply of skills Source: World Development Indicators (database). Education. Despite a high literacy rate, not all new As of June 2011, there were 128 vocational colleges, labor market entrants in Vietnam are well educated. 308 vocational secondary schools, 908 vocational In 2010, the gross enrollment ratio was 77% in training centers and over 1000 other institutions secondary school but only 22% at tertiary level providing vocational training (such as VET units in (figure 10). The low levels of education and skills traditional trade villages and centers for community development of the Vietnamese workforce learning) 14 (table 2). According to the General negatively affect the competitiveness of the Department of Vocational Training (GDVT), the economy. The ILO (2007) shows that, despite rapid Vocational Training institutions in the country are growth, the productivity of the Vietnamese workers capable of providing training for 1.7 million students Table 2: Number of vocational training institutions and enrolment 2005 2006 2007 2008 2010 2011 * Number of vocational training institutions > 1,640 > 1,869 > 1,936 > 2,028 2,052 >2100 College 62 90 Vocational school Secondary 236 262 104 214 297 436 Others 138 40 Vocational training centers 404 607 632 684 632 908 Others > 1,000 > 1,000 > 1,000 > 1,000 1,123 > 1,000 Approximate number of students 1,207,000 1,340,000 1,436,000 1,538,000 1,748,000 740,000 *as of June 2011 Source: Data for 2005-2008 cited in Mori et al. (2009); Data for 2010: GDVT, cited in Nguyen Tien Dung (2012); Data for 2011: GSO, see at http://gdtd.vn/channel/2762/201109/Ca-nuoc-co-10999-truong-hoc-dat-chuan-quoc-gia-1953414/) 13 Source: vietnamnet 10/7/2011, available at 14 http://www.vietnamnet.vn/vn/giao-duc/29744/chat-luong-lao- Source: GSO, see at http://gdtd.vn/channel/2762/201109/Ca- dong-bat-dau-tut-hau.html nuoc-co-10999-truong-hoc-dat-chuan-quoc-gia-1953414/ SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 10 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 annually. However, the current supply of vocational summary, vocational training can be provided by training is not sufficient to satisfy the vocational various institutions established by various ministries training needs. Just for rural areas, the number of and local provinces regardless of ownership, but they untrained rural labor force was 28 million people must follow the Law on Vocational Training and are (2005) 15 and the objective of the Government is to under the State management of the MOLISA. The increase the proportion of trained rural laborers to national education system of Vietnam is presented in 50%. the figure 11. Training provision According to the Law on Vocational Training (2006), there are three levels of VET under the management Institutional framework. Since 1998, the of MOLISA: (i) vocational college training; (ii) responsibility for vocational training was transferred vocational secondary training; and (iii) elementary from the Ministry of Education and Training (MOET) vocational training (short-term training) (see Table to the GDVT under the MOLISA. However, according 3). to the law on vocational training from 2006, academic educational institutions under the MOET Apart from vocational training centers, all types of including universities, colleges and professional educational and vocational training institutions as secondary schools are eligible to provide vocational well as enterprises can deliver elementary level of training if they register their instruction level and instruction once they have registered for provision of programs with the MOLISA. Thus, training this level with MOLISA. Only vocational institutions in Vietnam consist of both vocational colleges/vocational secondary schools and training institutions under the MOLISA and academic universities, are allowed to offer vocational training educational institutions under the MOET that at the secondary level. registered their vocational training with the MOLISA. At local levels, some VET institutions can also be partly managed by provincial/local agencies. In Figure 11: The Education and Training System in Vietnam Source:The Education Law (2005) and the Law on Vocational Training (2006), cited in Mori et al. (2009) 15 Dang Kim Son (2008) SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 11 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Legal framework. The important legal documents for viewpoints as well as solutions for achieving workforce development include: targets.  Decision No 630/QD-TTg by the Prime Minister,  Decision No 579/QD-TTg by the Prime Minister, dated 29/5/2012 on approving the Vocational dated 19/4/2011 on approving the Human Training Development Strategy for the period of Resource Development Strategy for the period of 2011 – 2020. This strategy mentions specific 2011 – 2020. This strategy provides specific targets on vocational training development for targets on human resource development by the period of 2011-2020 and presents guidance 2015 and 2020; presents guidance viewpoints as well as solutions for achieving targets. Table 3: Vietnam’s VET system Vocational training Vocational training Required Manageme level institutions Other institutions time Entry requirement Degree nt agencies 1-2 graduates from University/Colleges years vocational registered for College - Vocational colleges secondary schools Diploma vocational college training 2 -3 graduates from high years schools University/ 1-2 graduates from high - Vocational colleges Colleges/ years schools registered vocational Professional Secondary secondary training secondary schools Diploma - Vocational registered for 3-4 graduates from MOLISA, secondary schools vocational years junior secondary MOET and secondary training schools other - Vocational colleges ministries/ registred for agencies - University/ vocational colleges/ Technical elementary training Professional - appropriate - Vocational secondary schools qualification that secondary schools 3 - 12 Elementary registered for depends on the Certificate registered for months Vocational training levels vocational elementary training - health elementary training - Other VET - Vocational training institutions centers/ other VET institutions Source: CIEM’s summary from the Law on Vocational Training (2006)  Decision No 1216/QD-TTg by the Prime Minister, by MOLISA, dated 2/10/2006). This decision sets dated 22/7/2011 on approving the Master plan the focus on developing a network of vocational of Human Resource Development for the period training institutions to provide skilled labor force of 2011-2020. This Plan provides specific targets to meet the market demand in terms of for Human Resource Development. quantity, quality and on the basis of sectoral structure and regional structure. It also  The Master Plan for the Development of a stipulates building of vocational skills standards- Network of Vocational Colleges, Vocational based curricula and adoption of module-based Secondary Schools, and Vocational Training training programs. Centers until 2010, and orientation to 2020 (approved at Decision No 07/2006/QĐ-BLĐTBXH SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 12 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012  The Vocational Training Law (2006) stipulates 2001 to VND145,120 billion in 2011 17. The National organization and operation of vocational training Target Program of Employment and Vocational institutions. The significant reform introduced by Training in 2011 has been actively implemented with this law is that vocational training is now a total of investment funds of VND2,894 billion. categorized into three levels (college, secondary and elementary levels). Financing Skills development. Funds for skills development are contributed by various sources:  State budget. Over the past 12 years (1998- 2010), public spending on education in total government expenditure increased from 13% to 20%. 16 The proportion of education and training funding of the Government for vocational training has also been increasing gradually from 4.9% in 2001 to 9% in 2010. Vietnam is among the countries with the highest ratio of public spending on education in total government expenditure.  Funds from non-state participation in the cause of education. Vietnam has opened vocational training to non-state provision according to Resolution No 05/2005/NQ-CP by the Government, dated 18/4/2005, on promoting social participation in activities of education, health care, culture and sport. The Government encourages and offers favorable conditions for domestic and international individuals and organizations to establish private and foreign VET institutions; and for the development of cooperation between domestic and foreign VET institutions under the forms of joint training and technology transfer.  Funds from development partners (ODA). The key players providing development aid for VET are the Asia Development Bank and the governments of Germany, Singapore, Korea, Japan, Austria, Luxembourg and Denmark. The amount of state and social investment in education, training and vocational training has considerably increased, from VND15,609 billion in 16 Source: Interview with Mr. Nguyen Van Ngu (Head of Planning 17 and Finance Department, MOET) by Dantri (2010), available at Source: Doanh nhan Sai gon cuoi tuan, cited at http://dantri.com.vn/c25/s25-392976/viet-nam-thuoc-nhom- http://tuanvietnam.vietnamnet.vn/2011-07-08-lao-dong-cua- nuoc-co-ty-le-chi-cho-giao-duc-cao-nhat-the-gioi.htm chung-ta-bat-dau-tut-hau SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 13 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 reforming the WfD system needs to be seen as a 4. Summary | Benchmarking Results long-term process that should be implemented step by step; requiring efforts from authorities at all The SABER Workforce Development (WfD) levels. Among the goals of the VTD strategy, some benchmarking results reveal that Vietnam is on the actions (such as developing a demand-oriented VET right track with its policies and institutions for WfD. system which expands the participation of However, critical gaps remain between the demand employers and industry stakeholders) can be for and supply of skilled and qualified workforce. The selected as priorities in reforming WfD. analysis reveals issues in specific aspects of policies and institutions pertaining to the WfD system’s Figure 13: Vietnam Benchmarking Results, 2011 strategy, oversight and service delivery. Policy Goal Overview of Results 1. Direction Framework Strategic 2. Priorities Vietnam’s overall scores for each of the three functional dimensions in the SABER-WfD framework 3. Coordination appear in Figure 12. Simple aggregation of the scores that feed into each functional dimension point to the 4. Pathways Oversight System following results: the scores for Strategic Framework 5. Resources (2.5), System Oversight (1.9) and Service Delivery 6. Standards (2.1) are at the emerging level. 7. Content Figure 12: Benchmarking Results – Dimension Level Delivery Service 8. Incentives 9. Outcomes 1 2 3 4 Strategic System Oversight Service Delivery Framework Vietnam’s government is aware of the challenges Note: the above composite scores are the same as the categorical within its current WfD system to respond to the ratings shown on the cover of this report. They have been converted using the rules indicated in footnote 3 on page 6. needs of a rapidly growing economy and recognizes WfD as a priority area of development intervention. As elaborated in the introduction, the score for each It has therefore developed a set of policies and functional dimension is an aggregation of the scores strategies to increase access and equity; develop a for the underlying Policy Goals associated with it (see demand-oriented VET system; improve training Figure 13). quality, as well as mobilize various financial resources. With these objectives in mind, the Implications of the Results following actions are important for strengthening current policies and institutions for WfD: In response to the rising demand for a more skilled workforce, Vietnam’s government has developed a On Strategic Framework: set of policies and strategies to strengthen the WfD system. Most recently, the Government approved  The education system in Vietnam needs to be the Vocational Training Development (VTD) Strategy reformed across all levels: basic education, VET, for 2011-2020. This strategy sets targets to: meet the and tertiary education. Vietnam’s Workforce is requirements of the labor market in both quality and lacking quality and short of quantity. In CIEM’s quantity; improve Vietnam’s competitiveness; recent survey nearly 50% of employers claimed increase incomes; and ensure sustainable poverty that the education system does not meet their reduction and social welfare. These policy objectives skills needs both non-cognitive that are will contribute to narrowing the gaps revealed by the established in basic education and technical that SABER-WfD benchmarking results. However, are established in VET and tertiary education. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 14 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 The needs of reforming Vietnam’s education On System Oversight: system across all levels are also asserted in: the Vocational Training Strategy in period 2011-  Renovate the qualification structure by 2020; the Master plan for Vocational Training in establishing a set of national occupational skills period 2011-2020; the Master plan for Human standards and standard-based curricula. Resource Development; and the Education Strategy.  Continue to improve the quality by ensuring that VET institutions are accredited and meet at least  The voice and the participation of business and minimum service standards, and by encouraging industry in establishing and implementing WfD the support of professional associations in priorities is passive, ad-hoc and quite limited. developing relevant standards for their Vietnam could start effective partnerships with members. industry at strategic level by setting up a national coordination body consisting of businesses,  Encourage non-state provision with financial and government and key training institutions. This non-financial incentives. type of mechanism could also be replicated at provincial and local levels to increase its reach. On Service Delivery:  Expand the scope of new training, re-training and upgrading of the workforce by encouraging  Introduce VET delivery schemes in conjunction the private sector to participate in vocational with industry training activities and by transforming state- owned vocational training institutions into units  Strengthen the monitoring and evaluation of VET of public service delivery that take responsibility institutions by establishing instruments and for their spending. indicators for assessing VET institutions’ performance.  State management mechanisms on vocational training need to be in accordance with market  Reform state management of VET through the demand and the specific requirements of decentralization of state management employers. authorities, and ensuring autonomy and accountability for action, self-motivation and creativity at various levels.  Support the training of high-quality workforce, especially technicians, for prioritized industries. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 15 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 5. Detailed Results | Strategic Framework clarifying the specific areas for focus to achieve a breakthrough in WfD remains a challenge. Policy Goal 1 | Articulating a Strategic The top political institutions such as Central Direction for WfD Communist Party, Governments, and political leaders all provide sustained leadership and direction on The results of the SABER- issues of WfD. September 2008 marked the WfD benchmarking exercise establishment of the "National Steering Committee indicate that for Policy Goal 1 on Training towards Society's Demand" Vietnam’s score is at the (NSCTSD)which is headed by the Deputy Prime established level. Detailed results for the three Minister. Members of the Committee are deputy underlying Policy Actions are shown below and Ministers from various Ministries including Ministry highlight the degree to which the country prioritizes of Planning and Investment (MPI), MOET, MOLISA, WfD, whether its priorities are based on assessments Ministry of Finance, Ministry of Industry and Trade, of future economic prospects, and whether existing Ministry of Transportation, Ministry of Health Care, policies take such analyses into account. Ministry of Agriculture and Rural Development, Ministry of Culture, Sports, and Tourism and Ministry of Information and Communications, the State Bank  Advocate for WfD as priority for of Vietnam, the Office of the Government, and two economic development Vice presidents of the People’s committees from This Action is scored at the advanced level. The high Hanoi and Ho Chi Minh City. The mandates of the score reflects the abiding awareness of Vietnam’s committee are to consult the Prime Minister in leaders regarding the key role of WfD in economic making and implementing policies in training development. towards society’s demand. Although broad-based consultation within the government is The political leadership at all levels is highly commonplace, industry and business have not committed to enhancing the skills of the labor force. played a significant role in identifying and From one generation to the next, Vietnam’s leaders implementing WfD policies. have emphasized that “education is the leading national policy”. The Party Congress defines the orientation and direction for economic development,  Evaluate economic prospects and including workforce development (every five years) implications for skills and they have repeatedly affirmed that "Education This Action is scored at the emerging level. Policy and training are the top priority in national policy 18" makers in Vietnam appreciate the role of WfD in in economic development. economic development and rely on numerous The Strategy for Socio-economic Development studies to inform their assessment of the country’s places human resource development as one of three economic prospects and related skills implications. main pillars for Vietnam’s economic growth. 