Tvet Policy Review

TR 2010-6-2Sec. level General

TVET Policy Reviews of 8 Asian Countries②아시아 력 상국가의 직업교육훈련 정책자료 구축

UNESCO Regional Center 사업(2010)

Kim, Young-Saing

Chung, Ji-Sun Lee, Sang-Don

Lim, Young-Sub Ryu, Ki-Rak

Foreword

Urgency of cooperation in TVET in conjunction with globalization

in economy and diplomacy such as FTA with EU, ASEAN and other

countries has been intensified because human resources are the most

valuable asset for economic and social development. The Korean

government has emphasized the importance of cooperation between

Korea and Asian countries and enlarged the Korea’s role to play in

TVET development in Asian countries.

Asian countries have recognized the role of HRD to play for

national development, poverty alleviation and community cohesion.

Thus, they are searching for the role model of HRD which they

would follow. The Korean model of HRD would be a prospective

model of HRD for Asian developing countries because Korea went

through extreme poverty, destruction of Korean War and had to

overcome lack of natural resource and becomes a leading country

in Asia. Many Asian countries want to share the model of HRD and

the experiences from Korea and other countries because they have

lots of similarities. However, only little information of Asian

countries’ TVET has been available.

Lack of information is the most critical barrier to improve the

cooperation between Korea and the Asian developing countries. The

TVET policy of government is the centerpiece of the TVET

information. Korean government has played governing roles of

TVET development in providing framework for HRD development.

In most Asian countries, the governments have most valuable human

resources and notable abilities to make a difference. In this regard,

it is most recommendable to share Asian countries’ TVET policies

in order to learn from each other and to make a common ground

of mutual understanding.

CEDEFOP of the EU is the center of TVET policy coordination

and information sharing among the EU countries. It dramatically

increases effective cooperation among EU members. When we look

forward the future of Asia which is the engine of global economic

development, it is the time we need to figure out how to increase

the mutual understanding and learn from each others’ experiences

in TVET which increases HRD. In this regard, KRIVET and

UNESCO decided to conduct the project which collect the TVET

policy data and organize them with comparative perspectives.

We developed the framework of TVET information sharing which

would cover the general information and TVET policy issues. It

should be compatible to make a comparison among Asian counties.

The framework of UNESCO’s TVET policy review was the

reference of developing this framework. UNESCO has a plan to

make the TVET policy database sooner or later. It was expected to

make this paper a part of UNESCO’s TVET database.

This project was conducted as a UNESCO-KRIVET cooperative

project. The project manager of this project is Dr. Kim,

Young-Saing. Dr. Chung, Ji-Sun, Dr. Lee, Sang-Don, Dr. Ryu,

Ki-Rak and Mr. Lim, Young-Sub contributed enormous efforts and

ideas as researchers. Local reporters collected data and organized

them for this project. Three interns, Ms. Gong, Min-Young, Ms.

Kim, Yong-Jeong and Ms. Kueppers, Paula organized the manuscripts

which were not in a consistent format. Ms. Jennifer Govan edited

the manuscript’s language and checked the references. KRIVET

would like to show special gratitude to the researchers, the reporters,

the interns, the editor.

This project paper is not an official view of KRIVET or UNESCO,

but the researcher’s and local reporters’ opinions and the collection

of data.

December, 2010.

KRIVET. President Kwon Dae-Bong

Index i

Index

BANGLADESH

TVET Policy, Experience, and Trends in Bangladesh․3

Introduction․3

Section 1. Context and Background․4

1. Political and Socio-cultural Context․4

2. Population and Demographics․5

3. Population Change․5

4. Demographics of Bangladesh․6

5. Population Growth Rate․11

6. Urban and Rural․12

7. Gender ratio․12

8. Migration․13

9. Poverty Rate․15

10. Economy (GDP): 2004-2009․15

11. Education․17

12. Education Attainment of Population by Gender and Age,Literacy․18

13. National Development Plan and Strategies in General․19

Section 2. Employment and Labor Market․21

1. Bangladesh’s Export Sector․21

2. Labor Market․22

3. Demography and the Labor Market․24

4. Migration and Overseas Employment․24

ii Index

5. Employment and Labor Market Information Table․26

6. Skill Supply and Demand (Overall Marketplace Requisite Skills)․28

7. Country Wise Overseas Employment (1976–2009) :Top 10 countries․29

8. New Demands: Industry and Government Policy․30

TVET Systems by Target Group: Adults, Teachers, Trainers, and

Enterprises․33

Section 1. TVET Systems by Target Group․33

Section 2. TVET for Students by Level of Education․33

1. SSC (Secondary School Certificate) (Vocational)․35

2. Area/Field․36

3. Training Scheme for Non-schooling (Apprenticeship)․37

4. Upper Secondary Level: Entrance Rate and Employment․38

5. Area/Field․39

6. Non-schooling Level: % of Non-schooled Adolescents,Training Scheme for Non-schooling (Apprenticeship)․42

Section 3. TVET for Adults․42

Section 4. TVET and Enterprises․43

1. TVET and Enterprises․43

2. Role of Enterprises․44

3. TVET in SMEs (Small and Medium Enterprises)․45

Section 5. TVET Infrastructure․47

1. Certification Standard․47

2. Certification for Instructor and Trainers: (Pre-job and In-job Training)․47

Index iii

3. Course for Trainees (School going student/drop out students, jobless or unemployed)․48

4. National Vocational Qualification (NVQ) System․49

Governance of TVET system․51

Section 1. Institutional Framework․51

1. Governing Structure․51

2. National Vision and Strategic Direction of TVET․52

Section 2. National Development and TVET Policy․53

1. Economic Development and TVET Policy․53

2. Social Partnership and TVET․55

Section 3. Assessment of TVET Policy․56

1. Major Achievements in TVET Ensuring Accessibility․56

2. Quality and Relevancy․57

Financing of TVET․59

Section 1. Financing Regime (Institute) for TVET․59

Section 2. Financial Support System or Mechanism․60

Section 3. Private Funding of Public TVET Institutions․60

Section 4. Funding of Private Providers․61

Section 5. Educational Financing․63

Internationalization of TVET․65

Section 1. Impact of TVET Policy․65

iv Index

Section 2. International Cooperation․66

1. Facility and Equipment․67

New Agenda․69

Section 1. Trends and Needs․69

1. New Needs for New Skills․69

2. Green Job and Occupations․70

Section 2. Future plans․74

References․75

CAMBODIA

THE NATIONAL CONTEXT OF TVET: INTRODUCTION․79

Section 1. Context and Background of Cambodia․79

Section 2. Education System in Cambodia․84


TVET SYSTEM BY TARGET GROUPS: ADULTS, TEACHERS AND

TRAINERS, AND ENTERPRISES․95

Section 1. TVET for Adults․101

Section 2. Industrial Relations․106

Index v

GOVERNANCE OF THE TVET SYSTEM․107

Section 1. Governing Structure․107

1. NAME OF INSTITUTION․107

2. BRIEF DESCRIPTION OF INSITUTION․108

Section 2. Organizational Structure of DTVETM․110

Section 3. TVET System Overview․111

Section 4. The Two Tracks of TVET Policy․113

Section 5. Policy Development in TVET System․115

Section 6. Vision and Strategic Direction․128

FINANCING OF TVET․131

INTERNATIONALIZATION OF TVET․137

NEW AGENDA AND PLANS FOR THE FUTURE․143

References․148

INDONESIA

Technical Vocational Education and Training in Indonesia․153

Section 1. Indonesia: context and background․153

vi Index

Section 2. The Indonesian Employment and Labor Market․161

Section 3. The Education System in Indonesia․171

Section 4. TVET System in Indonesia․180

Section 5. Vocational Senior Secondary School (SMK-Sekolah Menengah

Kejuruan)․181

Section 6. The Competency Certification as One of the Certification Models

of SMKs' Graduates․192

Section 7. Post-secondary and Adult TVET․196

Section 8. Vocational Training in Enterprises and Small Businesses․205

1. Funding of TVET․206

2. Internationalization of TVET․207

3. New Agenda and Plans for the Future of the Vocational Education and Training in Indonesia․209

References․212

LAO PDR

The National Context of TVET․217


1. GOVERNMENT AND ADMINISTRATION․217

2. GEOGRAPHY AND DEMOGRAPHY, POPULATIONGROWTH․218

Index vii

3. Economy․222

4. EDUCATION․223

5. NATIONAL DEVELOPMENT PLAN AND STRATEGIES․231

6. STRATEGIC PLAN 2006-2010 AND MASTER PLAN 2008-2015 FOR TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING IN LAO P.D.R․233

Section 2. EMPLOYMENT AND LABOR FORCE․237

1. Employment and Age․237

2. LAO LABOR MARKET INDICATOR․241

TVET System by Target Groups․259

<Executive Summary>․259

Section 1. Issues to be Addressed․261

1. Scope of the Technical and Vocational Education and Training․261

2. Integration of Demand Side in Skills Development and Promotion of TVET․262

3. National Qualification or Certification Framework․264

Section 2. Curriculum Method and Content․266

1. Competency Standards․266

2. Student-Centered Learning․267

3. Practical Experience and Knowledge․268

4. Access and Equity․268

Section 3. Teacher Development․269

Section 4. Cross Cutting Issues․270

Section 5. Labor Market Information․271

viii Index

Governance of the TVET system․273

Section 1. Link with Other Sectoral Developments․273

Section 2. The present Situation of Supply and Demand․275

1. The Rapidly Changing Lao Socio-economic Context․275

2. An Urgent Need for Skills․276

Section 3. General Situation of the TVET Providers․279

Section 4. Specific Situation of the TVET Schools under the MOE․282

Financing of TVET․285

Section 1. The Budget for TVET Reform and Development․285

1. The Regular Government TVET Budget․287

2. The Consequence of Economic Development on the Financial Capacities of Companies․287

3. The Legal Framework to Promote Training in Companies․288

4. The Support Coming through Cooperation with Other Ministries․289

Section 2. Loans for TVET Development․289

1. Possible Foreign and International Assistance for TVET․290

2. Present Situation of Some Donors Concerning TVET․290

Internationalization of TVET․295

Section 1. Lessons Learnt and Recommendations from the International

Experience for TVET Master Plans and Strategies․295

Index ix

New Agenda and Plans for the Future․301

Section 1. Direction of the Master Plan․302

1. Equitable Access Program․302

2. Improvement of Quality․304

3. Continuing Improvement of the Management and Administration․305

Section 2. Conditions to Succeed or How to Limit the Risks․306

MONGOLIA

Policy, Experience, and Trends of Technical and Vocational

Education and Training in Mongolia․311

Section 1. THE NATIONAL CONTEXT OF TVET: INTRODUCTION․311

1. CONTEXT AND BACKGROUND․311

Section 2. EMPLOYMENT AND LABOR MARKET․323

1. Employment․323

2. Skill Supply and Demand․325

3. Mismatch․326

4. Data Monitoring․328

5. New Demands: Industry and Government Policy․329

Section 3. Governance of the TVET System․333

1. Institutional Framework․333

Section 4. TVET System by Target Groups․339

x Index

Section 5. TVET INFRASTRUCTURE․342

1. Teachers and Instructors․342

2. Facility and Equipment․343

3. National Qualification Framework․344

4. Current Status of NQF and TVET․345

5. Imperatives in Developing the National Qualification Framework․348

6. Strategy․351

Section 6. National Vision and Strategic Direction of TVET․353

Section 7. Legal Frame for TVET Adults and Lifelong Learning․358

Section 8. NATIONAL DEVELOPMENT AND TVET POLICY․361

1. TVET Policy History and Priority․361

2. Economic Development and TVET: National Development Plan and TVET Policy․362

3. Social Partnership and TVET․364

Section 9. CURRENT STATU from S OF SOCIAL PARTHNERSHIP․369

Section 10. ISSUES AND INNOVATIVE PRACTICES․373

Section 11. FUTURE PLANS FOR SOCIAL PARTHERSHIP․374

Section 12. TECHNOLOGY: ICT, E-LEARNING․380

1. Current Status of ICT in Education․380

2. Best Practices in Teaching and Learning through ICT․381

3. Issues and Challenges in ICT Education․382

4. Future Plans․383

Index xi

Section 13. International Cooperation: Bilateral, Multilateral and

International Organizations․385

1. Donors’ Activity in TVET․385

2. Sustainability․389

Section 14. Future Trends and Objectives of TVETs․389

Section 15. TVET Objectives & Strategies (2006 to 2015)․390

PHILIPPINES

TVET POLICY, EXPERIENCE, AND TRENDS IN THE PHILIPPINES․397

Section 1. The National Context of TVET․397

1 Context and Background․397

2. Employment and Labor Market․420

Section 2. The Philippine TVET System․431

1. TVET Support System․433

2. TVET Delivery․436

3. TVET in Secondary Education․439

4. TVET Quality Assurance․440

Section 3. GOVERNANCE OF THE TVET SYSTEM․444


2. National Development and TVET Policy․454

3. Assessment of TVET Policy․458

Section 4. Financing TVET․461

xii Index

Section 5. Internationalization of TVET․464

1. Impact on TVET Policy․464

2. International Cooperation: Bilateral, Multilateral, andInternational Organization․466


Section 6. NEW AGENDA AND PLANS FOR THE FUTURE․468

1. Expanding Access and Equity to TVET Opportunities․468

2. Ensuring Sustainable and Adequate Financing for TVET and Funding the TESDA Development Fund․469

3. Strengthening Industry-TVET Linkage, including Enterprise- based Training․470

4. Institutionalizing the Philippine National Qualifications Framework and a System of Skills/Qualification Progression/ Career Shifts and Lifelong Learning․472

5. Improving Labor Market Information and Addressing the Labor Supply and Demand Gaps and Matching Problems․474

6. Continuing Quality Improvement in TVET Provision․475

7. TVET Trainers’ Development․476

8. TVET for Sustainable Development․476

9. Preparing the Workers for the Knowledge Society․477

References․479

SRI LANKA

TVET Policies and Implementation Process of Sri Lanka․483

Section 1. Political and Socio-Cultural context․483

Index xiii

1. Government and political party system in Sri Lanka.․483

2. Legislative․485

3. Summery of the 2010 Sri Lankan Parliamentary Election․485

4. Civil Service Structure․487

5. Local Government System Provincial council structure․487

6. The Instruments of Devolution․488

7. Functions of Provincial Councils․490

Section 2. Population and Demographics․491

1. Demography․491

2. National Accounts․492

Section 3. Governance of the TVET system․493


2. Government Bodies Responsible for TVET․494

3. Regional Level․501

4. Relationship between Government Bodies․502

5. National Vision and Strategic Direction of TVET.․505

Section 4. Government Policy․508

1. Evolution of TVET Policies․508

2. Assessment of TVET Policies․515

3. Effectiveness․516

4. Efficiency․519

5. Impact․520

Section 5. Legal Framework of TVET for Students and Adolescents․522

Section 6. Qualifications․524

1. National Culture of Skill and the Skilled․524

2. National Vocational Qualification (NVQ) System․526

xiv Index

3. Private Qualification System․526

4. Role of Qualification in Labor Market․528

Section 7. National Development and TVET Policy․529

1. Economic Development and TVET․531

2. Social Development and TVET․532

Section 8. TVET System by Target Groups․534

1. TVET for Students by Level of Education under the Secondary Level Compulsory Education․534

2. Government Schools․535

3. Private School․536

4. Secondary Level, Upper Secondary Level, and Non- schooling Level; Vocational and Academic Rate; and Apprenticeship Enrollment Rate․537

5. Training Scheme for Non-schooling․539

6. TVET and Enterprises․539

7. Self Employment Promotion Initiative (SEPI)․541

8. TVET Infrastructure․542

9. Staff Development & Teacher Training․544

Section 9. Employment and the Labor Market․546

1. Skills supply and demand․551

2. Skills Mismatch, Skill Shortage, and unemployment.․551

3. New Demands․553

Section 10. International Corporation: Bilateral, Multilateral and International

Organization․555

Section 11. New Needs for New Skills․559

Index xv

Section 12. Future Challenges and Opportunities․562

References․565

VIETNAM

TVET POLICY, EXPERIENCE, AND TRENDS․569


1. Population․569

2. The Vietnamese Economy․570

3. Education System of Vietnam․575


1. Employment․581

2. Unemployment․583

3. The number of workers related to jobs․584

4. Employment by industry․585

5. Employment by position-based․587

6. Employment by ownership sector․588

7. Employment by job performed․589

Section 3. The TVET System in Vietnam․590

1. In General․590

2. Implementation of vocational capability development․598

3. Public Vocational Training Development Institution․603

4. Support for Vocational Training by Private Firms․604

xvi Index

Section 4. Governance of the TVET system․605


2. Organizations Involved and Total System (including Functions and Responsibilities of Both Central and Local Governments)․610

3. Financing TVET․617


5. New Agenda and Plans for the Future․628

Section 5. Conclusion․632

Table Index xvii

<Table Index>

BANGLADESH

<Table 1-1> Government System of the Country․5

<Table 1-2> Climatic Variations․7

<Table 1-3> Population Change/Year (By Age and Gender) Population․8

<Table 1-4> Population Change/Birth Rate Change:․10

<Table 1-5> Female Migration from Bangladesh․13

<Table 1-6> The migration rate by gender and direction of migration for 2007․14

<Table 1-7> Incidence of Poverty by Locality Over Time (CBN Method)․15

<Table 1-8> Literacy rate (%) of population 7 years and over by gender and age 1995-2007․18

<Table 1-9> Adult Literacy of Population of 15 Years and Over by Gender, 1991-2008․18

<Table 1-10> Adult (15-45 yr old) Literacy Rates․19

<Table 1-11> MILLENIUM DEVELOPMENT GOALS : BANGLADESH PROGRESS AT A GLANCE․19

<Table 1-12> Employment in RMG sector․22

<Table 1-13> Year Wise Overseas Employment (1976–2010 Aug)․25

<Table 1-14> Labour force aged 15 years and over by sex and locality, 1995-2006․27

<Table 1-15> CIVILIAN LABOR FORCE․27

<Table 1-16> SECTOR WISE EMPLOYMENT (Age : 15+)․27

<Table 1-17> GROWTH RATE OF LABOR FORCE BY LOCALITY (YEAR 2002-03).․28

<Table 2-1> GROSS ENROLLMENT RATE FOR PRIMARY SCHOOL BY SEX AND LOCALITY․34

<Table 2-2> Passing rates and growth rates of the SSC․35

xviii Table Index

<Table 2-3> Number of Institutes․35

<Table 2-4> Dhakil (Vocational)․36

<Table 2-5> Certificate in Vocational Education․36

<Table 2-6> Computer Training Program․37

<Table 2-7> Basic Trade Course (360 Hours)․37

<Table 2-8> Comparison of General & Vocational Education at Secondary Level:․37

<Table 2-9> Diploma in Technical Education (Course Duration 1 Year)․39

<Table 2-10> Diploma in Vocational Education (Course Duration 1 Year)․39

<Table 2-11> Diploma in Engineering (Course Duration 4 Years)․39

<Table 2-12> Diploma in Textile Engineering (Course duration 4 Years)․40

<Table 2-13> Diploma in Forestry․40

<Table 2-14> Diploma in Animal Health and Production․40

<Table 2-15> Diploma in Health Technology and Certificate in Health Technology․41

<Table 2-16> HSC(Higher Secondary School Certificate) Business Management․41

<Table 2-17> HSC (Higher Secondary School Certificate) Vocational․41

<Tabel 2-18> The TVET Scenario of Bangladesh at a Glance:․42

<Table 2-19> The list of the public and private institutions․43

<Table 2-20> Number and Share of TVET Institutions by Program (2009; source: BTEB):․45

<Tabel 2-21> Bangladesh Vocational Qualification Framework(present):․49

<Table 4-1> Budget Allocation (Revenue & Development) for DTE (Directorate of Technical Education)․63

<Table 6-1> Fields Green-job Under Studies․74

CAMBODIA

<Table 1-1> Employment, by Sector, Age and sex․88

Table Index xix

<Table 1-2> Employment Structure․88

<Table 1-3> Unemployment and Participation Rate By Sex and Region (Aged 15+)․90

<Table 1-4> Share of Employed Persons by Educational Level in Each Sector․91

<Table 1-5> Level of Education․93

<Table 2-1> Students in technical and vocational education and training․96

<Table 2-2> The Number of Graduated Students in TVET Institutions 2003–2008․98

<Table 2-3> Number of Graduates by Subject in MOLVT Formal Training Institutes, Academic Year 2007/2008․98

<Table 2-4> The Number of Teachers in TVET Institutions: Fiscal Year 2007–2008․100

<Table 2-5> Unemployment Rate․105

<Table 4-1> Number of Graduates from the Prime Minister’s Special Fund (2008-2009)․136

<Table 4-2> Number of Graduates from Program Budgeting(2008-2009)․136

<Table 5-1> External Assistance․139

INDONESIA

<Table 1-1> Indonesia General Statistics․154

<Table 1-2> Major Country Destination of Indonesia Migrant Workers․157

<Table 1-3> School Participation Rate, 2009․158

<Table 1-4> Unemployment Rates by Gender, BPS (Statistics Indonesia), and the Ministry of Manpower․164

<Table 1-5> GDP Contributor by Industry, 2008-2009․168

<Table 1-6> Certificate Level I-VI․175

<Table 1-7> Certificate Level VII-IX․176

xx Table Index

<Table 1-8> Student Enrollment by Education Level․177

<Table 1-9> Numbers and Percentage of Drop Outs Including Those Who Do Not Pursue Higher Education․178

<Table 1-10> Central Government Budget, 2010․179

<Table 1-11> Number of Vocational Students, Schools, and Teachers by Province, 2009․182

<Table 1-12> Challenges Faced by Vocational Senior Secondary Schools (SMKs) in Indonesia․186

<Table 1-13> Number of SKKNI in Each Sector․201

<Table 1-14> Various Types of BLK․202

<Table 1-15> Number of Courses and Instructors by Province․203

<Table 1-16> Major TVET Funding․206

LAO PDR

<Table 1-1> Fertility Rates by Location․220

<Table 1-2> Population and TVET and Upper Secondary Technical Enrolments to 2020․221

<Table 1-3> Annual Percent Growth Rate of GDP․222

<Table 1-4> General Education․224

<Table 1-5> Vocational Education and Higher Education․225

<Table 1-6> Educational Attainment of Population 6+ Years by Sex, Lao PDR (Percentages)․226

<Table 1-7> Children out of school․227

<Table 1-8> Public Education Expenditure․227

<Table 1-9> Literacy (Definition: Age 15 and Over Can Read andWrite)․227

<Table 1-10> School Enrollment․228

<Table 1-11> Ratio of Female to Male․228

<Table 1-12> Primary Education․228

Table Index xxi

<Table 1-13> Secondary Education․229

<Table 1-14> Population Aged 10 and Above, by Economic Activity․239

<Table 1-15> Number & Percent of Children and Youth Employed, byAge & Location․240

<Table 1-16> Children and Youth Employed, by Age, Gender, and Location․240

<Table 1-17> Employed and unemployed population aged 15+ years, Lao PDR, 2001-2003․242

<Table 1-18> Labor Force Aged 15+ Years, Lao PDR, 2001-2003․242

<Table 1-19> Employment-to-Population Ratios, Labor Force Participation Rates, Unemployment Rates and Inactivity Rates for Lao PDR, 2001-2003․243

<Table 1-20> Age-Specific Labor Force Participation Rates by Urban and Rural, Lao PDR, 1995․244

<Table 1-21> Unemployment rates by region and sex, 2001-2003․246

<Table 1-22> Unemployed Population by Educational Attainment, Lao PDR, 2001-2003․247

<Table 1-23> Employment by Sector, Lao PDR, 2001-2003․248

<Table 1-24> Employed Population by Status in Employment, Lao PDR․250

<Table 1-25> Hours of Work Per Week, Lao PDR․251

<Table 1-26> Comparative Labor Market Indicators, Southeast Asia․252

<Table 1-27> Lao Labor Market Indicators․253

<Table 4-1> Budget Item․286

MONGOLIA

<Table 1-1> Primary School Enrollment, Pupils in Grades 1-5, Literacy Rate․318

<Table 1-2> TVET Enrollment․318

xxii Table Index

<Table 1-3> Types of Vocational Education/Training and Graduation Documents․337

<Table 1-4> Summary of TVET institutions․340

<Table 1-5> TVET Subject․341

<Table 1-6> Training Subject․341

<Table 1-7> Connection between the Training Types of Vocational Education and Qualifications for the Beginning and Intermediate Levels․346

<Table 1-8> Public Expenditure on Education, 1991, 2002 and 2007․377

<Table 1-9> Current donor commitments for education sector by level․379

PHILIPPINES

<Table 1-1> Philippine Population by Census Year․399

<Table 1-2> Population by Age Group, by Sex and 2000 by Region:2000․400

<Table 1-3> Birth Rate, 2001-2005; 2015/2020․401

<Table 1-4> Household Population 5 Years Old and Over by Highest Educational Attainment 1990, 1995, 2000․402

<Table 1-5> Functional Literacy Rate of Population 10-64 Years Old by Highest Educational Attainment and Sex: Philippines 2008․403

<Table 1-6> Incidence of Poverty, Philippines: 2003 and 2006․404

<Table 1-7> Overseas Filipino Workers: 1991-2009․405

<Table 1-8> Number and Percentage Distribution of Overseas Filipino Workers by Selected Characteristics, Philippines: 2008 and 2009․406

<Table 1-9> OFWs by Major Occupation and by Place of Work: 2008-2009․407

<Table 1-10> Gross Domestic Product Growth Rate 1994-2009․409

<Table 1-11> Gross National Product and Gross Domestic Product By

Table Index xxiii

Industrial Origin: Annual 2008 and 2009 at Current and Constant 1985 prices, in Million Pesos․410

<Table 1-12> Gross National Product and Gross Domestic Product by Industrial Origin: 2nd Quarter 2009 and 2nd Quarter 2010, in Million Pesos․411

<Table 1-13> Key Performance Indicators in Basic Education Basic Education Performance Indicators, 2004-2009․414

<Table 1-14> Elementary and Secondary Enrollment: SY 2000-01 to SY 2008-09․415

<Table 1-15> TVET Enrolled and Graduates: 2001 to 2009․416

<Table 1-16> Higher Education Enrollment: SY 2000-01 to SY 2005-06․416

<Table 1-17> Household Population 15 and Over by Employment Status: 1995-2010․420

<Table 1-18> Employment Rate by Sex, By Age Group: 2000-2010․421

<Table 1-19> Employed Persons by Industry, Occupation, Class of Worker and Hours Worked, Philippines: July 2009 and July 2010 (in Percent)․423

<Table 1-20> Unemployed Person by Age Group, Sex, and Highest Grade Completed, Philippines: July 2009 and 2010․424

<Table 1-21> Persons Assessed and Certified by Priority Sector: 2005-2009․425

<Table 1-22> Enrolment and Graduates of Degree Program by Discipline: 2007-2009․426

<Table 1-23> Hard-to-Fill and In-Demand Occupations․428

<Table 1-24> TESDA Foreign Assisted Projects (‘000 pesos): 2005-2009․462

SRI LANKA

<Table 1-1> Summery of the 2010 Sri Lankan Parliamentary Election․485

<Table 1-2> Population․491

xxiv Table Index

<Table 1-3> Demography․491

<Table 1-4> National Accounts․492

<Table 1-5> The system awards qualifications of seven levels as given below.․526

<Table 1-6> Enrollment rate (2006-2009)․536

<Table 1-7> Student enrollment and output statistics․538

<Table 1-8> Particulars of teaching and training staff in major organizations functioning under the Ministry of Vocational and Technical Training at the end of 2009․544

<Table 1-9> Statistics for 2009․547

<Table 1-10> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and Over–Both Sexes․547

<Table 1-11> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and Over–Male.․549

<Table 1-12> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and Over–Female.․550

VIETNAM

<Table 1-1> Population in 2000-2008․570

<Table 1-2> Gross Domestic Product at Current Prices by EconomicSector․571

<Table 1-3> Gross Domestic Product at Current Prices by Ownership and by Kind of Economic Activity․573

<Table 1-4> Number of Schools and Classes of General Education as of 30 September․576

