How Australia is Helping Vietnam Close its Skills Gap

As industries expand, the demand for highly skilled professionals increasingly outpaces supply. To ensure sustained economic momentum, Vietnam requires strategic international collaboration.

Australia, a longstanding education partner of Vietnam plays a crucial role in addressing this gap.

In this article by AVPI Fellow, Huynh Cong Thang, he unpacks the vibrant partnership between Vietnam and Australia, including its existing education partnerships and bilateral investments that have laid the foundation for addressing Vietnam’s skills gap. Thang then dives into the new initiatives and approaches needed to ensure Vietnam is set up for success as its economy continues to boom.

Key takeaways

• Vietnam’s booming economy, particularly in technology, manufacturing, logistics, and healthcare, faces a significant challenge: a workforce shortage in critical skill areas. 77% of businesses face difficulties in recruiting highly skilled workers, particularly in engineering, IT, and advanced manufacturing.
• Analytical skills and digital skills are the most sought-after competencies, wth leadership, technical, and communication skills also essential.
• Education remains a key pillar of the Australia Vietnam partnership, driving innovation, economic progress, and cross-cultural exchange. However to address the skills gap, this must be bolstered by local organisations playing a key role in creating conducive learning environments and offering opportunities for mentorship, scholarships, and training across Asia. Businesses who work across both Australia and Vietnam serve as a crucial conduit here.
• Although Australian and Vietnam government initiatives are strong, the private sector also plays a critical role in developing industry-aligned training programs, particularly in emerging industries where AI, machine learning, cybersecurity, and cloud computing skills are in high demand.
• Strengthening ties and partnerships in Technical and Vocational Education and Training (TVET) will be crucial to meet these evolving needs, align educational programs with industry requirements, and support Vietnam’s comprehensive ten-year TVET strategy.