19 It However, the ad-hoc and general nature of the envisions an ambitious agenda for WfD that includes studies limits their utility. More in-depth analysis and strengthening foundational skills and formal pre- more targeted studies would be an important tool to employment training, expanding training for better inform policies and implementation. This vulnerable populations, and responding effectively score also reflects the fact that many promoted WfD to specific priorities for economic growth. However, polices are still at initial stage of implementation. The three key government agencies involved in WfD are the MPI, the MOET, and the MOLISA. These 18 agencies collect information through their provincial See “Documents of Tenth National Congress of Vietnam Communist party”, “Documents of Eleventh National Congress of affiliates and through ad-hoc surveys. On the basis of Vietnam Communist party” these data as well as input from development 19 The other two pillars are market institutions and partners, the various ministries assess the WfD infrastructure. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 16 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 situation in Vietnam as part of the process for policy Various surveys and reports have identified skills development. Input from employers and industry imbalances as a major issue in Vietnam. GDVT under champions are sought mainly through seminars and MOLISA conducts annual assessments on the gap occasional surveys. Relevant examples are: the between the supply and demand for skills; these survey on electrical, electronic, motorcycle and reports have tended to be descriptive rather than automobile sectors conducted by the University of analytical in nature. There are also ad-hoc studies Hiroshima, Japan in cooperation with UNIDO in conducted by MPI, the World Bank, JETRO and other Vietnam and the Vietnam National Economics international organizations in cooperation with University for the study "Skill development for various Vietnamese agencies. Vietnam's industrialization" (2009); and the study The various reports and studies sponsored by "Higher education and Skills for growth"(2008) MOLISA, MOET and provincial governments inform produced by the World Bank in cooperation with the the deliberations of the NSCTSD. Based on these Institute of Labor Science and Social Affairs. These studies as well as consultations with schools, surveys usually focus on specific issues such as the universities, industry, corporations, and local cooperation between FDI enterprises and TVET, or authorities, the Committee issued the Vocational shortage of labor with higher education or improving Training Strategy and Master Plan for Human quality of higher education in Vietnam, they are Resource Development for the period 2011-2020. necessary but not sufficient for identifying the right The Strategy and Plan envision curricula reform to policies for workforce development. respond to demand for skills by specifying that only 60% of curricula is to be determined by MOET or  Develop policies to align skills MOLISA with the remaining 40% to be decided by demand and supply the training institutions. It also requires that training This Action is scored at the emerging level reflecting institutions publicly announce the criteria for a lack of in-depth and comprehensive analyses of the graduation and for certification of skills. skills gaps and mismatches. Box 2: Development of Policies to align the gap between supply and demand of skills National congress of Vietnam National Assembly Communist Party Approved Resolution that mentioned guideline on Approved Strategy for Socio-Economic Development human resource development MPI in cooperation with MOET and MOLISA Prepare Masterplan for human resource Prepare Strategy for human resource development development National Steering Committee MOET and MOLISA in cooperation with MPI on Training towards Prepare strategy for education development Prepare strategy for vocational training Materplan for Education developmet Masterplan for vocational training Society's demand (NSCTSD) Implementation Related ministries, Province People's committees implement plans promote training and education Training and Education Schools; Corporations schools SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 17 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Policy Goal 2 | Prioritizing a Demand- Party Congress; b) Strategy for Education led Approach development in Vietnam 2011-2020; c) Master plan for Vocational training 2011-2020. The policies encourage the development of workforce skills Policy Goal 2 examines the through targeted incentive programs and other important role that users of measures. skills play in influencing WfD outcomes. The Policy Incentive programs under the National Targeted Actions under this Goal Programs for Poverty Reduction include: a) Program focus on the following: employers’ engagement at for Rapid Reduction of Poverty in 61 poor Districts the strategic level; government incentive programs (Decree 30a/2008/NQ-CP); and b) the Project on for skills upgrading; and efforts to address future Training for Rural Workers to 2020 (Decision skills challenges. The overall score for this Policy Goal 1956/QĐ-TTg dated 27/11/2009). More generally, is at the emerging level. the government encourages skill upgrading by reimbursing at the rate of 50%-100% of training cost,  Promote demand-driven enterprises that recruit and train unskilled rural approach workers. Furthermore, firms that establish a vocational school or university are granted land, tax This Action is scored at the latent level reflecting the reductions and other fiscal benefits. limited participation of business and industry in establishing and implementing WfD priorities. Business and industry are involved as passive  Address critical challenges in participants in surveys and seminars conducted by the future supply of skills government think tanks, affiliated agencies or This Action scores at the advanced level in light of foreign organizations (e.g. JETRO, WB, Japanese concerted government effort, including explicit Universities). These channels enable business and assignment of responsibility for implementation, to industry to bring their priorities into the policy address skills shortages identified as impediments to making process. They contribute information to Vietnam’s long-term vision for economic and social inform policy decisions through ad-hoc channels, development. including by submitting their concerns directly to the MPI, MOET and MOLISA are all involved in evaluating NSCTSD or to the Training Support and Human challenges in the future supply of skills to support Resource Development Centre (see box 3). These industrialization and modernization of Vietnam’s agencies may take these concerns into consideration economy up to 2020. MPI prepared the Strategy and when recommending policies for government action. Master Plan for Human Resource Development However, the voice of business and industry is (2011-2020) which formally assessed the future inevitably passive and ad-hoc because they lack supply of skills in eight economic sectors, covering formal representation in the agencies. many industries as well as the state sector; these include ICT (Information and Communication  Strengthen firms’ demand for Technologies), Finance, Banking, Tourism, skills to improve productivity Environment and Natural Resources and Transportation. In preparing the Master Plan for This Action is scored at latent level reflecting the fact Vocational Training for the period 2011 – 2020, that programs providing incentives for skills MOLISA conducted formal assessments of upgrading are new and therefore have not yet been constraints in the supply of skilled workers. MOET’s evaluated for their impact on skills and productivity. assessment of critical skills challenges focused on the In the last two years Vietnam promulgated a number future supply of teacher and lecturers, engineers and of policies to narrow the gap between skills supply other highly skilled workers in science and and demand. These policies are contained in three technology. key documents: a) Strategy for Human Resources Development in Vietnam issued by the XI Communist SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 18 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Addressing the skills gaps identified in the Support from development partners, through assessments made by MPI, MOLISA and MOET will financial and technical assistance, could help require significant investments by the government. facilitate the government’s effort. Box 3: Entities focusing on assessing skills demand and supply SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 19 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Policy Goal 3 | Strengthening Critical priorities requires active cooperation among the Coordination various entities involved and collaboration with other stakeholders. The mechanisms for doing so are at a nascent stage of development particularly Policy Goal 3 examines the for the cooperation between enterprises/schools strength of critical and state’s agencies. coordination among key stakeholders to ensure effective WfD. The first Policy Action associated  Institutionalize the structure of with this Goal is concerned with the quality of WfD roles and responsibilities coordination mechanisms among WfD leaders; the This Action scores at the established level. Many second, with how formally roles and responsibilities legal documents specify the roles and are defined; and the third, with the existence and responsibilities of WfD stakeholders but there are quality of regular interaction among stakeholders. significant overlaps and the roles and Vietnam’s score for this Policy Goal is at the responsibilities of employers and industry are not established level. clearly specified. The Vocational Training Act (2006), the Education  Ensure coherence of key Act (2005 and amended in 2009), and the Tertiary strategic WfD priorities Education Act (2012) define legal responsibilities of This Action scores at the established level reflecting the relevant government authorities involved in the fact that a formal mechanism exists linking WfD. In addition, specific implementation decision making at the central level to policy action responsibilities have been defined for the relevant in the provinces, thus ensuring coherence of key Ministries and the Provincial People's Committee strategic WfD priorities. under the Master Plan for Human Resource Development (2011-2020), and the Master Plan for Key leaders at the apex level are actively involved in Vocational Training (2011-2020). The relevant strategic WfD matters through formal structures entities have, moreover, received allocations from such as the NSCTSD and the Human Resource the State Budget and National Targeted Programs Development Centre. MPI presides over the to carry out their functions. formulation and implementation of overall strategy and coordinates with provincial authorities, MOET, MPI, MOLISA, MOET and Provincial People's MOLISA and other Ministries to specify related Committees publish annual reports on WfD but action plans; it consolidates the targets and these are available only internally. The mass media solutions in these action plans into the Master Plan can sometimes access these documents through for Human Resource Development (2011-2020) and informal channels. into the country’s five year plan for socio-economic In contrast to the clarity of roles and responsibilities development. MOET and MOLISA preside over the within government those of business, industry, and development and implementation of strategies for employees have not yet been institutionalized. education development and vocational training, respectively, in coordination with other ministries  Facilitate communication and and local authorities. interaction among all WfD stakeholders Deliberations on WfD challenges at the apex This Action scores at the emerging level given that leadership level have led to positive outcomes. Not the mechanisms for communication and interaction only have they clarified the overall strategy and among all WfD stakeholders remain informal and action plans but they have also set specific targets somewhat sparse. At present, only representatives and goals for budget allocation. These plans are of industry, among the various stakeholders, have currently being implemented. Sustaining coherence access to policy makers through a formal in the implementation of the key strategic WfD mechanism. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 20 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 The communication among the stakeholders occurs occurs mainly through informal channels, including mostly through mechanisms of institutional and ad-hoc research, seminars and surveys. For administrative hierarchies. Thus, training providers example, NSCTSD organizes conferences on skills communicate their concerns and input through supply and demand and invites the participation of Provincial People's Committees and the relevant industry leaders, managers of industrial parks, as Ministries, which in turn consolidate and pass on well as representatives from universities and these concerns and input to the MPI and the Office training institutions. In addition, the Training of the Government. Support and Human Resource Development Centre serves as a bridge linking industry to policy making Communication between business, industry and agencies and to training institutions (see box 3). employees and the relevant government agencies SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 21 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 6. Detailed Results | System Oversight programs are sufficiently prepared to pursue academic higher education. As a result, universities Policy Goal 4 | Diversifying Pathways and colleges seeking to increase enrolment admit for Skills Acquisition students with little regard for whether or not they are qualified. One possible remedy is closer cooperation between secondary vocational training Policy Goal 4 examines the programs and universities in program curricula diversity of programs and design to facilitate students’ transition to higher ease of movement education. between them, whether or not the system facilitates skills upgrading by providing information on emerging trends and  Promote life-long learning recognition of prior learning, and how well the This Action scores slightly above the emerging level. system is able to adapt to changing skills demand. Lifelong learning is not a new concept in Vietnam. The score for this Policy Goal is at emerging level. “Learn, learn more and forever” is a slogan that everyone hears from their first year of school.  Foster articulation across levels However, a coherent system to support lifelong and programs learning has yet to be realized. This Action scores at the emerging level. Pathways Universities and technical secondary schools are for students that graduate from vocational mandated to provide students with career programs at the secondary level to progress to services. 24 These services focus on providing higher education are defined by law 20. Graduates information about training programs and job from vocational secondary institutions are allowed opportunities after graduation as well as providing to apply to both vocational and academic colleges. job-matching services. At the secondary level, In many cases, students who meet certain career services comprise job training and career conditions set by the admitting institution are also guidance, which is a mandatory course provided to allowed to place out of courses on subjects that students in their final year. In addition, they have already taken. organizations such as newspapers and youth unions often organize job consultation conferences that Government regulation empowers heads of also provide ad-hoc career counseling. Family and vocational training institutions to establish formal personal contacts are another source of information relationships with other institutions to create about training and job opportunities. pathways for students’ progression to higher education, though it provides no specific incentives However, job-mentoring services seem to have for them to do so. Heads of institutions enjoy limited impact on students’ career decisions. considerable freedom when designing this type of According to an online survey of 30.648 people partnership 21 , however, programs established conducted by the MOET in 2010, 57% of those jointly with colleges or universities under MOET surveyed said that their choice to take their current require a license from the Ministry 22. job was based solely on their own information and inclinations and only 31% said that they were Some critics argue that such programs are not influenced by advice from family and teachers. 