Tuesday, May 19, 2015

Vietnam's Logistics Sector Faces Serious Labour Shortages

Vietnam's Logistics Sector Faces Serious Labour Shortages
Thousands of logistics entrepreneurs are struggling with a serious shortage of employees since a rapid increase of services demands, says the Viet Nam Logistics Institute (VNLI) in an article by the VietNamNet Bridge.

There are roughly around 300,000 entrepreneurs involved in logistics services in Vietnam, providing jobs for nearly 1.5 million employees of whom 40 per cent are from Ho Chi Minh City. According to VNLI, these employees could only meet 40 per cent of the sector's demand, so the country will face a serious shortage of workers in the next three years.

The report said that "in the next three years, those companies providing logistics services would need more than 18,000 workers, while other firms that provide their own logistics services would need more than a million more employees."

According to the VietNamNet Bridge article, a HCM City development research institute conducted a survey recently reported 53.3 per cent of logistics companies in Ho Chi Minh faced a shortage of high-skilled workers. About 30 per cent of those companies complained they had to re-train their employees and only 6.7 per cent were satisfied with their labourers' qualifications, the report said.

A lack of vocational training and information was hindering the employment process for the sector, experts say.

Dr Le Van Bay, a logistics lecturer, said that  "education and training in colleges and universities had ignored the sector so only a few students studied logistics." He said that the HCM City University of Transport and the Viet Nam Maritime University had opened logistics faculties, but they faced increasing obstacles to improve the quality of training due to a lack of experienced lecturers.

Bay also said that most experienced logistic workers preferred part-time work, while new graduates were not qualified for the positions due to a lack of soft skills, including communication and foreign languages.