<Table 1-5> Number of Teachers & Pupils of General Education (Dec)․577

<Table 1-6> University & College Education․579

<Table 1-7> Labor Force in 2000-2008․583

Table Index xxv

<Table 1-8> Number of Employment 2000-2008․585

<Table 1-9> Employment by Industry on 1/7/2008․586

<Table 1-10> Employment by Kind of Job in 2000-2008․587

<Table 1-11> Employment by Position-Based in 2000-2008․588

<Table 1-12> Structure of Workers by Ownership in 2004-2008․589

<Table 1-13> Employment by Occupation Performed in 2008․590

<Table 1-14> Vocational Training Enrollment Targets and Scale in 2001-2008․599

<Table 1-15> Number of Vocational Training Schools, Vocational Training Centers, and Others, as of 30 June 2009.․600

<Table 1-16> Number and Structure of Vocational Training Trainers by Qualification in 2008․601

<Table 1-17> Number and Qualification of Vocational Training Managerial Cadre in 2000-2008․602

<Table 1-18> State Budget Spending on Vocational Training in 2001-2008․618

xxvi Figure index

[Figure Index]

BANGLADESH

[Figure 1-1] Population change from 1960 to 2009․6

[Figure 1-2] Demographic evolution of the territory of Bangladesh (1900-2010)․11

[Figure 1-3] Gross Domestic Product․16

[Figure 1-4] Year wise overseas employment․26

[Figure 1-5] Country-wise migration․29

[Figure 2-1] Year Wise Enrollment in SSC (Voc)․35

[Figure 4-1] Overview of the Funding Sources of Public and Private Institutions․62

CAMBODIA

[Figure 1-1] The Annual Population Growth Rate․80

[Figure 1-2] Cambodia’s Real GDP Growth Rate․83

[Figure 1-3] Student Plan after higher school․92

[Figure 1-4] How high school students make decision for highereducation․92

[Figure 1-5] Reasons for not continuing after high school․93

[Figure 2-1] Population Age Pyramid 2008․102

[Figure 2-2] Labor Force Participation Rate, for Workers Aged 15 and Older․103

[Figure 2-3] Employment-to-Population Ratios for Workers Aged 15 and Older․104

[Figure 3-1] MOLVT Organizational Structure․109

[Figure 6-1] The Rectangular Strategy for Growth, Employment, Equity, and Efficiency in Cambodia․145

[Figure 6-2] Proposed TVET System․146

Figure index xxvii

[Figure 6-3] The TVET System 25 Year Development Plan in Cambodia 1996-2020․147

INDONESIA

[Figure 1-1] Indonesia Population by Age Group and Gender, 2005․155

[Figure 1-2] Indonesia Economic Growth 1997-2009․159

[Figure 1-3] Informal Workers, Urban and Rural․162

[Figure 1-4] Workers by Industry, 2009․163

[Figure 1-5] Number of Unemployed Higher Education Graduates․167

[Figure 1-6] The Future Trend of Manufacturing Industries․169

[Figure 1-7] The Indonesian Education System․173

[Figure 1-8] Indonesia’s National Qualification Framework․174

[Figure 1-9] SMK Roadmap․185

[Figure 1-10] Wage Ration SMK/SMU by Main Occupation․188

[Figure 1-11] SMK Teaching Industry Scheme․190

[Figure 1-12] SMK Student Enrollments by Study Program․191

[Figure 1-13] Competency Certification Scheme in TEVT․195

[Figure 1-14] Three in One Scheme․197

[Figure 1-15] Lifelong Learning Scheme․200

LAO PDR

[Figure 1-1] Population Pyramid, 2005․220

[Figure 1-2] Population and TVET & Upper Secondary Technical Enrollments to 2020․221

[Figure 1-3] Proportion of the Population Aged 15+ That Cannot Read or Write by Residence and Sex, 2002-2003․230

{Figure 1-4] Labour force participation rates․245

[Figure 1-5] Distribution of GDP and Employment, Lao PDR, 2003․249

[Figure 1-6] Status in Employment, Lao PDR․251

xxviii Figure index

MONGOLIA

[Figure 1-1] GDP Growth․316

[Figure 1-2] Percentage of Enrollment in Post Secondary Education․319

[Figure 1-3] Percentage distribution of education enrollment of 5-to 29-year-olds among levels of formal education․320

[Figure 1-4] Educational Pyramid․321

[Figure 1-5] Labor Market Demand Ratio by Education Level (prepared by the State Employment Agency)․328

[Figure 1-6] Framework of the Mongolian Education System․334

[Figure 1-7] Mongolia’s Education System․335

[Figure 1-8] TVET System․336

[Figure 1-9] TVET Professional Development Training System․338

[Figure 1-10] TVET TEACHERS 2009-2010․343

[Figure 1-11] Financing of TVET․375

[Figure 1-12] 2006 revenue sources by sector (%)․376

[Figure 1-13] Percentage of TVET budget in the Total budget foreducation․378

PHILIPPINES

[Figure 1-1] Philippine Education System․412

[Figure 1-2] The TVET Development Loop to Employability․432

[Figure 1-3] Average Annual Education Budget, 2005-2009․462

SRI LANKA

[Figure 1-1] The Education and Training System of Vietnam․575

[Figure 1-2] Labor Force 2000-2008 (In Millions of Persons)․581

[Figure 1-3] Structure of Workforce by Region and Sex․582

[Figure 1-4] Unemployment Rate 2002 - 2009 (%)․584

BANGLADESH

BANGLADESH 3

Chapter 1

TVET Policy, Experience, and Trends in Bangladesh

Introduction:

Bangladesh is one of the world’s most densely populated

countries. More than 159 million people (2007) live in this country.

90% of Bangladeshis are Muslim, and the remainder is Hindu,

Buddhist, and Christian. About 45 percent of the population is under

the age of 15. Natural disasters, such as cyclones and severe

flooding, occur with regular frequency, causing damage, disease, and

loss of food crops. Yet during the last 12 years, Bangladesh has

made important development gains. Both population growth and the

incidence of poverty have steadily declined, and the Gross Domestic

Product (GDP) has averaged a 6 percent growth rate per year. The

proportion of the population living below the national poverty line

has fallen to 40 percent in 2005, from 59 percent in 1991. Considerable

progress has been made toward achieving the Millennium Development

Goals (MDG), especially in the health and education sectors.

4 TVET Policy Reviews of 8 Asian Countries ②아시아 력 상국가의 직업교육훈련 정책자료 구축

Section 1. Context and Background

The territory constituting Bangladesh was under Hinduism before

1200 AD. From 1201 to 1751, over five and half centuries,

Bangladesh was under Muslim (Mohammedan) rule. The British

ruled the Indian sub-continent including this territory from 1757 to

1947 for nearly 190 years. In August 1947, with termination of

British rule, the sub-continent was partitioned into the nations of

India and Pakistan (based on religion). Bangladesh was a part of

Pakistan and was known as East Pakistan. On December 16, 1971,

after much bloodshed in the war of liberation, an independent

“Bangladesh” and sovereign state, declared her presence on the

world map.

1. Political and Socio-cultural Context

Bangladesh is democratic country. Multiparty democracy is

practiced in Bangladesh. The socio-cultural context of Bangladesh

may be characterized by the low status of women, and the low

literacy rate. The constitution of Bangladesh states that there will

be no discrimination on the basis of gender. The government has

also signed the Universal Declaration of Human Rights and ratified

the Convention on the Elimination of all forms of discrimination.

The female economic activity rate is 36 percent in the country, as

compared to the South Asian average of 43 percent (UNDP, 2004).

The literacy rates for women are 31.8% and for men, 53.9%.

BANGLADESH 5

Education expenditures represented 2.7% of GDP in 2005.

<Table 1-1> Government System of the Country

Government System Parliamentary DemocracyHead of State PresidentHead of Government Prime Minister (PM)

2. Population and Demographics

The country’s population is almost evenly distributed throughout

its 64 districts, except for the three Hill Tracts districts which are

rather sparsely inhabited. Regionally, the eastern districts have a

slightly higher density than the western ones. On average, a district

has a population of about 1.8 million; an upazila/thana, 230,000; a

union, 25,000; and a village, 2,000. There are 490 upazila/thana;

4,451 unions; and 59,990 villages. There are 4 metropolitan cities

and 119 municipalities in the country. The level of urbanization is

low at 20%. This leaves 80% of the country’s total population of

about 120 million to live in the rural areas which primarily depend

on a poorly developed agricultural system for livelihood. The capital

city of Dhaka has an estimated population of 8.58 million.

3. Population Change

The population of Bangladesh is 162,220,762, i.e. approximately

162 million. (Source: World Bank, 2009). The population change is

shown in the following graph.


[Figure 1-1] Population change from 1960 to 2009

4. Demographics of Bangladesh

1. Official Name: The People’s Republic of Bangladesh

2. State Religion: Islam, other religions practiced in peace and

harmony.

3. State Language: Bangla (Bengali)

4. National Anthem: The first line of national anthem is “Amar

Sonar Bangla ……”.

5. National Flag: Red colored circle at the center of a green

rectangle. The length to width ratio of the rectangle is 10:6, and

the circle has a radius of one fifth of the length of rectangle.

6. National Emblem: The national flower “Shapla” (nymphea-

nouchali) resting on water and having on each side pair of

paddy ships surmounted by three connected Jute leaves that are

adorned with two stars on each side.

7. Capital: Dhaka

200M

100M

01960 2009

BANGLADESH 7

8. Nationality: Bangladeshi

9. Name of Currency: Taka (TK.),

Notes: Taka 1000, 500, 100, 50, 20, 10, 5, 2 & 1

Coins: Taka 5, 2, 1 and Paisa 50, 25, 10, 5, 2 &1

10. Geographical Location: Between 20o34' and 26o38' north

latitude and between 88o01' and 92o41' east longitude.

11. Boundary: North: India

West: India

South: Bay of Bengal

East: India and Myanmar

12. Area: 56977 sq. miles or 1,47,570 sq. km.

13. Territorial Water: 12 nautical miles.

14. Main Seasons: Summer (March-May), Rainy Season (June-

September) and winter (December-February)

15. Climatic Variations (Average):

<Table 1-2> Climatic Variations

Season Temperature Rainfall RelativeHumiditymaximum minimum

Pre MonsoonMonsoonPost MonsoonWinterAnnual

32.6℃31.5℃30.5℃26.5℃30.4℃

22.4℃25.5℃21.4℃13.9℃21.2℃

453㎜1733㎜210㎜44㎜

203㎜

74%86%80%73%78%

16. Standard Time: GMT+6 hours

17. Main rivers: The Padma, Meghna, Jamuna, Brahmaputra,

Teesta, Surma and Karnaphuli (Total 230 rivers)


18. Main Seasonal Crops and Fruits: Paddy, Jute, Wheat, Tobacco,

Pulses, Oil seeds, Tea, Spices, Vegetables, Jack-fruit, Banana,

Mango, Coconut.

In Bangladesh population size has been increasing continuously,

although there is decline in the annual growth rate of the population.

There are fewer women then men, creating a gender gap that has

persisted over the decade. The distribution of population from

1990-2010 is shown in the table below.

<Table 1-3> Population Change/Year (By Age and Gender) Population

(in Millions):

Year Age group (years) Women Men Total(millions) Source

1990 All Age group - - 109.8200 “Populstat”website

1991 All Age group - - 107.9921 〃

1992 All Age group - - 112.8320 〃

1993 All Age group - - 116.7020 〃

1994 All Age group - - 117.7870 〃

1995 All Age group - - 121.1010 〃

1996 All Age group - - 123.0630 〃

1997 All Age group - - 123.6330 〃

1998 All Age group - - 125.6290 〃

1999 All Age group - - 127.6690 〃

2000 All Age group 63.0000 66.3000 129.3000 SVRS

2001

<15 24.2794 26.9071

130.0000Bangladesh Bureau of Statistics

15-49 32.0790 32.275150+ 06.5415 07.9178

Total 62.9000 67.1000

BANGLADESH 9

Year Age group (years) Women Men Total(millions) Source

2002

<15 24.6507 26.3252

132.9000

Bangladesh Bureau of

Statistics and SVRS

15-49 33.1264 33.349850+ 06.9229 08.2550

Total 64.7000 68.2000

2003

<15 24.8346 26.5344

134.8000


Statistics and SVRS

15-49 33.7698 33.859050+ 07.0956 08.7066

Total 65.7000 69.1000

2004

<15 24.9750 26.7782

136.7000


Statistics and SVRS

15-49 34.3656 34.419150+ 07.2594 08.9027

Total 66.6000 70.1000

2005

<15 25.2014 27.1015

139.4315


Statistics and SVRS

15-49 34.8051 35.303350+ 08.1053 08.9149

Total 68.1118 71.3197

2006

<15 24.7646 26.6400

140.6000


Statistics and SVRS

15-49 35.6720 36.000050+ 08.1634 09.3600

Total 68.600 72.000

2007

<15 23.8385 26.0236

142.6000


Statistics and SVRS

15-49 3690.45 37.207950+ 08.7570 09.8685

Total 69.5000 73.1000

2008

<15 - -

144.5000 SVRS15-49 - -50+ - -

Total 70.5000 74.0000

2009

<15 23.5339 24.9580

147.3653 From Wikipedia

15-64 45.9176 47.862865+ 02.3614 02.7316

Total 71.8129 75.5524

2010

<15 - -

153.4370 “Populstat”website

15-64 - -65+ - -

Total - -


The following table lists various recent estimates of the population.

The baseline for population studies on Bangladesh is the official

census which is conducted every 10 years, the last being in 2001.

<Table 1-4> Population Change / Birth Rate Change:

LocalityYear

2000 2001 2002 2003 2004National 19 18.9 20.1 20.9 20.8

Rural 20.8 20.7 21 21.7 21.6Urban 13.7 13.6 16.6 17.9 17.8

Year Life at Birth(ex°) by GenderBoth Sex Male Female Male-Female

1991-Base year 56.1 56.5 55.7 (+) 0.81992 56.3 56.8 55.91993 57.9 58.2 57.71994 58.0 58.2 57.91995 58.7 58.4 58.11996 58.9 59.1 58.61997 60.1 60.3 59.71998 61.5 61.7 61.21999 62.7 63.0 62.42000 63.6 63.7 63.52001 64.2 64.0 64.52002 64.9 64.5 65.42003 64.9 64.3 65.42004 65.1 64.4 65.72005 65.2 64.4 65.82006 66.5 65.4 67.82007 66.6 65.5 67.9

2008-Current Year 66.8 65.6 68.0 (-) 2.4

BANGLADESH 11

Source Year Population (millions)National Census 1991 112National Census 2001 129UN Population Fund 2003 150UN Dept Economic and Social Affairs 2005 142US State Dept 2005 144Population Reference Bureau 2005 144CIA World FactBook 2006 147UN Population Fund 2006 144CIA World FactBook 2007 150UN 2007 159World Bank 2008 160CIA World FactBook 2010 156World Population Reference 2010 164

5. Population Growth Rate

Bangladesh had one of the highest rates of population growth in

the world in the 1960s and 1970s. Since then, however, it has seen

a marked reduction in its total fertility rate. Over a period of three

decades it dropped from 6.2 to 3.2%, according to UNDP figures

from 2003. [Figure 1-2] Demographic evolution of the territory of Bangladesh (1900-2010)


Pop. growth rate:1.292% (2009 est.)

country comparison to the world: 104

Birth rate:24.68 births/1,000 population (2009 est.)


Death rate:8 deaths/1,000 population (2009 est.)


Net migration rate:-2.53 migrant(s)/1,000 population (2009 est.)


Total fertility rate:2.74 children born/woman (2009 est.)


6. Urban and Rural

The sprawling mega-city of Dhaka has a huge population, but the

majority of the people nonetheless still live in villages in rural areas.

Urban population: 27% of total population (2009 est.)

Rate of urbanization: 3.5% annual rate of change (2005-2010 est.)

7. Gender ratio

At birth: 1.04 male(s)/female

Under 15 years: 1.01 male(s)/female

15–64 years: 0.9 male(s)/female

65 years and over: 0.94 male(s)/female

BANGLADESH 13

8. Migration

Migration Scenario of Bangladesh:

Overseas Employment officially started in 1976. Now migration

extends to 132 countries. Women’s migration is 5%; skilled and

semi-skilled migration is 47%. Remittance was US $ 10.72 b in

2009. It is 13% of GDP & 5 times of ODA.

<Table 1-5> Female Migration from Bangladesh

Year Number Year Number1991 2189 2001 6591992 1907 2002 12161993 1793 2003 23531994 1995 2004 112591995 1612 2005 135701996 1994 2006 180451997 1762 2007 190941998 939 2008 208271999 366 2009 222242000 554

Source: BMET

The migration rate by gender and direction of migration for 2007

is presented in the table below. The reasons for migration by gender

are included.


<Table 1-6> The migration rate by gender and direction of migration for 2007Figures in Percentages

Year Direction Reason Women Men2007 Rural In-migration Total 100.0 100.0

Marriage 33.8 1.3Education 2.0 3.8Looking for job 7.9 24.1Getting job 1.1 3.5Others 55.3 67.3

Rural to Rural Total 100.0 100.0Marriage 33.8 1.3Education 2.0 3.8Looking for job 7.9 24.1Getting job 1.1 3.5Others 55.3 67.3

Urban to Rural Total 100.0 100.0Marriage 18.7 1.0Education 3.1 4.7Looking for job 12.1 30.7Getting job 1.5 4.8Others 64.6 58.8

Urban In-migration Total 100.0 100.0Marriage 6.9 0.7Education 2.1 2.3Looking for job 8.3 21.2Getting job 1.4 4.0Others 81.3 71.8

Urban-Urban Total 100.0 100.0Marriage 12.8 1.6Education 0.9 0.8Looking for job 5.2 12.4Getting job 0.6 1.9Others 80.5 83.3

Rural-Urban Total 100.0 100.0Marriage 5.7 0.5Education 2.3 2.6Looking for job 8.8 23.0Getting job 1.6 4.4Others 81.4 69.5

source: SVRS, 2007, BBS(Bangladesh Bureau of Statistics)

BANGLADESH 15

9. Poverty Rate

With regard to financial means and options, it should also be taken

into account that poverty is still persistent, since 40% of the

population lives below the poverty line (MoF, PPP-paper, 2009) and

many more citizens, just above. There is a growing East-West

difference in poverty; while poverty rates are declining in eastern

and southern Bangladesh, they are persistent in western and northern

areas. Poverty is particularly declining in the Dhaka division,

followed by Chittagong and Sylhet (World Bank 2008, p.13).

Although polytechnic education has a relatively high share of the

TVET students in these divisions, particularly in the latter two,

TVET probably does not contribute a lot to this development, due

to modest numbers.

<Table 1-7> Incidence of Poverty by Locality Over Time (CBN Method)

Poverty Level/Locality 1991-92 1995-96 2000 2005 Target-2015

Upper Poverty line: Rural Urban

58.742.7

54.527.8

52.335.2

43.828.4

28.3

Lower Poverty Line: Rural Urban

43.723.6

39.413.7

37.920.0

28.614.6

20.5

Data source: SIES, BBS (Bangladesh bureau of statistic)

10. Economy (GDP): 2004-2009

Bangladesh’s GDP is expected to grow by 5.7% in 2010,

following 5.9% growth in 2009. The global economic downturn has


reduced demand for Bangladesh exports. Merchandise exports

decreased 7.7% year on year as of November 2009. In April 2009,

the government announced a $500 million stimulus package to spur

economic growth and placed emphasis on public-private partnerships.

The United States and Bangladesh have had discussions over the

possibility of a Trade and Investment Framework Agreement (TIFA),

or a U.S.-Bangladesh Economic and Trade Cooperation Forum

(UBETCF). Bangladesh would like to increase market access for its

products in the United States. There are an estimated 6 million

Bangladeshis working abroad. They are estimated to have sent $9.7

billion to Bangladesh in 2008-2009, making Bangladesh one of the

world’s largest sources of overseas workers. This represents an

increase of 22.4% year to year. Remittances are a significant source

of revenue and are expected to decline in 2009-2010, due to the

global economic downturn.

[Figure 1-3] Gross Domestic Product

BANGLADESH 17

11. Education

Literacy

Definition: age 15 and over can read and write

Total population: 43.1%

Male: 53.9%

Female: 31.8% (2003 est.)

Education expenditures

2.7% of GDP (2005)


Education is the priority sector, for which the Bangladesh

government plays a significant role. Essential for the nation’s

development, education has been considered one of the most

important and effective strategies for human resource development,

poverty alleviation, and socioeconomic health. It is critical at this

time to transform the huge population into a productive human

resource through human communication and coordination, with

education and training linked to new and emerging technologies. The

government, with this goal in mind, has sustained development

endeavors through educational expansion and quality improvement

in different sub-sectors of education.


12. Education Attainment of Population by Gender and Age, Literacy

<Table 1-8> Literacy rate (%) of population 7 years and over by gender and age

1995-2007

Years National Rural UrbanWomen Men Women Men Women Men

1995 28.5 50.4 26.4 40.8 54.9 69.61997 37.5 53.6 35.3 44.5 60.6 70.21999 39.0 53.7 36.1 46.2 62.4 70.32000 40.7 53.9 37.9 48.0 62.5 71.32001 40.8 49.6 36.7 44.4 54.8 64.92002 44.5 52.8 41.0 49.3 58.8 67.32003 44.9 53.1 41.4 49.7 58.8 67.32004 46.2 53.7 42.9 50.2 60.2 68.12005 48.8 55.4 45.0 51.6 60.0 67.02006 49.1 55.8 45.3 51.9 60.5 67.52007 52.7 59.4 48.7 55.5 64.5 71.1

Adult literacy rates are given as follows:

<Table 1-9> Adult Literacy of Population of 15 Years and Over by Gender,

1991-2008

Year Adult Literacy of Population of 15 Years and Over by GenderBoth sexes Female Male

1991 37.2 43.3 25.81995 45.3 55.6 38.11997 51.2 59.4 42.21998 52.6 59.4 42.51999 52.7 60.7 42.82000 52.8 61.0 43.22001 47.5 53.9 40.82002 49.6 55.5 43.42003 50.3 56.3 44.22004 51.6 57.2 45.82005 53.5 58.3 48.62006 53.7 58.5 48.82007 58.3 63.1 53.52008 59.1 63.4 54.7

Target-2015 100 100 100Data Source: SVRS, BBS

BANGLADESH 19

Goals, Targets and Indicators (revised) Base year1990/1991

CurrentStatus

Targetby 2015

Goal 1: Eradicate Extreme Poverty & HungerTarget 1.A: Halve, Between 1990 & 2015, the Proportion of People Below the Poverty Line1.1 : Proportion of population below national upper poverty line (2122 k.cal.), percent

56.6 40.0(2005)

29.0

1.2 Poverty Gap Ratio, percent 17.0 9.0(2005)

8.0

1.3 Share of poorest quintile in national consumption, percent

6.5 5.3(2005)

Na

It is estimated that there are around 40 million illiterate adults in

the 11-45 age range in the country. As shown in the following table,

only half the population is considered literate.

<Table 1-10> Adult (15-45 yr old) Literacy Rates

Sex Rural(%)

Urban(%)

Total(%)

Male 46.1 56.7 48.6Female 46.7 57.1 49.1Total 46.4 56.9 48.8

* Source: NFE Mapping Report-2009

The implication is that a huge expansion of NFE (Non-formal

Education), offering both literacy and skills’ development, is

required to address the challenge of facilitating improvements in the

livelihoods of this huge group of citizens.

13. National Development Plan and Strategies in General

<Table 1-11> MILLENIUM DEVELOPMENT GOALS :

BANGLADESH PROGRESS AT A GLANCE


Target 1.B: Achieve Full & Productive Employment & Decent Work for All, Including Women & Young People1.1 Employment to population ratio, Percent 48.5 58.5

(2005)for all

Target 1.C : Halve, between 1990 and 2015, the Proportion of People Who Suffer from Hunger1.2 Prevalence of underweight children under five years

66.0 47.8(2005) #

33.0

1.3 Proportion of population below minimum level of dietary energy consumption, percent

28.0 19.5(2005)

14.0

Goal 2: Achieve Universal Primary EducationTarget 2.A : Ensure That, by 2015, Children Everywhere, Boys & Girls Alike, Will Be Able to Complete a Full Course of Primary Schooling2.1 Net enrollment in primary education, percent 60.5 91.1

(2007)100

2.2 Proportion of pupils starting grade 1 who reach grade 5, percent

40.7 79.8(2009)

100

2.3 Adult literacy rate of 15+ years old population (proxy), percent

Adult literacy rate of 15-24 years old population (Female), percent

37.2 59.1(2008)

72.0(2009)

-

-

Goal 3: Promote Gender Equality & Empower WomenTarget 3.A : Eliminate Gender Disparity in Primary & Secondary Education, Preferably by 2005, & in All Levels of Education No Later than 20153.1a Ratio of girls to boys in primary education (Gender Parity Index=Girls/Boys)

0.83 1.03(2009)

1.0

3.1b : Ratio of girls to boys in secondary education (Gender Parity Index=Girls/Boys)

0.52 1.17(2009)

1.0

3.1c : Ratio of girls to boys in tertiary education (Gender Parity Index=Girls/Boys)

0.37 0.61(2006)

1.0

3.2 Share of women in wage employment in the non-agricultural sector, percent

19.1 14.6(2005)

50

3.3 Proportion of seats held by women in national parliament, percent

12.7 19.0(2009)

33

(Bangladesh Bureau of Statistics)

BANGLADESH 21

Section 2. Employment and Labor Market

Employment provides the key link between economic growth and

poverty, making it the major tool for poverty reduction in

Bangladesh. Bangladesh experienced a steady rise in GDP growth

during the last five years (2003-2007), when it grew at an average

annual rate of more than 6 percent, compared with 5 percent over

the previous five years.

1. Bangladesh’s Export Sector

Recent studies indicate that women in Bangladesh constitute the

majority of the incremental labor absorption in the country’s export-

oriented manufacturing enterprises. It is also generally believed that

cheap and readily employable female labor underpins the competitive

advantage of Bangladesh’s export sector.

To understand the nature of women’s employment in Bangladesh,

we need to examine the factors that contributed to the feminization

of manufacturing employment. Is it the gender gap in the effective

wage structure that underpins the growth of female labor in

Bangladesh? Are they paid less than men for similar jobs, even when

productivity differentials are accounted for? Why do entrepreneurs

prefer employing young, single, literate women? Does this preference

stem from supposedly lower wages of women, or other non-wage

factors, such as their social docility and amenability to repetitive


processes? Available information suggests that conventional measures

of gender bias, such as wage gaps, access to employment, and lack

of job security, are relatively less conspicuous in more organized

segments of Bangladesh’s manufacturing sector.

Let us test the above context though a case study. New Age Group

is a leading exporter of RMG (ready made garments) from Bangladesh

that employ over 4000 people, 70% of whom are women. The table

below outlines employment in their three production facilities,

broken down into varying skill groups. The last column of the table

shows the discrimination index of average wages of the various

groups of employees, as compared with their male counterparts.

<Table 1-12> Employment in RMG sector

Employment Gender Discrimination indexGroup Male Female Male Female

Supervisors 183 10 100 79Sewing Dept 308 1370 100 97

Finishing Dept 241 205 100 88Cutting Dept 174 23 100 89

QC Dept 174 53 100 95Helpers 152 1087 100 100

2. Labor Market

The Bangladesh Bureau of Statistics (BBS 2008) has recently

published the Labour Force Survey (LFS) 2005-06, which provides

insight into several relevant issues. In relative terms, employment

is shifting from agriculture to industry and, particularly, to services

BANGLADESH 23

sector jobs, though employment in the agricultural sector is still

growing at a rate of 0.7%. Yet, job growth rates in the industry and

services sectors are higher, with 3.9 and 5.4% respectively. In the

industry sector, construction, in particular, is the job driver (+7.5%),

while growth in manufacturing (+2.8%) is lower. Actually, the share

of agricultural jobs is 46%, while that of the services sector is largely

unchanged (23%). Service sector employment increased to 31%. The

LFS 2005-06 (p. 53) clearly indicates that the share of the labor force

engaged in the primary sector (agriculture, forestry, and fishing) is

almost unchanged, though slightly diminishing. Of some interest is

the gender difference; women get more involved, and men, less.

Most industry areas, such as manufacturing (average growth rate:

+6.4%), wholesale, retail, and vehicle repair (+5.2%) show higher

labor force numbers, as well as shares and are, therefore, growing,

while construction (-0.4%), electricity, gas, and water supply (-8.1%)

are decreasing. Almost all service areas, except public administration

and defense (-3.7%) and health and social work (-10.4%), are of

increasing importance. Hotels, restaurants (+8.1%), logistics (9.7%),

real estate (7.2%) and, particularly, financial intermediation (+31.5%)

are growing labor market segments. Yet, it should be noted that the

size of these segments is different. For example, while 23 million

people are employed in agriculture, hunting and forestry, financial

intermediation accounts for 220,000 jobs. Finally, it should be noted

that Bangladesh is a big exporter of labor force. Remittances from

overseas employment are currently higher than the export income of

any one industrial sector.