25 effective 23. One reason is that it is difficult to attract students because few graduates of vocational 20 Decision 53/2008/QD-BLDTBXH and Inter-circular 24 27/2010/TTLT-BGDDT-LDTBXH Technical Secondary School is translated from Vietnamese: 21 Decision 53/2008/QD-BLDTBXH Trung cap chuyen nghiep. Decision 68/2008/QD-BGTDT of the 22 Article 4&7 Inter-circular 27/2010/TTLT-BGDDT-LDTBXH Minister of Education and Training 23 25 Tran Huynh, Ha Binh (2011): Articulation programs from Interview Mr. Hoang Ngoc Vinh – Head of Technical vocational training programs to college and university: too Secondary Training, MoET, by Thanhnien online dated 11 easy. Published on the Tuoitreonline. 31 October 2011. September 2010. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 22 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 In addition to programs of vocational training Figure 14: Reasons for introducing new programs (%) institutions, a number of publicly-funded training 70 programs are made available for disadvantaged 60 Percentage of institutions groups such as farmers living in rural areas, women 50 and war-invalids. For example, the program on job 40 training for rural laborers aims to provide training 30 for approximately one million people per year by 2020. The total budget for this training program is 20 estimated to be VND 25.980 billion. 26 10 0 Other (mainly Independently At the direction of Submission of  Set policies and procedures to request from the government, request to a higher enterprises) ministry or authority (please renew programs government agency specify) This Action is scored at the emerging level. Source: Vocational Training institutions Survey. CIEM. Procedures for introducing or adjusting vocational training programs are done in accordance with the Regulation on Registration of Vocational Training. 27 The GDVT is responsible for reviewing applications from vocational colleges, colleges and universities while the Provincial Department for Labor, War Invalids and Social Affairs (DOLISA) is in charge of handling applications from technical secondary schools, vocational training centers, vocational schools and other vocational training institutions. However, procedures for closing vocational training programs are not clearly laid out in the law, leaving decisions to close programs to training providers. Results from the Vocational Training Institutions survey show that the majority of new programs are opened at the direction of government agencies while few are opened at the request of business and industry (see figure 14). 26 Decision No. 1956/QD-TTg of the Prime Minister dated 27 October 2011 on approving program on job training for rural workers by 2020. 27 Circular No. 29/2011/TT-BLDTBXH SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 23 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Policy Goal 5 | Ensuring Efficiency and student fees and charges are the main source of Equity in Funding funding for others. Training providers are also allowed to generate and retain revenues though this accounts for a small proportion of institutions’ Policy Goal 5 focuses on the total budget (see figure 16). Some argue that government’s role in funding incentive mechanisms to encourage providers to WfD, ensuring efficient and generate revenues or seek additional financial effective use of available support from the business community are funds, and in fostering partnerships that can inadequate. 29 multiply the resources available to encourage and support investment in WfD by individuals and Public VET institutions at secondary and post- employers. This Policy Goal scores at a high latent secondary level receive public funding through the level. trainee-quota system, which allocates funding to institutions based on student enrolment at an average rate of VND 4.3 million per trainee per  Articulate funding strategy year. 30 Vocational training centers do not receive This Action is scored at the emerging level. The funding from the annual government budget but responsibility of developing an annual national rather from specific program funding. training funding plan lies with the GDVT. The GDVT Figure 15: State budget expenditures on education, solicits anticipated budgetary needs from individual training and vocational training from 2008-2012 vocational training institutions, which forward their institutional training plans to the provincial DOLISA. 180000 19.00 DOLISA consolidates these requests into a provincial 160000 18.50 training funding plan, which is then submitted to 140000 the GDVT to serve as an input into the fiscal 120000 18.00 planning process at the national level. The GDVT 100000 17.50 then takes the consolidated national funding plan to 80000 17.00 the Ministry of Finance (MOF) to be used in the 60000 16.50 annual budget allocation. 40000 16.00 20000 Funding for vocational training is included in the 0 15.50 budget line for education, which accounted for 2008 2009 2010 2011 2012 1 2 3 4 5 more than 18% of total state expenditure from 2010 to 2012, an increase of 2 percentage points Total Expenditures (VND billions) Total Expenditures (% of total expenditures) from the previous period (see figure 15). The Source: Government statistics portion of education funding devoted to vocational Selected publicly-funded programs, such as the training has been increasing gradually from 4.9% in program for vocational training of rural laborers, 2001 to 9% in 2010. 28 also receive support in the form of earmarked The state budget provides approximately 60% of funding for training materials and equipment. the total operating budget of vocational training institutions in Vietnam. Another 20% comes from  Allocate funds to achieve student fees.26 However, the relative importance of efficient results different sources of funding varies considerably across institutions, with some training institutions relying heavily on the government funding while 29 Interview with Headmaster of Thang Long Vocational College 28 30 Nguyen Tien Dzung (2012): Reforming and developing GDVT-GTZ (2007): Financing of Technical and vocational vocational training to meet human need of industrialization Education and training (TVET), Vietnam. This funding norm was process. set on the basis of a cost calculation in 1998. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 24 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 This Action is scored slightly above the latent level. statutes, but even then their participation is more Decisions on the allocation of funds to training often a procedural formality than it is done to make institutions are made by the organization that substantive contributions. oversees them (direct management). In cases The Vietnam Association of Vocational Training was where institutions are owned or managed by founded in 200733 to bring together organizations provincial and district bodies, funds are channeled and individuals who are interested in promoting through the provincial government and allocation development of vocational training. However, the decided as part of the provincial budgeting process effectiveness of this new association in promoting that involves the DOF, the DOLISA and the partnerships between the WfD authorities and Provincial People’s Committees 31. stakeholders has not yet been demonstrated. However, fund allocation decisions are not based on explicit criteria. Nor is there evidence that the decisions take into account WfD priorities, efficient resource use and outcomes achieved by training institutions. For instance, indicators such as graduations rates and employment outcomes of graduates are not taken into account when determining fund allocation 32. Figure 16: Average percentage of funding mobilized by training institutions by type of source (%) 60 50 40 30 20 10 0 Fundraising Other Industry Student fees or Government (Benefactors, partnerships school charges (includes donations, paid by the national, state, parent’s or students regional and student’s local) fundraising) Source: Vocational Training institutions Survey. CIEM.  Foster partnerships This action is scored at the latent level because there are no explicit and systematic arrangements for partnerships between WfD authorities and other stakeholders to provide resources for the WfD system. Stakeholder input is generally confined to providing comments during the policy consultation process when required by relevant laws and 31 GDVT-GTZ (2007): Financing of Technical and vocational 33 Education and training (TVET), Vietnam. Decision No. 996/QD-BNV dated 30/7/2007 of the Ministry of 32 Interview with headmaster of Thang Long Vocational College Home Affairs SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 25 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Policy Goal 6 | Assuring Relevant and longer meet accreditation standards. However, Reliable Standards procedures for renewal of accreditation after the five year period are not explicitly defined in the law. The first nine colleges have been accredited This Policy Goal examines successfully by GDVT in 2009 39. how the system can assure the quality of both the services offered by  Strengthen skills testing and training providers and of certification the skills acquired by individuals through reliable This Action is scored at the emerging level because procedures for accreditation and skills certification. regulations setting procedures for skills testing and The score for this Policy Goal is at the emerging certification have only recently been issued40. level. National skills testing includes components that test both theory and practical competencies. Only  Specify accreditation applicants that pass the theoretical component can standards take part in the test of practical knowledge. This Action is scored right at the emerging level. National skills testing is administered by specialized According to the Law on Vocational Training, all testing centers or vocational training institutions institutions offering vocational education and licensed by the GDVT 41. The GDVT is responsible for training need to be accredited periodically. 34While certifying results submitted by testing centers and accreditation procedures are the same for all issuing certificates to those who pass. The GDVT is institutions 35 , separate laws set accreditation also in charge of developing a test bank and standards for vocational training center 36 , certifying examiners. Cost for testing is fully vocational secondary schools 37 and colleges. 38 supported by the GDVT39. Figure 17 illustrates the four steps in the However, testing according to these new accreditation process. procedures has just begun in December 2011. The Accreditation is done by a committee comprised of first test was organized by the Hong Cam Mining five to seven members who are appointed by the College with the participation of 75 applicants from General Director of the GDVT. This committee member companies of the Vietnam Mining and Coal assesses the self-accreditation reports submitted by Group. The second round of testing under this new training institutions and conducts field surveys and regime was administered by the Hung Vuong interviews with related stakeholders, including Technical Secondary School 42 in Ho Chi Minh to teachers, instructors and students. Accreditations pilot testing in the areas of art and design and standards define three levels that are delineated by electro mechanics. the degree to which institutions meet accreditation The content of skills testing is based on a national criteria. Only training institutions that meet the framework of occupational standards. Each ministry threshold for the highest level of compliance, set at is charged with developing occupational standards having received at least 80% of total possible for sectors for which it has responsibility in points, are certified by MOLISA. consultation with the GDVT. According to the Law on Vocational Training, accreditation is valid for five years but may be withdrawn if training institutions are found to no 39 See www.vietNamNet.vn. dated 07/03/2009 - 03:37 34 40 Chapter VIII of the law on vocational training Circular No. 15/2011/TT-LDTBXH for skills testing and 35 Decision No. 8/2008/QD-BLDTBXH Decision No. 9/2008/QD-BLDTBXH on the development of 36 Circular 19/2010/TT-LDTBXH national skills occupational standards. 37 41 Decision No. 1/2008/QD-BLDTBXH Circular No. 15/2011/TT-LDTBXH 38 42 Decision No. 2/2008/QD-BLDTBXH http://www.hungvuongtech.edu.vn SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 26 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Figure 17: Accreditation process However, the development of occupational accreditation are the opportunity to attract better standards has only been completed for a few students or teachers and to provide a wider range occupations such as mining exploitation, electro of programs (see figure 18). mechanics and underground mining. This is a very small number in comparison to the 301 and 385 Figure 18: Benefits perceived by accredited training occupations for which training is offered by institutions (%) vocational colleges and secondary schools, 90 respectively 43. 80 70 60 50  Assure credibility of 40 accreditation and of skills 30 20 certification 10 0 This Action is scored at the emerging level, Enabled it to be Made it eligible to Increased its ability Provided it with the reflecting the limited scope of the implementation selected for joint programs with compete for to attract better government funding students/teacher opportunity to provide a wider of accreditation up to now. There have been only 76 industry range of technical/vocational training institutions accredited during the period programs from 2008 to 2010. There are several reasons that Source: Vocational Training institutions Survey. CIEM. explain why a relatively low number of institutions have sought accreditation. First, accreditation is not a requirement for operation 44 . Second, accreditation does not yet serve as a public signal of institutional quality. Instead it is done primarily for the purpose of helping vocational training providers diagnose areas that need improvement. Also, a large number of training institutions are simply not ready to go through the accreditation process. Finally, the GDVT does not have the human resources to accredit and audit all training providers annually. As a result, training providers do not have strong governmental incentives to seek and retain accreditation. Indeed, the training institutions survey shows that currently the greatest benefits of 43 Interview with Mr. Duong Duc Lan, vice director of GDVT, by baomoi.com on 9 December 2011. 44 It is expected that accreditation requirement will be mandatory for all training providers by 2020, GDVT said on a newspaper. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 27 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 7. Detailed Results | Service Delivery training schools and are involved directly in training programs. Policy Goal 7 | Fostering Relevance in According to CIEM’s Institution’s Survey, the most Training Programs popular form of collaboration between training institutions and industry is the provision of internships Policy Goal 7 focuses on for students followed by cooperation in securing job strengthening linkages with placement for recent graduates (see figure 19). industry and research Linkages in other areas are weaker. institutions, integrating Figure 19: Forms of collaboration between TIs and industry industry inputs into the design of training programs, /employers (% of institutions) and enhancing the competence of administrators and instructors in training institutions. Vietnam’s score for this Policy Goal was above the emerging level of development, indicating positive changes in all three Policy Actions.  