Apprentices in the welding workshop at a vocational school in Ho Chi Minh City (Saigon), Viet Nam

Core area “Sustainable economic development, training and employment” Qualified skilled workers for a viable and sustainable economy

In order to ensure that economic growth is sustainable and socially equitable and in order to achieve competitiveness in regional and international markets, Viet Nam needs to further modernise its economy and train urgently needed skilled workers. The BMZ is assisting Viet Nam in enhancing vocational training and reforming the economy.

Technical and vocational education and training (TVET)

So far, only a small proportion of all workers in Viet Nam have completed formal vocational training. Even those young people who have undergone vocational training usually do not meet the requirements of the changing world of work, which is becoming more and more international. On behalf of the BMZ, GIZ is assisting Vietnamese partners through a variety of activities:

  • Policy advice regarding legal and administrative reform and strategy development
  • Capacity development for eleven vocational training institutes – development of modern training courses in line with international standards, training for vocational school teachers and administrators as well as employed people and jobseekers, short training courses for people who lost their jobs due to the COVID-19 pandemic
  • Cooperation with the business community in order to develop relevant training programmes and standards and set up a dual (industry-based and school-based) vocational education system
  • Support for the digital transformation in the training sector and for aligning vocational training with the changing world of work (Industry 4.0)
  • Support for training of skilled workers in promising occupations in environmental protection and climate action
  • Targeted support for women and persons with disabilities in the vocational education system
  • Public-private partnerships with international enterprises such as Siemens, Bosch, Schneider Electric and Festo Didactic in order to foster initial and ongoing training for skilled personnel for renewable energy and Industry 4.0

Under Financial Cooperation, the BMZ supports the expansion and modernisation of the Vocational College of Machinery and Irrigation in Dong Nai with a view to turning it into a competency centre for green vocational education.

Sustainable economic development

Climate action and environmental protection and the digital transformation bring both opportunities and challenges for Viet Nam's economy. The Vietnamese government is trying to achieve environmentally and socially sound development for the country. However, implementing the various strategies and policies remains a challenge. There are deficits with regard to the harmonisation of the various activities, and there is a shortage of human resources, expertise, experience and funding.

The BMZ is assisting the government in developing and implementing macroeconomic reforms. Among other things, meaningful indicators are being developed to review and monitor progress along the road towards a sustainable economy. Specific action plans are being drafted in order to foster green and climate-friendly economic growth.

In addition, efforts are being undertaken to improve the environment for environmentally friendly private investment. Germany is providing advice to Viet Nam's Finance Ministry on how to optimise public financial management, make the budget more transparent, revise its (digital) tools for sustainable financial policies, and increase the use of such tools. In the private sector, support focuses on developing and introducing circular economy models and establishing sustainable supply chains. By fostering start-ups' digital solutions and innovation, the programme of cooperation is making an important contribution towards the country's twin transition to a green and digital economy.

As at: 22/06/2022