3. Demography and the Labor Market

One of the biggest challenges for the labor market is the increasing

number of young people. Due to demography, the size of the labor

force will increase strongly over the next years. Between 2005 and

2015, the working age population will grow by about 22 million

people (p. 20f). Thus, to cope with this growth of unskilled,

semi-skilled and (highly)-skilled labor, the job market will have to

increase at a substantial rate. This demographic growth will surely

affect all areas of education, though at different levels and times.

Given the different qualification levels required in the economy, this

pattern suggests a well-structured strategy covering the whole range

of skills, from basic vocational, to highly-skilled vocational and

technical. As far as it can be established, the delivery of basic

vocational and technical skills is far more prevalent in other

ministries than education.

4. Migration and Overseas Employment

Although migration is considered an option for coping with the

demographic challenge, this is only one side of the coin. At the

moment, the number of Bangladeshis working abroad seems to be

relatively modest, with less than 560,000 estimated to be working

overseas in April 2009 (Byron 2009). Prior to the economic crisis

which began in early 2008, the number was 875,000 (BMET). On

the other side of the coin is the potential risk that, in the long run,

particularly the better educated will leave the country to work abroad.

BANGLADESH 25

With regard to the ambitious goal of achieving growth rates of

10% and more within 10 years, an increasingly skilled labor force

is required. In fact, the strategy of increasing skill levels should not

be to look at the formal education sector only, but also at the

non-formal, as well as the informal sector of education, including

technical and vocational education and training.

Bangladesh is a small country of around 1,47,570 sq. km., with

76 per cent of total population living in rural areas. Despite the

significant effort undertaken by the GOB to reduce poverty, around

half of the rural population is still poor. To make the country

economically sustainable, manpower export is very essential. Year

wise overseas employment (1976 – 2010 Aug) is shown below.

<Table 1-13> Year Wise Overseas Employment (1976 – 2010 Aug)Year Number Year Number Year Number1976 6087 1988 68121 2000 2226861977 15725 1989 101724 2001 1889651978 22809 1990 103814 2002 2252561979 24495 1991 147173 2003 2541901980 30073 1992 188124 2004 2729581981 55787 1993 244508 2005 2527021982 62762 1994 186326 2006 3815161983 59220 1995 187543 2007 8326091984 56714 1996 211714 2008 8750551985 77694 1997 231077 2009 4752781986 68658 1998 2676671987 74017 1999 268182

Source: BMET Up to August 2010: 2,62,000


[Figure 1-4] Year wise overseas employment

0100000200000300000400000500000600000700000800000900000

100000019

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

09

Series1

5. Employment and Labor Market Information Table

According to the Labor Force Survey (LFS) by Bangladesh Bureau

of Statistics, the labor force aged 15 years and over by sex and

locality 1995-2006 is shown in the following table (numbers in

millions).

BANGLADESH 27

<Table 1-14> Labour force aged 15 years and over by sex and locality,

1995-2006(in Million)

Period &Source

National Rural UrbanWomen Men Women Men Women Men

1995-96 LPS 5.4 30.6 3.8 23.9 1.6 6.71999-2000 LPS 8.6 32.2 6.4 25.1 2.2 7.12002-03 LPS 10.3 35.0 7.7 27.3 2.7 8.62005-06 LPS 12.1 37.3 9.3 28.4 2.8 8.9Source: Labour Force Survey, 2002-2003 and 2005-2006, BBS

<Table 1-15> CIVILIAN LABOR FORCE

EmploymentStatus

Year1999-2000 2002-2003

Total 45043 46324Employed 42818 44322Unemployed 2225 2002Source: Labor Force Survey, BBS. (Bangladesh Bureau of Statistics)

<Table 1-16> SECTOR WISE EMPLOYMENT (Age : 15+)(Million)

Major Industry Total Urban RuralTotal 47324 10722 33599Agriculture, Forestry. 21887 2777 19109Fisheries 1044 108 936Mining & Quarrying 82 8 73Electricity, Gas, Water 98 49 49Construction 1541 558 983Trade, Hotel, Restaurant 9671 2449 4222Transport, Storage and Communication 3015 1000 2015Bank, Insurance & Finance 223 155 68Manufacturing 4343 1505 2838Community Personal Service, 2549 827 1722Household Sector & Others Real Estate, Rent, Business Activities 194 106 87Public Administration 988 529 459Education Service 1185 434 751Health & Social Work 504 217 287Source : Labour Force Survey 2002-03, BBS. (Bangladesh Bureau of Statistics)


<Table 1-17> GROWTH RATE OF LABOR FORCE BY LOCALITY

(YEAR 2002-03).

Locality Both Sex Male FemaleBangladesh 4.4 3.8 6.5

Urban 6.9 6.7 7.6

Rural 3.6 2.9 6.2

Source : Labour Force Survey 2002-03, BBS. (Bangladesh Bureau of Statistics)

6. Skill Supply and Demand (Overall Marketplace Requisite

Skills)

In the globalization era, it is necessary for us all to survive in

an international environment. Therefore, Bangladeshi Human Resources

seeks to constantly improve current skills and acquire new ones.

Twenty-first century skills require the acquisition and evaluation of

data; the organization and maintenance of files; and the interpretation,

communication, and use of computerized information. An understanding

of social, organizational, and technological systems; monitoring and

correcting performance; and designing or improving systems are the

skills that vitalize an evolving workforce. Technology has become

unavoidable, so much so that selecting equipment and tools; applying

technology to specific tasks; and maintaining and troubleshooting

technological devices are necessary skills for an average employee.

These significant skills are discussed under the following categories.

1. Technical skills

2. Analytical skills

BANGLADESH 29

3. Communication skills

4. Multi-disciplinary and inter-disciplinary skills

7. Country Wise Overseas Employment (1976 – 2009) : Top 10 countries

[Figure 1-5] Country-wise migration

Skill Mismatch / Skill Shortage:

Bangladesh is struggling to respond to the skills’ needs of their

workforce. The skill mismatch and skill shortage are caused by

numerous factors, outlined below:

1. Increasing globalization;

2. New technology/changing technology;

3. Changing patterns of work;

4. Mismatch between training and skills required;


5. Mismatch between demand and supply;

6. Lack of adequate industry participation;

7. Recognition of qualification;

8. Inadequate number of trainers;

9. Inadequate vocational training infrastructure;

10. Low employment outcome of graduates;

11. Resources (who will fund and maintain);

12. Upgrading of tools and equipment;

13. Poor relationship with industry/employer and institutions; and

14. Lack of tripartite (government, employer and worker) approach.

8. New Demands: Industry and Government Policy

The demand for workers from Bangladesh in the coming years will

depend on many factors, among them: the prospect of economic

growth of the labor receiving countries, especially in the gulf region,

the principal destination of short term Bangladesh workers; availability

of cheap labor in Bangladesh; the skill development program of the

government; and, of course, government initiatives to introduce

discipline and transparency in the migration process.

Bangladesh is one of the most densely populated countries in the

world. The agricultural sector employs approximately 63% of the

workforce and accounts for 19.9% of GDP, while industry employs

11% and contributes 20.6% of GDP. Services account for 26% of

the labor force and 59.5% of GDP. The major crop is rice, in which

Bangladesh is nearly self-sufficient. Industry is centered mainly on

BANGLADESH 31

cotton textiles, jute manufacturing, and food processing. Ready-made

garments and knitwear are important exports for Bangladesh. Foreign

exchange earnings from remittances by Bangladeshis working abroad

are another key source of income for Bangladesh.

BANGLADESH 33

Chapter 2

TVET Systems by Target Group: Adults, Teachers,

Trainers, and Enterprises

Section 1. TVET Systems by Target Group

Access to education, training, and lifelong learning will be

promoted for people with nationally identified special needs, such

as youth, low-skilled people, people with disabilities (PWD),

migrants, and internally displaced people, older workers, indigenous

people, ethnic minority groups, the socially excluded; and/or workers

in small and medium-sized enterprises, the informal economy, rural

sector, and self-employment.

Section 2. TVET for Students by Level of Education

Levels of education in Bangladesh are categorized as follows:


(a) Primary level

(b) Secondary level

(c) Higher Secondary level

(d) Higher level

Primary education in Bangladesh ensures the children acquire the

four basic skills of reading, writing, listening, and speaking. But the

reality is that 9 out of 100 children never enroll in any primary

schools. 45% of the enrolled children do not complete primary cycle.

Learning achievements are very poor.

<Table 2-1> GROSS ENROLLMENT RATE FOR PRIMARY SCHOOL BY SEX

AND LOCALITY

Locality GER (Gross Enrolment Rate) 2004 2003 Boys Girls Boys Girls

National 104.8 102.30 106.90 104.80Rural 106.2 103.10 107.90 105.60Urban 99.3 98.70 101.20 100.60

Source : SVRS 2004, BBS.

In the existing education system there is scope for vocational

education for the primary level student.

Secondary Level: Vocational and Academic School Rate,

Apprenticeship, Enrollment Rate

Enrollments and Passing Rates of the SSC Vocational

Examination are given below:

BANGLADESH 35

<Table 2-2> Passing rates and growth rates of the SSC

Year No ofInstitute

No of Student appearingSSC (Voc)

Pass rate(%)

Growth rate(%)

2000 427 14560 61.85 -2001 535 20055 57.16 37.742002 680 25590 43.45 27.602003 687 31627 38,92 23.592004 870 31452 51.16 -0.552005 950 35779 51.44 13.762006 1227 48309 61.37 35.022007 1338 64637 51.08 33.802008 1463 82375 62.88 27.77

[Figure 2-1] Year Wise Enrollment in SSC (Voc)

1. SSC (Secondary School Certificate) (Vocational):

<Table 2-3> Number of Institutes

Number of Institutes IntakeCapacityPublic Private Total

129 1597 1726 125,000


2. Area/Field:

Audio Video System(Electronics), Agro Based Food, Automotive,

Building Maintenance, Civil Construction, Computer, Drafting (Civil),

Drafting (Mechanical), Dress Making & Tailoring, Farm Machinery,

Fish Culture & Breeding, Fruit & Vegetable Cultivation, Food Processing

& Preservation, General Mechanics, General Electrical Works,

Livestock Rearing & farming, Poultry Rearing & Farming, Refrigeration

& Air Conditioning, Welding Works, Electrical Maintenance Works,

Dying Printing & Fishing, Glass, Wood Working, Ceramic, Machine

Tools Operation, Knitting, Plumbing & Pipe Fitting, Weaving, Welding

& Fabrications, Architectural Drafting With AutoCAD, Electrical

Machine Maintenance, Industrial Electronics, Nursing & Mid-wifery,

Hotel Management & Catering, Foundry Works, Shrimp Culture &

Breeding.

<Table 2-4> Dhakil (Vocational)


- 100 100 6,000

<Table 2-5> Certificate in Vocational Education


01 - 01 120

BANGLADESH 37

<Table 2-6> Computer Training Program


03 472 475 14,000

<Table 2-7> Basic Trade Course (360 Hours)


09 160 169 8,275

<Table 2-8> Comparison of General & Vocational Education at Secondary

Level:

YearSSC Examinee % of Vocational

EducationTotal Vocational2003 1084241 31627 2.922004 964507 31452 3.262005 944015 35779 3.762006 995123 48309 4.862007 1024537 64637 6.312008 1006569 82375 8.182009 1058674 75057 7.08

3. Training Scheme for Non-schooling (Apprenticeship)

The TVET system covers formal, non-formal, and informal

education programs, though the general education covers particularly

the formal and, to some extent, the non-formal TVET system, including

apprenticeships in the informal economy. Mainly apprenticeships or

on- the- job training are provided by employers.


Apprenticeships can take place in the formal economy, as well as

in the informal economy. It is appropriate to also include the

informal economy; otherwise 80% or even 90% of the economy

would be excluded.

The extent of apprenticeships in the Bangladesh training system

is considerable. As far as formal apprenticeships are concerned, the

number is obviously very small. However, in the informal sector it

is clear that there is a well established system that provides

opportunities for thousands of young Bangladeshis (ILO, 2009).

Aiming at an extension of this kind of skills development, and

having a (more) formalized system of skills’ assessment in place,

(for major parts of non formalized apprenticeships), an apprenticeship

voucher can be introduced, equipping apprentices with a certain

amount of money, e.g. to cover some of the employer’s costs and,

possibly, also some of the apprentice’s costs of living (either directly

to the apprentice or indirectly via the employers paying a small

salary to the apprentice). The voucher also can flexibly cover the

duration of training with, for example, a fixed amount of money,

say Tk 1,000 per month.

4. Upper Secondary Level: Entrance Rate and Employment

For diploma level institutes, including polytechnics and similar

type institutes, the following criteria are described:

BANGLADESH 39

∙ These types of institutes conduct a 4 years diploma course in

Engineering, Survey, Glass, Ceramic, Graphic Arts and Printing.

∙ The pre-requisite qualification is: SSC, SSC (voc) and equivalent.

<Table 2-9> Diploma in Technical Education (Course Duration 1 Year)


1 - 1 120

<Table 2-10> Diploma in Vocational Education (Course Duration 1 Year)


1 - 1 80

<Table 2-11> Diploma in Engineering (Course Duration 4 Years)


47 128 175 35,832

5. Area/Field:

Architecture, Automobile, Chemical, Civil, Civil (Wood), Computer,

Electrical, Electronic, Food, Mechanical, Power, Refrigeration and

Air-Condition, Offset Printing, Graphic Reproduction Printing, Ceramic,

Glass, Marine, Shipbuilding, Aircraft Maintenance (Aerospace), Aircraft

Maintenance (Avionics), Computer Science, Data Telecommunication

and Networking, Surveying, Architecture and Interior Design,

Construction, Electro medical, Environmental, Garments Design and


Pattern Making, Instrumentation and Process Control, Mechatronics,

Mining and Mine Survey, Telecommunication.

<Table 2-12> Diploma in Textile Engineering (Course duration 4 Years)


03 - 03 150

Area/Field: Yarn Manufacturing, Fabric Manufacturing,

Wet Processing, Garments & Clothing.

<Table 2-13> Diploma in Forestry


06 20 26 2,280

<Table 2-14> Diploma in Animal Health and Production


03 - 03 300

BANGLADESH 41

<Table 2-15> Diploma in Health Technology and Certificate in Health

Technology

No of Institutiona. M/O Healthb. M/O Education

IntakeCapacity

TotalIntake

CapacityPublic Private Total

a. 5 29 34 4100b. 0 52 52 1920

Certificate in Health TechnologyPublic Private Total

a. 0 67 67 2180b.

<Table 2-16> HSC(Higher Secondary School Certificate) Business

Management


- 1327 1327 119,250

Area/Field: Computer Operation, Secretarial Science, Accounting,

Banking, entrepreneurship.

<Table 2-17> HSC (Higher Secondary School Certificate) Vocational


64 - 64 16,740


6. Non-schooling Level: % of Non-schooled Adolescents,

Training Scheme for Non-schooling (Apprenticeship)

Non-schooled adolescents:

For non-schooled adolescents there is limited access to formal

skills training, as their education level is not equivalent to Grade

VIII / Junior Secondary (e.g. UCEP graduates are allowed to appear

for SSC vocational and can therefore access formal education

options).

<Tabel 2-18> The TVET Scenario of Bangladesh at a Glance:

Total Enrollment in Technical and Vocational Education

(TVE)

Total Enrollment Secondary Education

Enrollment in TVE as % of Total Secondary

Enrollment124,000 10,691,000 1.2

Section 3. TVET for Adults

There is no access to formal skills training, as the education level

is not equivalent to Grade VIII/Junior Secondary level. There is no

access to formal education/opportunity for advancing education level

beyond Post Literacy. In Bangladesh there are public (government)

training institutes and private (non-government) training institutes.

Very poor linkage is seen between public and private training

institutes.

BANGLADESH 43

Section 4. TVET and Enterprises

To improve linkages between TVET and enterprises, the government

will take such initiatives as:

∙ Ensuring that employers’ and workers’ representatives participate

in the national VET Policy Development Committee;

∙ Ensuring that employers’ representatives are appointed to Skills

Standards Drafting committees and Qualifications Development

committees

1. TVET and Enterprises:

Both private and public enterprises exist in Bangladesh. The list

of the public and private institutions is given as follows:

<Table 2-19> The list of the public and private institutions

Public (Government) Private (Non Government)1. Technical Training Center (TTC),

under the Ministry of Labor2. Technical School & College

(TSC) & Polytechnic Institute, under the Ministry of Education

3. Youth Training Center, under the Ministry of Youth & Sports

1. UCEP (under the Privileged Children Education Program)

2. MATWS (Mirpur Agricultural 3. Bangladesh Technical Education

Board (BTEB) affiliated Vocational & Technical School/Training Institute.

4. Private Polytechnic Institute


2. Role of Enterprises

2.1 Role of Government in educational development

The government has the following duties:

∙ Establish new educational institutes on regular basis from a

central fund;

∙ Prepare syllabi through its agencies;

∙ Conduct examinations;

∙ Prepare education policy;

∙ Contribute full funding for state educational institutes and 90%

of salaries for non-governmental educational institutes; and

∙ Assist international organizations in improving the quality of

Technical and Vocational Education.

2.2 Role of Community Participation in Education

Here the role of the community is described:

∙ Industry people are involved in preparing syllabi to make the

curriculum market oriented;

∙ Industry linkage is being maintained with educational institutes,

and students are granted opportunities for industrial attachment

program in the industries;

∙ At present some non-government organizations are conducting

Technical and Vocational Education programs; and

∙ Some private organizations are conducting diploma and degree

courses in TVET.

BANGLADESH 45

Absolute Numbers/ Share of TVET Institutions by Program:

<Table 2-20> Number and Share of TVET Institutions by Program (2009;

source: BTEB):

TVET Institutions by ProgramAbsolute Numbers Share

Private Public Total Private Public TotalComputer only 261 261 8.2% 8.2%Short courses only 33 33 1.% 1.%Computer & Short courses 18 18 0.6% 0.6%SSC only 1,359 54 1,413 42.7% 1.7% 44.4%HSC only 1,067 2 1,069 33.5% 0.1% 33.6%SSC & HSC 145 63 208 4.6% 2.0% 6.5%Diploma only 83 44 127 2.6% 1.4% 4.0%Computer & SSC 4 4 0.1% 0.1%Computer & HSC 20 20 0.6% 0.6%Computer & Diploma 4 1 5 0.1% 0.0% 0.2%Short courses & SSC 2 2 0.1% 0.1%Short courses & HSC 2 2 0.1% 0.1%Short courses & Diploma 3 2 5 0.1% 0.1% 0.2%Computer & Short courses & Diploma

2 2 0.1% 0.1%

SSC & HSC & Diploma 2 2 0.1% 0.1%HSC & Diploma 10 10 0.3% 0.3%Total 3,013 168 3,181 94.7% 5.3% 100.0%

3. TVET in SMEs (Small and Medium Enterprises)

3.1 SME Policy

The SMEs are recognized worldwide as engines of economic

growth. The SMEs are relatively more predominant in the developing

countries, like Bangladesh. Because of the various socio-economic

backgrounds, SMEs enhance employment and create opportunities


for poverty alleviation. Important to SME development, the

government has also adopted an SME policy.

The PRSP (National Strategy for Accelerated Poverty Reduction)

provides a policy framework for reducing poverty and pursuing

equitable development. It synthesizes a wide range of law and policy

initiatives and aims to reduce poverty through four strategic channels:

(1) economic growth initiatives, including private sector investment,

employment generation, and trade; (2) pro-poor sector initiatives,

including agriculture and rural development, SME development,

infrastructure development, and development of information and

communication technologies (ICT); (3) strengthening of social safety

net programs; and (4) human development programs related to

Technical and Vocational Education Training (TVET), health care

and food safety, and water and sanitation. To ensure that these

initiatives produce equitable and sustainable results, the PRSP also

includes several supporting strategies, such as women’s rights and

advancement.

Key elements of the SME Policy include: (1) surveying SMEs to

identify industries with growth potential; (2) strengthening the role

of public agencies, such as BSCIC, to provide more effective support

to SMEs; (3) providing tax incentives to SMEs; (4) simplifying relevant

laws and regulations; (5) fostering subcontracting and other linkages

between SMEs and larger enterprises; (6) promoting e-commerce to

support SME production and marketing; and (7) establishing an

BANGLADESH 47

information bank to improve marketing and trade opportunities.

External agencies such as ADB, the World Bank, USAID, and DFID

are supporting elements of the new policy through various projects

and programs. For example, ADB and the World Bank have provided

loans to the government for SMEs through the Small Enterprise

Fund. The SME Sector Development Program supported by ADB

also includes a gender action plan, which provides for (a) representation

of women entrepreneurs in the preparation and implementation of the

SME policy; (b) inclusion of sex disaggregated data in the SME

information bank; (c) earmarking of at least 10% of the Small

Enterprise Fund for women borrowers; and (d) targeted training

programs designed to meet the specific needs of women entrepreneurs.

Section 5. TVET Infrastructure:

1. Certification Standard:

Certificates are issued by BTEB, Ministry of Labor, Dhaka

University, and Islamic

University of Technology (IUT).

2. Certification for Instructor and Trainers: (Pre-job and

In-job Training):

The following credentials are granted by BTEB and the Ministry

of Labor:


1. Certificate in Vocational Education and Training (CVET)

2. Diploma in Vocational Education (DVE)

3. Diploma in Technical Education (DTE)

4. Diploma in engineering

5. B. Sc. in Technical Education (B.Sc. TE )

6. Post graduate Diploma in Technical Education (PGDTE)

7. M. Sc. in Technical Education (M. Sc. TE)

3. Course for Trainees (School going student/drop out

students, jobless or unemployed):

1. Basic Skill, 360 Hours (Certificate is issued by BTEB)

2. National Skill Standard – 3, (NSS-III), 1 Year (Certificate is

issued by BTEB)

3. National Skill Standard – 2, (NSS-II), 2 Years (Certificate is

issued by BTEB)

4. National Skill Standard – 1, (NSS-I), 4 Years (Certificate is

issued by BTEB)

5. Self Employment Training Program (3 Weeks to 1 Year)

(Certificate is issued by Ministry of Labor)

6. Apprenticeship Training (Certificate is issued by Ministry of

Labor/related organization/enterprises)

7. In-Service Training (Certificate is issued by related organization/

enterprises)

8. On-the-Job Training (Certificate is issued by related organization/

enterprises)

BANGLADESH 49

4. National Vocational Qualification (NVQ) System:

<Tabel 2-21> Bangladesh Vocational Qualification Framework (present):

NSS Basic Basic Skill 360 hours Basic trade courseNSS III Semi-skilled SSC (Voc) Class IXNSS II Skilled SSC (Voc) Class XNSS I Highly skilled HSC (Voc) Class XI & XIINSS Master Master Craftsman Industry Assessed

** NSS – National Skill Standard

BANGLADESH 51

Chapter 3

Governance of TVET system:

Section 1. Institutional Framework

1. Governing Structure

In principle, the TVET system covers formal, non-formal and

informal education programs, though general education covers

particularly the formal and, to some extent, the non-formal TVET

system, including apprenticeships in the informal economy. This

report caters mainly to the formal institution-based stream of TVET,

whose programs are accredited by BTEB and where institutions are

operating under the Ministry of Education and the Bureau of

Manpower Employment and Training (BMET). Yet, it should be

understood that several other ministries are also engaged in

non-formal TVET, and they are not covered by this report. The focus

on financial support and programs of the Directorate of Technical

Education (DTE); the Ministry of Education (MoE); and/or the


Bureau of Manpower Employment and Training (BMET) meets

general education requirements, as all the figures mentioned in other

studies pertain to state financing for state institutions, i.e.

polytechnics, Technical Schools and Colleges (TSC), and Technical

Training Centers (TTC) which are funded either through the

Directorate of Technical Education (Ministry of Education) or the

Bureau of Manpower Employment and Training (BMET).

2. National Vision and Strategic Direction of TVET

The vision or TVET shared by the government, industry, workers

and civil society is expressed as follows:

“TVET in Bangladesh will recognized and supported by

government and industry as a coordinated and well planned strategy

or national and enterprise development. The TVET system will

empower all individuals to access decent employment and ensure

Bangladesh’s competitiveness in the global market through improved

skills, knowledge, and qualifications that are recognized for quality

across the globe.”

TVET will:

(a) Enhance individual’s employability (wage/self employment)

and ability to adapt to changing technologies and labor markets;

(b) Improve the productivity and profitability of enterprises; and

(c) Strengthen national competitiveness and reduce poverty.

BANGLADESH 53

Section 2. National Development and TVET Policy

1. Economic Development and TVET Policy

1.1 TVET and Economic Development and Future Priorities

The government has a clear vision of achieving GDP growth rates

of about 10% over the next 8 to 10 years (MoF 2009). Even in recent

years, growth rates are quite substantial and much higher than

international (world-wide) levels at 6.2 and 6.4% in 2008/09 and

2007/08, respectively. This is slightly less than the growth rates of

China, but well ahead of India, whose economic development is

greater than that of Bangladesh. The drivers of economic development

in Bangladesh are the industry and services sectors whose growth

rates are well above the agricultural sector. However, even the

growth rates of the agricultural sector were above 4%, mostly.

1.2 Social Development

Social development is government-targeted to meet the demand of

market-driven skills. In the same vein, there is no social dialogue

in skills development for a greener economy. Two major arguments

are responsible for strong public intervention and financing. The

most important issue is that education and training is linked to

(large) social benefits, which cause an externality and are linked to

under-investment, if decisions on education and TVET are made by

individuals and companies only. The second need is to ensure social

equity for those who cannot afford to bear the costs education or


TVET on their own. Since public spending reduces the individual

costs, it is suitable to support special training opportunities for

socially disadvantaged groups.

Vocational education institutes, in particular, provide training

courses that have been initiated as mediums for deep social

responsibility. The overall vision should be an integrated national

skills development system which promotes economic and

employment growth and social development through a focus on

education, training, and employment services.

1.3 Social Status of TVET:

1. The value and status of TVET need to be upgraded;

2. A new partnership between government, employers, workers,

and the social partners under the PPP is required in Bangladesh; and

3. Representatives of government, employers and worker

organizations must jointly promote the development of TVET.

1.4 TVET Policy Priority:

∙ Review and strengthen TVET policies, systems, and legislation

at the central and decentralized levels;

∙ Enhance flexibility, quality, and relevance of TVET;

∙ Strengthen TVET institutions through improved knowledge and

skills of managers and teachers; and

∙ Develop the National Technical and Vocational Qualification

Framework (NTVQF)

BANGLADESH 55

2. Social Partnership and TVET

Firstly, the public allocations for private institutions shall be taken

into account. Private educational institutions can receive public

funding through so-called MPOs (Monthly Payment Orders),

covering 100% of the teacher salaries. In total, 1,100 out of 15,500

private MPO-funded institutions deliver TVET program, i.e. a share

of 7.1%. According to statistical figures, only 1.9% of all MPO

allocations are for private TVET-courses.

The most important ministries as far as formal TVET is concerned

are the Ministry of Education (MoE) and the Ministry of Expatriates,

Welfare & Overseas Employment (MoEW&OE). Both ministries

have special units which are responsible for the operation of TVET,

i.e. the Directorate of Technical Education (MoE) and Bureau of

Manpower Employment and Training (BMET). However, several

other ministries are also engaged in technical and vocational

education. A third reason is that non-formal programs do not need

to be accredited through BTEB.

Sustainability of achievements:

Priorities to sustain achievements include:

1. Keeping pace with new technologies;

2. Increasing women’s participation in TVET;

3. Continuing to update syllabi as per market demand;

4. Linking to industries for the enhancement of practical skills;


5. Increasing training facilities for teachers and trainers; and

6. Internationally linking and cooperating in the share and

exchange of technical knowledge

Section 3. Assessment of TVET Policy

The skills development system must be responsive to present and

future industry needs and will move to implement a competency-

based training and assessment (CBT&A) system to achieve that end.

1. Major Achievements in TVET Ensuring Accessibility:

∙ New institutes are established to enhance enrollment. With 18,320

students registered, capacity increased over the last three years.