Link training, industry, and research institutions This Action scores at the emerging level as there is some cooperation between industry, research institutions and training institutions to improve training relevance and quality. Also, training delivery by industry is legally encouraged and has expanded in Source: Vocational Training institutions Survey. CIEM. recent years 45. For example, the Law on Vocational Training stipulates that private and public enterprises In general, not many institutions are able to attract are eligible to establish vocational training school to industry and research institutions for partnerships. provide training services (Article 55). Also, an Also, for those engaging in cooperation with industries enterprise’s investment and expenses associated with and research institutions, the scope of cooperation is training activities provided for its employed workers still limited, partly due to the lack of clear-defined can be deducted from taxable income (Article 56). policy incentives in Vietnam. In Vietnam links between training, industry and research institutions are often established on a  Design training with industry contract basis, thus the scope of cooperation varies inputs widely by case and usually depends on existing This Action is scored exactly at the emerging level as relationships between training institutions and their industry stakeholders do not usually participate in the partners. According to the Law on Vocational Training, management boards of public institutions and, institutions have the right to provide joint training therefore have little direct influence over the with the enterprise sector. The Law, however, does identification and prioritization of training offerings. not specify the form of linkages. Most state-owned Special cases, where employers join the management business groups in Vietnam have their own vocational board, can be observed only in training institutions owned by State-owned Corporations. Industry can provide some inputs for the design of 45 formal training programs through participation in the No formal database exits. However, an estimated number of a thousand enterprises and business establishments and educational Appraisal Boards of the Vocational Training program institutions established by the enterprise sector were providing frame for secondary and post-secondary education at vocational training services in 2010 (Tran Thi Tuyet Mai, 2011). SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 28 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 the national level (see box 4). At the elementary level, heads of training institutions as well as programs for such program frame is not required, which means that capacity building of permanent staff (see figure 20). headmasters of institutions have the right to take full responsibility for designing training programs. Table 4: Who develops curricula for courses offered? Box 4: Appraisal of Vocational Training program frame Diploma Professional for secondary and college education Own institution 34 (over total 49) 31 Another party 23 (over 49) 19 The Vocational Training program frame for secondary and college instruction shall be developed by MOLISA in Other party is 4 3 collaboration with relevant ministries. In order to do that, industry the MOLISA shall establish a Directory Board for If another party, Singapore partner; Foreign partner; who is involved? partner institutions; guidance from development of the VT program frame for each curriculum frame Ministry of professional occupation at secondary and college level. A base from GDVT; Transport; partner VT program frame for each training field should be enterprises, hotels; institutions; designed and then appraised by the Appraisal Board as Houston University; curriculum frame regulated in Decision No. 01/2007/QĐ-BLĐTBXH issued by partners in joint- base from GDVT; MOLISA Minister on 4/1/2007 (Article 13 and Article 14). programs. enterprises, hotels; The MOLISA shall decide on the formation of the Houston University; Appraisal Board, setting tasks, rights, number of members partners in joint- and their qualification/requirements and working programs. mechanisms. Source: Vocational Training institutions Survey. CIEM. It is stipulated in Appendix 14 in Decision No. 01/2007/QĐ-BLĐTBXH that members of the Appraisal According to the Law on Vocational Training heads and Board for each occupation shall include: VT instructor; instructors of training institutions must meet manager in the the field of VT and technical minimum academic qualifications, but no regulations cadres/expert from industry sector. The number of on the minimum years of industry experience exist. members varies from 7 to 9, depending on the Moreover, regulations on minimum years of teaching requirement for each occupation to be appraised. or managing experience are applicable only to The Chair of the Appraisal Board shall be responsible for headmasters in secondary and post – secondary the appraised result and report it to the General Agency institutions and not to those of vocational training for Vocational Training. Finally, the General Agency for centers 46. Vocational Training shall complete the appraisal files with the draft program frame and submit it to the MOLISA for approval Source: Law on VT and Decision No. 01/2007/QĐ-BLĐTBXH issued on 4/1/2007 The results of the CIEM’s training institutions survey indicate that even though many institutions are involved in the development of the curricula of the courses that they offer, the collaboration with industry is limited (see Table 4).  Improve competence of administrators and instructors This Action scored at the emerging level as there are minimum standards for recruitment of teachers and 46 Article 46 regulates that headmaster of secondary and college TIs must have at least five years of experience in teaching or management of vocational training. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 29 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Figure 20: Opportunities offered for professional Recruitment and retention of instructors and development at institution level headmasters in public training institutions are said to be based on the past performance. However, criteria for identifying “performance” are still lacking, thus many instructors meet the required academic qualifications, but do not meet the teaching requirements. This issue has been exacerbated by the drastic increase in the number of institutions after the Law on Vocational Training came into effect in 2007 47. Several in-service programs for professional development have been launched for instructors and headmasters (see figure 20), however they tend to be limited in content and scope. Training courses for administrative staff and instructors are often short- Source: Vocational Training institutions Survey. CIEM. term, focusing on theory rather than practice, and not well coordinated by vocational training – related State agencies at local and central level. The industry experience of administrators and instructors is still lacking and is increasingly an obstacle for many training institutions except those owned by industries. The renovation and development of vocational training is one of the six key areas under the National- Targeted Program on Employment and Vocational Training for the period from 2012 to 2015. Together with the Strategy for Vocational Training Development from 2011 to 2020 48 , this promises to improve instructor qualifications and skills, but is still in the kick-off phase. Support from international organizations has contributed to strengthen the competence of a limited number of instructors. 47 The number of instructors in VTIs increased 5.6 times from 5,849 in 1999 up to 33,000 in 2010 due to the large expansion of VTIs in the last 10 years. This caused an imbalance between supply and demand of qualified instructors and many instructors are lacking in industry experience required for VT (Nguyen Minh Duong, 16/4/2012. http://gdtd.vn/channel/3006/201204/ 48 Decision No. 630/QD-TTg dated 29 May 2012. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 30 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Policy Goal 8 | Fostering Relevance in have not been reviewed and renewed based on Training Programs effectiveness due to the lack of evaluation criteria. Policy Goal 8 examines the  Incentivize private providers to diversity in training provision meet WfD standards and the incentives to both encourage private providers This Action is scored exactly at the emerging level as a to meet WfD standards, and system of incentives for capacity building of motivate public institutions to respond to the evolving institutions exists across all types of providers. The demand for skills. Vietnam’s score for this Goal is at Law on Vocational Training includes regulations on the emerging level. training quality and defines national skills standards for qualification of each training field that apply to both private and public providers. However, not many  Promote diversity in training private providers are capable of meeting all criteria of provision training quality since they are often small-sized, This Action scored as advanced, which reflects the lacking in managerial staff, teaching facilities, school openness to non-state participation in education and buildings and grounds (see figure 21). training in place since the early 90s, as well as the existence of a system of incentives in place for Figure 21: The most important constraint for delivery of effective training services (% of institutions) promoting private training provision. The number of non-state training institutions increased only after the Law on Vocational Training took effect in 2007. The Law encourages the establishment of domestic and foreign private institutions and promotes linkages between them in service delivery 49 that include joint training programs and research. The Law also provides a unified framework for service provision regardless of ownership of training institutions. In general, vocational training institutions provide diversified training services at all levels of instruction. By June 2011, there were 128 Vocational colleges, 308 Source: Vocational Training institutions Survey. CIEM. secondary VTIs, 908 vocational training centers and over 1000 training institutions with attached In general, incentive schemes to improve training vocational training classes 50. Experts estimate that quality are applicable to all providers in the national around 30% of the vocational training institutions vocational training system, but most of the licensed by MOLISA and 25% of the institutions beneficiaries of the financial incentives have been licensed by MOET with vocational training attachment state-owned training institutions. For example, have private ownership 51. Like in other developing recently, the MOLISA approved the Project on countries, the high rate of private provision does not Development of focal/key occupations and the list of reflect the actual impact of the Government selected vocational training institutions to offer this incentives, but rather the ease of entry into the particular training in the period 2011-2015 52 . training market. In fact, few private providers have According to this policy, 246 vocational colleges and access to financial incentives and programs and the secondary schools have been selected for the Project, benefits tend to be limited. Also, incentive schemes of which 200 are public. The selected vocational schools are provided with support from the central 49 52 Article 50, paragraph 1c of the Law on VT. Decision No. 826 /QĐ-LĐTBXH dated on 7, July, 2011. Attached 50 http://www.gdtd.vn; ngay 26/9/2011. into this Decision is the list of 120 focal/key 120 occupations 51 This figure is estimated for 2008. approved by MOLISA. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 31 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 government, aimed at enhancing training quality by output targets for performance is missing. In fact, the upgrading instructional facilities, equipment, training evaluation of the performance of public providers is programs, curricula, instructors and managers (Article mainly based on quantitative indicators such as 2, Decision No. 826 /QĐ-LĐTBXH). On the other hand, enrollment and graduation rates, with little attention the implementation of the Project on Vocational paid to qualitative criteria such as training Training for Rural Laborers, in place through 2020 is qualifications and employer satisfaction. Finally, it is expected to provide opportunities for private difficult to evaluate the capability of staff in public institutions to receive financial support to enhance the training providers as no defined job description and quality of training. outcome requirements for positions exist. In reality, many public institutions have responded  Motivate public institutions to positively to quick changes in the labor market by respond to demand for skills improving their training services to meet the evolving This Action scored at latent level due to the absence of demand for skills. This, however, is driven more by the a strong mechanism to motivate public training increasing competition in the training market than by institutions to improve their training outcomes and an established system for outcome improvement. meet the demand for skills. Despite the existence of a reward system for well- performing training institutions that includes the payment of bonuses to employees, a defined set of SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 32 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Policy Goal 9 | Enhancing Accountability Apart from administrative data, graduation statistics for Results and budget reports, public training providers are required to collect data related to staff such as position and level of qualification, wage level and Policy Goal 9 is concerned report these to their respective management with systemic monitoring authorities. Data on assets accumulated through state and evaluation of the investment such as land are also maintained and demand for skills; reported. Client feedback is not regulated, but many procedures for data public institutions have established informal links with collection and management; and attention to employers and graduates with the aim of improving outcomes, efficiency and innovation in service their service quality and meet skills demand. For delivery. This Goal scores slightly below the emerging example, some providers such as the Viettronics level. Technology College (http://caodangvtc.edu.vn) get feedback from employers and graduates through  Strengthen monitoring and Alumni associations. Others have established a evaluation department for enterprise and graduates relation or This Policy Action scored exactly at the latent level due graduates association, for example the Information to the limited attention that monitoring and Technology College HCM city (http://itc.edu.vn). evaluation (M&E) receives in Vietnam’s WfD policy. Figure 22: Share of TIs collecting data The Vietnamese Law on Vocational Training does not comprise any article on M&E. In general, the demand for skills is monitored and evaluated by the MOLISA at the central level and by the DOLISA at the local level, mainly based on annual operation reports collected from training institutions. Occasionally, ad-hoc reports and survey data are used by management authorities for M&E of publicly- sponsored programs such as the Project on Vocational Training for Rural Laborers until 2020. While a large number of ad-hoc studies and surveys exist, the absence of a systematic database on WfD has been an obstacle for several years both at the central and local level. The annual survey on Labor and Employment has been conducted by GSO since 2007 Source: Vocational Training institutions Survey. CIEM. and is accessible to the public, but data on skills demand are still limited. Non-state providers are required to collect and report data on enrollment and staff. They are also encouraged to collect data on graduation and client  Specify reporting requirements feedback. Figure 22 shows that, according to CIEM’s by training institutions training institutions survey, private providers have This Action scores at the emerging level because data paid more attention to data on job search duration, at the institutional level are collected, but not graduate wages and feedback from employers in maintained and managed in an integrated information comparison public institutions. However, the main system and publically available for analysis. According uses of the data are for marketing purposes and to the Law on VT, institutions must provide necessary performance assessment at the institution level, data requested by State management authorities rather than for reporting data to the government or whenever an inspection for training quality takes producing publicly available reports (see figure 23). place. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 33 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Figure 23: Use of collected data at the institution level  Increase focus on outcomes, efficiency and innovation This Policy Action scored at the emerging level as there are ad-hoc and institutionalized arrangements in place for M&E of training service delivery, but there is little evidence on the use of the results to improve skills development policies. M&E of the delivery of training programs financed by the state budget is often conducted through ad-hoc studies and performance audits. Similarly, monitoring and evaluation of training service delivery at the institution level is ad-hoc and can be done in different ways: regular assessment of institutional performance Source: Vocational Training institutions Survey. CIEM. through internal evaluation conducted annually by the In general, public and private institutions are required institutions or analysis of selected issues by to submit their operation reports to the relevant management authorities. authorities such as the DOLISA and/or their owners, often for State management purpose. However, there The influence of existing M&E arrangements over the are no regulations on the number of reports to be efficiency and innovation of service delivery is still submitted. Surprisingly, according to CIEM’s limited since M&E results fail to provide sufficient institution’s survey, 73.3% of respondents (33 over 45) information for improvement of service delivery. claimed to have submitted more than six reports to Furthermore, a clear set of criteria for M&E is lacking. the relevant ministries over the last school year (figure 24). Figure 24: Number of reports submitted to the ministry last school year Source: Vocational Training institutions Survey. CIEM. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 34 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 8. Vietnam’s Results in Comparison with  Vietnam’s mean years of schooling, at 5.5 years in 2010, lies between Singapore’s surprising those for Singapore and South Korea modest 3.7 years (even in 1980) and South Vietnam’s SABER-WfD scores may be compared with Korea’s 7.3 years (also for 1980); and those for South Korea and Singapore, two countries  Vietnam’s public spending on education, at for which data were collected for 1970, 1990, and nearly 5% of the GDP in 2010, exceeds by a 2010 using the same version of the SABER-WfD data large margin the shares of 3.2 % and 3.5 % for collection instrument. 53 To allow for differences in Singapore and South Korea, respectively, in level of development and to put the comparison in 1970. an appropriate frame of reference, the discussion below focuses on Vietnam’s ratings for 2010 in Table 5: Selected socio-economic indicators for Singapore, relation to those for the other two countries in 1970. South Korea and Vietnam It highlights key contextual indicators for the three Singapore Korea Vietnam countries before comparing scores across the three 1970 1970 2010 countries. GDP per capita (USD 2005 PPP) 1 7,218 2,808 2,780 GDP per worker (in USD 2005 Country context in Vietnam, Singapore PPP) 1 20,404 9,722 4,761 and South Korea Average growth rate of last 10 2 10.0 8.2 7.3 According to table 5, Vietnam’s economic indicators years (% p.a.) in 2010 lag behind those of both South Korea and Life expectancy (years) 3 68 61 75 Singapore in 1970. For example: Mean years of schooling of 3 3.7 7.3 5.5 adults  Vietnam’s GDP per capita in 2010 (constant Public expenditure on education 2005 PPP $) is on par with Korea’s in 1970 but 3 3.2 3.5 4.98 (% of GDP) much below Singapore’s in that year; 1 Data are from the Penn World Tables.  Vietnam’s GDP per worker, a measure of 2 Figures refer to the compound average growth rate from 1961-1970 worker productivity, in 2010 was less than a for Singapore and South Korea, and from 2001 to 2010 for Vietnam, fourth of Singapore’s and less than half that of all based on the World Bank’s World Development Indicators. 3 The data are from the UNDP’s International Human Development Korea’s in 1970; and Indicator; data for Singapore and South Korea refer to 1980.  Vietnam’s economy grew at an impressive 7.2% Source: authors’ construction based on sources cited in the a year in the decade prior to 2010, but both footnotes. South Korea and Singapore grew even faster in the decade prior to the reference year, at, respectively, 10.0 and 8.2 % a year. Overview of SABER-WfD Ratings The SABER-WfD analytical framework focuses on Vietnam’s human development indicators in 2010 three functional dimensions of the WfD system: are much better, however, compared with the Strategic Framework, System Oversight and Service corresponding statistics for Singapore and South Delivery. Vietnam’s WfD system in 2010 scores at Korea in 1970. For example: the “Emerging” level for all three functional dimensions, compared with Singapore’s and South  Vietnam’s life expectancy in 2010 is significantly Korea’s systems in 1970 which both scored at the longer than that in Singapore and South Korea “Established” level for Strategy and at the in 1970; “Emerging” level for the other two dimensions. While the results put Vietnam in a slightly unfavorable light, the gap is modest and the 53 prospects for improvement are good given The instrument has since been revised based on feedback from its application in the pilot countries which included Chile, Singapore’s and South Korea’s success over the years Ireland, Republic of Korea (referred to as South Korea in this in strengthening their systems on all three fronts. report), Singapore and Uganda. See Tan et al. 2013 for the Vietnam is fortunate because it can benefit from the updated instrument. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 35 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 examples of these and other countries that have an advanced level in much less than 40 years. Below successfully reformed their WfD systems. It is follows an explanation of areas of strength and reasonable to expect that Vietnam will have a much weaknesses in Vietnam’s system that may warrant shorter learning curve and that it will be able reach attention in light of the cross-country comparisons. Figure 25: Evolution of SABER-WfD ratings in Vietnam, Korea and Singapore Strategic Framework System Oversight Service Delivery 4 4 4 Singapore Singapore Korea Singapore 3 3 3 Korea Vietnam Korea 2 2 2 Vietnam Vietnam 1 1 1 1960 1970 1980 1990 2000 2010 2020 1960 1970 1980 1990 2000 2010 2020 1960 1970 1980 1990 2000 2010 2020 Comparing Ratings on the Strategic Framework ensure coherence of strategic WfD priorities and Dimension there is evidence that roles and responsibilities for In the SABER-WfD analytical framework the rating WfD are being institutionalized. These two features for strategic framework reflects the status of policies again put Vietnam on par with or just slightly behind and institutions associated with the following three the level of maturity of Singapore’s and South policy goals: (a) articulating a strategic direction for Korea’s systems in 1970. WfD; (b) prioritizing a demand-led approach for WfD; and (c) fostering critical coordination among Other aspects of the Strategic Framework dimension the key stakeholders. The scores for these rated less well. Efforts are at a latent level with components, along with the overall rating, appear in regard to strengthening firms’ demand for skills to figure 26. improve productivity; and they are at an emerging level for facilitation of communication and Figure 26: Comparing SABER-WfD Ratings on Strategy interaction among all WfD stakeholders. While modest, these ratings are nonetheless no worse than those for Singapore and South Korea in 1970, Overall perhaps pointing to the difficulty or lower priority of Framework developing these aspects at the early stages of Strategic 1. Direction aligning the WfD system to the country’s economic 2. Priorities strategy. Where Vietnam’s scores are weaker than Singapore’s and South Korea’s in 1970 is in area of 3. Coordination skills assessment and policy design, including the design of incentives to strengthen firms’ demand for 1 2 3 4 skills to improve productivity. Raising Vietnam’s Vietnam 2010 Korea 1970 Singapore 1970 modest scores on these aspects of the strategic framework would require efforts to make assessing Two aspects of the Strategic Framework in Vietnam’s the country’s economic prospects and its WfD system in 2010 earn high marks: the very strong implications for skills building a routine practice in advocacy of apex-level leaders and the explicit policy development. Doing so effectively means actions taken by policy makers to address critical institutionalizing analytical activities that now occur challenges in the future supply of skills. The ratings on an ad hoc basis. One option would be to for these two features put Vietnam in at least as formalize these activities in the work of local think favorable a position as both Singapore and South tanks. In South Korea and Singapore today such Korea in 1970. In addition, measures are in place to work is carried out by various national institutions SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 36 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 that were established and nurtured over the years, reflected in an “Advanced” level score by 2010), in including the Korea Research Institute for Vocational the process creating a system with “ladders and Education and Training and the Institute of Adult bridges” that offers students multiple routes to the Learning in Singapore. labor market. In terms of quality assurance, Vietnam’s system in 2010 shows no clear pattern of Comparing Ratings for the System Oversight weakness vis-à-vis Singapore or South Korea in 1970. Dimension Vietnam recently set up a competent-based testing The ratings on system oversight reflect the status of system, beginning with a limited coverage of policies and institutions associated with the occupations. South Korea also started off modestly following policy goals: (a) diversifying pathways for in 1970, using standards borrowed from abroad, for skills acquisition; (b) ensuring efficiency and equity in only 15 occupations. Sustained effort over the years funding; and (c) assuring relevant and reliable has created South Korea’s strong national standards. The scores for these components, along competency standards system today—one with with the overall rating, appear in figure 27. standards defined for at least 250 of the occupations in the country’s leading and emerging industries. Figure 27: Comparing SABER-WfD Ratings on System On the policy goal of ensuring efficiency and equity Oversight of funding, Vietnam’s system in 2010 generally lags behind Singapore’s and South Korea’s in 1970, in Overall that order. Unlike in Singapore and Korea, explicit System Oversight criteria are not routinely used to ensure alignment 4. Pathways between funding allocation and WfD priorities and to foster efficiency in the use of resources. Routine use 5. Resources and evaluation of such criteria can be expected to 6. Standards become more important as Vietnam’s spending on vocational training grows from its currently small 1 2 3 4 share of public spending on education and training. The gap in system maturity between Vietnam in Vietnam 2010 Korea 1970 Singapore 1970 2010 and Singapore in 1970 is also substantial in the area of partnership with stakeholders in industry and On the policy goals relating to pathways and to business. Such partnerships in Vietnam today are standards, Vietnam’s WfD system in 2010 scores at organized on an ad- hoc basis between individual the “emerging” level, the same level as in Korea and institutions and firms. South Korea’s system in the Singapore in 1970. On closer examination, the scores 1970s was also rated at the latent level for indicate that some aspects of the system are more partnerships but the situation has evolved in developed than others. The introduction of new subsequent years. Today, both South Korea and programs and adjustment to existing ones, for Singapore have robust levy schemes that formalize example, are governed by explicit procedures in employer contributions to fund investments in Vietnam whereas in Singapore and South Korea in worker training. the 1970s such decisions were generally decided on an ad hoc, case-by-case, basis. Vietnam’s system in Comparing Ratings for the Service Delivery 2010 is also better articulated across levels and Dimension programs than Singapore’s in 1970 but less so than The rating for service delivery reflects the status of Korea’s. Nonetheless, there remains significant room policies and institutions associated with the for improvement given the public’s continued following policy goals: (a) fostering relevance of perception of vocational programs as a second-best training programs; (b) incentivizing excellence in option, one that serves merely as a stepping stone training provision; and (c) enhancing accountability toward an academic education. Singapore has for results. The scores for these components, along successfully tackled this issue over the years (as with the overall rating, appear in figure 28. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 37 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 However, Vietnam’s system lags behind the other Figure 28: Comparing SABER-WfD Ratings on Service two countries in benefiting from routine delivery arrangements that generate data and analysis for continuous monitoring and evaluation of the status of skills demand and supply. Overall Service Delivery 7. Content The prospects for improvement in Vietnam are good if the experience of Singapore and South Korea is any 8. Incentives guide. In the decades since 1970, both countries have put in place routine, system-wide processes 9. Outcomes that boost the relevance, dynamism, and accountability of training provision. South Korea’s 1 2 3 4 score did not improve until after the 1990s and Vietnam 2010 Korea 1970 Singapore 1970 remains lower than Singapore’s in 2010, reflecting the country’s historically more centralized approach to training provision. In the early decades of state- Vietnam’s overall score for the service delivery led industrialization, the government took an active dimension puts the system at an “emerging” level of role in defining training curricula and in managing development in 2010, which is comparable to the training institutions in an effort to align the supply of rating for Singapore and South Korea in 1970. Closer skills with the requirements envisaged in successive inspection reveals common challenges as well as Five-Year Development Plans. Today, this top-down differences across the three countries. Scores were approach has begun shifting toward one in which modest in all three with regard to designing training institutions have more autonomy to respond to programs with industry input and to increasing the industry demand while they are also monitored demand-responsiveness of public training against performance targets (e.g., labor market institutions. In a few areas Vietnam in 2010 was outcomes of graduates and employer satisfaction). ahead of either Singapore or South Korea in the Singapore has moved more rapidly in this direction 1970s. It had an edge over Singapore in having and has managed by 2010 to create an efficient, practices that systematize the recruitment and diversified and responsive system of training retention of appropriately qualified and motivated provision. Its more decentralized approach of administrators and instructors; and in requiring granting training institutions authority over curricula some form of routine data reporting from public and other operational matters is part of an economic training institutions. Compared with South Korea, strategy that emphasizes the system’s agility in Vietnam did better in taking steps to increase supplying skilled workers to meet the requirements training institutions’ focus on outcomes and other of foreign and domestic industries. measures of performance in service delivery. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 38 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Annex 1 | Analytical Framework of SABER-WfD Dimension 1: Strategic Framework Aligning WfD to national goals for productivity, growth and poverty reduction Policy Goal 1: Articulating a strategic direction for WfD Policy Action 1: Advocate for WfD as a priority for economic development Policy Action 2: Evaluate economic prospects and its implications for skills Policy Action 3: Develop policies to align skills demand and supply Policy Goal 2: Prioritizing a demand-led approach to WfD Policy Action 4: Promote demand-driven approach Policy Action 5: Strengthen firms’ demand for skills to improve productivity Policy Action 6: Address critical challenges in the future supply of skills Policy Goal 3: Strengthen critical coordination Policy Action 7: Ensure coherence of key strategic WfD priorities Policy Action 8: Institutionalize WfD roles and responsibilities Policy Action 9: Facilitate interaction among all WfD stakeholders Dimension 2: System Oversight Governing the system to achieve desired goals Policy Goal 4: Diversifying pathways for skills acquisition Policy Action 10: Foster articulation across levels and programs Policy Action 11: Promote life-long learning Policy Action 12: Set policies and procedures to renew programs Policy Goal 5: Ensuring efficiency and equity in funding Policy Action 13: Articulate funding strategy Policy Action 14: Allocate funds to achieve efficient results Policy Action 15: Foster partnerships Policy Goal 6: Assuring relevant and reliable standards Policy Action 16: Specify accreditation standards Policy Action 17: Strengthen skills testing and certification Policy Action 18: Assure credibility of accreditation and of skills certification Dimension 3: Service Delivery Ensuring tangible results on the ground Policy Goal 7: Fostering relevance in training programs Policy Action 19: Link training, industry, and research institutions Policy Action 20: Design training with industry inputs Policy Action 21: Improve competence of administrators and instructors Policy Goal 8: Incentivizing excellence in training provision Policy Action 22: Promote diversity in training provision Policy Action 23: Incentivize private providers to meet WfD standards Policy Action 24: Motivate public training institutions to respond to demand for skills Policy Goal 9: Enhancing accountability for results Policy Action 25: Strengthen monitoring and evaluation Policy Action 26: Specify reporting requirements by training institution Policy Action 27: Increase focus on outcomes, efficiency and innovation SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 39 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Annex 2 | Benchmarking Scores 2011 Dimension Policy Goal Policy Action Advocate for WfD as priority for economic development 3.5 Direction 2.7 Evaluate economic prospects and their skills implications 2.3 Develop policies to align skills supply and demand 2.3 Promote a demand-driven approach to WfD 1.3 Strategic Priorities 2.1 2.5 Strengthen firms' demand for skills to improve productivity 1.3 Framework Address critical challenges in the future supply of skills 3.7 Ensure coherence of key strategic WfD priorities 3.0 Coordination 2.6 Institutionalize the structure of WfD roles and responsibilities 2.7 Facilitate communication and interaction among all WfD 2.0 stakeholders Foster articulation across levels of instruction and types of 2.0 Pathways for programs Skills 2.1 Promote life-long learning with recognition of prior learning 2.3 Acquisition Set policies and procedures for introducing, adjusting or 2.0 closing publicly-funded programs Articulate a strategy for funding WfD 2.5 Allocate public funds for WfD to achieve results with Resources 1.6 1.3 System Oversight 1.9 efficiency Foster partnership between WfD authority(s) and 1.0 stakeholders Specify accreditation standards for training providers 2.0 Standards and Quality 2.1 Strengthen skills testing and certification 2.0 Assurance Assure the credibility of accreditation and of skills 2.3 certification Strengthen linkages among training institutions, industry and 2.5 research institutions Content 2.3 Integrate industry inputs into the design of training programs 2.0 Enhance competence of WfD administrators and instructors 2.5 Promote diversity in training provision 3.7 Incentivize private providers to meet WfD standards 2.0 Service Delivery 2.1 Incentives 2.4 Motivate public training institutions to respond to the 1.7 demand for skills Strengthen the WfD monitoring and evaluation system 1.0 Outcomes 1.7 Specify reporting requirements by training institutions 1.8 Increase focus on outcomes, efficiency and innovation in 2.2 service delivery Source: authors’ calculdations; see Tan et al. 2013 for an updated rearragnement of the policy goals in a later version of the SABER-WfD tool. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 40 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Annex 3 | Documents - CIEM-World Bank (2012), The employer survey - World Bank (2012), Well Begun, Not Yet Done: report Vietnam's Remarkable Progress on Poverty Reduction - Duong Duc Lan (2011), Skill enhancement for labor and the Emerging Challenges, Report No. 70798-VN, force in Vietnam up to 2020 East Asia and Pacific Region, Hanoi. - GDVT-GTZ (2007), Financing of technical and vocational education and training in Vietnam Legal documents: - GDVT-GTZ (2009), Business Sector Involvement in - the Resolution of the Party's National Congress VET Delivery and Governance in Viet Nam: Current (2011); Situation and Policy Implications - the Socio-Economic Development Strategy for - GTZ (2008), Technical and Vocational Education 2011-2020; and Training (VET) in Vietnam: A Brief Overview - the Socio-Economic Development Plan for 2011- - Gunnar Specht (2011), Presentation on Aspect of 2015; VET financing: contribution of enterprise and cost- - Decision No 630/QD-TTg dated 29/5/2012 on benefit of VET. approving the Vocational Training Development - Gunnar Specht (2011), Presentation on Enterprise strategy for the period of 2011-2020; involvement in VET delivery and Governance in - The draft Education Development Strategy for the Vietnam. period of 2011-2020, proposed by the MOET and - ILO (2007), Labour and Social Trends in ASEAN MPI; - MOLISA (2010), The Vietnam Employment Trends - The Law on vocational training No. 76/2006/QH11 Report 2010 dated 29 November, 2006; - Mori, Junichi, Nguyen Thi Xuan Thuy, Pham Truong - The Education Law 2005, amended in 2009 No Hoang (2009), Skills development for Vietnam’s 44/2009/QH12 dated 25, November 2009; industrialization: Promotion of Technology Transfer - Decision No 579/QD-TTg dated 19/4/2011 on by Partnership between VET Institutions and FDI approving the Human Resource Development Enterprises, Hiroshima University. Strategy for the period of 2011 – 2020; - Philipp Phan Lassig (2011), A diagram on national - Decision No 1216/QD-TTg dated 22/7/2011 on education system in Vietnam approving the Master plan of Human Resource - Specht, Gunnar and Clemens Aipperspach (2009), Development for the period of 2011-2020; Role of enterprises in organizing an managing - Decision No 07/2008/QD-TTg dated 10/1/2008 on vocational training in Vietnam: real situation and approving the National Targeted Program on necessary policies, General Department of Education and Training by 2010; Vocational Training – GTZ. - Decision No 2406/QD-TTg dated 18 December - Tan, Jee-Peng, Kiong Hock Lee, Robert McGough 2011 on the Approval of National- Targeted and Alexandria Valerio (2012), What Matters in Programs for the period 2012-2015 in general and Workforce Development: An Analytical Framework Approval of National – Targeted progtam on for the Pilot Phase, Human Development Network, Employment and Vocational Training in particular World Bank (mimeograph). 2012-2015 in particular. Project No 1. on - Tan, Jee-Peng, Kiong Hock Lee, Alexandria Valerio renovation and Development of Vocational and Joy Yoo-Jeung Nam (2013), What Matters in Training; Workforce Development: A Framework and Tool for - the Master Plan for the Development of a Network Analysis, SABER Working Paper Series Number 6, of Vocational Colleges, Vocational Secondary Education Department, Development Network, Schools, and Vocational Training Centers until World Bank, available at 2010, and orientation to 2020 (approved at http://go.worldbank.org/32GZWRY8Z0. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 41 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Decision No 07/2006/QĐ-BLĐTBXH dated - Decision 68/2008/QD-BGDDT of MoET dated 9 2/10/2006); December 2008 on job consulation and preference - Decree No 70/2009/ND-CP by the Government, in university and Technical secondary school; dated 21/8/2009 on responsibility of state - Circular 19/2010/TT-BLDTBXH of MoLISA dated 7 management for vocational training; July 2010 on accreditaion standards for vocational - Decion No 01/2007/QĐ-BLDTBXH by MOLISA, training centres; dated 4/1/2007, on vocational training - Circular 29/2011/TT-BLDTBXH of MoLISA dated frameworks for college level and secondary level; 24 October 2011 on registration of vocational - Decision No 02/2007/QD-BLĐTBXH by MOLISA, training; dated 4/1/2007 on regulations of vocational - Circular 15/2011/TT-BLDTBXH of MoLISA dated colleges; 10 May 2011 on management and organization of - Degree No 69/2008/NĐ-CP dated 30/05/2008 on evaluation and issuance of national skill certficate; the promotion policies of socialisation in the fileds - Decision 09/2008/QD-BLDTBXH of MoLISA dated of education, vocational training, health, culture, 27 March 2008 on principle and procedure for sport and envinronment; developing national skill standards; - Project “Vocational Training to Rural Labour in - Decision 53/2008/QD-BLDTBXH of MoLISA dated Vietnam” issued based on the Decision No. 6 May 2008 on inter-disciplinary training; 1956/QD-TTg dated 27/11/2009; - Inter-circular No. 27/2010/TTLT-BGDDT-LDTBXH - Decison No 42/2008/QD-BGD&DT dated of MoLISA and MoET dated 28 Nov 2010 on inter- 29/7/2008 on the link in professional secondary disciplinary training from secondary and college education, university and college education; level to university; - Decree No 43/2006/ND-CP issued by the - Decision 2/2009/QD-BLDTBXH of MoLISA dated Government dated 25/4/2006 on the self- 17 January 2008 on accreditaion standards for autonomy and self-responsibility in public service vocational training college; units; - Decision 2/2009/QD-BLDTBXH of MoLISA dated - Law on Public servants No 58/2010/QH12 dated 17 January 2008 on accreditaion standards for 15 Novemeber 2010; vocational school; - Law on Emulation and Reward 2003 and the - Decree 139/2006/ND-CP of the Government dated amended Law in 2006; 20 November 2006 on details of a number of - Decision No 1956/QD-TTg dated 27/11/2009 on articles of the Law on vocational training; approval of the project of vocational training for - Other legal regulations on vocational training. rural labourer until 2020; - Decision No 05/2006/QD-BLDTBXH by MOLISA, Websites: dated 10/7/2006, on procedures of establishing and registering vocational training for vocational - www.chinhphu.vn colleges and vocational secondary schools; - http://www.gdtd.vn - Circular 42/2011/TT-BLDTBXH of MoLISA dated - http://www.tvet-vietnam.org 29 December 2011 on procedure for accrediation; SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 42 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Annex 4 | Informants No Name of informants Ministries/ Agencies/ VET institutions Position of informants Deputy of Division of International National Institute of Education 1 Ms. Nguyen Thi Lan Huong Cooperation and Project Management Development Vice-director of industrial 2 Ms. Pham Minh Thu Institute of Labor Science and Social Affairs relationship division 3 Mr. Nguyen Chi Truong Directorate of Vocational Training, MOLISA Deputy Director Department for Professional Education - 4 Mr. Tran Xuan Thuy MOET 5 Dr. Tran Van Xuyen Technical Technology College Headmaster 6 Mr. Pham Duc Vinh Hanoi Industrial Vocational College Headmaster 7 Mr. Nguyen Binh Minh Power Vocational College Headmaster Institute of Labor Science and Social Affairs 8 Dr. Bui Ton Hien (ILSSA, MOLISA) 9 Dr. Dao Thanh Huong Institute of Vocational training Vice director Song Da Simco vocational college of 10 Mr. Dao Quang Tien Vice director technique - technology and economics Vice Head of Occupational skill 11 Mr. Nguyen Tri Truong GDVT standards Department Head of Public Vocational training 12 Mr. Nguyen Hong Minh GDVT Department Department for Technical secondary school, 13 Mr. Tran Xuan Thuy MOET 14 Mr. Pham Quang Vinh Thanglong Technical College Headmaster 15 Mr. Pham Van Thanh Railway Technical College Headmaster Department for Science, education, natural 16 Mr. Thanh resource and environment, Ministry of Planning and Investment SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 43 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Annex 5 | Vocational training institutions survey Sampling. The survey was designed to provide statistically valid baseline data. The sample of vocational training institutions was selected by types of ownership, across sector activities and geographical regions. Table 1 shows a summary of the 49 VT institutions that were randomly chosen. Table 1. Sample of surveyed vocational training institution Type of ownership Geographical regions Type of institution Public Private Hanoi+ Hochiminh+ Vocational secondary school 18 Vocational training institute 2 Community college 1 37 12 28 21 Polytechnic 23 Other types (technical professional secondary 5 school/colleges/ universities providing vocational training) TOTAL 49 49 49 Fieldwork. Before starting the VT institution survey, the CIEM team reviewed the questionnaire designed by the World Bank team and translated the questionnaire into Vietnamese. The CIEM team also conducted pilot tests in 3 VT institutions in Hanoi (consisting of 1 vocational college, 1 vocational secondary school and 1 vocational training center). The interviewers conducted face-to-face interviews with directors/deputy directors of the pilot VT institutions. The CIEM established an interviewer team with four members of which one was assigned to be data entry operator (see complete list of members below). After completing an interview, the interviewers intermediately revised and cleaned the filled questionnaire to ensure that all questions could be answered with obtained information. Data cleaning and entering. Data cleaning was double-checked by interviewers and the data entry operator. The template for data entry was designed in Excel by the data entry operator. Interviewers carried out data entering for their cleaned questionnaires on the template. The data was then transferred into STATA by the data entry operator. Table 2. The survey management team No Name Task 1 Dr. Nguyen Dinh Cung Team leader/ Supervisor 2 Nguyen Minh Thao Survey management staff SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 44 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Table 3: The interviewer team Locations of interview Name of interviewers Notes (provinces) Nguyen Minh Thao Survey management staff/ Interviewer Phan Duc Hieu Interviewer Hanoi+ Hoang Thi Hai Yen Interviewer Pham Thi Thu Hien Interviewer Nguyen Minh Thao Survey management staff/ Interviewer Hochiminh+ Phan Duc Hieu Interviewer Hoang Thi Hai Yen Interviewer Table 4: Data entry operators No Name Notes 1 Dr. Nguyen Dinh Cung Team leader/ Supervisor 2 Nguyen Minh Thao Data entry operator/ designing data entry template Table 5: Complete list of surveyed vocational training institutions Name of Position of No Name of institutions Address respondents respondents Contact details Technical/ Vocational secondary school 19-5 Handicraft and Bai Bo Street, Tan My Mr. Nguyen Van Staff of Training 1 Fine Arts Vocational Commune, YenDung, 0240.3859921 Thao Department Secondary School Bac Giang Province Automobile Technology No 83, Trieu Khuc Staff of Training 2 Vocational Secondary Street, Thanh Xuan Pham Thi Hai 0914581617 Department School District, Hanoi Vocational Secondary Nguyen Xa Hamlet, Nguyen Thanh 3 School of transport and Minh Khai Commune, Vice director 0903252999 long civil engineering Tu Liem, Hanoi Vietnam-Australia No. 42, 55 Alley, Dich Pham Thi Kieu Head of Training 4 Vocational Secondary Vong Hau, Cau Giay 0977865359 Hoa Department School District, Hanoi 101 To Vinh Dien, Vocational Secondary 5 Khuong Trung, Thanh Trinh Thi Thu Teacher 0989584167 School No 10 Xuan, Hanoi Thai Binh Transport 134 Quang Trung, Thai 6 Vocational Secondary Tran Thi Thu Hang 0912455198 Binh School Thai Binh Vocational Hamlet 8, Dong Hoa, 7 Secondary School for Bui Thi Luyen Thai Binh disabled people Hoang Hoa Tham Str., Vice Head of Binh Duong Vocational 8 Thu Dau Mot town, Vu Trong Toan Training 0909204372 Secondary School Binh Duong Department SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 45 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Member of the Binh Duong K1/28A, Hoang Hoa management 9 professional vocational Tham, Thu Dau Mot Le Ngoc Huy 0908792900 Board of Secondary School town, Binh Duong Institution Vocational secondary Head of Training 10 school of Binh Duong Di An, Binh Duong Pham Van Hung 0650.3737289 Department Industrial Zone 26/3 Vocational Str. 13, Ho Nai, Bien Head of Training 11 Nguyen Viet Khoa 0913674836 Secondary School Hoa, Dong Nai Department Southeast No 453A, road 768 Electromechanics 12 Thien Tan, Vinh Cuu, Vo Duy Chuc Vice director 0908450322 Vocational Secondary Dong Nai school Head of Viet Giao Vocational No 193 Vinh Vien, 13 Ho Thi Hong Administration 0975748284 Secondary School Hochiminh Department Khoi Viet Vocational No 553/73 Nguyen Assistant of 14 Secondary School of Kiem, Phu Nhuan, Huynh Huu Duc 0939792402 Director Tourism Hochiminh International Tourism 27 Phan Dang Luu, 15 Mr. Thu Vice director 08.35109207 and Marketing School Hochiminh Hung Vuong Technology and 161-165 Nguyen Chi Nguyen Ngoc 16 Vice director 0906668898 Technical Vocational Thanh, Hochiminh Hanh Secondary School Vietnam - Australia Tran Thi Xuan hotel management 160 Nam Ky Khoi Khuyen Head of Training 17 0977196116 vocational secondary Nghia Ms. Chung - Department school secrectary Ba Ria Vung Tau Road 3/2, Ba Ria-Vung Nguyen Ho Bao Head of Training 18 Transport Vocational 064.3501164 Tau Hung Department secondary school Vocational training institute Tu Liem Vocational No. 18 Nguyen Co Vice Head of 1 orientation and Thach Street, Tu Liem, Vu Duc Thang Training Training Centre Hanoi Department Thanh Xuan Vocational 90 Alley, Nguyen 2 orientation and Tuan Street, Thanh Hoang Ba Quyen Director 0942587588 Training Centre Xuan District, Hanoi Community college Vice Head of Department of Southern Agriculture Tan My Chanh, My 1 Trinh Ba Bien Equipment 0919747607 College Tho, Tien Giang Management and Control Polytechnic Bac Ninh Vocational Nguyen Dang Dao str., Vice Head of College of 1 Area No 10, Dai Phuc, Dang Dinh Ve Faculty of 0982177471 Electromechanics and Bac Ninh Construction construction SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 46 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Vocational College of Lai Cach, Cam Giang, 2 Vu Thi Thanh 03203786840 Trade and Industry Hai Duong Hai Duong Vocational Tien Trung, Ai Quoc, Nguyen Duc 3 03203751758 College Hai Duong Truong Vocational College of 4 maritime transport No Nam Dong, Hai Duong Nguyen Van Luc 03203752457 1 Song Da Simco vocational college of Bình Minh, Thanh Oai, Mr. Dao Quang 5 Vice Director 0912503916 technique - technology Hanoi Tien and economics Hanoi College of Phuc Ly - Minh Khai - 6 Technology and Dr. Vu Van Thoai Vice Director Tu Liem - Hanoi Business (Hacotab) Nguyen Tat Thanh - Viet Duc - Vinh Phuc Administrative area 15 Mr. Tran Quoc 7 Vice Director 983209149 Vocational College - Lien Bao - Vinh Yen - Hung Vinh Phuc No.160, Mai Dich Hanoi Street, Mai Dich, 8 Electromechanics Dong Van Ngoc Vice director 0903228145 Cau Giay District, Vocational College Hanoi No. 121, Alley 3, Cau Phu Chau Vocational 9 Dien Street, Phu Dien, Tran Thi Tien Vice director 09041667464 College Tu Liem, Hanoi Hanoi Economic and 233 Khuong Trung 10 Technical College Moi, Thanh Xuan, Ta Viet Hung 0983588125 (hanetco) Hanoi Tran Hung Dao Phu My, My Dinh, Tu 11 Nguyen Duy Hung Director Vocational College Liem, Hanoi Hanoi Vocational Head of Faculty of College of Phu Minh, Phu Xuyen, Truong