Bridging the skills gap in high-demand sectors

Bridging the skills gap in high-demand sectors

Collective efforts are required to fill the skills gap in human resources, thereby attracting more foreign investors in future, says RMIT lecturer in Human Resource Management Dr Divya Juneja.

[The following article was authored by Dr Juneja and contains insights from other experts]

Over the past few years, Vietnam's economy has grown significantly. The GDP of Vietnam is expected to rise from $US304.47 billion in 2018 to an estimated $US657.28 billion in 2028. Vietnam's youthful, abundant labour population and global connectivity have helped it remain a top destination for foreign direct investment (FDI).   

Dr Santiago Velasquez, MBA Associate Program Manager at RMIT University Vietnam, said FDIs are interested in risk minimisation. Therefore, skills which can provide stakeholder relief in productivity enhancement, transparency, and financial security are welcomed by FDIs. 

Ms Nguyen Thi Bich Hong, General Director at HR2B said: “It is important that the labour workforce has appropriate skill sets to attract FDIs. The more investors can be assured that the workforce is fully equipped with skill sets aligned with business strategies, the more confident they feel about investing in Vietnam.”   

Collective efforts are required to fill the skills gap in human resources (image: Freepik).  Collective efforts are required to fill the skills gap in human resources (image: Freepik). 

Dr Jung Woo Han, Senior Program Manager for Human Resource Management and Entrepreneurship at RMIT University said: “The world of work is changing rapidly. Owing to the disruption caused by technology, companies must create comprehensive and effective workforce strategies. That will be extremely critical in this digital age.”  

However, the major issues that most employers are facing are related to the skills available in the Vietnamese market.   

The analytical and digital skills of Vietnamese have improved over time. Still, 61 per cent of the companies believe that they are unable to find the right skilled people at the right time, according to a TalentNet survey. There are very few ready-to-hire candidates available in the country. According to the survey, organisations prioritise employing highly skilled staff when rebuilding their workforce following change programs. However, it is astounding to observe how tough it is for businesses to find skilled professionals.  

“Outsourcing has been the main option to fill the skilled worker requirements. It is effective, but also costly and offers a slow learning curve for Vietnamese employees,” said Dr Velasquez.  

Ms Tran Thu Thao, Talent Acquisition and Training Executive at Navigos Group said “According to Navigos Group's 2024 Salary and Labor Market Report, new jobs in the future are inclined towards technology, artificial intelligence, and digital transformation. Therefore, occupational groups related to information technology, engineering, and computer science will continue to have a shortage of human resources in the future, especially high-quality human resources.”  

The hospitality and tourism industry is also facing the biggest challenge in hiring skilled workers. One of the reasons is the decline in students' registration in the tourism course. This trend was observed before the pandemic, however, still students are not attracted to the tourism industry in Vietnam. People from other industries are recruited to fulfill the demands, but the skills gap remains. It needs highly skilled people at all levels to satisfy customer expectations and serve them better. 

Manufacturing and healthcare are the other industries that are facing a skills shortage. One of the primary causes of this skill disparity is that Vietnamese education continues to experience difficulties keeping up with the demands of the modern global economy.  

The growing demand for foreign languages is another challenge. Still a small portion of the Vietnamese workforce is fluent in English language.   

It is essential to implement authentic training such as project-based and work-integrated learning (image: Freepik). It is essential to implement authentic training such as project-based and work-integrated learning (image: Freepik).

Mr Nguyen Hoang Phuong, Head of AIMS International Vietnam said, “as the country is attracting plenty visitors and businesses from other parts of East Asia, the market needs not only people who are fluent in English but those in other languages like Japanese, Chinese and Korean.”  

The nation's population is in its “golden age” with a median age of 32.5 years, which is especially appealing to FDI because of its young and vibrant labour force. However, it is crucial to invest in workforce development initiatives, education programs, and vocational training to bridge the skills gap.   

Initiatives for upskilling and reskilling people in digital skills, programming languages, cyber security, and artificial intelligence offer chances for individuals to improve their employability and make a difference in these growing sectors. 

Dr Han said: “Applied and authentic training such as project-based and work-integrated learning are essential in the era of AI and advanced robotic technologies. Especially as it can help students shape people skills such as communication and resilience, which could be the most essential skills in future job markets impacted by technology disruptions.”   

Once that gap is closed, the private sector will have easy access to experts and highly talented human resources in a cost competitive form. Also, educational institutions will have more options for funding and maintaining their researchers and lecturers’ awareness of real-world challenges. By working together, these organisations may precisely identify the competencies that various sectors need, ensuring their training programs meet the demands of the labour market. 

Story by: Dr Divya Juneja, Lecturer in Human Resource Management program, RMIT Vietnam  

07 March 2024

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