∙ Special quota facilities are provided for tribal (2/4 each institutes);

dependant freedom fighters (2 each group of each department);

women (10%); and students with vocational back ground (15%).

∙ Four separate polytechnic institutes for women are established,

with an intake capacity of 680 (enrollment= 680*; 4 years course

=2,720).

∙ Dual shift program are launched with the existing infrastructure;

30% of basic salaries are paid, so that capacity doubles those

institutes where dual shift programs are in place; in so doing,

the increased intake capacity number escalates to 14,630.

BANGLADESH 57

2. Quality and Relevancy:

To ensure quality and relevancy of programs,

∙ Syllabi are updated according to market needs and demands;

∙ Monitoring tools are designed, and monitoring is done

effectively;

∙ Industrial linkage enhances practical experience;

∙ New equipment is supplied for the updating of skills;

∙ Training facilities are arranged for teachers and staff, both home

and overseas; and

∙ Linkage is maintained with international agencies for exchanging

technical knowledge.

BANGLADESH 59

Chapter 4

Financing of TVET

Section 1. Financing Regime (Institute) for TVET

Skills development brings returns to individuals, enterprises, and

society as a whole. Therefore all stakeholders, including government,

public and private enterprises, and individuals, as direct beneficiaries,

should contribute to the national investment in education and skills

training.

The financial institutes supporting TVET at present are as follows:

1. Government of the People’s Republic of Bangladesh (GOB)

2. World Bank

3. ILO

4. UNESCO

5. UNICIEF

6. ADB


7. KOICA

8. JICA

Section 2. Financial Support System or Mechanism

The financing of TVET institutions covers two issues: at the

micro-level, it concerns the sources and mechanisms of institutional

funding; at the macro-level it deals with overall funding levels and

their distribution between public and private sources. In Bangladesh,

several financiers support both the public and the private providers.

The public and private sources and the level of funding received

from them differ for public and private TVET-institutions. The public

TVET providers are mostly funded from the GoB’s (Government of

Bangladesh) budget allocation via a corresponding ministry.

Section 3. Private Funding of Public TVET Institutions

Although students who are enrolled in formal programs of public

TVET-institutions pay a nominal fee of about TK 20 per semester,

these funds flow into the public revenue. In addition, public

providers can also run the so-called ‘self-supporting’ short courses,

conducted usually in the afternoon or evening. Students and

sometimes employers finance these courses through fees. The funds

BANGLADESH 61

will have to be spent mainly for teacher salaries and for those items

required to run the courses, i.e. teaching and raw materials.

Section 4. Funding of Private Providers

Private institutions can be divided into three segments. The first

group receives its basic funding in the form of so-called MPO

(Monthly Payment Order) from the government. This MPO covers

100% of the teachers’ salaries. Other recurrent expenditures are

financed mainly through student fees. Donations from public or

private sources may also cover part of the expenditures. The second

group of private training centers/schools does not receive any public

support and is dependent on the fees collected from students or

donations, etc.

It should be noted that MPO-funding is related to certain programs,

so private schools can run MPO as well as non-MPO programs,

sometimes in general education, as well as in TVET. It appears that

some cross-subsidization occurs between MPO and non-MPO funded

classes, possibly resulting in misuse of public funds. Finally, a third

group of public and private TVET-providers can be identified; they

receive endowments from national or international donor agencies,

and some of them also collect student fees. The public institutions

in this group receive their recurrent budgets from the GoB (Govt.

of Bangladesh). For example, UCEP or MAWTS are private

institutions, while Bangladesh-German TTC (BGTTC) and Bangladesh


Korean TTC (BKTTC) are public institutions. The figure below

provides an overview of the funding sources of public and private

institutions.

[Figure 4-1] Overview of the Funding Sources of Public and Private

Institutions

BANGLADESH 63

Section 5. Educational Financing

<Table 4-1> Budget Allocation (Revenue & Development) for DTE

(Directorate of Technical Education) (Amount in taka and in millions)

FiscalTotal Budget for

Ministry ofEducation (MOE)

Budgetallocation for

DTE

Percent(%)share by DTE out

of total MOE2003-04 48899.1 1522.0 3.112004-05 50113.7 2113.2 4.222005-06 69150.6 2023.4 2.932006-07 82390.0 1775.4 2.152007-08 85861.9 2651.3 3.092008-09 90530.5 2200.9 2.43

BANGLADESH 65

Chapter 5

Internationalization of TVET

The entire world is now a global village. Globalization of national

economies, as well as globalization of knowledge, technology, and

skills requires the worker to be aware of international standards. This

is not only the case with respect to the design, production, marketing,

and distribution of goods and services. For the promotion of workforce

development, it is equally important to be aware of internationally

agreed-upon standards for technical and vocational education and

training. Such standards serve, inter alia, to ensure a proper balance

between the economic dimension of education and training on the

one hand, and personal, social, and human development on the other.

Section 1. Impact of TVET Policy

Skills, knowledge, and innovation are important driving forces of

economic growth and social development in any country, and those


countries with higher levels of education and skills adjust more

effectively to challenges and opportunities in the global economy.

ICT in Bangladesh:

Information Communication Technology (ICT) is a subject of

widespread interest in Bangladesh. There are around 100 software

houses; 35 data entry centers; thousands of formal and informal IT

training centers; and numerous computer shops. The government has

declared IT as a thrust sector.

Summarized here is the current state of ICT in Bangladesh:

Ⅰ. Only 0.1% homes of Bangladesh has Internet;

Ⅱ. There are 250,000 registered dial-up users accounts;

Ⅲ. There are 15,000 Broadband accounts;

Ⅳ. There are 1.8 million mobile phones operated by four private

companies;

Ⅴ. There is a total ISP of 62;

Ⅵ. Internet users represent 2 million people; and

Ⅶ. 90% of ISPs use OSS.

Section 2. International Cooperation

The government of Bangladesh is taking some initiatives for

internationalizing TVET. Examples include:

BANGLADESH 67

1. Linkage is being maintained for technical knowledge with

international agencies;

2. Contributions are made to international organization for

improving the quality of Technical Vocational Education; and

3. International Linkage and cooperation is in place for sharing

and exchanging technical knowledge and skills.

1. Facility and Equipment

Lack of facility and equipment is a serious problem that hampers

the provision of international skills’ levels through TVET, since most

of the instruments and equipment are not suitable for modern work.

To boost TVET in Bangladesh to an international standard,

infrastructure, tools, and equipment must be upgraded. Teacher

training for new technology is also essential.

Bangladesh is struggling to respond to the skill needs of its

workforce. Pressures arise due to increasing globalization; new and

emerging technology; changing patterns of work; mismatch between

training and required skills; mismatch between supply and demand;

lack of adequate industry participation; inadequate numbers of

trainers; an inadequate vocational training infrastructure; low

employment outcomes of graduates; uncertain resources (who will

fund and maintain?), poor gradation of tools and equipment; poor

relationships with industry and institutions; and lack of tripartite

(government, employer, and worker) approach. Most of the migrant


workers have no proper technical skills. They are often forced to

return home, having no language skills. Necessary facilities are

lacking that allow people to engage in meaningful, successful TVET

programs.

BANGLADESH 69

Chapter 6

New Agenda

The government has a clear vision of achieving GDP growth rates

of about 10% over the next 8 to 10 years. Even in recent years,

growth rates are quite substantial and much higher than international

(world-wide) levels, at 6.2 and 6.4% in 2008/09 and 2007/08,

respectively. This is slightly less than the growth rates of China, but

well ahead of India, whose economic development is well ahead of

Bangladesh.

Section 1. Trends and Needs

1. New Needs for New Skills

A careful balance must be orchestrated to maximize economic

growth without compromising environmental protection and safety.

Bangladesh needs a strategic policy and program for climate-resilient


sustainable development. These environmental issues drive the green

policy response in Bangladesh and affect the economy, employment,

and the labor market.

The main occupations in building construction include: architect,

engineer, mason, assistant, and site manager. But for greening

buildings, the architect has a central role to play because he is

responsible for the building design. New skills, therefore, include

training for green architects, green town planners, green civil

engineers, green supervisors, and green masons. The Bangladesh

Labor Law 2006 accords special importance to occupational safety

and the health of the workers in the workplace buildings.

In various sectors, such as energy production and consumption,

there remains the need to develop green jobs and occupations.

2. Green Job and Occupations

Main greening shifts in the economy and the labor market of

Bangladesh have taken place greatly in energy, but rather weakly

in materials management, telecommunication, and transport. But

these greening shifts remain ineffectual, primarily because of

inadequate policy and institutional support. With the right policies,

institutional framework, commitment, and immediate reinvestment,

it is possible to bring about the changes needed for greening the

economy.

BANGLADESH 71

The structural transformation that is taking place in Bangladesh

is derived not merely from economic growth, but also from

spontaneous green structural change. However, current and future

employment shifts and trends are likely to take place, due to

anticipated green structural change — notably in renewable energy

and telecommunication. The green employment shift to renewable

energy has huge potential for growth and is gaining momentum.

Certain change is anticipated by green structural innovation,

especially in energy, manufacturing, waste management, construction,

transport, telecommunication, and trade.

Eight case studies illustrate anticipated change and provision of

skills in different occupations. Skills for green jobs are instrumental

in bringing about the desired change for sustainable development.

But the policy response and institutional support to overcome

existing skill gaps in different occupations remain very weak.

At the policy making level, there is inadequate appreciation of the

need for a policy targeting the identification and development of

skills for green jobs. Although Bangladesh has embarked on several

policies and programs for adaptation to climate change and mitigation

of its adverse impact, it has no policy for the formation and

development of skills for greening the economy. In this regard,

isolated and sporadic efforts are taking place with very little impact

on greening the economy.


In the absence of any strategic policy agenda and support, the

delivery mechanisms of the existing institutions for developing skills

for green jobs remain inadequate. Shortage of skills and poor

institutional framework largely explain the weak delivery mechanisms

of these institutions.

A coherent policy for the formation and development of skills for

green jobs should be formulated and put in place within the overall

framework for HRD. For greening the economy, the policy should

target the implementation of the programs for meeting existing skills

needs for green jobs in various sectors, as identified by the present

study, and incorporate them into the occupational profiles,

curriculum design, and education and training provision for greening

existing occupations and for developing emerging and new green

occupations. The policy should embody strategic interventions and

adequate guidelines for overcoming critical skill gaps for green jobs.

Existing education and training policies have inadequate provisions

for environmental education at all levels. At the primary level, it

should be made mandatory. Synergy among the existing policies and

institutions (both public and private) for greening the economy is

virtually non-existent. The existing TVET system has virtually no

environment-driven curriculum and courses targeted towards establishing

and improving the skill base for green jobs. Curriculum for greening

the economy should be incorporated in the existing education and

training programs down from the primary level.

BANGLADESH 73

The National Skills Development Council (NSDC), in collaboration

with the Bureau of Manpower, Employment and Training (BMET);

Department of Technical Education (DTE); Bangladesh Technical

Education Board (BTEB); Ministry of Labor and Employment

(MoLE); Department of Environment (DoE); Department of Forest

(DoF); Ministry of Environment and Forests (MEF); Ministry of

Education; IDCOL (Infrastructure Development Company Limited);

non-governmental organizations (NGOs), employers and workers

associations, should play the central role in the formation and

development of skills for green jobs in Bangladesh. The proposed

SEDA, as a focal point for development and promotion of sustainable

energy, should be put in place to steer the country towards a cleaner

environment through developing skills for green jobs.

Bangladesh should develop an information and technological

knowledge base and conduct research on GHG emission to combat

the impacts of climate change and search for suitable strategies to

cope with the changing environment. In order to improve upon the

ongoing policies and programs relating to greening HRD, further

research and regular data collection should be undertaken, with a

view to updating the knowledge and progress in greening the

economy.


<Table 6-1> Fields Green-job Under Studies

Criteria Selected case studies(i) Retraining needs deriving from identification of skills and occupations that become obsolete as a result of structural changes on the labor market and major employment shifts within and across sectors due to climate change and demands for greening the economy.

1: Refuse/Waste Collectors andDumpers

2: Agricultural Workers and Inspectors in Organic Farming

(ii) New green collar occupations which emerge in the context of adaptation to climate change and mitigation of negative impacts in the country.

3: Carbon Trading4: Solar Energy Engineers/Technicians

5: Mechanical Engineers and CNG Conversion Technicians

(iii) New types of skills, competences and skill gaps which need to be incorporated into existing occupationalprofiles (greening existing occupations).

6: Architects, Civil Engineers, Designers and Masons in Greening Buildings

7: Supervisors and Machine Operators in Tannery

8: Brickfield Managers in BrickManufacturing

Section 2. Future plans

A future plan represents a key commitment to the strengthening

and further growth of TVET in Bangladesh. The government has

already made commitments in PRSP, so that by 2020:

1. TVET students shall comprise 20% of all secondary students

(currently 3%);

2. Enrollment in TVET will increase by 50%; and

3. Women’s enrollment will increase by 60%.

BANGLADESH 75

References

Bangladesh Technical Education Board (BTEB), www.bteb.gov.bd

Bureau of Manpower Employment and Training (BMET),

www.bmet.org.bdv

Bangladesh Bureau of Statistics and SVRS

Labor Force Survey (LFS), Bangladesh

Drat Bangladesh Skill Development Policy – December 2009

Bureau of Non-Formal Education (BNFE), Bangladesh

Role of Vocational Training towards Human Resource Development

in Bangladesh, ILO, Dhaka.

TVET Reform Project Update, 20 June 2010 Bangladesh

Study on NTVQF – Bangladesh, 20 June 2010

International Organization of Migration (IOM), www.iom.int

International Standards in TVET , Hans Kronner, 2005

SME Development and Regional Economic Integration, Bangladesh,

2008

Asian Development Bank, www.adb.org

Bangladesh Bureau of Educational Information and Statistics (2007).

Bangladesh Bureau of Statistics (BBS) (2005). Statistical Yearbook

2005. Document available at: www.bbs.gov.bd. Cited on

13.09.2006.

FAO (Food and Agriculture Organization) (1997). Strategic Plan and

Policy Change of World Food Programme. Document.

available at:(http://www.fao.org/es/ESA/sofa.htm). Cited on 19.03.2006.

Paper 4486. National Bureau of Economic Research (NBER).


Cambridge, Mass.

United Nations Population Division (1999). World Population Report.

Alam GM (2008a). The Role of Technical and Vocational Education

in the National Development of Bangladesh. Asia Pac. J. Coop.

Educ. 9(1), 25-44.

Alam GM, Khalifa MTB, Shahjamal MM (2009). Return from the

Education System in Bangladesh: An Investigation on Comparative

Flashback Scenario. Afr. J. Bus. Manage. 3 (10) 567-575

Haggblade S, Hazell P, Brown J (1989). Farm-non Farm Linkages

in Rural Sub-Saharan Africa. World Dev. 17 (8): 1173–1202.

Jamaluddin H, Alias AN (1997). Quality in Student Support. A

Learner’s Perspective. Proc. AAOU 11th Ann. Conf. Exhib.

Lewin, KM (1993). Education and Development, The Issues and the

Evidence: Research for International Development. No. 6, DFID,

Lond.

The World Bank (2002). World Development Report. Document

available at: www.worldbank.org. Cited on: 15.11.2003.

Alam GM, Khalifa MTB, Shahjamal MM (2009). Return from

Education System in Bangladesh: An Investigation on Comparative

Flashback Scenario. Afr. J. Bus. Manage. 3 (10) 567-575.

CAMBODIA

CAMBODIA 79

Chapter 1

THE NATIONAL CONTEXT OF TVET:

INTRODUCTION

Section 1. Context and Background of Cambodia

CAMBODIA is located in South East Asia and shares its borders

with Vietnam, Thailand, the Gulf of Thailand, and Laos; it is a

country with a rather shifting history. It experienced a zenith in the

Angkorian Period or the Khmer Empire (9-13 century). It was colonized

by the French for almost a century (1863-1954), and has experienced

many regime changes. Cambodia transitioned from the Khmer

Republic, to Democratic Kampuchea (known as Pol Pot regime), the

People’s Republic of Kampuchea, the State of Cambodia, and finally

the Kingdom of Cambodia.

According to the 2008 population census, Cambodia’s population

reached 13,395,682. A large portion of the population, 80.5 percent,


resides in rural areas, and relies on farming as the main source of

employment. The annual population growth rate is 1.54 percent.

[Figure 1-1] The Annual Population Growth Rate

(World Bank 2009)

As the graph shows, for nearly one decade, the early 1970s to the

1980s, the population growth rate plunged to below 0 due to the

country’s upheavals. The worst period in its history is from 1975

to 1979 (3 years, 8 months and 20 days, a time etched in the memory

of every Cambodian) when the Khmer Rouge, also known as Pol

Pot, took power and committed large-scale genocide, causing the

death of nearly 2 million Cambodians.

During this period, all social, political and economic infrastructures

were completely destroyed. This period is also know as YEAR

ZERO for Cambodia. After the fall of the Pol Pot’s regime due to

intervention by the Vietnamese troops, Cambodia started to rehabilitate

its country from the ground up. With assistance from the Soviet and

Eastern Block, Cambodia managed to stand straight and walk slowly,

CAMBODIA 81

with one hand rebuilding the country and, the other, fighting the

Khmer Rouge’s gorilla war (civil war) which lasted until 1997.

Thanks to the UN role in Cambodia in 1993 and the government’s

win-win policy in 1998, there was an end to the civil war and

complete peace and development was brought to all sectors. Cambodia

is a multi-party democracy under a Constitutional Monarchy with the

King as the head of state, and Prime Minister as the head of

government. The Royal Government of Cambodia is led by two main

parties: Cambodia’s People Party and National United Front for an

Independent, Neutral, Peaceful, and Cooperative Cambodia, known

as FUNCINPEC in French.

There is a promising path for the future of Cambodia. The royal

government of Cambodia has set out Rectangular Strategies for

Growth, Development, Efficiency and Effectiveness in its reform

efforts, focusing on 4 main areas: (1) Fighting corruption; (2) legal

and judicial reform; (3) public administration reform, including

decentralization and deconcentration; and (4) reform of the Royal

Cambodian armed forces. In line with this master plan, various

strategic action plans at the national level have been put in place

within all the ministries. Because there is a short history of

development, starting after the restoration of complete peace in 1998,

a great deal of effort is needed to catch up with fast-developing

world. Tasks would be most difficult without assistance from the

international community, donor countries, international organizations,


non-governmental organizations, individuals, and other stakeholders

— local, regional and international.

Simultaneously, Cambodia has become a member of different

international organizations worldwide, from WTO, to UN-led

peacekeeping organizations. It joined the International Labour

Organization (ILO) in 1969, the year when the organization was

awarded the Nobel Peace Prize for its outstanding activities, and the

Association of South East Asian Nations (ASEAN), in 1999. In the

international arena, Cambodia is now recognized as a peaceful and

serene destination for tourism, with more than one thousand ancient

temples, some of which have been recognized in UNESCO’s Top

World Heritage.

Cambodia has a comparatively small, open, and dollarized

economy. Thus, its development has relied on the global economic

climate and foreign capital. At present, Cambodia has been working

to establish a stock market as a source for mobilizing capital to

finance economic development, but the process is slower than

expected. However, the Cambodian government has plans to

diversify its growth pillars and upgrade its industry.

Cambodia had experienced a leap-frogging, two-digit economic

growth in the early and late 2000s and, like other countries in the

world, has been hit by the economic downturn in 2008, with its

economy currently being recovered with 0.1 of GDP growth in 2009,

CAMBODIA 83

and around 5.0 in 20101. The main engine of economic development

is agriculture, constructions, garments, and tourism. The garment

sector has been established and developed for more than 10 years,

but its prospects remain uncertain. Therefore, the government pays

particular attention to the agricultural sector, since it is more stable

and appropriate, given the country’s geographical setting and the

world market demand for agricultural goods.

[Figure 1-2] Cambodia’s Real GDP Growth Rate

(Ministry of Economy and Finance 2010)

However, the agricultural sector alone may not solve the poverty

issue, or drive the country’s economy in this globalized and

knowledge-based world. Since Cambodia joins competition, it has to

be on similar footing with other countries in the region. Thus,

Cambodia has resorted to other measures; among which are

high-level skills and human resource development among its

workforces, from the rural commune, through to the central urban

environment.


Section 2. Education System in Cambodia

Cambodia’s education system is greatly influenced by the French

in almost all aspects. The schooling system has been changed over

time to match the country’s environment and development. Before

1975, it was 7 + 3 + 3 = 13 years, 1979 (4 + 3 + 3 = 10 years),

1986 (5 + 3 + 3 = 11 years) and 1996 (6 + 3 + 3 = 12 years).

There are three main streams in the system: academic, technical and

vocational, and non-formal and informal. The formal academic

stream has had a longer history and, thus, it has received

comparatively greater attention than the others. The development of

technical and vocational education started in 1960s, whereas

non-formal education came into being only quite recently. Although

higher education gained some good ground in the 1960s, less

attention was paid until quite recently when the World Bank invested

a few million dollar grants and then expanded its funding to over

30 million dollars in grants and loans for TVET.

Like other countries, Cambodia has invested a great deal of its

resources in education. The national budget for education has been

increased to over 20%, focusing mainly on primary and secondary

education in order to respond to the country’s Millennium Development

Goals (MDG-2015) and Education for All (EFA). Nine-year basic

(compulsory) education has been set. To realize this goal, the

Ministry of Education, Youth, and Sport (MOEYS) has set out two

main policy documents: the Education Strategic Plan (ESP) and the

CAMBODIA 85

Education Sector Support Program (ESSP), outlining clear action

plans and strategies. The ESSP is further implemented by the Annual

Operational Plan (AOP), which nicely integrates and coordinates not

only the activities of all Ministry’s departments, international

organizations, and NGOs, but also their funding support and

government’s budgets.

Despite the effort, many adults, especially those living in the rural

areas, have no education, and there are serious rural–urban and

gender disparities in access to education. According to the World

Bank, nearly 60% of women and 40% of men in the provinces of

Mondolkiri and Rattanakiri have no education, compared with fewer

than 15% of women and 5% of men in Phnom Penh. In the province

of Svay Rieng, girls are almost three times less likely to attend

school than boys. This reflects gender and rural–urban disparities in

access to education in Cambodia. In 2007, fully 61% of the literate

population in Cambodia 25 years of age and over had not completed

primary school, while only 23% had completed primary level. Those

who had completed the lower secondary level of education

comprised only 9% of the age cohort, while those who had a

secondary level qualification constituted 3%. Fewer than 1% had

qualifications higher than secondary level. (ADB, Proposed Asian

Development Fund Grant Kingdom of Cambodia: Strengthening

Technical and Vocational Education and Training Project, October

2009).



Poverty in Cambodia is characterized by, as described by the

World Bank, low income and consumption; poor nutritional status;

low educational attainment; poor access to public services, including

school and health services; poor access to economic opportunities;

and vulnerability to external shocks. Poor access to quality education

has led to a low adult literacy rate of 69.4% (80.5% for males and

58.2% for females). The highest poverty rates are found among

farmers and those households whose heads have little or no formal

education. The poorest households are asset-less. Agricultural productivity

is low and food insecurity is still a serious problem for people who

are poor. Agriculture remains the backbone of the Cambodian

economy, with 68% of the labor force earning their livelihood from

farming. Cambodian women play an active role in the country’s

economy and civil society. They represent 53% of the active labor

force, compared with 32% for economically active men, and are

usually classified as “unpaid family labor,” primarily in agriculture.

Apart from agriculture, women work in the informal sector, particular

commercial activities. The garment industry provides the principal

source of formal sector employment for women, but young women

are employed there only as semi-skilled workers with almost no

opportunities to move into supervisory or management positions.

Women outnumber men in the labor force from age 15 to 54, with

the exception of the 25 to 29 age group. The shortage of skilled

labor and the lack of adequate investment in formal vocational skill

CAMBODIA 87

formation represent key development constraints for Cambodia and

have been a persistent theme in recent assessments by the ADB and

the World Bank. (ADB, Proposed Asian Development Fund Grant

Kingdom of Cambodia: Strengthening Technical and Vocational

Education and Training Project, October 2009)

As over 80% of Cambodian people live in rural areas, the

employment structure is made up of 72.3% agriculture (mostly

self-employed and unpaid), 8.5% industry (mainly garment production

and construction), and 19.2% services (tourism, trade, transport,

communication, education1). However, service sector contributes the

most (39%) to the GDP, followed by agriculture (30%), industry

(25%) and others (6%)2). The country total work force is around 8

million with approximately 300,000 new entrants every year. During

the healthy economic growth, mainly 2004-2007, only up to 50,000

jobs were created annually.

1) General Population Census of Cambodia 2008 Final Census Results Figures at a Glanc

2) Cambodia’s Labor Market and Employment Economic Institute of Cambodia December 200


<Table 1-1> Employment, by Sector, Age and sex

Sex, sectorand age

1998 200815+ 15-24 25+ 15+ 15-24 25+

Both sexes 4,773,488 1,114,189 3,659,299 6,841,272 1,736,962 5,104,310Primary Sector 77.0 79.1 76.4 72.1 68.6 73.3Secondary sector 4.2 6.5 3.5 8.6 15.5 6.2Tertiary sector 18.3 13.7 19.7 19.3 15.9 20.5Not reported 0.4 0.7 0.4 0.0 0.0 0.0

Total 100.0 100.0 100.0 100.0 100.0 100.0Male 2,330,301 502,134 1,828,167 3,345,926 828,975 2,516,951Primary Sector 71.1 75.7 69.8 69.2 70.6 68.7Secondary sector 5.0 6.2 4.7 8.1 11.9 6.9Tertiary sector 23.4 17.2 25.1 22.7 17.5 24.4Not reported 0.5 0.8 0.4 0.0 0.0 0.0

Total 100.0 100.0 100.0 100.0 100.0 100.0Female 2,443,187 612,055 1,831,132 3,495,346 907,987 2,587,359Primary Sector 82.7 81.9 82.9 75.0 66.9 77.8Secondary sector 3.5 6.8 2.4 9.0 18.7 5.6Tertiary sector 13.5 10.8 14.3 16.0 14.4 16.6Not reported 0.4 0.8 0.4 0.0 0.0 0.0

Total 100.0 100.0 100.0 100.0 100.0 100.0Source: NIS/MOP. General population census of Cambodia 1998.

NIS/MOP. General population census of Cambodia 2008.

<Table 1-2> Employment Structure

Classification Percentage of workforce Total NumbersAgriculture, hunting, forestry 66. 4,123,888Fishing 4.2 261,062Mining and Quarrying 0.2 13,525Manufacturing 8.7 544,832Electricity, gas, water 0.1 3,795Construction 1.5 94,077Wholesale, retail, repair 10.3 644,307Hotels and restaurants 0.2 10,412Transport, storage and communications 2.7 169,307Financial 0.1 6,119Real estate, renting 0.3 16,374Public Admin and Defence 2.4 149,382Education 1.4 88,446Health, Social Work, community services 1.3 80,241Household staff 0.4 28,019Foreign NGOs and Agencies 0.2 6,800

Total 100 6,243,329Source: NTDP, 2008 7,051,764 (Census 2008) around 8 million (2010)

CAMBODIA 89

The unemployment issue in Cambodia is contradictory. On the

supply side, it is reported that the job market is so tight, but on

the demand side, there is not enough workforce to meet the demand.

There is clearly a mismatch which has existed for many years

between supply and demand in the job market.

The mismatch between demand and supply in employment is

reduced in the TVET sector when the government works closely with

ADB and ILO (with the establishment of National Employment

Agency, job centres, industry advisory groups, among others). To

deal with rural-urban employment disparity, the government, in its

National TVET Development Plan, has allocated 60% of its

resources for rural development through the provision of new skills

to farmers.

However, it will be a big challenge for the higher education sector

to deal with this issue; the number of graduates with bachelor

degrees is projected to be 220,000 with only around 86,000 jobs

available in 20143). Recent intervention by the World Bank will

focus on quality improvement and capacity building of higher

education institutions, but not much on narrowing the market

mismatch between supply and demand. As jobs accumulate only in

urban areas, especially in Phnom Penh, the unemployment rate in

those areas is relatively high. It is reported that, on average,

3) Higher Education and Skills for the Labor Market in Cambodia (p60)


graduates with degrees spent at least 9 months seeking employment.

The overall unemployment rate in Cambodia is 1.68 (General

Population Census 2008).