Vinh 12 Electricity and Electromechanics and Hanoi Thinh Computer Science Food Technology Viet Bac Industrial Son Cam, Phu Luong, 13 Vocational College Thai Nguyen (Vinacomin) Thai Nguyen Vocational Tich Luong commune, 14 College of Metallury Pham Xuan Binh 0915207412 Thai Nguyen and Electromechanics Highway 13, Thuan Vietnam - Singapore 15 Giao, Thuan An, Binh Nguyen Thanh Tri Vice director 0913824023 Vocational College Duong No 57, Cach Mang Can Tho Vocational Head of Training 16 Thang 8 Str., An Thoi, Nguyen Van Duc 0909720603 College Department Can Tho Vocational College of Dean of faculty of 17 Irrigation and Km44, Highway 1A Le Thi Dao 0989117224 economics Mechanics Highway 15, Long Binh 18 Vocational College No 8 Pham Hoai Bac Vice director 0918314498 Tan, Dong Nai SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 47 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Head of Ho Chi Minh City 232 Nguyen Van International 0862818705/09 19 Maritime Vocational Huong, District 2, Phung Trong Hieu Relation 03339444 College Hochiminh Department Quang Trung software Saigon Vocational Head of Training 20 part, District 12, Thuy Tien 0913147848 College (Saigon tech) Department Hochiminh Central vocational 73 Van Cao, 21 college of transport Nguyen Duc Thieu Vice director 08.38605088 Hochiminh No3 Ba Ria Vung Tau Dat Do town, Ba Ria - Truong Huynh 22 Vice director 01682001061 Vocational College Vung Tau Nhu Assistant of the Truong Chinh road, Hong Lam International management 23 Phu My town, Ba Ria - Pham Thi Trang 064.3923196 Vocational College Board of Vung Tau Institution Other types (Professional secondary schools/colleges having vocational trainings) Vice Head of Viet Duc Industrial Song Cong, Thai 1 Luong Thanh Tam Training 0913559115 College Nguyen Department Kim Chung, Dong Anh, Northen Thang Long Hanoi 2 Economic - Technical Pham Quang Vinh Director 0913.537.881 (km2 Thang Long - Noi Secondary School Bai road) Vice Head of College of Printing Phu Dien, Tu Liem, Luu Dinh Quyet & Training 3 Industry Hanoi Tran Van Son Department & Vice Director Hanoi College of Alley 86, Chua Ha Electronics and Nguyen Thi Hang Head of Training 4 Street, Dich Vong, Cau 04.38349644 Refrigeration Nga Department Giay, Hanoi vocational college Hoang Quoc Viet Hanoi College of Head of Training 5 Road, Cau giay Le Anh Tuan 04.37560745 Tourism Department District, Hanoi SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 48 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Annex 6 | Benchmarking Rubrics Functional Dimension 1: Strategic Framework Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Advocate for WfD  WfD is not prioritized in  Political and other leaders  Political and other key  WfD is fully integrated into as a priority for national economic recognize the leaders in industry provide national policies and strategies, economic development. importance of WfD for sustained support for reflecting a holistic approach 54 development economic development; WfD; economic to WfD; economic development 1. Articulating a Strategic Direction for Workforce economic development development plans assess plans formally assess and plans have identified a few and specify several WfD specify a wide range of WfD WfD priorities. priorities that are being priorities that are supported by implemented. implementation plans and budgets, these are subject to continuous evaluation and improvements. Development Evaluate economic  The concept of a demand-  A demand-driven WfD  A demand-driven WfD  A well-informed demand-driven prospects and its driven approach 55 to WfD strategy is beginning to strategy informed by WfD strategy with continuous implications for has yet to emerge. take shape but policy appropriate analyses is evaluation and improvements skills reforms are often impeded accompanied by some has been internalized as a by various difficulties. policy reforms that have standard practice. been implemented. Develop polices to  Policies are being  A few policies have been  A range of policies based on  Policies are formulated on the align skills demand developed but are not developed on the basis of occasional and routine basis of well-informed and supply based on formal occasional assessments assessments by analyses, including analyses of skills to address imbalances government and assessments by independent demand. between skills demand independent WfD organizations, and they are and supply; these policies stakeholders have been routinely reviewed and and interventions are implemented to address updated with inputs from subject to in-house skills imbalances; these are relevant stakeholders to ensure reviews. subject to routine in-house program offerings fit the reviews and independent economic climate and demands external evaluations. for new skills. 54 A holistic approach is one that addresses multiple dimensions of skills development, including: (a) aligning skills training to employers’ needs and national goals for productivity, growth and poverty reduction; (b) governing the system to achieved the desired national goals, and (c) ensuring tangible results on the ground. 55 In a demand-driven strategy, the demand for skills drives the supply of training services. Arrangements to achieve this relationship between skills supply and demand include: the involvement of employers in shaping training policies and provision, financing tied to employment outcomes, etc. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 49 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 1: Strategic Framework Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Promote a  There is limited or no  Business and industry play  A demand-driven approach  A demand-driven approach to demand-driven attempt to incorporate an advisory role in to WfD is in place with WfD has been fully established approach business and industry establishing and business and industry with business and industry inputs in establishing and implementing WfD providing inputs for setting playing both advisory and implementing WfD priorities based on WfD priorities based on executive roles supported by priorities. occasional studies and routine assessments routine assessments from assessments. provided by government government agencies, other key agencies, employers, trade WfD stakeholders and 2.Prioritizing a Demand-led Approach associations and labor independent organizations. unions. Strengthen firms'  Few incentives and  Incentives and services  Incentives and services  Incentives and services enabling demand for skills services exist to support are in place to provide enable firms to expand the firms to address skills to improve skills development for selective support for skills sets of workers to constraints impeding their productivity technology upgrading by technology-related skills facilitate technology ability to upgrade technologies firms. upgrading; incentive adaptation and adoption for and productivity are well programs are subject to greater productivity; these established; these are routinely occasional reviews but measures are supported by reviewed and adjusted for often without adequate routine reviews followed impact; all key review follow-up of by implementation of some recommendations are recommendations. review recommendations. implemented. Address critical  There is limited or no  Future supply of skills is  Assessments of future skills  Future skills supply is routinely challenges in the formal assessment of assessed on an supply are routinely assessed for multiple industries future supply of the future supply of skills. occasional basis; conducted for key sectors and sectors at the national and skills recommendations from at the regional and national international levels; assessments are levels; recommendations recommendations are implemented with some are implemented with little implemented promptly; delay, often without delay; responsibilities for responsibilities for adequate funding and implementation of implementation are clearly assignment of recommendations are made spelled out and attention is responsibility for explicit but without explicit given to the realization of implementation. attention to monitorable monitorable goals. goals. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 50 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 1: Strategic Framework Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Ensure coherence  There is no mechanism in  Coherence of key strategic  Coherence of key strategic  Formal mechanisms of key strategic place to ensure coherence of WfD priorities at the WfD priorities at the apex overseeing coordination and WfD priorities key strategic WfD priorities leadership level is achieved leadership level is achieved implementation of WfD among WfD leaders. through informal through formal and strategies are in place and processes that yield limited informal mechanisms that they support strengthening WfD outcomes. yield positive WfD structures of WfD policy 3. Strengthening Critical Coordination outcomes. development, budget allocations, and assessments of future skills demand and supply. Institutionalize the  Roles and responsibilities  Roles and responsibilities of  Roles and responsibilities  Clear WfD roles and structure of WfD for WfD are not formally WfD stakeholders are are well-defined and responsibilities have been roles and defined, leaving the WfD poorly defined, leaving the supported by legislation and institutionalized through responsibilities authority without a clear WfD authority with a limited resources that enable the legislation and the WfD mandate. mandate and limited WfD authority and key authority has the mandate resources to discharge its stakeholders to discharge to formulate and request responsibilities effectively. their respective functions resources that are needed effectively. for the relevant authorities to discharge their responsibilities in a transparent and effective manner. Facilitate  No formal process exists  Informal structures exist  Formal structures exist in  Formal structures fostering communication for engaging all that facilitate key economic sectors that extensive interactions and interaction stakeholders. communication and support extensive among WfD stakeholders among all WfD interaction among key communication and that culminate in stakeholders. interaction among the consensuses on WfD stakeholders relevant stakeholders. priorities and policies are in place in most sectors. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 51 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 2: System Oversight Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Foster articulation  No functioning  Ad hoc articulation  Ad hoc articulation  Standardized articulation across levels and articulation arrangements exist within arrangements exist across arrangements exist across programs arrangements. secondary schools and post- institutions at the secondary and post-secondary secondary institutions; only secondary and post- programs as well as between ad hoc incentives are in secondary levels; a TVET and higher education; a place to foster articulation program of incentives is system of incentives is in place 4. Diversifying Pathways for Skills Acquisition across levels of instruction. in place to foster to foster articulation across articulation arrangements. programs and levels of education and training. Promote life-long  No arrangements or  Ad hoc private resources  School- and community-  Integrated regional or learning public resources are in and arrangements support based resources and national system with one- place to support life-long life-long learning and arrangements support stop online resources and learning, recognition of recognition of prior life-long learning and standardized arrangements prior learning, and learning; publicly-funded recognition of prior support life-long learning and disadvantaged groups. training programs exist learning; publicly-funded recognition of prior learning; with for disadvantaged training programs with publicly-funded training groups subject to some minimal restrictions are programs provide open access restrictions. available for most to all disadvantaged groups. disadvantaged groups. Set policies and  There are no set policies  Introduction, adjustment  Introduction, adjustment  Management of publicly- procedures to to manage program and closure of publicly- and closure of publicly- funded training programs are renew programs offerings; training funded programs are made funded programs are made on the basis of providers may introduce, through ad hoc, non- based on a few explicit comprehensive and explicit adjust or close publicly- standardized processes; and standardized requirements that include funded programs at will. applications for these requirements; labor market analyses; changes must be done applications can be made applications can be made personally and are vetted online and they are vetted online and they are vetted by by ad hoc committees. by formal committees with formal committees with some representation from representation from other WfD other WfD stakeholders. stakeholders and they operate with a commitment to act in a timely manner. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 52 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 2: System Oversight Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Articulate funding  Ad hoc funding of WfD by  Systematic funding of WfD  Systematic funding of WfD  Systematic funding of WfD strategy multiple stakeholders; no is determined by is determined by is determined through evaluation of funding government agencies with government agencies with consensus building among allocation and strategy. annual budget advice from key government agencies and appropriations and line- stakeholders; annual budget key stakeholders; annual item allocations; only appropriations are budget appropriations are occasional evaluations of supported by detailed supported by detailed 5. Ensuring Efficiency and Equity in Funding funding allocation and spending plans; there are spending plans to foster strategy. routine evaluations of improved performance; funding allocation and routine evaluations of strategy. funding allocation and strategy are accompanied by appropriate reforms as needed. Allocate funds to  No formal process for  A formal process without  A formal process for  Allocation of WfD funds is achieve efficient allocating public funds for explicit criteria is in place; allocating public funds based on explicit criteria results WfD. there are no reviews of based on explicit criteria aligned with WfD priorities, allocation criteria. exists; there are periodic including efficiency in reviews of the criteria but resource utilization; there recommended changes face are frequent reviews of the relatively long implemented criteria and lags. recommendations are implemented in a timely manner. Foster  Limited or no partnership  Limited partnership with  Extensive partnership  An institutionalized partnerships between WfD authority and business and industry is in between WfD authority and partnership network with stakeholders in business place; partners have access key stakeholders in open membership for all and industry; key to some public resources; business and industry; WfD stakeholders is in place; stakeholders provide few, if key stakeholders contribute partners have access to partners have access to wide any, resources toward a small range of resources some public resources; key range of public resources; meeting WfD priorities. toward WfD priorities. stakeholders contribute a key stakeholders contribute broad range of resources for an extensive range of WfD. resources to meet WfD priorities. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 53 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 2: System Oversight Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Specify  No accreditation  Some accreditation  An accreditation agency  An accreditation agency with accreditation standards have been standards have been has been established with standards reflecting standards established; training established; standards are standards developed jointly international best practices is in providers are free to offer infrequently reviewed; with relevant stakeholders; place; accreditation standards any program. accreditation applies to standards are reviewed are reviewed frequently both public institutions only. internally on a regular or as internally and by independent needed basis; accreditation parties; accreditation and 6. Assuring Relevant and Reliable Standards applies to public renewal of accreditation is institutions and non-state compulsory for all public providers receiving public institutions and non-state funding; renewal applies training providers, regardless of to the latter only. their sources of funding. Strengthen skills  Competency-based  Competency-based testing  A standardized  A standardized competency- testing and testing has yet to be applies to critical competency-based testing based testing system has been certification introduced; testing is occupations in key system is in place and established for most largely based on sectors; testing may focus applies to most occupations; IT-based testing theoretical knowledge on a mix of theory and occupations; testing may focuses on theory and practice and administered by practice and is focus on a mix of theory and and is administered and training providers administered and certified practice and is certified by independent third themselves. by independent third administered and certified parties. parties. by independent third parties. Assure credibility  There is limited  Accreditation standards  Accreditation standards  A license to operate is issued of accreditation attention to are established through ad established with inputs only to institutions and and of skills accreditation standards. hoc arrangements; some from WfD stakeholders providers meeting accreditation certification support is provided to apply to all institutions and standards determined by key encourage non-state providers receiving public WfD stakeholders; credibility of providers to seek funding; credibility of skills skills testing is ensured through accreditation; credibility of testing is ensured through standardized testing protocols, skills testing is ensured explicit standardized accreditation of testing centers through explicit testing protocols and and random audits. standardized testing accreditation of testing protocols. centers. