The US-China trade war promotes the southward movement of manufacturing industry, highlighting the shortage of technical manpower in Vietnam

The US-China trade war forced many companies to transfer their manufacturing operations to Vietnam, intensifying the shortage of skilled workers in this Southeast Asian country, and launched a fierce battle to win the battle. Experts called on Vietnam to conduct Educational reforms to solve related problems.

Reuters reported that the US-China trade war has intensified and Vietnam has become one of the biggest beneficiaries.

Vietnam’s exports to the United States grew by 21.5% in the first eight months of this year. Companies such as Google’s parent company Alphabet and Japanese video game maker Nintendo have also announced plans to set up factories in Vietnam.

Trade agreements between the Hanoi authorities and the parties have also attracted attention, including the recent free trade agreements with the European Union (EU).

Jef Stokes, a garment manufacturer based in Vietnam, said: “Non-technical fresh labor is abundant, but even basic sewing workers have to be trained for at least half a year, so patience is the key.” Emphasize that the lack of reform in the education system is part of the problem.

Stokes said: “Vietnam has ample labor, but high-quality technical manpower is insufficient.” “This is a bottleneck.”

Factory managers, consultants, and human recruitment companies say that the human resources of information technology personnel, engineers, and executives are already quite tight, and the additional demand triggered by the trade war has further increased the turnover rate of high-tech talent.

It is not surprising that the technical manpower in Vietnam is tight. The population of this Southeast Asian country is only 7% of China’s, and domestic infrastructure investment is still insufficient. According to the World Bank, between 2016 and 2030, Vietnam spends an average of $6.7 billion a year to increase its annual electricity generation by 10%.

Manpower Group, a human resources company, says only 12% of Vietnam’s 57.5 million workforce is highly skilled.

Nguyen Quang Anh, a 28-year-old software developer from Hanoi, said that before the university graduate, the hunter head company would find him several times. After graduation, Shuguang had four jobs, at least 50%.

Mr. Shuguang said: “Because of the shortage of (technical manpower), employers are willing to provide higher salary increases.” “If the technology giant moved to Vietnam to set up a factory due to a trade war, I will definitely apply.”

Analysts say many problems stem from a lack of education reform.

In Vietnam, between the ages of 18 and 29, about 28% of them go to college. In contrast, 43% and 48% of Thailand and Malaysia respectively receive higher education.

Adam Sitkoff of the American Chamber of Commerce said: “Many studies show that education courses in Vietnam are outdated, teachers are overwhelmed and underpaid, and graduates lack the employment preparation skills sought by the private sector. .”

Steve said that the government should take action to modernize the Vietnamese education system, especially for vocational schools and universities.

Credit : https://www.cna.com.tw/news/aopl/201910110079.aspx

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