<Table 1-3> Unemployment and Participation Rate By Sex and Region

(Aged 15+)

Cambodia Phnom Penh Other U rban Other Rural2004 2007 2004 2007 2004 2007 2004 2007

ILO Definition: Without Work, Available for Work, and Seeking Work

UnemploymentRate

Total 1.05% 0.90% 3.60% 2.32% 1.48% 2.60% 0.64% 0.53%Male 1.01% 0.91% 3.05% 2.60% 1.31% 2.13% 0.68% 0.55%

Female 1.09% 0.88% 4.20% 2.03% 1.66% 3.17% 0.60% 0.51%

ParticipationRate

Total 79.93% 81.06% 67.71% 67.39% 77.18% 75.34% 82.38% 83.80%Male 85.43% 88.35% 73.93% 75.74% 81.77% 82.56% 88.01% 91.00%

Female 75.00% 74.61% 62.04% 60.15% 72.84% 68.09% 77.41% 77.53%Broad Definition: Without work and Available for Work

UnemploymentRate

Total 5.85% 3.06% 11.17% 5.37% 6.12% 5.73% 5.10% 2.47%Male 4.10% 1.89% 9.62% 3.85% 3.93% 4.38% 3.37% 1.33%

Female 7.58% 4.26% 12.80% 6.96% 8.34% 7.33% 6.78% 3.61%

ParticipationRate

Total 83.94% 82.88% 73.47% 69.56% 80.96% 77.91% 86.16% 85.48%Male 88.15% 89.27% 79.31% 76.72% 83.97% 84.51% 90.41% 91.77%

Female 80.17% 77.24% 68.16% 63.34% 78.12% 71.27% 82.41% 80.00%Source: Cambodia’s Labor Market and Employment

Economic Institute of Cambodia December 2008

CAMBODIA 91

<Table 1-4> Share of Employed Persons by Educational Level in Each

Sector

Level of EducationAgriculture Industry Service

2004 2007 2004 2007 2004 2007Never/Some Education 0.7% 0.7% 0.3% 0.0% 0.5% 0.2%Primary 71.0% 69.5% 60.1% 58.4% 43.1% 39.2%Lower Secondary 22.8% 24.3% 30.7% 32.1% 32.2% 31.2%Upper Secondary 4.5% 5.0% 7.5% 8.7% 17.9% 19.5%Technical/Vocational Training 0.2% 0.0% 0.3% 0.1% 2.8% 3.1%

Post-Secondary 0.1% 0.1% 0.5% 0.6% 3.0% 6.6%Other 0.8% 0.3% 0.6% 0.1% 0.7% 0.2%

Total 100% 100% 100% 100% 100% 100%Source: Cambodia’s Labor Market and Employment


This issue will remain a problem if the current trend continues.

Students’ perception of employment and their selected fields of

study, as well as the lack of market information, curriculum, and

course materials, are part of the problem. According to a study by

CAMFEBA and MOEYS’ statistics, around 80% of high school

leavers proceed to higher education, resulting in only a small

proportion entering the TVET sector where over 60% of new jobs

are created. Many of the high school graduates do not have enough

information about the demands of the job market when choosing

their specializations. Alternatively, some choose courses based on

fancy names, like “management and leadership,” “business administration,”

and so on, without much attention to their employability. On top of

that, when they are in the degree programs, they are usually taught


with outdated curriculum and teaching materials, whose content lacks

relevance to the required skills of the job market.

[Figure 1-3] Student Plan after higher school

[Figure 1-4] How high school students make decision for higher education

Source: Youth and Employment: Bridging the Gap―A Study about Youth and Employer Perspectives on Education, Skills, Opportunities and Future.

CAMBODIA 93

<Table 1-5> Level of Education

Level of EducationPaid Employee Employer Own Account

WorkerUnpaid Family

Workervice2004 2007 2004 2007 2004 2007 2004 2007

Never/Some Education 0.4% 0.1% 0.0% 0.0% 0.7% 0.8% 0.6% 0.3%Primary 46.3% 47.2% 52.8% 31.8% 65.5% 64.8% 65.6% 61.1%Lower Secondary 30.1% 27.7% 16.5% 1.2% 26.0% 26.6% 25.5% 28.7%Upper Secondary 16.1% 15.3% 30.7% 53.7% 6.2% 6.9% 7.3% 8.9%Technical/Vocational Trainings 3.0% 3.2% 0.0% 6.8% 0.3% 0.2% 0.4% 0.0%

Post-Secondary Education 3.5% 6.4% 0.0% 6.5% 0.2% 0.3% 0.2% 0.9%

Other 0.6% 0.1% 0.0% 0.0% 1.2% 0.4% 0.5% 0.1%Total 100% 100% 100% 100% 100% 100% 100% 100%

Source: Data compiled from CSES 2004 and CSES 2007Source: Cambodia’s Labor Market and Employment


[Figure 1-5] Reasons for not continuing after high school

Source: Youth and Employment: Bridging the Gap―A Study about Youth and Employer Perspectives on Education, Skills, Opportunities and Future.

CAMBODIA 95

Chapter 2

TVET SYSTEM BY TARGET GROUPS: ADULTS,

TEACHERS AND TRAINERS, AND ENTERPRISES

There are many types of TVET providers: TVET institutions under

MOLVT and other ministries; those provided by small and large

enterprises; and NGOs. Currently, there are 59 public TVET

institutions, 38 of which are under the management of MOLVT; 76

associations/NGOs; and 181 private training institutions. Among

public TVET institutions, 11 are polytechnics and institutes offering

formal courses from certificate to Master degrees. There are 25

provincial training centers offering non-formal programs whose main

aims are to provide people in rural areas with supplement farming

skills and other related skills in those provinces.

Textiles and garments, crafts, agricultural techniques, computing,

English, driving, auto repair and electrical maintenance are the most

common skills provided by NGOs and private businesses. The


duration of training lasts from one week, to one or two months, and

is mostly available in Phnom Penh. Since 1991Don Bosco, one of

the main NGOs, has played the most important role in providing

this kind of training.

<Table 2-1> Students in technical and vocational education and training

Level 2004 2005 2006 2007 2008 2009Both sexes, No. 24,587 27,894 47,986 88,367 113,648 168,630Post-graduate and graduate 0.0 3.7 2.3 1.3 1.2 0.79Public technical diploma/technician 7.0 4.4 4.6 2.5 2.8 1.75Public primary long-term training 8.1 2.1 1.0 1.8 1.3 0.72Public primary short-term training 24.4 38.3 36.9 73.5 59.1 69.52Private/NGO, international org. 60.5 51.4 55.1 20.9 35.5 27.21

Total 100.0 100.0 100.0 100.0 100.0 100.0Male, No. 12,777 15,574 27,999 56,494 59,745 80,743Post-graduate and graduate 0.0 5.3 2.9 1.5 1.9 1.33Public technical diploma/technician 9.1 5.3 5.4 2.6 3.7 2.37Public primary long-term training 13.7 3.5 1.7 2.2 2.1 1.01Public primary short-term training 26.8 36.0 31.0 68.1 54.4 61.73Private/NGO, international org. 50.4 49.9 59.0 25.5 37.9 33.56

Total 100.0 100.0 100.0 100.0 100.0 100.0Female, No. 11,810 12,320 19,987 31,873 53,903 87,887Post-graduate and graduate 0.0 1.7 1.5 1.0 0.5 0.29Public technical diploma/technician 4.8 3.4 3.5 2.2 1.7 1.19Public primary long-term training 2.1 0.4 0.1 1.0 0.5 0.45Public primary short-term training 21.8 41.2 45.3 83.1 64.3 76.68Private/NGO, international org. 71.4 53.2 49.6 12.8 32.9 21.38

Total 100.0 100.0 100.0 100.0 100.0 100.0Source: Department of Technical Vocational Education and Training Management, MOLVT

Compared with the academic stream, admission to technical and

vocational training is more lenient, accepting students from as low

as grade 5, to a non-formal basic course; grade 9, to a certificate

or diploma course; and grade 12, to a diploma or degree course.

CAMBODIA 97

However, for a basic short course, such as farming method, the

admission is open for all. Unfortunately, trainees receive no

certificate for their training. In the formal sector, graduates can

receive certificates (less than one year), diploma (one to two years),

bachelor (4 years) and Master (4+2 years).

At present, there is no National Qualification Framework within

education in Cambodia, but the pathway within and between each

stream is flexible and case-based. For example, after completion of

their basic education (grade 9), students can take formal TVET

courses (three levels: Level one (one year), Level two (2 years) and

Level three (3 years), which is equivalent to grade 12. So, if they

wish, they can continue to TVET undergraduate degrees for 2 years

(Associate Degree); 4 years (Bachelor Degrees); or 6 years (Master

Degree). Students can also enter the academic stream after finishing

Level 3 of the TVET stream,

Although TVET plays an important role in economic growth and

offers more than 60% of job availability in this sector, it has failed

to attract high school leavers. In the last few years, especially after

the establishment of MOLVT, however, there have been some

changes to the trend. In the 2008-2009 academic year, there were

168,630 (87,887 female) graduates from both non-formal (majority)

and formal, public, and private TVET institutions. To some extent,

though, the provision of formal training at TVET institutions are

supply-driven and in comparatively low quality.


Subject Certificate Diploma Bachelor's Master's Total Percentageof Total

A. TechnicalMechanicalElectricalElectronicsAir ConditioningConstruction Subtotal (A) Percentage of TotalB. ComputingInformation TechnologyCADCAM Subtotal (B) Percentage of TotalC. BusinessManagementBusiness AdministrationAccountingMarketing Subtotal (C) Percentage of Total

75159726066

432

463026132

195636

291241

2116222382

15955

154368

30

30

212

10549

366

9

1120

109

109

121629188

92426

1,456

591271

34216

12772

557

66.8

3.3

25.6

<Table 2-2> The Number of Graduated Students in TVET Institutions 2003–2008No.

2003 - 2004 2004 - 2005 2005 - 2006 2006 - 2007 2007 - 2008Total Fem. Total Fem. Total Fem. Fem. Fem. Total Fem.

1 Bachelor/Master Degree - - 1,041 212 1,126 306 1,158 313 1,408 2772 Diploma 1,724 565 1,237 416 2,201 701 2,172 692 3,151 938

3 Certificate (I,II&III)(Long Course) 1,999 245 594 51 503 21 1,562 307 1,524 255

4 Certificate(Public Short Course) 5,998 2,570 1,0692 5,081 3,426 1,923 18,586 595 67,178 34,679

Grand Total 9,721 3,380 13,564 5,760 7,256 2,651 23,478 1,907 73,261 36,149

(MOLVT 2009)

<Table 2-3> Number of Graduates by Subject in MOLVT Formal Training

Institutes, Academic Year 2007/2008

CAMBODIA 99

Subject Certificate Diploma Bachelor's Master's Total Percentageof Total

D. OtherTourismEnglishGraphic Design Subtotal (D) Percentage of Total

5959

531

36

5315995

4.4Total

Percentage of Total491

22.5795

36.5764

35.1129

62,179100.1 100.1

Source: ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009, page 33

Pedagogical training for teachers/instructors of TVET is conducted

at the National Technical Training Institute (NTTI). Up to 80% of

the teachers at TVET institutes are trained at NTTI for one year

before their services at various polytechnics, institutes, and

provincial technical centers. One third of them hold Master degrees.

However, their salary is limited; they lack industry experience; and

their curriculum and teaching materials are not up to date, In turn,

the effectiveness and efficiency of program delivery at TVET is

generally low and fails still to respond to market demand.


<Table 2-4> The Number of Teachers in TVET Institutions: Fiscal Year

2007 – 2008No. Type of Training

LevelNumber of Institution

Number of Teachers

Number of Under Graduated Students

Number of Graduated Students

Total Female Total Female Total Female1 Bachelor/Master Degree 09 376 73 5,472 1,124 1,408 2772 Diploma 19 705 168 5,448 1,280 3,151 938

3 Certificate (I,II&III) (Long Course) 12 279 81 1,414 404 1,524 255

4 Certificate(Public Short Course) 37 555 253 60,315 32,594 67,178 34,679

Grand Total 77 1,915 573 72,649 35,942 73,225 36,149(MOLVT 2009)

The Voucher Skills Training Program (VSTP), however, has

proved a greater success. VSTP is a piloted model for delivering

large-scale non-formal programs to communes and villages in skills

that they identified and requested, with over 46,000 participants in

2008 alone. Most of this training was delivered in the communities.

The VSTP also encompasses short, more structured courses delivered

in the PTCs (e.g., motorcycle repair, small engine maintenance,

weaving, and hairdressing), as well as enterprise-based training,

under which enterprises are contracted to provide on-the-job training

to individual trainees for about 4 months. Under the pilot VSTP,

60% of training was community-based, 10% was delivered as short

courses in PTCs, and 40% was enterprise- based. (ADB, Proposed

Asian Development Fund Grant Kingdom of Cambodia:

Strengthening Technical and Vocational Education and Training

Project, October 2009, page 33)

CAMBODIA 101

Section 1. TVET for Adults

According to the United Nations’ definition, “youth” refers to

persons aged 15–24, and “adults” are persons aged 25 or older. The

youth population has increased, from 2.1 million (18.3 percent) in

1998, to 2.99 million (22.3 percent) in 2008; of them, males

increased from 1.02 million (18.5 percent), to 1.5 million (23.1

percent), while the females increased from 1.07 million (18.1

percent), to 1.48 million (21.6 percent).

The adult population also increased in absolute numbers, from 4.45

million (38.9 percent) in 1998, to 5.9 million (44 percent) in 2008;

among them, males increased from 1.99 million (36.2 percent), to

2.7 million (41.4 percent), whereas females increased from 2.46

million (41.5 percent), to 3.2 million (46.5 percent). The increase

of both the youth and adult populations means an expansion of the

country’s labor supply engaged in or available for economic activity.


[Figure 2-1] Population Age Pyramid 2008

Source: NIS/MOP. General population census of Cambodia 2008.

Among the total labor force, youth represented more than a

quarter, at 25.8 percent. The youth labor force participation rate

decreased slightly, from 60.7 percent in 1998, to 60.1 percent in

2008. This possibly indicates a positive trend of youth staying longer

in the education system. In general, female youth seem to enter and

exit the labor force at an earlier age than males. The female

economic activity rate continued to be a little higher than that of

males during the decade.

The adult labor force participation rate increased from 84.7 percent

(nearly 3.8 million) in 1998, to 87.5 percent (5.2 million) in 2008.

The adult labor force participation rate was considerably higher

among males, and that rate remained constant throughout the decade.

Compared with 1998, the absolute number of adult males increased

CAMBODIA 103

by almost 668,000 in 2008. The number of female adults increased

by 722,000, or 4.8 percentage points. Thus, the gender gap in the

adult labor force participation rate shrunk over the decade (from a

16.8 percentage point difference in 1998, to a 12.1 percentage point

difference in 2008).

[Figure 2-2] Labor Force Participation Rate, for Workers Aged 15 and Older (%)

By 2008, the youth employment-to-population ratio had increased

by 4.8 percentage point, to 58.1 percent. When compared with the

1998 data, the absolute number in 2008 had increased by nearly 623,000

people. In general, the female youth employment-to- population ratio

was larger than the male ratio in both years. This may be due to

the large proportion of young women engaged in unpaid household

work. It seems that females enter the labor force sooner than many

males, who are encouraged to stay in school longer.


The adult employment-to-population rate also increased, from 3.7

million (82.2 percent) in 1998, to 5.1 million (86.6 percent) in 2008.

The adult employment ratio in 2008 was considerably higher among

males than females. But in terms of growth, the adult male ratio

increased marginally, by 1.5 percentage points; the female adult ratio

increased much more, at 6.5 percentage points.

[Figure 2-3] Employment-to-Population Ratios for Workers Aged 15 and Older(%)

In looking at the age-specific unemployment rates, the largest

proportion is found among the youth. The youth unemployment rate

is 3.3 percent, compared to the adult unemployment rate of 1.1

percent. However, over the decade, the unemployment rate for both

sexes among the youth declined significantly, from 12.3 percent, to

3.4 per cent among males, and 12 percent to 3.3 percent among the

females. There is a similar pattern among the adult population trend,

although the decline is marginal.

CAMBODIA 105

Among the unemployed people aged 15 or older in 2008, 80.7

percent were considered literate. Of them, 3.7 percent had no

educational qualifications; 28.5 per cent had not completed the

primary level of school; 25.2 percent had completed it; and 19.4

percent had finished through the lower secondary level. Only 3.9

percent of the unemployed had gone beyond the lower secondary

level. The proportion of unemployed youth and adults considered

illiterate, or who had not completed the primary level, declined for

both males and females over the decade. But there was a

considerable increase in the unemployed literate males and females

who had completed the primary level, lower secondary level, or

beyond.

<Table 2-5> Unemployment Rate

Age group 1998 2008Both sexes

15+ 5.3 1.615-24 12.2 3.325-64 2.9 1.165+ 2.9 1.0

Male15+ 4.6 1.515-24 12.3 3.425-64 2.3 0.865+ 2.0 0.8

Female15+ 5.8 1.815-24 12.0 3.325-64 3.6 1.365+ 3.9 1.3

Source: NIS/MOP. General population census of Cambodia 1998.NIS/MOP. General population census of Cambodia 2008.


Section 2. Industrial Relations

Industrial relations, and in particular the garment industry, are

characterized by a high level of disputes, which may be considered

normal in any young system. Unions and employers typically do not

have the knowledge or the tools to engage in dialogue and dispute

prevention measures, including collective bargaining. Employers

have noted that multiple and competing unions in the workplace and

strikes that do not follow procedures create challenges for good

industrial relations in the garment sector. Unions complain about low

or unpaid wages, anti-union discrimination, and abuse of short-term

contracts. This has gradually changed over time as workers and

employers have increasingly resorted to working together to improve

industrial relations. As noted in section 3.2.9, several initiatives have

provided a solid institutional basis for improved industrial relations.

However, it is still a major challenge.

CAMBODIA 107

Chapter 3

GOVERNANCE OF THE TVET SYSTEM

Technical and Vocational Education and Training (TVET) in

Cambodia is managed by the Ministry of Labor and Vocational

Training (MOLVT) (see the organizational chart below), which is

steered by the National Training Board, comprising the Deputy

Prime Minister as president; senior government officials from various

ministries; and representatives from international organizations, donors,

industries and other stakeholders as members. At the regional level,

there is the Provincial Department of Labor and Vocational Training,

directed by the Provincial Training Board, with representatives from

different areas. The same structure applies at the district level.

Section 1. Governing Structure

1. NAME OF INSTITUTION

Department of Technical Vocational Education and Training


Management (DTVETM)

Ministry of Labor and Vocational Training (MOLTV)

2. BRIEF DESCRIPTION OF INSITUTION

2.1 Vision

To participate in poverty reduction through the Rectangular

Strategy, as recommended by the Royal Government of Cambodia,

for the labor and Technical Vocational Education and Training

sectors in Cambodia.

2.2 Mission

To achieve the above vision, the Ministry of Labor and Vocational

Training states its mission to improve the growing workforce,

promote equity, and raise the living standards of the people.

• Duties and responsibilities of the Ministry of Labor and

Vocational Training

- Establishment and Development of Employment Policy

- Establishment and Development of National Policy on Technical

Vocational

Education and Training

- Monitor the TVET institutions and classes;

- Coordinate with all relevant ministries to develop TVET;

- Establish and Develop of a standard testing and accreditation

CAMBODIA 109

system; and

- Monitor the implementation of apprenticeship training duty and

the apprenticeship training fund as determined by labor law.

[Figure 3-1] MOLVT Organizational Structure


Section 2. Organizational Structure of DTVETM

Services in the Department of Technical Vocational Education and

Training Management are divided into 6 offices, and they are

outlined below:

❍ The Management Institution office is responsible for:

- Formal Technical Vocational Education and Training sectors;

- Non-formal Technical Vocational Education and Training

sectors; and

- Preparing a system for monitoring quality evaluation.

❍ The Planning and Statistics office is responsible for:

- Cooperation;

- Staff development;

- Monitoring, Evaluation and Management Information System;

and

- Clearing.

❍ The Relations office is responsible for:

- Personnel;

- Financial;

- Building material maintenance and supply material;

- Administration; and

- Building Security.

❍ The National Training Fund office is responsible for:

- Review and evaluation;

CAMBODIA 111

- Grants and Loans; and

- Accounting.

❍ Self-Employment Generation Fund Office

❍ Special Needs and Gender Office

Section 3. TVET System Overview

The National Training Board (NTB) is the APEX body of TVET.

It approves policy; sets program objectives; and establishes measurable

targets. The NTB has a coordinating function and a leadership role

in linking the national training program to the needs of the economy,

as defined in the National Strategic Development Plan 2006-2010.

The 32 members of NTB have representatives from the ministries,

as well as from the private sector, employees, training providers, IO,

and NGO’s.

The Directorate of TVET (DG.TVET) within the Ministry of

Labor and Vocational Training (MLVT) is responsibile for

supporting the NTB in policy development and in implementing its

policies once approved. With 138 staff members, DG.TVET has

three operating departments. It is responsible for developing national

competency standards for all skills and a labor market information

system, as well as supporting, expanding, and assuring the quality

of public and private provision of TVET.


Mission of DG.TVET

Under the policy direction of the NTB, DG.TVET’s mission is to:

(i) develop and sustain a quality assured, demand driven TVET

system that meets the needs of Cambodia for economic and social

development, as expressed in the Rectangular National Development

Strategy; (ii) provide Enterprise with a skilled and adaptable

workforce; and (iii) respond to the life long needs of individuals for

decent jobs or self-employment by supporting appropriate training.

The key player within the MOLVT is the General Directorate of

Technical and Vocational Education and Training, whose obligations

are defined in Chapter 2, Article 3b-TVET, by the Royal Government

of Cambodia Sub-Decree No. 52:

To study and develop a national policy on occupations to review

the needs of the employment market;

To prepare and develop an occupational policy based on the

national policy for TVET;

To prepare and develop a National Policy for TVET;

To prepare a policy and manage the TVET system;

To screen proposal for the establishment of institutions, centers,

and schools providing TVET services;

CAMBODIA 113

To control, monitor, and evaluate public and private TVET

institutions;

To coordinate communication with ministries, institutions, and

organizations in the region and in the world to promote TVET in

cooperation with the MFA and international organizations;

To cooperate with enterprises and institutions to strengthen and

promote TVET;

To prepare and develop occupation or work standards that meet

national and international market needs;

To prepare and manage testing or examinations that assess levels

of competence in all occupations and award or remove licenses or

certificates acknowledging the level of competence based on the

results; and

To manage the training of apprentices and the financial aspects

of apprenticeship training.

Section 4. The Two Tracks of TVET Policy

As noted in the first National TVET Development Plan, TVET

has two major and often competing directions. First, TVET needs

to respond to social equity issues by assisting the poor to master


skills which will enhance family income through better farm

productivity or basic self-employment. Secondly, TVET must meet

the needs of enterprise for a skilled and adaptable workforce as those

needs arise. Both tracks are demand-driven — one by the villagers

and micro enterprise at the district and provincial level, and the

second, by large enterprise at the national level.

The first track is primarily linked to social policy, the second,

largely to economic policy. The first tract has an immediate urgency;

the second track can be developed over a number of years, so that

when Enterprise expresses a need for labor force development

assistance, TVET is ready to respond.

The second track can be largely addressed using either public or

private partnerships, with government providing the coordination;

standards enforcement; and assured access for the poor.

Policy Implications for TVET

This second National TVET Development Plan continues to

place maximum emphasis on rural poverty alleviation

(TVET Track 1), while continuing to prepare for the gradual

growth in demand for a much higher level of work force

skills. It adds to the policies of the previous year the new

concept of a bridging program to help school leavers

without basic entry credentials to master the academic

requirements in math, science, and language to allow

them to enter the TVET stream.

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Section 5. Policy Development in TVET System

A first National TVET Development Plan (NTDP) was approved

by the NTB in February 2006. That document outlined a twenty-five

year development plan. (see Appendix 1. Fourteen policies were

approved to form the foundation for the planning of programs and

activities for TVET, and a general commitment to demand-driven

TVET was made.

This present document reports on achievements in implementing

the NTB policies over the past year. It updates the NTDP for the

year 2007 with new targets. It begins the process of adjusting the

policies set out in the previous year using the lessons learned and

achievements of the past 12 months. With newly available labor

market data, it strengthens targeting skills’ investment in areas of

economic growth. It builds on success and gives clear program

direction as the basis of the new program- based budget process for

2008, which replaces previous budgetary processes by connecting

finances to a clear policy-driven program plan.

As will be seen, substantial progress has been made in implementing

the Two Tracks TVET Development Policy which was adopted in

2006.

Track 1 activities strengthened the focus on both poverty reduction

and decentralization of decision-making over the course of the year,


by targeting both Government Priority Action Program (PAP) funds

and Asian Development Bank- ESDP II resources.

Track 2 is the longer-term plan linking our skills development

programs to the needs of employers. The development of the capacity

to manage this demand-driven system was a continuing activity of

DG.TVET over this past year, and progress has been made in our

competency-based training system. Cambodian institutions, too, are

learning to respond to the market for training by expanding their

fee-based activities, when that is possible and desirable.

However, much remains to be done, and more ambitious targets

will be outlined in this document for the year ahead.

For the near future, it remains clear that the greatest and quickest

gains in poverty alleviation and growth will be possible in rural areas

where most of the poor live. The National Strategic Development

Plan (NSDP) “will therefore direct 60% of resources to rural areas

with increased attention to productive activities, like agriculture,

rural development, and to health and education, to increases and

enhance human capital and better contribute to overall development.”

The following guideline for the Policy Framework Development

for TVET focuses on six core elements: quality, better citizenship,

research, flexibility, sustainability, and lifelong learning. The Ministry

of Labor and Vocational Training will continue to implement the

CAMBODIA 117

following policy guidelines:

Policy 1: Target Poverty Reduction through TVET

Implement Voucher Program Pilot Project Targeted National

Training Fund

• Policy: Target TVET programs at poverty reduction by developing

a program for the poorest communes that will provide basic

income generating skills based on local needs and opportunities.

• Strategy: Select the 210 poorest Communes in 7 representative

provinces. Train PTC staff in participative community development.

PTC staff will assist each commune in writing a 3 year training

plan to bring skills that will help it be more economically

successful. Provide funding for the training, and find trainers

who can give most of the training in the commune. Use the

7 provinces and their PTCs as training for the remaining 17

provinces.

• Status: The program was implemented in 7 provinces and is

functioning well. An impact study is underway; funding is

required to extend to the program to all provinces as a regular

TVET program.


Policy 2: Decentralization of Decision Making to Improve the Fit

between Training and Demand for Training by Involved

Partners

Build Provincial Teams Under National Training Board /DGTVET

to identify and respond to demand for training from local communes

and Enterprise.

• Policy: Selecting the required TVET training is best done in

communes where the training will take place and where local

markets and village skills are understood. It is the government’s

policy to move decision making as close as possible to those

most affected.

• Strategy: The skills, knowledge, and abilities in the Directorate

General of TVET, among the PTC directors, deputy directors

and community development specialists, will be expanded

through training to strengthen decentralization. NTTI will be

strengthened to provide and sustain this training.

• Status: Seven provincial training boards are established. PTB

involvement in PTC planning is in place in these provinces for

the VSDP and should be expanded to NTF courses, as well.

Policy 3: Expanding Post Secondary TVET (Diploma and Degree)

Development of Regional Polytechnics or Regional TVET Centers;

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Expansion of the capacity of the Phnom Penh based TVET post

secondary institutions to provide demand driven diploma and degree

programs. Strengthen National Technical Training Institute to

improve the quality of trainers and curriculum prepared for the

system.

• Policy: Support for short term training is determined by the

communes; delivered in the communes using existing facilities;

and provided by NGOs with experience or existing involvement

in the communes.

• Strategy: Provide funding for communes and enterprise-based

training to be assisted by PTC staff. PTCs will receive 10% of

the value of this training in return for assisting with the

development and recruitment of trainers who implement the

program. Ensure that NTF funds are allocated to support training

that is demand-driven and community/enterprise-responsive.

• Status: Commune-based training is well established in 7

provinces under PTC cooperation. Over 50,000 commune residents

have been trained in skills that they identified as giving them

new income opportunities. Enterprise-based training is slowly

expanding, as more PTC staff learn how to work with small

enterprises.