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 54 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 3: Service Delivery Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Link training  Weak or no links between  Informal links exist  Formal links exist between  Formal links exist between industry and training institutions and between some training some training institutions most training institutions research industry and research institutions and industry and industry and research and industry and research institutions institutions. and research institutions to institutions, leading to institutions, leading to improve training relevance significant collaboration in significant collaboration in a and quality. several activities. wide range of activities such 7. Fostering Relevance in Training Programs as the provision of industry internships and training, and the introduction and redesign of training programs. Design training  Industry has limited or no  Industry has an advisory  Industry has both an  Industry has a widespread with industry role in identifying, role in identifying, advisory and a decision- advisory and decision- inputs prioritizing and designing prioritizing and designing making role in identifying, making role in identifying, publicly-funded programs. publicly-funded programs prioritizing and designing prioritizing and designing in some training publicly-funded programs publicly-funded programs institutions, usually through in some training in most training institutions. informal contacts. institutions. Improve  Few or no measures are in  Recruitment of  Recruitment of  Recruitment of competence of place to enhance the administrators and administrators and administrators and WfD competence of WfD instructors is based on instructors is based on instructors occurs through a administrators administrators and minimum academic minimum academic competitive process based instructors. qualification(s), with qualification(s), with on both academic and instructors provisions for some in- provisions for in-service qualification(s) and service training and training and performance- industry experience, with performance-based based recruitment and a wide range of in-service recruitment and retention retention measures that are training programs and measures based on based on routine performance-based occasional evaluations. evaluations. recruitment and retention measures based on routine evaluations. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 55 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 3: Service Delivery Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Promote diversity  Training occurs through  Training policies allow  Training policies facilitate  A highly-diverse mix of non in training state provision only, some private providers to participation of non-state non-state training providers provision with no incentives to operate; training is training providers; offer training within a promote non-state provided mainly by non- training is offered mainly comprehensive system with a provision of training. profit providers with few by NGOs, with a system wide range of incentives is in incentives in place to of incentives that are place to foster non-state foster non-state provision evaluated routinely are in provision; incentives are subject 8. Incentivizing Excellence in Training Provision of training. place to foster non-state to evaluations and the provision. recommendations are implemented. Incentivize private  No incentives are in  At least one incentive  A system of financial  A comprehensive system of providers to meet place to encourage non- that is subject to and non-financial incentives that are subject to WfD standards state providers to meet occasional evaluation is in incentives that are both occasional and routine WfD standards. place to encourage non- subject to occasional and evaluations and adjustments is in state providers to meet routine evaluations is in place to encourage non-state WfD standards, but no place to encourage non- providers to comply with WfD review system exists to state providers to meet standards; periodic audits with ensure continued WfD standards; periodic penalties for noncompliance are adherence to WfD audits are conducted to conducted and enforced to ensure standards. ensure continued continued adherence to WfD adherence to WfD standards. standards. Motivate public  No mechanism or  Training institutions are  Training institutions are  Training institutions are expected training process is in place to expected to meet target expected to meet a wider to meet a wide range of WfD institutions to ensure training repetition and graduation range of WfD outcomes; outcomes; a robust system of respond to institutions are demand- rates but few incentives some incentives and incentives and penalties that is driven. are in place ensure they penalties that are subject subject to both occasional and demand for skills are demand-driven. to both occasional and routine evaluations and routine evaluations are in adjustments is in place to ensure place to ensure these that the training institutions are institutions respond to driven by employers’ demands for the demand for skills. skills. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 56 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Functional Dimension 3: Service Delivery Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Strengthen WfD  Limited attention is  Occasional monitoring  Routine monitoring and  Skills demand and supply are monitoring and placed on the monitoring and evaluation of skills evaluation of skills monitored and evaluated evaluation and evaluation of skills demand and supply is in demand and supply is in through routine surveys and demand and supply; an place; an overview of WfD place; an overview of WfD specially commissioned studies; overview of WfD data is data is available only in data is available in WfD data are available from a available through government agencies. published reports and consolidated website. informal channels only.. websites. Specify reporting  No specific data  Public institutions and  Public institutions and non-  Both public institutions and 9. Enhancing Accountability for Results requirements by collection and reporting non-state training state training providers are non-state training providers are training are required; training providers are required to required to collect, maintain required to collect, maintain institutions providers maintain their collect and maintain and submit a and submit a comprehensive list own data bases. administrative and comprehensive list of data of data, including client- graduation statistics; data through an integrated feedback, to the WfD authority reporting is voluntary for management information using an integrated non-state providers but system to the WfD management information they may be notified of authority; timely system; incentives, penalties non-compliance. submission is fostered and data quality audits are through incentives for performed to ensure timely compliance and penalties reporting of reliable data. for non-compliance. Increase focus on  No system of evaluation  Occasional evaluation  Routine evaluation and  Institutionalized routine outcomes, and monitoring is in and monitoring of monitoring of several key evaluation and monitoring of efficiency and place to ensure efficiency limited aspects of aspects of training all key aspects of the delivery innovation in delivery of training training services is in place services is in place with of training services with services. with results used to results used to provide results used to provide feedback provide feedback to the feedback to training to institutions, to prioritize training institutions; institutions, to prioritize funding allocations, identify information on labor funding allocations, and good practices and options for market outcomes of identify good practices in system-level improvements; graduates is publicly service delivery; online dissemination of labor available for some information on labor market outcomes of graduates institutions only. market outcomes of is available to all users. graduates is publicly available for all institutions. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 57 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Annex 7 | List of figures, boxes and tables Figure 1: Functional Dimensions of WfD Policies ......................................................................................... 4 Figure 2: Analytical Framework of SABER-WfD ............................................................................................ 5 Figure 3: Rubric for Benchmarking WfD ....................................................................................................... 6 Figure 4: GDP growth and GDP per capita growth (% per annum) .............................................................. 7 Figure 5: Poverty rate, 1993-2011 ................................................................................................................ 7 Figure 6: Labor force and total employment (millions of people) ................................................................ 8 Figure 7: Employment Structure by economic activities .............................................................................. 8 Figure 8: Employed population at 15 years and older (as of annual 1 July, by types of ownership) ........... 9 Figure 9: GDP structure by economic sector ................................................................................................ 9 Figure 10: Gross enrollment ratio ............................................................................................................... 10 Figure 11: The Education and Training System in Vietnam ........................................................................ 11 Figure 12: Benchmarking Results – Dimension Level ................................................................................. 14 Figure 13: Vietnam Benchmarking Results, 2011 ....................................................................................... 14 Figure 14: Reasons for introducing new programs (%)............................................................................... 23 Figure 15: State budget expenditures on education, training and vocational training from 2008-2012 ... 24 Figure 16: Average percentage of funding mobilized by training institutions by type of source (%) ........ 25 Figure 17: Accreditation process ................................................................................................................ 27 Figure 18: Benefits perceived by accredited training institutions (%) ........................................................ 27 Figure 19: Forms of collaboration between TIs and industry /employers (% of institutions) .................... 28 Figure 20: Opportunities offered for professional development at institution level. ................................ 30 Figure 21: The most important constraint for delivery of effective training services (% of institutions) .. 31 Figure 22: Share of TIs collecting data ........................................................................................................ 33 Figure 23: Use of collected data at the institution level ............................................................................. 34 Figure 24: Number of reports submitted to the ministry last school year ................................................. 34 Figure 25: Evolution of SABER-WfD ratings in Vietnam, Korea and Singapore .......................................... 36 Figure 26: Comparing SABER-WfD Ratings on Strategy .............................................................................. 36 Figure 27: Comparing SABER-WfD Ratings on System Oversight ............................................................... 37 Figure 28: Comparing SABER-WfD Ratings on Service delivery .................................................................. 38 Box 1: A Note on Documentary Sources ....................................................................................................... 5 Box 2: Development of Policies to align the gap between supply and demand of skills............................ 17 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 58 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Box 3: Entities focusing on assessing skills demand and supply ................................................................. 19 Box 4: Appraisal of Vocational Training program frame for secondary and college education ................. 29 Table 1: Structure of working population by training types (as of July 1, 2011) .......................................... 9 Table 2: Number of vocational training institutions and enrolment .......................................................... 10 Table 3: Vietnam’s VET system ................................................................................................................... 12 Table 4: Who develops curricula for courses offered? ............................................................................... 29 Table 5: Selected socio-economic indicators for Singapore, South Korea and Vietnam ............................ 35 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 59 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 Authorship and Acknowledgments This report is the product of collaboration between a team at the Central Institute for Economic Management (CIEM) led by Dr. Nguyen Dinh Cung (Vice President) and staff at the World Bank comprising Cristian Bodewig (East Asia and Pacific Region Human Development Sector Department, EASHD) and Emanuela di Gropello (formerly in EASHD before her move to the Africa Region Human Development Department), as well as Jee-Peng Tan and Rita D. Costa (leader and member, respectively, of the SABER-WfD team in the Education Department of the World Bank’s Human Development Network). Drs. Nguyen Thi Tue Anh, Nguyen Tu Anh and Mr. Phan Duc Hieuat from the CIEM conducted desk reviews, collected data using the SABER-WfD instrument, and prepared the report. Ms. Nguyen Minh Thao implemented the institution survey. The Bank SABER-WfD team scored the data, designed the template for report writing, prepared the sections and annexes related to the SABER-WfD methodology, and provided the CIEM team with technical and substantive support throughout the process of data collection, analysis and report writing. The research team acknowledges the support of all who have contributed to the report and its findings, including informants, survey respondents, participants at various consultation workshops, as well as past and current members of the SABER-WfD team at the World Bank (Richard Arden, Angela Demas, Elise Egoume-Bossogo, Ryan Flynn, Manorama Gotur, Vivianna Gomez-Venegas, Rijak Grover, Lorelei Lacdao, Kiong Hock Lee, Lan Joo, Joy Yoo-Jeung Nam, Marie Madeleine Ndaw, Trinh Nguyen, Sungmin Park, Brent Parton, John Sloan, Alexandria Valerio and Bernardo Vasconcellos). The research team gratefully acknowledges the generous financial support of the Government of the United Kingdom through its Partnership for Education Development (PFED) with the World Bank and of the Korean Government through the Korean Trust Fund at the World Bank. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 60 VIETNAM ǀ WORKFORCE DEVELOPMENT SABER COUNTRY REPORT |2012 www.worldbank.org/education/saber The Systems Approach for Better Education Results (SABER) initiative produces comparative data and knowledge on education policies and institutions, with the aim of helping countries systematically strengthen their education systems. SABER evaluates the quality of education policies against evidence-based global standards, using new diagnostic tools and detailed policy data. The SABER country reports give all parties with a stake in educational results—from administrators, teachers, and parents to policymakers and business people—an accessible, objective snapshot showing how well the policies of their country's education system are oriented toward ensuring that all children and youth learn. This report focuses specifically on policies in the area of Workforce Development This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. THE WORLD BANK SYSTEMS APPROACH Government FOR of the BETTER EDUCATION Republic of Korea RESULTS 61