Vietnam’s universities are generating more graduates than the market demand. The university graduate unemployment rate is projected to increase in the future. Meanwhile vocational training colleges are struggling in student recruitment and the labour market is facing a severe lack of skilled workers.

There are about one million high school graduates every year with 80 percent taking university entrance exams while only 10 percent enrol in vocational training. About 60 percent will pass the exams, but those who fail still want to wait for the next exam rather than attending vocational colleges.

By tradition, Vietnamese parents want their children to take academic routes, sending them to general high schools and aiming to get higher education subsequently at all cost, believing that it will bring about better job opportunity and higher pay.

Over the past few years, many governmental awareness raising messages have been publicised, convincing that a vocational qualification proves to bring about practical employment opportunity and equally good remuneration for graduates just as an average university graduate.

According to Dr. Duong Duc Lan, Director of the General Department of Vocational Training, tuition fees of vocational secondary training will enjoy a 50 percent reduction from this year.  In addition, he revealed a plan to build 45 well-equipped vocational high schools across the country to train quality vocational students as a feeding source for vocational colleges.  The longer term goal is to supply with sufficient skilled workers for the market.

On the contrary, higher education expects a 10 percent increase year-on-year among public universities over the next five years, according to a proposal by the Ministry of Education and Training (MOET).  If approved, the average annum tuition fees will increase by 62% from ~US$320 in 2015-16 to ~$520 in 2020-21.

British Council commentary:

The government of Vietnam has been emphasizing the need for quality graduates to meet the labour market demand over the past few years. A sharp reduction in tuition fee for vocational secondary training is part of the government efforts to boost this sector. Together with the potential increase in tuition fee for higher education, it is hoped that students and parents will gradually change their attitude towards the vocational route and will consider it as an option for further studies.

Sources:

http://english.vietnamnet.vn/fms/education/140498/job-students-get-fees-cut-in-half.html

http://www.thanhniennews.com/education-youth/vietnam-may-raise-tuition-at-public-universities-by-10-percent-each-year-51692.html