Policy 4: Commune and Enterprise-based training

Voucher System and targeted National Training Fund

Policy 5: Out of School Youth

Target voucher and National Training Fund training

• Policy: In the poorest communes, target TVET at reducing the

number of unemployed, out of school youth. Develop from the

7 pilots a national program to assist youth in gaining basic

employment and self employment skills applicable to a rural

setting. Develop a bridging program to help this group gain

access to training that leads to further education in TVT

institutions up through the degree level.

• Strategy: Target commune-based training at unemployed youth

and, in so doing, ensure a gender balance. Use family-based and

informal apprenticeship and very brief training inputs to expand

the number of trainees. It is best to identify skills that improve

productivity in farming or lead to self or local employment.

• Status: An analysis of commune/enterprise training participants

is now underway. A bridging program has been recommended

to DG. TVET to bring more school leavers up to a standard

where they can qualify for NTQF level 3 and 4 training.

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Policy 6: Self Employment as Part of All Training in TVET

• Policy: Commune-based skills training will include training in

micro enterprise management.

• Strategy: A list of self employment ideas will be taken to the

communes. An assessment of local market opportunities will be

made. Communes will be advised to use enhanced farm

productivity, self employment, and family-based employment in

achieving their planned outcomes.

• Status: The recommendation to train PTC staff so that they can

include small business development and management in all

training will be implemented when resources are available.

Policy 7: Micro Credit

Link micro credit providers to all trainings

• Policy: Communes and individuals require information on micro

credit providers and costs during any given training. Access to

micro credit should be included in most training at the commune

level.

• Strategy: PTCs will assist each PTB to develop a provincial

association of micro credit providers who commit to a statement

of ethical behaviour and offer a simplified process to assist


clients with a range of interest rates. PTCs will give a list to

the commune councils during the training plan design process

and invite member micro credit providers to present information

to training participants on voucher-based training. PTCs will

ensure that all NTF supported trainees receive training in micro

credit access and management.

• Status: The recommendation to train PTC staff so that they can

include small business development and management in all

training will be implemented when resources are available.

Micro credit access will be part of this training.

Policy 8: Small Enterprises

Assist SMEs to identify training needs for growth and provide

Vouchers/National Training Fund to support training.

• Policy: TVET will develop a program to assist small, rural

enterprises to expand training through informal apprenticeship

programs. The program will assist in introducing appropriate

technology where it can expand the opportunities for small

enterprises. Vouchers and micro credit may be a part of this

program.

• Strategy: Community development specialists in each PTC will

be trained to assist small enterprises in developing informal

apprenticeship programs and in developing training plans that

CAMBODIA 123

accept applications for vouchers. A proportion of the voucher

VSTP budget will be allocated to this activity (current estimate,

30%).

• Status: In the 7 VSTP provinces, progress has been made with

753 trainees in small businesses. When NTTI trains more PTC

staff in enterprise-based training, this will improve.

Policy 9: Public-Private Partnerships and the Financing of TVET

Introduce basic benefit/contribute model of finance. Revenue base

programs in Provincial Training Centers and Entrepreneurial

institutions

• Policy: TVET will be funded by beneficiaries. These include

government, trainees, enterprises, and communities.

• Strategy: Develop an employer-based levy on payroll or payroll

taxes to enable support by enterprises for TVET and develop

TVET centers that are co-managed by enterprises.

• Status: Communes provide training site and food for trainers,

trainees are not paid in VSTP. Small enterprises are absorbing

some training costs in enterprise-based training in VSTP. A levy

grant proposal has been made and is under review by the

government.


Policy 10: Public-Private Partnerships, Enterprise Involvement in

TVET

NTB-Enterprise Involvement, sector councils, enterprise management

of higher skills and technician levels

• Policy: Increase the participation of enterprises in the design,

decision making, and provision of TVET.

• Strategy: Involve enterprises in TVET through their membership

in the National Training Board; the establishment of an advisory

enterprise council; and the inclusion of enterprises in provincial

training boards.

• Status: The employment sector council concept was tested with

the garment industry. The industry is formulating its own

standards which will become national standards over time.

Policy 11: Public-Private Partnerships

Expanding the provision of TVET National Training Fund

/Voucher as incentives for private sector trainers.

• Policy: Expand the provision of TVET by private sector training

providers. Concentrate in overall provision of TVET, not on

government provision.

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• Strategy: Training will be purchased from qualified private

sector training providers by the NTF and by the commune/

enterprise voucher system. Each PTC will develop a list of

private sector and NGO training providers in the province. They

will be asked to register with their provincial branch of national

training in the voucher program. The list of training providers;

the training they will provide; and course length and course cost

will be given to the commune councils to assist in their

planning.

• Status: The number of private sector training providers is

increasing, as needed, but there is no quality assurance or

regulatory framework. The need continues for a national TVET

qualifications framework (NTQF) and for industry-driven

competency standards as the basis for quality assurance.

Policy 12: Quality Assurance of TVET Provision

National Association of TVET Providers (NATP). Meet standards

to be eligible for NTF/Vouchers

• Policy: DGTVET has the central responsibility for ensuring the

quality of TVET provision. Training providers must meet and

continue to meet an agreed standard to be eligible for access

to any state training funds.


• Strategy: The establishment of a National TVET Trainers

Network (NTTN), built on provincial branches, with agreed

financial and ethical standards, is an early step. Development

of training standards in core skills area which are audited by

government is another important step. NTTI will assure

continuity and sustainability of the quality assurance process.

Training vouchers can only be used at approved training

providers who are members of the NTTN provincial office. Only

NTTN members are eligible for NTF support of training.

• Status: No action has been taken on this policy.

Policy 13: Quality of TVET Leadership, Management,

and Coordination

NTTI as a staff college for TVET, capacity building on training

needs analysis.

• Policy: Improve the quality and consistency of TVET leadership,

management, and administration in the public and private sector.

• Strategy: Ensure transfer of capacity building training by

consultants and others to NTTI, so that new inputs from each

project are not lost when the consultants from that project leave,

but are supported by a continuing staff development plan for

all DG TVET staff by a professional body of trainers at NTTI.

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• Status: No action has been taken on this policy.

Policy 14: Labor Market Information

Provincial/PTB basic data system and enterprise surveys

• Policy: NTB is mandated to oversee the national labor market

in the TVET area. Balancing the market for skills requires

information on both the supply and demand of skills. The

further development of a labor market information system is a

priority.

• Strategy: Involve PTCs and PTBs in gathering basic labor

market information in each province. Involve enterprise councils

in providing labor market demand information. Gather available

information from other ministries. Include market opportunity

information when possible.

• Status: A LMIS Department has been established, and a proposal

has been developed for a national employment agency as a

mechanism to gather data.

Policy 15: Competency Standards

Adopt regional standards with ILO/ASEAN support. Implement the

National Quantity System


• Policy: National skills standards will be established and a

national competency assessment system set in place.

• Strategy: Use existing competency standards and, where needed;

acquire international competency standards from other Asian

countries; and validate them with enterprise councils. Work

closely with ILO and ASEAN in this task and in the development

of a regional national qualification framework.

• Status: Substantial capacity building continues with Korean

assistance. The garment industry is writing its own standards.

The development of standards will be a priority again as

institution-enterprise training begins to grow. (MOLVT, 2009)

Section 6. Vision and Strategic Direction

TVET has gained strong support from the highest level down to

the local authority. In the government’s two main documents, the

Rectangular Strategy for Growth, Employment, Equity, and

Efficiency and the National Strategic Development Plan (2006-2010),

technical and vocational training is recognized as one of the

instruments for economic development. Therefore, a concrete agenda

has been set. First, there is the development of TVET programs that

respond to the labor market demands, while they also strengthen the

management and provision of job-seeking services. Second, a TVET

CAMBODIA 129

system with flexible entry and exit points will be put in place. Third,

the National Training Board (NTB) with a sub-technical committee

of accreditation; standards’ development; testing and certification;

and labor market information will be established. Fourth, an advisory

Industrial Technical Committee (AITC), National Employment

Agency, and job centers will be created.

As evidenced, the government has established the steering committee

(National Training Board chaired by the Deputy Prime Minister),

together with funding support. National TVET Development Plan

(NTDP) has 15 main policies, 3 of which are at a macro level; 5

at a supporting level; and 7 at a sustainable and demand-driving

level. The plan was adopted by the NTB in 2006. It has two tracts

― first, aiming at alleviating poverty through provision of basic

skills to rural households (more at provincial and district level), so

that more productive farming can be cultivated and extra income can

be generated via basic self-employment; second, offering high-level

skills (mostly conducted at national level in urban areas) responsive

to industry and service need.

The national socioeconomic planning framework for Cambodia is

the Rectangular Strategy for Growth, Phase II, which was launched

in September 2008. Its strategies include improvements to productivity

and diversification of agriculture, private sector development,

employment generation, and human resource development. The

National Strategic Development Plan (NSDP), 2006–2010, based on


the Rectangular Strategy, reiterates the importance of capacity

building and human resource development. Stated strategies include

(i) promotion of vocational and skills training; (ii) creation of jobs

in both formal and informal sectors; (iii) an increase in agricultural

productivity to increase rural employment; and (iv) the establishment

of TVET and training networks to assist both men and women,

especially the poor, disabled and vulnerable, to respond to labor

market needs.

The NSDP is implemented through detailed plans from each

ministry. The Strategic Plan of the MOLVT, 2006–2010 identifies

ways to strengthen the economy and reduce poverty, including the

development of technical and vocational skills. The MOLVT plan

aims to (i) establish TVET links with enterprises; (ii) establish

mechanisms for labor market information; (iii) service both formal

and informal sectors; (iv) upgrade TVET through a NVQF, competency

standards and testing, training of trainers, and accreditation of TVET

programs and institutions; (v) modernize training facilities and

equipment; (vi) strengthen local planning for local training needs;

(vii) establish new centers in unserved provinces; (viii) expand

TVET provision through the NTF to reduce poverty more widely;

(ix) encourage certificate-based TVET programs in all provinces and

municipalities; and (x) encourage TVET institutions to generate their

own income (ADB, Proposed Asian Development Fund Grant


Education and Training Project, October 2009).

CAMBODIA 131

Chapter 4

FINANCING OF TVET

In the second phrase of its Rectangular Strategy, the government

puts more emphasis on employment generation. This strategy allows

stronger support from government budgets, as well as international

organizations, donors, and other stakeholders. The government has

increased its funding annually up to 2.55 million USD in recent years

to MOVLT through the National Training Fund, the most well-

known one, which was envisaged as a medium and long-term

mechanism for the financing of training from both government and

non-government funds. Initially, the NTF served as a means for

providing project-financed support for demand-oriented training,

such as training programs relevant to employment needs, and in

accordance with the training policy and strategy of the National

Training Board (NTB). In the longer term, the NTF was expected

to evolve into the main mechanism for funding of employment-

related training, including enterprise-based training. It aimed at


becoming an instrument for providing incentives to training

institutions, enterprises, and the private sector to upgrade and extend

their provision of training.

The NTF was established in December 1997. All of 1998 was

spent identifying and designing the programs; developing systems

and procedures; and training staff. The NTB eventually developed

and approved three financing facilities:

(i) The Training Grant Fund (TGF), a grant facility for training

providers contracted to do training for certain group of trainees in

certain skill areas;

(ii) The Innovative Skills Investment Assistance Fund (ISIAF), a

loan facility for private training providers offering innovative

training to their own target clientele for a fee; and

(iii) The Self-employment Generation Fund (SEGF), a micro-credit

loan facility for small entrepreneurs in both urban and rural areas

(Richard Johanson, 2009).

The Training Grant Fund trained a total of 13,100 beneficiaries

from 24 provinces/cities in 53 skill areas at a cost of $1.9 million,

or an average of $147 per trainee. The TGF beneficiaries comprised

the poorest people (38.1%), school leavers (25.2%), orphans

(15.1%), widows (9.9%), crippled demobilized soldiers (6.3%), and

handicapped (5.5%). Half of the beneficiaries were women. Based

CAMBODIA 133

on a tracer study on training outcomes, the average employment rate

among graduates was 66 percent, including 75 percent for women

and just 59 percent for men. Categorized by type of beneficiary, the

employment rate ranged from a low of 55 percent among school

leavers, to full employment among demobilized soldiers. An

estimated 80 percent of those who found employment did so in the

informal sector. The average income of those who found

employment ranged from $32-$73 per month. This may not seem

like much, but when benchmarked against the $25 per month average

salary of public servants, the impact of TGF was significant on the

income of beneficiaries. The TGF had no cost recovery. Training

fees could not be charged because the beneficiaries were very poor

and had to be provided assistance in transportation and food during

the training period. But, in terms of employment generation, the TGF

was efficient, requiring only an average investment of $222 per

employed beneficiary.

The Self-employment Generation Fund (SEGF) was a micro-credit

program patterned after the Grameen Bank of Bangladesh. Loan

amounts generally ranged from $200–$3,000. By December 2002 the

SEGF, through the provincial training centers, had disbursed $1.4

million (including re-lending) to 5,650 members in 1,750 groups in

15 provinces; 65% were women. The SEGF beneficiaries engaged

in a wide variety of micro-enterprises such as algae and seaweed

growing, bamboo basket making, animal raising, food processing,

hairdressing, motorbike repair, onion growing, television and radio


service and repair, silk weaving, masonry, stone carving, worm

raising. Selection of eligible businesses was preceded by a training

and employment needs assessment (TENA) conducted by the

provincial training centers, and by rudimentary feasibility studies.

The high collection rates (around 92 percent) indicated that the

SEGF businesses were doing well. The average income from such

businesses ranged from $400 to $900 per annum, a significant amount,

especially in the countryside.

The experience of the two NTF programs, the TGF and SEGF,

was encouraging. Their impacts on the poor were direct, concrete,

and substantial, and with relatively small investments. The TGF

proved to be an efficient way to empower the poor by providing

employable skills, either for wage or self-employment. The SEGF

provided concrete opportunities for TGF graduates to apply acquired

skills for self-employment. However, the operations of both programs

would need to be scaled up to reach more target beneficiaries.

The National Training Fund continued to operate using government

funds (program budget) after closure of the project. The procedures

for the competitive award of contracts, and use of unit costs for

pricing the training are still in use. Thus, the institutional

development gains from the project appear to be sustained. There

were several limitations, however. The use of low unit costs in the

competition for contracts effectively excluded private training

providers. Only government institutions and NGOs that have already

CAMBODIA 135

sunk costs in teacher salaries could afford to compete. Some

adjustments need to be made to provide incentives for private

providers to compete. Red tape makes it difficult to spend fully the

government program budget allocated to the NTF. As a result, some

of the intended programs could not be financed (Richard Johanson,

2009).

ADB, a major funding agency in the sector, began assisting

Cambodia in 1992 from the Basic Skills Project, to the first and

second Education Sector Development Program (ESDP) and

currently the Strengthening Technical and Vocational Education and

Training Project (See full list of donors of TVET in Section 5). Other

funding schemes include Samdech Decho, the Prime Minister’s

Special Fund, and the National Social Security Fund. The Directorate

General of TVET, within the Ministry of Labor and Vocational

Training, has a self employment generation fund to help graduates

start their own business.


<Table 4-1> Number of Graduates from the Prime Minister’s Special Fund (2008-2009)

No Description Training Provider were Accepted Skills/course

Total TrainingGraduates

Total Female

1 Support TrainingInstitutions

32 training providers(public)

Service 271Agriculture 524 21,140 12,222

2 National Training Fund

64 training providers(public 35, association 15, & NGO 14)


Total 40,140 22,586(MOLVT 2009)

<Table 4-2> Number of Graduates from Program Budgeting

(2008-2009)

No Description Training Provider were Accepted Skills/course

Total Training Graduates

Total Female

1 Support TrainingInstitutions

32 training providers(public)


2 NationalTraining Fund

64 training providers(public 34, association 15, & NGO 14)


Total 16,290 6,808(MOLVT 2009)

CAMBODIA 137

Chapter 5

INTERNATIONALIZATION OF TVET

There has been continuous support from international organizations,

funding agencies, NGOs, and other stakeholders in the development

of TVET in Cambodia: The World Bank has outlined all major

contributors in this sector.

Other external organizations support ADB’s initial assistance to

TVET, building on support from the United Nations Development

Program and ILO that began in the early 1990s and initially focused

on basic employment training for returnees, the displaced, demobilized

soldiers, and female heads of household. Subsequent initiatives

supported the development of skills for training needs assessment,

curriculum and program development, and instructor training.

Assistance to MOEYS was provided by German development

assistance through GTZ to develop recommendations for a national

training framework and staff training, and to plan an integrated

national TVET system. ADB’s broad support for general education


and TVET over the following decade has been further enhanced by

specific support from other donors. This included (i) Japan International

Cooperation Agency support (1990–2000) for an automotive training

and auto repair center, and ongoing provision of specialist volunteers

across several of the MOLVT training institutions; (ii) Republic of

Korea development assistance (2005–2009) for skills standards and

the establishment of the National Polytechnic Institute of Cambodia;

and (iii) grant assistance for the support of the Cambodia–India

Entrepreneurship Development Center from the India Technical and

Economic Cooperation, 2004–2007. A National Garment Training

Institute, proposed for funding by the Garment Manufacturers'

Association of Cambodia and Agence Francaise de Developpement,

may provide a model for future public–private TVET initiatives in

key sectors (ADB, Proposed Asian Development Fund Grant


Education and Training Project, October 2009).

CAMBODIA 139

Project Name Value and Years Focus of AssistanceILO EmploymentGeneration ProgramVocational Training forEmploymentGeneration(VTEG)UNDP/ILO Grant

$18 millionPhase 1(1992-1997)Phase 2(1997-1998)

Promoted and provided direct employment skills for rural and urban poor (including returnees, displaced persons, demobilized soldiers, disabled and female heads of households) through short vocational training programs for identified employment opportunities. Developed skills for training needs assessment, curriculum and program development and instructor training.

ILO EmploymentGeneration ProgramVocational Training forPoverty Alleviation(VTAP)UNDP/ILO Grant

$12 million1994-1998

Further development of systems and support mechanisms for skills training and implementation through development of a national training framework and training of officers from the MOEYS. Assistance to MOEYS for planning an integrated national TVET system.

National Strategy Planfor TVETUNDP/ILO/ GTZ

1994-1996 Assessment of existing TVET system; involvement of other ministries and stakeholders; identification of training needs for employment, self-employment and income generation; training technologies; system structures

Basic Skills ProjectADB loan

$20 million1996-2002

Established (initial) National Training Board (NTB); National Training Fund (NTF) and the National Vocational Training Center (now National Technical Training Institute, NTTI). Assistance to provincial training centers and women’s training centers, and support for system training and development)

Education SectorDevelopment ProgramADB loans and linkedadvisory assistance, 2004

$20 program loan and $18 million project loan 2002-2004

For TVET: established and continued upgrading to PTCs. Technical assistance for TVET staff upgrading and development of skills standards.

<Table 5-1> External Assistance


Project Name Value and Years Focus of AssistanceSecond Education SectorDevelopment ProgramADB loan

$20 program loan and $25 million project loan and TA (0.5 million) 2005-2008

For TVET: development and support of the Voucher Skills Training Program (VSTP) as a community-based basic-skills demand-driven training scheme in trial provinces. Equipment and technical assistance for staff and system development through provincial training center upgrading, staff training and management support for implementation of VSTP.

Japanese VocationalCenter Workshop and Technical SchoolJICA grant assistance

1990-2000 Assistance for the establishment and continuing operation of an automotive training and commercial auto repair center, including senior staffing, equipment, programs and in-Japan staff training. (Initially under Ministry of Public Works and Transport, now MOLVT).

Japanese OverseasCooperation VolunteersProgramJICA

ongoing Assistance through volunteers for training and development in air conditioning, automotive, dressmaking, computer graphics, engineering, systems engineering in DGTVET institutions, plus supporting training equipment and supplies.

Korean DevelopmentAssistance(Korean Research Institute forVocational Training)Grant

$1.2 million2005-2009

Assistance for the establishment of a national qualifications framework and testing centers.

Technical Assistancefor the Support of theCambodia-IndiaEntrepreneurshipDevelopment Center,(CIEDC)ITEC grant

2004-2007 Provision of technical advisor, fellowships, and in-country staff development, for management and program development in entrepreneurship, SME development, accounting and business.

CAMBODIA 141

Project Name Value and Years Focus of AssistancePiloting the Post-Harvest Technologyand Skills BridgingProgramADB grant

JFPR Grant$2 million2009

TVET skills bridging for out-of-school rural poor youth for income-earning activities in market-linked post-harvest employment, including basic education upgrading initiatives which will impact directly on the proposed Strengthening TVET project.

National GarmentTraining InstituteAFD, GMAC, MOLVT

€3.8 million loanto GMAC.Not yet finalized

Establishment of an independent (public-private partnership) garment industry training and development center for: (i) skills training for access to employment; (ii) professional development; and (iii) advice and technical assistance.

AFD = Agence Française de Dévelopment; GMAC = Garment Manufacturers Association in Cambodia; GTZ = German Agency for Technical Cooperation; ILO =International Labor Organization; ITEC = Indian Technical and Economic Cooperation; JICA = Japan International Cooperation Agency; MOEYS = Ministry of Education, Youth and Sport; MOLVT = Ministry of Labor and Vocational Training; PTC =Provincial Training Center, TVET = Technical and Vocational Education and Training; UNDP = United Nations Development Programme.Source: Asian Development Bank.

(ADB, Proposed Asian Development Fund Grant Kingdom of

Cambodia: Strengthening Technical and Vocational Education and

Training Project, October 2009, page 37 & 38)

CAMBODIA 143

Chapter 6

NEW AGENDA AND PLANS FOR THE FUTURE

Emerging from a period of social unrest in its recent history (since

early 1970s), Cambodia has encountered many challenges, but has

simultaneously moved many steps forward. If compared to other

countries in the region, there is much that Cambodia must commit

to catch up. In its future course, Cambodia will experience both

challenges and opportunities ― challenges: there are so many things

that Cambodia has to do, and do fast; opportunity: there are plentiful

of lessons from other countries that Cambodia can learn from, which

is sometimes a shortcut (to success).

Since its adoption of free market economy in the 1990s, Cambodia

has undertaken numerous reforms. Besides agriculture, the Royal

Government of Cambodia recognizes the important roles of industry

and services in economic growth. Thus, from its 4th mandate, the

government has invested a great deal in technical and vocational

education and training. MOLVT is prioritized and assisted by


international organizations, development partners, funding agencies,

private partners, and other stakeholders in implementing its future

plan.

The 15 policies set by MOLVT will be further translated by ADB’s

major project ― Strengthening Technical and Vocational Education

and Training. This project outlines a concrete blueprint for the future

path of TVET in Cambodia, which includes 1) upgrading technical

and vocational education and training teacher training, skills

standards, testing and assessment; curriculum and training materials;

and institutional management and upgrading; 2) expanding the

Voucher Skills Training Program (VSTP) to all 24 provinces; and

3) developing and implementing skills standards. Another direction,

which stated by the Minister of TOLVT, is to make market

information more accessible to he public so that right decision for

jobs needed by the industry can be made.

CAMBODIA 145

[Figure 6-1] The Rectangular Strategy for Growth, Employment,

Equity, and Efficiency in Cambodia


[Figure 6-2] Proposed TVET System

CAMBODIA 147

[Figure 6-3] The TVET System 25 Year Development Plan in Cambodia

1996-2020


References

Asian Development Bank. 2009. Proposed Asian Development Fund

Grant Kingdom of Cambodia: Strengthening Technical and

Vocational Education and Training Project. October 2009.

Phnom Penh, Cambodia.

BDLINK Cambodia Co., Ltd. 2008. Youth Employment and Social

Dialogue Project YEP Project–CAMFEBA. Youth and Employment:

Bridging the Gap. June 2008, Phnom Penh, Cambodia.

Economic Institute of Cambodia. 2008. Cambodia’s Labor Market

and Employment. Background paper prepared for the World

Bank. December 2008.

Ministry of Planning. 2010. General Population Census of Cambodia

2008: Final Census Results. Phnom Penh, Cambodia.

Ministry of Labor and Vocational Training (MoLVT). 2010. Annual

Report on Achievements (2009) and Implementation Goals

(2010) (in Khmer). Phnom Penh, Cambodia

Ministry of Labor and Vocational Training (MoLVT). 2008. National

TVET Development Plan 2008. Phnom Penh, Cambodia

Ministry of Education, Youth and Sport. 2010. Education Strategic

Plan (2009-2013). Phnom Penh.

Ministry of Economy and Finance. 2010. Recent Macro-economic

Performance: Cambodia’s real GDP Growth Rate.

http://www.mef.gov.kh/ [accessed 02 November 2010].

Ministry of Planning. 2010. National Institute of Statistics. Labour

and Social Trend in Cambodia 2010. September 2010. Phnom

CAMBODIA 149

Penh, Cambodia.

Richard Johanson. 2009. A Review of National Training Funds.

Social Project and Labour. The World Bank. November 2009.

Royal Government of Cambodia. National Strategic Development

Plan (2006-2010). Phnom Penh, Cambodia.

Sandra Daminco. 2010. Higher Education and Skills for the Labor

Market in Cambodia, Jan 2010.

UNESCO. 2010. Good Practices in TVET Reform. February 2010.

UNESCO. 2010. National Education Support Strategy. May 2010.

INDONESIA

INDONESIA 153

Chapter 1

Technical Vocational Education and Training in

Indonesia

Section 1. Indonesia: context and background

Previously occupied by the Dutch, the Republic of Indonesia

proclaimed its independence in 1945 with the end of Japanese

occupation. Sukarno remained the first president of Indonesia until

1967, when Suharto took power and named his cabinet the New

Order. With the style of dictatorship, the New Order ruled Indonesia

for more than three decades, before President Suharto gave up his

position in 1997. There was mass desire for reformation due to social

instability driven by the severe economic crisis in Asian countries.

Indonesia was among the countries which had been most strongly

affected, revealing the fragility of her economic and social foundations.

Habibie as the Vice President remained in office for approximately

two years; since then, Indonesia has experienced significant changes


in its political climate, retreating from the umbrella of a few political

parties in 1999 (three political parties where the Government party

always won the general election), into a multi-party system (more

than 20 political parties competed in the general elections in 1999,

2004, and 2009). Since 2004, the President has been elected directly

by the people, indicating a strong demand from the people for better

democratization.

<Table 1-1> Indonesia General Statistics

General Statistics Population (2009) 230 millionArea (square kilometres) 1.9 millionEmployment by sector (%) (2009) Agriculture 43 Industry 13 Services 44GDP per capita (2009) $ 2,200Literacy rate (%) 93Unemployment (%) Year 2008 9.7 Year 2009 9.0

Indonesia is among the most densely populated countries in the

world. With more than 230 million, Indonesia ranks fourth from the

top in terms of the world’s population. The growth rate of the

population was 1.1 in 2010, showing continuous decline over

previous years. From 1970-1980, the growth rate was 2.31; from

1980-1990, it was 1.98; and from 1999-2000, it was 1.49.

The age structure of the population reveals that youth dominate

the population, creating both opportunities and challenges for the

INDONESIA 155

country. Many people are in school and of productive age. While

youth offer abundant labor opportunities for the local and global

labor market, they face significant challenges in receiving good

education and skills, and in creating jobs.

[Figure 1-1] Indonesia Population by Age Group and Gender, 2005

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

0-4 5-9 10-14 15-19 20 -24 25-29 30 -34 3 5-39 4 0-44 45-4 9 50-54 55-59 60 -6 4 6 5-69 70 -74 75+

Age

Num

ber o

f pop

ulat

ion

Male Female

There is no comprehensive data on the migration pattern of the

population. The available data from the Indonesian Bureau of

Statistics (BPS) only reveals the estimated migration of population

age 5 years and over and, thus, there is no specific data on the

migration of the labor force. The BPS classifies migration into three

categories, which include:

1. Lifetime migration, in which migrants live in provinces different

from their birthplace;


2. Recent migration, in which migrants have moved to a new

province within the last five years; and

3. Total migration, in which migrants never lived in different

provinces before data was taken.

The most recent data available on the migration is from the 2000

Population Census which may be compared with the 1995 SUPAS

data. There is an increasing trend towards the interprovincial

migration of persons age 5 years and over, recorded at 2.4% from

1990-1995, to 3.1% from 1995-2000. Eight provinces have become

the most popular destinations: Jakarya, Yogyakarta, East Kalimantan,

Banten, Central Kalimantan, Jambi, Riau, and South Sulawesi.

