HANOI – Vietnam should develop special technical and vocational education programs to create conditions to enable the transition to the fourth industrial revolution, thus increasing labor productivity and the country’s competitiveness, according to a study that the Asian Development Bank (ADB) released on January 20.
The study, titled “Reaping the Benefits of Industry 4.0 through Skills Development in Vietnam”, focuses on the logistics and agro-processing sectors in the country, which are important for growth, employment, international competitiveness and the fourth industrial revolution (4IR).
The application of 4IR technologies will lead to a loss of a quarter to a third of jobs in the logistics and agro-processing sectors. However, it could also lead to a new labor demand through productivity, resulting in positive job gains.
ADB country director for Vietnam Andrew Jeffries said the application of 4IR technologies will help Vietnam move up in the value chain in terms of products and services. Vietnam should ensure benefits for and the social welfare of low-skilled workers.
The appropriate and prompt investment in skill development can help Vietnam exploit the potential of 4IR technologies to increase productivity and ensure benefits for laborers.
Due to the impact of Covid-19 on supply and value chains, Vietnam’s agro-processing sector will need to rethink potential lasting shifts in consumer behavior. The logistics sector is expected to experience a significant upswing after the pandemic, arising from the growth of ecommerce and the changing nature of retail business.
The two sectors will have to integrate e-supply chains and come up with digital initiatives, so the demand for improving the ability of laborers is increasing.
The study is part of an analysis in four ASEAN countries—Vietnam, Cambodia, Indonesia and the Philippines.
By Van Ly