The data on international migrants is limited to those who are

officially registered. The lack of data implies that the actual number

of Indonesian international migrants is far higher than that recorded

by the government. The Ministry of Manpower and Transmigration

revealed that, in 2009, the number of Indonesian migrant workers

abroad totaled nearly 2.8 million, spread in 42 countries around the

globe, with the majority of persons working in Malaysia, followed

by Saudi Arabia. See the table below:

INDONESIA 157

<Table 1-2> Major Country Destination of Indonesia Migrant Workers

No Destination Country Number of Indonesian Migrant Workers

1 Malaysia 1,200,0002 Saudi Arabia 927,5003 Taiwan 130,0004 Hong Kong 120,0005 Singapore 80,1506 Kuwait 61,0007 UEA 51,3508 Brunei Darussalam 40,4509 Jordan 35,00010 Qatar 24,58611 Bahrain 6,500 Total 2,676,536

Source: Ministry of Manpower, 2010 as cited in Iqbal (2010).

The majority of international migrants are women, who comprise

around 75%, and they mainly work as housemaids. While the most

popular destinations for the male international migrants are East Asia

and Southeast Asia, most female international migrants select Middle

Eastern countries. Poverty and lack of hope in getting jobs domestically

have been the main reasons for international migration. Thus, many

Indonesians working abroad are low-skilled, low-educated workers.

The administration of the international labor migrants is currently

being criticized by the NGOs and the people as a weakness in

administration, resulting in the existence of illegal migrants and

negligent migrant workers agencies which send people abroad

without protection and sufficient monitoring. It as also believed that

there should be an agency (government agent, trade union, or NGO)

that can help migrant workers secure rights and protection during


their time abroad.

The literacy rate in Indonesia is already quite high, around 93

percent in 2009 for age group 15+. However, when explored further,

the highest formal education enrollment rate is at the primary and

junior secondary school levels which are obligatory for the

Indonesian people. Most public schools within these levels are free.

The participation rate in the senior secondary school and university

degree is lower, due to access and cost.

<Table 1-3> School Participation Rate, 2009

Age/Education Level Numberof Pupils

Enrolledin School

Participation Rate

% of Males

% of Females

0-6 / Pre-school 28,426,505 6,594,086 23.20 49.91 50.097-12 / Primary School 26,304,320 26,015,842 98.90 51.55 48.4513-15 / Junior Secondary School 12,890,334 11,019,242 85.48 50.57 49.4316-18 / Senior Secondary School 12,897,898 7,325,188 56.79 51.62 48.3819-24 / College or University 25,077,900 4,325,354 17.25 47.74 52.26

Indonesia experienced the achievement of strong economic growth

during the New Order era, with an average annual growth of 7

percent in 1968-1996; this growth initially was fed by the oil boom

in 1970, and then by rapid expansion of the export-oriented

manufacturing, construction, and service sectors.

However, when the Asian financial crisis occurred in 1997, the

Indonesian economy collapsed, demonstrating the fragility of

Indonesia’s economic and social foundations. This resulted in a mass

desire for social reformation and, hence, the downfall of Suharto.

The crisis has resulted in a slow economic growth rate of average

INDONESIA 159

4 per cent; a significant increase of inflation from under 7 percent

in 1997, to over 58 percent in 1998; a higher unemployment rate;

and an increased share of the informal sector in absorbing

employment, suggesting a lower share of the formal sector in

providing employment for the people.

[Figure 1-2] Indonesia Economic Growth 1997-2009

-2.9

4.55.6 5.5

6.3 6.1

4.5

-3-2-101234567

1997-1999

2000-2004

2005 2006 2007 2008 2009

Year

As unemployment has become a major problem in the reformation

era, so has the government developed a plan by making employment

creation its first priority. The government heavily relies on

investment (particularly foreign direct investment) to overcome this

problem, though effectiveness remains questionable. The emphasis

is on partially improving the investment climate though regulations

(including the Manpower Law), and there is lack of attention towards

educational achievement and skills formation which match the needs

of industry.


The government under the current President Susilo Bambang

Yudhoyono has established a priority agenda which focuses on

employment creation and unemployment reduction to improve the

people’s welfare. Following this agenda, the Bappenas (National

Planning and Development Agency) announced the Government

Medium-Term Development Plan (MTDP) for 2004-2009, which

presents an optimistic scenario. The scenario includes:

• Increasing GDP growth from 4.5% to 7.6%;

• Reducing unemployment from9.5% to 5.1%; and

• Cutting poverty levels from 17.4% to 8.2%.

However, policy documents seem to contradict these objectives.

First, the priorities of improving investment climate and upgrading

technology seem to have become more important than the task of

reducing unemployment. Furthermore, shifting priorities are also

found in the documents produced by the Coordinating Minister of

Economic Affairs which state that the unemployment target for 2009

is 6.7% (compared with 5.1% as promised), and the economic growth

is targeted for 7.2%, compared to 7.6 % in the MTDP (Sugiyarto et

al, 2008: 305). Furthermore, there is no clear employment-generation

program introduced and implemented by the government to reduce

unemployment and underemployment.

Unemployment in 2009 reached 9%, while economic growth was

4.5%, showing that reality is worse that the target previously set.

Regarding the unemployment rate, the Ministry of Manpower and

Transmigration stated that the reasons are: (1) there are not enough

employment opportunities in the labor market; (2) there is a

INDONESIA 161

mismatch between job requirements and qualifications held by

jobseekers; and (3) global recession led to company closure and

layoffs. The economic growth of 4% was considered an achievement,

although it was lower than the target and the previous year (6.4%

in 2008), because the global crisis created a pessimistic prediction

of economic growth. Thus, 4% was believed sufficient, due to

conditions at that time.

Section 2. The Indonesian Employment and Labor Market

Prior to the 1997 Asian financial crisis, Indonesia had displayed

a growing formal sector, with an increase in female labor and a

decline in the informal sector; as epitomized by a decline in the

agricultural share of work; the main sector of the informal economy,

particularly during the New Order Era (De Ruyter and Warnecke

2008). This period is also characterized by the repression of labor

which involved military force to control workers. There was only

one government-controlled trade union which ensured that labor

unrest would not lead to strikes or demonstrations.

However, the Indonesian economy has since displayed a belated

recovery from the 1997 crisis, with economic growth rates in the

order of 4-6% p.a. over the last ten years; this has only translated

into a modest decline in the informal sector, as formal sector firms

in industries, such as manufacturing, cannot provide enough

employment for the abundant Indonesian workers. The situation has


been further worsened by the government’s unclear program to

reduce unemployment, as stated previously.

Thus, in 2005, the Indonesian workforce comprised over 155

million workers, of which 60% were estimated to be working in the

informal sector — defined as the self employed and unpaid family

workers (Sugiyarto et al, 2006: 302), particularly in the agricultural

and trade sectors. Furthermore, the number of informal workers is

higher in rural, than in urban areas.

[Figure 1-3] Informal Workers, Urban and Rural

10.419.27

16.54

4.63

1.281.63

9.69

18.25

5.18

0.832.572.13

14.08

3.51

0.002.004.006.008.00

10.0012.0014.0016.0018.0020.00

1 2 3 4 5 6 7

RuralUrban

1 = Self Employed

2 = Self Employed with Temporary Workers

3 = Self Employed with Permanent Workers

4 = Paid Workers

5 = Independent Workers in Agriculture

6 = Independent Workers in Non-agriculture

7 = Unpaid Workers

INDONESIA 163

The presence of an informal sector that can absorb displaced

formal sector workers is believed to have provided Indonesia with

a flexible labor market and an alternative for workers who cannot

find jobs in formal sectors (Manning, 2000: 122). The agriculture

sector, among others, still remains the largest pool for absorbing

workers.

[Figure 1-4] Workers by Industry, 2009

Agriculture, Forestry, and

Fishery43.41%

Finance, Insurance, and other Services

1.50%

Who les a le , S to ring and

Co mmunica tio n22.03%

Construction4.65% Electricity, Gas

and Water0.21%

Manufacturing12.73%

Public Service13.73%

Mining1.15%

Transportation0.60%

Source: counted from employment statistics, BPS(http://www.bps.go.id/sector/employ/table2.shtml)

This flexibility has resulted in a relatively stable unemployment

rate, despite the 1990s crisis which hit Indonesia badly. The official

unemployment rate in Indonesia during the initial years of the 1997

Asian crisis did not show the extreme decline one might have

expected (as presented in the table below). Unemployment growth


in Indonesia was considered slight in comparison to other countries

affected by the regional crisis; in South Korea, for example, the

unemployment rate increased from 2.2% in 1997, to nearly 8% in

1998, whilst in Hong Kong, Malaysia, and Thailand unemployment

nearly doubled (Manning, 2000: 121).

<Table 1-4> Unemployment Rates by Gender, BPS (Statistics Indonesia), and

the Ministry of Manpower

1994-1997 1998-2000 2004 2006 2008Male

FemaleTotal

4.64.15.6

6.05.66.6 9.9 10.3 8.4

Source: National Labour Force Survey (Sakernas) as cited in Dhanani, S, 2004: 10 and BPS (http://www.bps.go.id/sector/employ/table1.shtml)

In 2001 the BPS changed its definition of unemployment, adding

discouraged workers (i.e. those who do not seek jobs because they

believe there are no jobs available) into the unemployment measure

(Sugiyarto et al, 2006: 333). Many criticized that the exclusion of

the discouraged workers would hinder the actual number of

unemployment persons (for example, Ahmed and Dhanani, 1999).

As a result, official unemployment rate doubled and climbed higher:

8 percent in 2001; 9.1 percent in 2002; 9.9 per cent in 2004; and

8.4 per cent in 2008.

The other type of worker which has recently become more popular

is the ‘contract worker’ (i.e., fixed-term contracts), particularly within

the textile and garment sectors-labor-intensive sectors which do not

INDONESIA 165

require highly skilled workers. The use of contract workers has been

steadily increasing since the government introduced Employment

Law 13 (2003), in which the use of contract workers was legalized.

The government argues that a ‘fixed-term work contract’ is meant

to give workers more chance to obtain work, rather than create job

insecurity among the workers. However, many employers have

actually breached the law by using ‘fixed-term work contracts’ for

core duties in their main business and thus, the term ‘contract

workers’ has become more common. Hence, it can be argued that

the government has not taken sufficient action to enforce Law 13

and remove/reduce the practice of ongoing contract workers by the

employers.

With characteristics typical of informal, part-time, and contract

workers (i.e., shorter hours of work; less than minimum-wage

income; uncertainty of income; and job continuation), it can be argued

that the welfare of these workers is highly questionable. This

condition, in turn, is worsened by the absence of a social security

net for workers. Although the Act that regulates social security for

workers covers all types of worker, its implementation and the actual

practices of employers show a contrasting phenomenon.

Thus, enhancing the quality of Indonesian workers (by helping

them obtain better skills and education) is expected to lower the

number of informal-low paid workers and prepare them to work

within the high-skilled formal sector. Furthermore, the problem of


the workers’ welfare may well be overcome, if people are given

good education and skills that pave the way for high employability

and productivity.

Despite the huge quantities of labor supply available in Indonesia

for both the local and international labor markets, the task of

improving the quality of labor is still greatly challenging. Data

revealed by SAKERNAS (National Labour Force Survey) shows that

in 2003, the majority of Indonesian workers graduated from primary

school level (35 million). Those who obtained less than primary

schooling comprised 17 million. Those who graduated from junior

secondary school represented 18 million. There were 17 million

graduates from senior secondary schools, and only four million who

completed tertiary level (higher education) (Sugiyarto et al, 2006:

332). However, those who experienced higher education did not

automatically find jobs. There has been an increasing number of

university and college graduates who cannot find work, from an

estimated 600,000 in 2004, to more that one million in 2009.1)

1) See:http://www.bps.go.id/tab_sub/view.php?tabel=1&daftar=1&id_subyek=06&notab= (retrieved 5 November 2010)

INDONESIA 167

[Figure 1-5] Number of Unemployed Higher Education Graduates

0

500000

1000000

1500000

2004 2005 2006 2007 2008

year

num

ber

of g

radu

ates

University GraduatesDiploma Graduates

g

Source: Media Indonesia, August 2009

There are two possible reasons why those who earned higher

education degrees still can not find jobs. The difficulty of obtaining

jobs was caused by limited employment opportunities and the mismatch

between job requirements and job qualifications. It is paramount to

know the direction of industrialization in Indonesia to determine the

types of industries which will be developed in the future under

guidance by the Ministry of National Education; Ministry of Manpower;

and the education or training providers; they must match skill

formation during the period of study/training with the needs of future

industrialization.

The main contributor of the GDP in 2009 was the processing/

manufacturing industry, which includes food and beverages, textiles,

and chemical products. The next major contributors are the agricultural,

mining, service, and transportation industries. Thus, it can be seen

that the manufacturing industry, which is labor-intensive and


involves low level to medium level of technology, dominates the

economy.

<Table 1-5> GDP Contributor by Industry, 2008-2009

Industry 2008 2009Agriculture, Forestry and Fishery 14.5 15.3Mining 10.9 10.5Processing / Manufacturing 27.9 26.4 Oil and Gas 4.9 3.8 Non Oil and Gas 23.0 22.6Electricity, Gas and Water 0.8 0.8Construction 8.5 9.9Trade, Hotel and Restaurant 14.0 13.4Transportation and Communication 6.3 6.3Finance, Real Estate and Enterprise Services 7.4 7.2Other Services 9.7 10.2

On the other hand, the Ministry of Industry has predicted the

future trends of manufacturing and service industries. The industries,

which are based on local materials and high technology and are

community-driven, will be strengthened to enable technological

development and job creation.

INDONESIA 169

[Figure 1-6] The Future Trend of Manufacturing Industries

The Ministry of Industry has identified current strengths and

established a plan for the future that will be embraced by the year

2025. The future manufacturing industry will emphasize the use of

local materials; skilled workers, high technology; and renewable

natural resources. The pillars of the future industry are described

below:

1. The agro-industry includes not only planting and harvesting, but

also processing farm or forestry products, such as coffee, cocoa,

woods, and coconut. The development of the agro-industry is

considered necessary, as there are only around 42 million workers

in this industry out of the total 105 million workers. Thus,

developing this industry will generate increases in income for the


majority of people.

2. Transportation includes production of ships, trains, automotive,

and air transportation. Indonesia has served as one of the world’s

leading automotive production centers. However, high dependency

on foreign companies (multinationals) and their materials and

components, as well as the absence of effective local research and

development, pose significant challenges which will need to be

overcome if this industry becomes the main pillar of Indonesia’s

future manufacturing industry. Furthermore, while the production of

ship and trains is thwarted by obsolete technology and equipment,

the air transportation industry needs policy restructuring to ensure

its development.

3. Information technology includes production of devices and

development of networks. This industry is expected to become the

main player in the national economic development. Information

technology will improve connectivity nationally, regionally and

globally. Thus its development will focus on both the hardware

production, and the network service provider improvement.

Furthermore, the current basic industries which have been the

prime movers of national economics and industrial development in

Indonesia, such as components, clothing, apparel, and steel, will be

continuously maintained; the focus in these basic industries will be

on improving technology and labor skills to enhance global

competitiveness.

The strategic plan also clearly mentions the important role played

by small and micro business. Small businesses are expected to

INDONESIA 171

participate in providing goods and services that meet the demands

of their respective markets. An industry cluster will involve the core,

supporting, and related industry, whereas the small business will

likely become part of the supporting and related industry.

The government clearly states the inclusion of small business

within the industry development, to the extent that: (1) small

businesses will be involved in every step and chain of production

in every cluster, so that their role will be as important as the big

companies, and they will become the foundation of strong economic

development; and (2) small businesses are expected to support and

cooperate with big companies within a mutually beneficial environment.

Involving small businesses within an integral network will require

a comprehensive program to develop qualified and skilled labor,

including access to updated technology to ensure the high and

standardized quality of the products manufactured.

Section 3. The Education System in Indonesia

The education system in Indonesia involves three government

agencies: the Ministry of National Education; Ministry of Religious

Affairs; and Ministry of Manpower and Transmigration. Private

sectors also play a major role in providing education, both formal

and informal. With permission from the government, the private

sector offers greatest representation among the senior secondary

schools, by providing 70% of the institutions. However, 90% of the


primary schools and 50% of the first secondary schools are public

(Sugiyarto et al, 2006: 328).

As depicted in the figure below, the government has introduced

a multi-entry, multi-exit education system for the people, offering

both a choice and flexibility for general and vocational education.

After completing the nine-year compulsory education (which

includes six years of primary education and three years of junior

secondary education), one can choose to continue to study at a

general or vocational senior secondary school. After this degree, one

can pursue higher education based on one’s career interest and

choice. In tertiary education, moving across education streams is

possible.

The figure below shows that those who choose to follow general

senior secondary high school (SMU) and, thus, remain within the

academic educational stream, are projected to obtain university

degrees of S1 (Bachelor); S2 (Master degree); and S3 (Doctoral

degree), although, at some point, they can also move to more

vocational/technical education. On the other hand, those who choose

to pursue vocational senior secondary schooling are expected to

obtain further technical/professional education and training, moving

away from diploma degrees towards more specialized ones; these

students can still shift towards an academic stream if they choose.

INDONESIA 173

[Figure 1-7] The Indonesian Education System

The government has also developed a National Qualification

Framework which outlines the expected abilities, skills, knowledge,

and responsibilities for each level of qualification. The National

Qualification Framework consists of nine certification levels, where

the lowest starts at the senior secondary level, and the highest ends

at the Doctoral Degree or Specialization level.


[Figure 1-8] Indonesia’s National Qualification Framework

The abilities, skills, knowledge, and responsibilities for each level

of certification are shown in the table below:

INDONESIA 175

LEVEL ACTIVITY KNOWLEDGE RESPONSIBILITY

CERTIFICATEⅠ

Carrying activity: 1. Limited scope 2. Repeating and ordinary 3. Limited context

4. Re express 5. Using limted knowledge 6. Need no new idea

7. Based on the direction 8. Under direct supervision 9. No responsibility for

another person’s job

CERTIFICATEⅡ

Carrying activity: 1. More aspects 2. Established and

common 3. With limited option of

some routine response

4. Using basic operational knowledge

5. Utilize available information

6. Implementing common problem solving

7. Requires some new ideas

8. Carrying activity based on the direction

9. Undirect monitoring and quality control

10. Limited responsibility for quantity and quality

11. To be able to direct the other people

CERTIFICATEⅢ

Carrying activity: 1. In large scope and

required common skills. 2. With more options of

procedures 3. Within a common

context

4. Using a relevant theoritical knowledge

5. Interpreting available information

6. Using calculation and consideration

7. Implementing common problem solving

1. To the activity based on the direction with limited authorithy

2. Under undirect monitoring and quality control

3. Moderate responsibility to the quantity and the quality of the result.

4. To be able to take responsibility for another persons’ job performance.

CERTIFICATEⅣ

Doing activity:Within large scope and requires logical technic skill.With options of several proceduresWithin a few common and special context.

Using large basic knowledge linked to some theoritical concepts.Forming analitical interpretation to available data.Decision making based on the rules.Implement innovative problem solving to a real and unusual cases.

To self- planned activity/Under supervision and general evaluation.Fully responsible of quantity and quality of the work.Able to carry responsibility for the quantity and quality of another person’s job

CERTIFICATEⅤ

Carrying activity:Within larger scope and requires special logical technic skills (specialization)

Implement broad basic knowledge with the specialization in limited area.Analitical interpretation of

Carrying out : Activity self direction and occasionally giving direction to others.With a manual or common

<Table 1-6> Certificate Level I-VI


LEVEL ACTIVITY KNOWLEDGE RESPONSIBILITYWith more options to standard and non-standard procedures Requires some more option of procedure and non procedural standard Within routine and non-routine context

avalaible data which has large scope.Deciding appropriate methodes and procedures to solve real problems containing theoritical elements.

function.Activity requires full responsibility for nature, quantity, or quality of the work performance.Able to be responsible for achievements of team performance.

CERTIFICATEⅥ

Carrying activity:Within extensive scope and requires special logical technical skills.With extensive options for a several standard and non-standard procedures and combination of non-standard procedures.Within routine and non-routine context with fluctation changing

Using deepen special knowledge in several sectorAnalysing, reformat and evaluation of wide scope informationsFormulate appropriate steps of problem solving, either concrete’s or abstract’s problem

Carrying out:Management activity/ processing activityWith extensive parameter of certain activities And accountability activities to achieve results for self or teamResponsible for achieving results in the organization’s work

The certificate levels VII-IX, which are more advanced,j are

expected to fulfill the targets below:

<Table 1-7> Certificate Level VII-IX

LEVEL SKILL , KNOWLEDGE, RESPONSIBILITYCERTIFICATEⅦ

Including skill, knowlede and responsibility that enables one to :Explain systematically and coherently the main principles of a sector and,Self assess, research, and engage in intellectual activities in a sector, Shows intellectual understanding, incisive analysis, and good communication

CERTIFICATEⅧ

Including skill, knowledge and responsibilities that enable one to :Show expertise in a sector and,Design and elaborat of a research project with original intellectual activity according to international standards

CERTIFICATEⅨ

Including skill, knowledge and responsibilities that enable one to :Share original knowledge through research and intellectual activity valued by independent experts and based on international standard

INDONESIA 177

Despite the government’s effort to improve the quality of the

people (through the policy of nine-year compulsory formal education;

flexibility at the higher level, and establishment of the national

qualification framework), the implementation of these plans has been

hindered by the 1990s crisis. The school participation rate in

Indonesia in 2008 was around 64 percent (of the population age 0-24

years old), owing to the high number of students enrolled in primary

level. The lower the number of students enrolled in the schools, the

higher the degree. Table 1.1 below shows that students enrolled in

the senior secondary schools account for only around half of the age

population, while students enrolled at universities hardly reach 20

percent, proving that higher education in Indonesia is still premium

for most of the people.

<Table 1-8> Student Enrollment by Education Level

2003/2004 2004/2005 2005/2006 2006/2007 2007/2008

Primary School Numbers 29,100,438 29,149,746 28,982,708 29,769,705 29,498,206Percentage 94.56 94.99 94.2 94.48 94.9

Junior Secondary SchoolNumbers 9,604,894 9,681,802 10,286,521 11,503,387 10,961,492Percentage 56.14 60.15 62.06 68.81 71.6

Senior Secondary SchoolNumbers 6,126,440 6,311,385 6,511,288 7,213,542 7,353,408Percentage 39.00 40.35 42.64 52.6 50.19

University Numbers 3,739,959 3,534,289 3,612,435 3,705,187 4,325,408Percentage 17.25

Source: The Indonesian Ministry of National Education

This figure is also worsened by the fact that some students also

drop out from school, and many of them do not continue to purse

studies for a higher degree, particularly after completing senior

secondary school. The main problems faced by the people are access,


particularly for those living in rural and remote areas; costs of higher

degrees; and lack of understanding of the importance of education.

<Table 1-9> Numbers and Percentage of Drop Outs Including Those Who

Do Not Pursue Higher Education

No Drop Out Primary Level Junior Secondary Level Senior Secondary Level1 Numbers 486,426 255,210 167,8382 Percentage 1.63 2.22 2.33

Do not continue to higher level Primary Level Junior Secondary Level Senior Secondary Level

1 Numbers 431,937 412,135 678,0102 Percentage 10.54 13.66 35.65

This condition has of course impacted the employability of the

people and the characteristics of the Indonesian labor market, as

previously explained, where low employability of the people has led

to unhealthy reliance on low-paid informal sectors, particularly

agriculture and small retail, rather than new jobs in the formal sector.

Therefore, the Ministry of National Education has set the strategic

plan for year 2009-2014 which cascades into six strategies:

1. Expansion and greater access to excellent and gender-equal

early childhood education;

2. Expansion and greater access to excellent and gender-equal

primary education;

3. Expansion and greater access to excellent, gender-equal, and

relevant secondary education which addresses community needs;

4. Expansion and greater access to excellent, internationally

competitive, gender-equal, and relevant higher education which

INDONESIA 179

addresses national needs;

5. Expansion and greater access to gender-equal and relevant

continuous adult education for the community; and

6. A strong management control and internal monitoring system.

In achieving these targets, the government has allocated a

significant budget for education by dispersing around 20% of the

total 2010 central government budget, which is around 340 trillion

Rupiah, the second biggest allocation after the one for general

services, as shown in the table below:

<Table 1-10> Central Government Budget, 2010

Expenditure by Function Rp trillion %General Services 110.2 32.4National Defence 20.9 6.1Public Order and Safety 14.9 4.4Economy 57.4 16.9Environment 7.9 2.3Housing and Public Facilities 20.9 6.1Health 18.0 5.3Tourism and Culture 1.4 0.4Religion 0.9 0.3Education 84.1 24.7Social Security 3.5 1.0Total 340.1 100.0

To summarize, the government, through the Ministry of National

Education, aims to promote access, quality, and gender equality in

every level of education. Furthermore, the government introduced a

new strategy to enhance skills and employability of the people, by


placing greater emphasis on the development of the vocational

secondary schools. It reversed the ratio between the general

secondary schools and the vocational ones where the percentage of

vocational schools is expected to be higher than that of the general

secondary school by 2014.

Section 4. TVET System in Indonesia

The TVET system in Indonesia involves more one government

agency. The Ministry of Education plans, implements, and monitors

vocational education in secondary schools and colleges. Within there

are two separate directorate generals: the Directorate General of

Primary and Secondary Education (Dikdasmen) and the Directorate

General of Higher Education (Dikti). The Ministry of Manpower and

Transmigration is also responsible for provide certified training,

particularly for the unemployed, helping them obtain specific skills

which are expected to assist them in finding jobs. There are other

ministries which are responsible for developing the skills and

competencies needed within their specific work areas, such as the

Ministry of General Construction, which develops and certifies the

construction skills for construction workers, and the Ministry of

Tourism, which develops the and certifies the skills of persons

entering into tourism and hospitality.

INDONESIA 181

Section 5. Vocational Senior Secondary School

(SMK-Sekolah Menengah Kejuruan)

Psacharopoulos (1997) argued that developing countries, which are

trying to become industrialized, which require technology and people

with sufficient technical skills. It means that vocational education

and training become paramount for a nation’s skill formation. He

further stated,“Just as you can build a bridge to lower transportation

costs between two sides of a river, so by providing vocational

education a country can allegedly prosper economically and reap

more easily the benefits of economic growth” (p.385).

The TVET system in Indonesia is a part of general education,

which focuses on preparing students to enter the world of work. This

function had been reinforced by the National Education System Law

no. 20 year 2003, Article 61, in which TVET graduates may have

two certificates: an academic certificate and a competency certificate.

Academic certificates are given to graduates as recognition that they

have achieved the requirements of qualification after finishing their

schooling, while competency certificates are given to students after

they have passed competency assessment conducted by a Professional

Certification Body (PCB) or accredited TVET.

Vocational education in Indonesia starts at the senior secondary

level, as an alternative to the general senior secondary school.

Vocational secondary schools are known as SMK (Sekolah

Menengah Kejuruan) which are operated both by the government,


No Province Student School No of TeachersMale Female Total Public Private Total

1 DKI Jakarta 126,255 121,204 247,459 62 520 582 18,871 2 West Java 295,432 183,920 479,352 168 957 1,125 32,025 3 Banten 73,140 51,405 124,545 37 257 294 7,798 4 Central Java 296,398 198,269 494,667 171 829 1,000 34,230 5 DI Yogyakarta 43,369 30,563 73,932 46 142 188 7,535 6 East Java 312,874 215,699 528,573 224 813 1,037 35,975 7 Nanggroe Aceh D 23,990 14,060 38,050 66 36 102 3,889 8 North Sumatera 145,457 100,710 246,167 126 566 692 20,820 9 West Sumatera 44,358 28,718 73,076 70 94 164 7,502

10 Riau 30,781 21,790 52,571 55 92 147 4,229 11 Islands of Riau 9,491 6,028 15,519 16 31 47 1,683 12 Jambi 16,335 11,826 28,161 43 58 101 3,036 13 South Sumatera 32,945 26,766 59,711 43 124 167 6,403 14 Bangka Belitung 9,316 7,749 17,065 21 22 43 1,308 15 Bengkulu 13,982 7,531 21,513 40 26 66 2,208 16 Lampung 49,264 37,177 86,441 57 199 256 8,551 17 West Kalimantan 22,511 18,261 40,772 55 77 132 3,851 18 Central Kalimantan 10,556 5,773 16,329 34 34 68 2,082 19 South Kalimantan 17,445 11,297 28,742 41 28 69 2,724 20 East Kalimantan 30,585 21,801 52,386 57 96 153 4,404 21 North Sulawesi 16,242 15,691 31,933 43 56 99 2,914 22 Gorontalo 5,846 5,015 10,861 22 8 30 1,029 23 Central Sulawesi 13,323 11,102 24,425 41 49 90 2,633 24 South Sulawesi 55,541 32,453 87,994 91 174 265 8,290 25 West Sulawesi 6,578 5,157 11,735 26 31 57 1,487

and the private sector. The 2008/2009 data shows that the private

vocational schools account for 73.62 percent compared to the public

ones, which account for only 26.38 percent across Indonesia. The

number of students, schools, and teachers are shown in Table 11

below:

<Table 1-11> Number of Vocational Students, Schools, and Teachers by

Province, 2009

INDONESIA 183

No Province Student School No of TeachersMale Female Total Public Private Total

26 Southeast Sulawesi 11,003 7,424 18,427 52 22 74 2,199 27 Maluku 8,839 6,179 15,018 40 19 59 1,857 28 North Maluku 6,621 4,554 11,175 36 22 58 1,392 29 Bali 25,983 20,780 46,763 40 78 118 5,111 30 West Nusa Tenggara 21,598 11,085 32,683 62 38 100 3,629 31 East Nusa Tenggara 25,480 19,542 45,022 56 56 112 3,180 32 Papua 15,214 7,297 22,511 46 24 70 2,252 33 West Papua 7,605 4,521 12,126 16 11 27 921

Total 1,824,357 1,271,347 3,095,704 2,003 5,589 7,592 246,018

The SMKs are expected to create specific human capital to answer

the industry need for skills by giving the students specific skills that

support the industry. The SMK students are given practical

experience through on-the-job trainings within particular fields, such

as electrical, mechanical, automotive, management, etc. Thus, when

they graduate, the students are expected to be ready to work. The

SMKs are also expected to create a multiplier effect, by providing

education for the people, while also contributing to economic growth

through employment-generating entrepreneurship.

SMK’s curiculum sructure is grouped in three categories, each of

which has different objectives:

1. Normative knowledge, which includes Religion, Civic Education,

Physical Education, and Indonesian Language, to give basic

understanding of literacy and ethics;

2. Adaptive knowledge, which includes Mathematics, Physics,

Chemistry, and English which aims to give understanding of the

basic knowledge needed to achieve further specific skills; and


3. Productive knowledge and experience, which will depend on

the study program, to give further understanding and experience

in preparing graduates for the workforce and enterpreneurship.

The normative and adaptive categories are developed by Ministry

of National Education, while the productive components are developed

by industries.

In terms of the drop out rate of SMK students, the average figure

in Indonesia varied across the years; it was 5.08 percent in 2006;

4.17 percent in 2007; 1.37 percent in 2008; and 3.43 in 2009. The

drop out rate was mainly caused by poor economic conditions which

forced many students to leave school and find jobs; most of the drop

outs could only be absorbed by the low-wage, low- protection

informal sector.

Thus, in order to improve the performance and accessibility of

vocational secondary schooling, the Directorate of Vocational

Education of the Ministry of National Education has created a

roadmap which aims to reverse the ration of SMU (general high

school) and the SMK (vocational high school) and nearly double the

number of SMK students and teachers.

INDONESIA 185

[Figure 1-9] SMK Roadmap

20102010 2011201120122012

20142014

20092009

20132013

CONDITIONCONDITIONVSS:GSS

50:50VSS7,719

STUDENT3,678,652 TEACHER

122,622

TARGETTARGETVSS:GSS

53:47VSS8,133

STUDENT4,197,888TEACHER

139,930

INTERVENINTERVENTIONTION

*Image building*Scholarship

*Mutual Program*Cheap Equipment

Producing*Reengineering*Adding new

classroom/school

TARGETTARGETVSS:GSS

56:44VSS8,548


156,268





classroom/school

TARGETTARGETVSS:GSS

60:40VSS8,963


178,787





classroom/school

TARGETTARGETVSS:GSS

64:36VSS9,378


197,398





classroom/school

TARGETTARGETVSS:GSS

67:33VSS9,793


218,685





classroom/school

The figure above shows that the government sets annual target to

reverse the ratio of the general senior secondary schools (GSS/SMA)

and the vocational senior secondary school (VSS/SMK) and increase

the numbers of students and teachers. The ratio of SMK:SMA is

expected to reach 67:33 by 2014. The current ratio of SMK-SMU

students is still 49:51, although in several provinces, the number of

SMK students is higher, particularly in the provinces of Central Java,

South Sulawesi, D.I. Yogyakarta, D.K.I Jakarta, and West Java. The

achievement of these targets will be supported by several government

interventions, which include:

1. Image building;

2. Scholarship;

3. Design and Production of affordable equipment; and


4. Restructuring of governmental aid for new schools and new

classroom development.

However, the Government is also fully aware that there are

challenges that need to be addressed properly to ensure the achievement

of the targets set in the roadmap. The challenges include the negative

image of SMK; the availability of tools and equipment; the capability

of teachers and classrooms; limited job opportunity; and competition,

both locally and globally.

<Table 1-12> Challenges Faced by Vocational Senior Secondary Schools

(SMKs) in Indonesia

Challenges StatusGood Iimage The perception that studying at SMKs is less prestigious than at general senior

secondary school should be removed. This perception particularly stems from the belief that SMK graduates cannot pursue university degrees, leading to limited opportunities to obtain managerial positions. Educators and sociologists hence argue against vocational education (Chen, 2009). Research on SMK graduates should be publicized to alter the public image.

Availability of Tools and Equipment

The availability of affordable tools and equipment that represent those used in the industry for all SMKs is still very limited. Price and budget are the main constraints in obtaining the necessary tools and equipment.

Provision of Trade Teacher

Trade teachers, or teachers who can link the goods produced by the SMKs to the market, are still limited. Thus, it is necessary to enhance the capacity of teachers to be marketers of SMK's products by helping them understand markets needs and develop networks.

Classroom Availability

With the number of students interested in attending SMKs, classroom availability becomes an issue. One way to overcome this issue is to introduce double-shift in SMKs.

Job Availability In order to enhance the image of SMKs, the government should guarantee widely open job availability for graduates. There should be a good match with industry needs and a wise projection of future development in Indonesia that anticipates labor market needs.

Competitiveness The competition of SMK graduates not only comes from local graduates, but also from the global labor market. With globalization, it is important to address the issue of global competition for the SMK graduates within the skilled labor market.

(Source: 2010 Program Guidelines)

INDONESIA 187

Furthermore, there are additional targets to be achieved by 2014

to improve the operation of the SMKs, as follows:

1. 90 percent of the SMKs are accredited, of which 30 percent

obtain ‘B’ (good) accreditation from the government;

2. All counties or cities have one SMK of international standard;

3. At least 10 percent of SMK graduates obtain international

competency certification;

4. All SMKs should obtain the ISO 9001:2008 Certification;

5. 70 percent of the SMKs have implemented an e-learning system;

6. 70 percent of SMK graduates find a (decent) job in the year

they graduate;

7. All SMKs provide the service of entrepreneurship learning and

development.; and

8. 70 percent of SMKs becomes a teaching industry.

Some of the efforts to improve the interest of potential students

are spreading a good image of SMK. Scholarships are being granted

and cheaper training facilities are utilized to facilitate more

affordable tuition and training fees for the students. The government

promotes a “good image” by publishing the earnings obtained by the

SMK graduates, which are believed to be higher than the SMA

graduates. From the SAKERNAS Surveys 2002-2007, it was found

that the ratio of SMK graduates’ earnings for both professional-

managerial jobs and non professional-managerial jobs was always

higher than the SMA graduates, as shown in the figure 1 below:


[Figure 1-10] Wage Ration SMK/SMU by Main Occupation

Wage Ratio SMK/SMU by Main Occupation

0

0.5

1

1.5

2

2002 2003 2004 2006 2007Year

Wag

e R

atio

Professional-Managerial

Non Professional-Managerial

The government has also improved the skills spectrum offered by

SMKs to align them with the industry needs and the National

Development Guidelines. The skills spectrum introduced by the

government includes: technology and engineering; information

technology and communication; health; art and tourism; agribusiness

and agro-technology; and business and management. Furthermore,

the government, through the Directorate of Senior Vocational School

(SMK) of MoNE, has identified two main strategies to improve the

absorption of the SMK graduates into the labor market:

1. Strengthening the Adaptive Capability by: embracing the

understanding on applied mathematics and science; improving

entrepreneurship skills; mastering national and international

languages; and obtaining basic competencies.

2. Developing networks to creating a teaching industry. In this

INDONESIA 189

strategy, the SMKs will build relationships with and among the

industry, to create and innovate necessary goods, machines, and

tools. Each of the SMKs will specialize in creating one part

or several parts of the machines/goods. There will be a main

SMK integrator where all the parts will be assembled, packed,

and distributed. Thus, SMKs will provide a place and

environment where the students can create, not only learn, as

they generate income and simultaneously stimulate community-

based industry.

The teaching industry has been a big agenda for the SMKs; it aims

to strengthen cooperation among SMKs, and between SMKs and

industry in creating products. Through their teaching industry, the

SMKs are working together to make and sell goods: cars, laptops,

and heavy machines are good examples. Each SMK involved is

developing particular parts for which they are specialized. The parts

are delivered to and assembled in a SMK integrator. Ideally, SMKs

involved in producing one product are located in one province to

facilitate the transfer of their parts.


[Figure 1-11] SMK Teaching Industry Scheme

PROD.SUPPORT

MACHINERYSMK 4

PROD. SLIDESMK 2

PROD. SPINDLE

SMK 3

PROD. TAIL STOCK, SMK 1

PROD.CHUCKSMK 8

PROD.FOLLOW

RESTSMK 6

PROD.STEADY

RESTSMK 7

PROD. TOOL POST, SMK 5

ASSEMBLE OF MACHINERY, SMK INTEGRATOR

Implementation of these strategies, including the teaching factory

scheme, will need monitoring and assessment, as well as support

from the government, particularly in providing regulations and

policy. While this scheme can effectively transfer high technology

to students and develop community-based industry, there may be a

challenge in overcoming boundaries set up by established enterprises

and feelings of being threatened by this distinctive industry

development.

Another issue that should be addressed to ensure the effectiveness

of the growth of vocational schools, including SMKs, highly depends

on the clear direction of industry and economic development of a

country to enable a good match between graduates and labor market

needs. Agriculture has long been an important sector in this country,

INDONESIA 191

representing more than 40 percent of the labor workforce. The

government must also pay attention to enhancing the skills of the

people in agriculture, and introducing and developing SMKs is one

way to improve productivity. Nevertheless, not many students enroll

in this program, showing little interest, partly due to the lack of

government involvement.

[Figure 1-12] SMK Student Enrollments by Study Program

12.641.837.71

3.95

33.4540.42

Technology and EngineeringICTHealthArt, Craft, TourismAgri-business, Argo-industryBusiness and Management

The reason for the lack of student interest is the image of farming

as a less prestigious occupation with low income. Others think that

agriculture skills cannot be learned at school. By introducing new

technology in this sector, and expanding farming activities to include

processing, SMKs may well attract more students.


Section 6. The Competency Certification as One of the

Certification Models of SMKs' Graduates

TVET focuses on preparing students to enter the world of work,

a difficult task given the complexity of available labor markets.

Labor markets becomes the challenge and, at once, the opportunity

for senior technical and vocational schools. It is necessary to

identify and examine the readiness of schools to confront the

challenge and opportunities they pose.

Competency certification at SMKs measures student achievement,

and it is done in collaboration with the external institution or

industry, using the relevant competency standard that is agreed upon

nationally/internationally, or by a certain industry or society. Those

who pass receive certification. There are two type of competency

certification, namely one for industry, and another for a particular

qualification or profession. Industry competency certification is a

certification model which is developed in collaboration between

school and industry/enterprise in order to certify students, whereas

qualification or profession competency certification is competency

certification which is done by PCB, or a particular certification

institution under the regulations or conventions of a national or

international level.

The populations of SMKs are 5,335, including both public and

private institutions. Based on the prior competency assessment that

is done by industry and PCB, there are only 604 SMKs that are

INDONESIA 193

stated to have the potency of a national or international standard.

The number is relatively small, if it is compared to the whole

available SMKs, and this reflects the quality of available SMKs.

One example of the result of industrial competency certification lies

in the area of machinery; of the 1,013 students selected from various

schools to take the competency assessment, only 286 passed.

A preparatory program for competency/profession certification

should be undertaken systemically and continually, and it is also

should be included the schools’ strategic planning. There are some

considerations in the preparatory program with regard to the

implementation of this certification, namely, one must:

1. Determine the priority scale of the specialist program which will

be included;

2. Identify activities which should be implemented to achieve the

program;

3. Collect educational resources, both internally and externally, to

optimize the achievement of objectives in the program;

4. Implement, evaluate, and continually develop the program; and

5. Implement the competency certification.

Competency Standardization is a process to formulate, determine,

implement, and revise the competency standard, which is done

continuously and involves all relevant institutions. The competency

standard, which is then known as “work competency standard,” is

the formulation of work competencies concerning various aspects,


including knowledge, skill, and work attitudes which comply with

regulations and industries.

Knowledge, skill, and attitudes of TVET students need to be

assessed to determine their competency according to set standards.

Assessment should be guided by several principles: credibility,

flexibility, fairness, and validity. Crediblity means that the methods

and procedures of assessment should be done carefully, so that

implementation of the competency standard is consistent; flexibility

means that the assessment can be done in the workplace/industry,

or classroom, which means offering choice in terms of how, where,

and when the competency can be obtained; fairness means that there

is no discrimination among the assessment participants; and validity

is that the assessment materials should be accurate in assessing the

competency.

The main steps in the system of competency standardization and

certification involve: 1) formulating the competency standard; 2)

issuing certification of the competency; 3) implementing the

competency standard; and 4) providing information regarding the

competency standard.

INDONESIA 195

[Figure 1-13] Competency Certification Scheme in TEVT

Based on the above scheme, TVET schools may have two

accreditation systems from NBSA and NACP. As TVET schooling

falls under the national education system, it must be accredited by

NBSA. If TVET schools wish, they also can apply for accreditation

by the Professional Certification Body (PCB), as a part of the

networked professional certification system. TVET schools that

apply and pass the PCB accreditation will be awarded stats as

competency testing centers (CTC). The accredited TVET by CTC

has the right to conduct competency assessment under supervision

of the PCB. The system would also provide clarification for SMKs

and other relevant stakeholders concerning the main task and role

of the systemic framework in order to produce a capable workforce

through SMKs.


Section 7. Post-secondary and Adult TVET

Post-secondary TVET in Indonesia appears in many types of

institution: academy, institute, and polytechnic. While academies and

institutes may provide both academic and vocational tracks, the

polytechnics focus on providing vocational education and curriculum

for the students. The legal framework of the establishment and

operation of polytechnics is regulated through the Law introduced

in 1979 although the first polytechnic was established in 1976. The

first phase of further polytechnic development was then handled by

the Ministry of Education with funding assistance from the World

Bank. Polytechnics at this phase mainly offered manufacturing and

technical skills for the students.

The second phase of polytechnic development started in 1986, and

it focused on developing commerce curriculum, with help from the

experts and the Australian government. A later phase of development

entailed the building of public polytechnics across Indonesia that

became models for the private ones.

The curriculum in polytechnics combines the knowledge, skills

and necessary experience to prepare the students to work within

industry or become entrepreneurs. Based on the Ministry of National

Education Decree no. 232/U/2000, the core curriculum of diploma

degrees offered in polytechnics includes modules for Personality

Development, Knowledge and Skills, Productive Behavior, and

Social Skills.

On the other hand, the training and productivity for adults is

INDONESIA 197

mainly the responsibility of the Ministry of Manpower and

Transmigration (MoMT). Having been challenged by the lower rate

of employment, MoMT introduced a new which is called “Three in

One.” This scheme aims to enhance the employability of the people

by giving them the right skills and competencies so they can find

suitable jobs.

[Figure 1-14] Three in One Scheme

Ditjen Binalattas: Directorate General of Trainings and ProductivityBNSP: National Body for Profession CertificationDirjen Binapenta: Directorate General of Labor PlacementBNP2TKI: National Body of Education and Placement for Indonesian Migrant

WorkersBLK: Training CenterLPKS: The Institute of Skill DevelopmentLSP: The Institute of Professional Certification


This scheme starts with identifying the supply and demand in the

labor market. The information gathered is used to develop the

standard of competencies which are called the Indonesia National

Standard of Work Competencies (SKKNI). SKKNI comprises 148

competencies from nine sectors in 2009 which can be obtained

through training provided by the training centers (BLK) located in

all provinces in Indonesia. In order to achieve a certain level of

competency, the government also encourages the people to become

certified by taking tests at the institutes of professional certification

(LSP). The government will then provide service for the certified

job seeker in helping him/her find a job in a local or foreign

business.

The BNSP (National Profession Certification Body) plays a very

important role in shaping and guiding the implementation of national

competencies. BNSP is an independent body under the Office of the

President, and its formation is an integral part of introducing the new

paradigm for the qualified labor force. The new paradigm emphasizes

two aspects: (1) demand-driven labor preparation; and (2) the use

of Competency Based Training (CBT). The new paradigm started

with the signing of the letter of agreement between the Ministry of

Manpower and Transmigration; Ministry of National Education; and

the Leader of the Chamber of Commerce in 2000.

The BSNP constitutes one leader and twenty representatives from

varying backgrounds. They are appointed by the President, based on

the recommendations given by the Ministry of Manpower and

Transmigration, and they hold their positions for five years, with the

INDONESIA 199

possibility of extending their terms for one year. The people

appointed uphold the policy and programs of BNSP which are:

Policy

1. Support the enhancement of industry competitiveness;

2. Support the enhancement of job opportunities and unemployment;

3. Support the enhancement of quality, productivity, and competitiveness

of Indonesian labor; and

4. Support the enhancement of the protection and welfare of the

labor force.

Programs:

1. Socializing and promoting the competency certification;

2. Establishing and developing standards;

3. Monitoring and developing the professional certification

institute (LSP);

4. Monitoring the certification implementation;

5. Developing networks; and

6. Developing a quality assurance system.

BNSP also commits to the lifelong learning of Indonesian people.

In striving for this objective, it aims to provide the development of

a reliable certification system and quality assurance; enhance the

qualification framework; broaden certification access for greater

experiences in the labor force and self-learning; and monitor the

competency of the certified workers.


The scheme of the lifelong learning can be seen in the figure

below:

[Figure 1-15] Lifelong Learning Scheme

Furthermore, the government launched a revitalization program for

training and productivity institutions to improve their ability to

provide adequate education for job seekers by helping them meet

industry needs; enhance their employability; and lower the

unemployment rate. The program, up to the year 2009, includes

developing new training centers (BLKs); acquiring new equipment

and mobile training units (MTUs); providing training for instructors;

and developing financial management systems for public service.

Additionally, the government introduced the SKKNI as the module

for competency-based training. The number of SKKNI by sector is

listed below:

INDONESIA 201

<Table 1-13> Number of SKKNI in Each Sector

No Sector No of SKKNI1 Agriculture, Fishery, and Forestry 162 Electrical, Mining, and Energy 283 Manufacturing 174 Transportation and Telecommunication 75 Culture, Tourism and Arts 126 Health 37 Finance and Banking 118 Construction 309 Service, Consultancy, and Trade 24 Total SKKNI 148

Source: Buku Informasi Pelatihan dan Produktivitas 2009, MoMT

The training centers (BLKs) and training providers play a very

important role in introducing people to the government’s scheme.

The first BLK was founded in 1947 in Solo, Central Java. Initially,

BLKs were only established in Java island. The first BLK outside

Java island was built in 1957 in West Sumatra. Other BLKs followed

suit in other islands, supported by the introduction of the MTUs

(mobile training units) to reach remote areas in Indonesia. Currently,

there are 227 BLKs all over Indonesia, but only 11 BLKs are directly

managed by and responsible to the MoMT. The other BLKs are

managed under the local government at the province or district/city

level. The BLKs can be classified into several types, each of which

holds specific tasks and functions.


<Table 1-14> Various Types of BLK

Type of BLK Tasks and Functions LocationThe National Vocational Training Development Centre (BBPLKDN)

Implement and develop training, skills competency test, and certification. Carry out consultancy on instructor training, personnel, and employment development

Bandung (West Java)

The Overseas Vocational Training Development Centre (BBPLKLN)

Carry out the training program preparation, training implementation, skill competency test; and organizational consultancy. Evaluate the implementation of vocational training oriented to the overseas labor market.

Bekasi (West Java)

The Industrial Vocational Training Development Centre (BBLKI)

Carry out the training, productivity improvement program, skill competency test, certification, consultation and cooperation, and training institute empowerment.

Medan (South Sumatra), Serang (Banten), Surakarta (Central Java)

The Industrial Vocational Training Centre (BLKI)

Carry out vocational training program, pilot training program, skill competency test, and training institute empowerment in the industrial sector.

Banda Aceh (NAD), Semarang (Central Java), Samarinda (West Kalimantan), Makassar (South Sulawesi), Sorong and Ternate.

In 2009, the BLKs had around 2,754 instructors, but there are no

updated statistics on the number of enrolled participants. However,

it can be argued that the number of instructors represents the number

of participants. The province of Central Java has the biggest number

of instructors, followed by the provinces of East Java and West Java.

Overall, the instructors are concentrated in the Java islands, and there

is a significant gap in the number of instructors on the other islands.

Among the courses offered, mechanical technology has the most

instructors, whereas agriculture has the least.

INDONESIA 203

ProvinceNo. of

BLK

Trades

Automotive Electrical Mechanical Tech Construction Business

AdmVarious Trades* Agriculture No. of

InstructorsNangroe Aceh D. 8 6 10 12 6 6 3 0 43

North Sumatra 14 15 27 36 13 10 7 9 117

West Sumatra 10 19 36 23 13 9 11 6 117Riau 3 13 11 15 8 2 2 3 54Islands of Riau 1 1 1 3 0 0 1 0 6

Jambi 5 10 10 9 7 7 4 3 50South Sumatra 10 19 27 25 5 4 3 6 89

Bengkulu 4 7 10 6 7 6 4 4 44Lampung 5 17 18 18 11 9 8 8 89Bangka Belitung 1 1 2 2 1 0 0 1 7

Banten 3 9 19 40 1 3 5 5 82DKI Jakarta 7 11 23 13 2 12 3 0 64West Java 17 44 72 67 24 41 15 33 296Central Java 27 83 90 108 47 33 41 63 465East Java 18 61 78 80 49 31 37 58 394DI Yogyakarta 5 20 25 31 15 14 31 11 147

West Kalimantan 7 6 11 11 7 4 11 3 53

East Kalimantan 4 11 17 13 6 5 4 1 57

Central Kalimantan 9 5 7 4 6 4 2 0 28

South Kalimantan 7 16 10 21 15 11 10 5 88

North Sulawesi 4 4 8 10 2 4 3 2 33

Gorontalo 4 0 1 1 2 1 0 1 6Central Sulawesi 7 5 12 11 8 3 3 1 43

South Sulawesi 13 15 28 30 11 12 12 5 113

South-East 4 4 3 8 6 4 5 3 33

<Table 1-15> Number of Courses and Instructors by Province


ProvinceNo. of

BLK

Trades

Automotive Electrical Mechanical Tech Construction Business

AdmVarious Trades* Agriculture No. of

InstructorsSulawesiWest Sulawesi 2 2 0 1 0 3 1 0 7

Bali 6 14 10 7 8 7 14 8 68West Nusa Tenggara 6 9 9 8 9 10 4 4 53

East Nusa Tenggara 3 4 4 9 5 2 4 0 28

Maluku 3 4 9 9 7 0 2 1 32North Maluku 1 1 1 0 0 1 1 0 4Papua 7 9 4 6 3 3 5 1 31West Papua 2 3 0 6 2 0 2 0 13Total 227 448 593 643 306 261 258 245 2,754

One challenge faced in managing BLKs is caused by the autonomy

given to the local (provincial and district) government which does

not always manage them effectively. The development of the BLKs

really depends on human individuals and the budget of local

governments.

The government also establishes several bilateral co-operation

programs to enhance the skill formation of the job seekers. Such

programs include scholarships, apprenticeships, grants, training,

facilities development/upgrade, and seminars/workshops with

participating countries like Japan, New Zealand, Korea, Germany,

Singapore, and France.

INDONESIA 205

Section 8. Vocational Training in Enterprises and Small

Businesses

Enterprises have played an important role in providing training for

both their workers and job seekers. While training for their workers

is usually subsidized by the enterprises, training for job seekers takes

place in fee-based academies or colleges. Many big, established

multinational and local companies have provided training for their

workers to simultaneously improve their skills at work and their

employability. However, training is mainly provided by enterprises

in the service industry or manufacturing enterprises, like automotive

and mining, which utilize advanced technology.

The condition is significantly different for the small enterprises.

Although small enterprises have provided employment for many

Indonesian people, training in these businesses has not yet developed

systematically. Their training needs are paramount, as most of the

workers are low-skilled and low-educated. This condition has

resulted in the low productivity of small Indonesian businesses,

despite the mushroomed numbers. Training that is provided under

the leadership of NGOs mainly concerns entrepreneurship and

technical skills, depending on their business (such as culinary, arts,

assembly). However, other kinds of training are needed, such as

leadership, book keeping, basic accounting, and financial planning.

There are attempts, partially by local government, to improve

training for small businesses. They provide training for the community


which is given as provincial or district program; some of the local

governments also declared themselves as “vocational districts’ or

“vocational provinces” by focusing on their areas’ strengths; helping

their communities gain relevant skills; and exploiting provincial or

district advantages (usually in form of SMEs).

1. Funding of TVET

The funding of public TVET mainly comes from the government’s

central budget. As previously mentioned, the Ministry of Education

has been allocated around 20% of the total budget, part of which

is used to develop the SMKs. The Ministry of Manpower, on the

other hand, has also been allocated part of the budget to develop

TVET within its authority. The major TVET budget allocation for

these two ministries is shown in the table below:

<Table 1-16> Major TVET Funding

Post Ministry of Education Rp (billions)Senior Secondary Vocational School (SMK) 339.3Courses and Internships 159.5Ministry of Manpower and TransmigrationCompetency-based Training 60.0Community-based Training 61.2Local and Foreign Internships 39.2Instructors’ Development 24.3National Competency Development 17.5Revitalization of BLKs to Become Competency-based Training Centers 237.2

Recognition of National Competency Certification 22.9Total 961.1

INDONESIA 207

However, the funding obtained by the two ministries is actually

much bigger, and there is still funding for TVET in smaller amounts

which are not shown above; in the Ministry of Education budget,

there are posts for SMK development which are mixed with the

SMA (general senior secondary school development), such as facility

and buildings’ development. In 2009, the Directorate of Vocational

School was allocated 1.6 trillion Rupiah for SMK development: the

buildings, facilities, teacher and curriculum development, and

campaigning. This figure increased over previous years, from 900

million Rupiah in 2007, to 1.2 trillion Rupiah in 2008.

The Budget of the Ministry of Manpower, on the other hand, also

shows only part of total budget for adult TVET BLKs (training

centers). Governance has been granted locally through decentralization,

with but a small subsidy from the Ministry of Manpower. The budget

allocated for the BLKs’ development mainly depends on the

orientation of human development of each local government. The

Ministry of Manpower barely has the authority to monitor and

evaluate the effectiveness of the BLKs under the local government.

2. Internationalization of TVET

The implementation of the AFTA (ASEAN Free Trade Area) and

AFLA (since 2003) and GATT, WTO, and APEC will impact economic

and social interaction among countries. The labor market has become

borderless, and it is easier to migrate from one member country to

another. To avoid unfair treatment and unexpected barriers that may


be introduced by member countries, there should be available a

consistent and recognized measurement tool to assess the skill levels

of workers. Therefore, recognized regional or regional accreditation

and certification of TVET institutions is an alternative answer. The

Mutual Recognition Arrangement, which outlines employment skills’

levels, is necessary to avoid the aforementioned problems.

The Mutual Recognition Arrangement (MRA) for the accreditation

and certification of TVET institutions among countries should

consider many important aspects, including the respective national

qualification framework; national vocational qualification framework;

and other related matters.

In developing this plan, barriers and obstacles may occur which

are caused by resistant attitudes to share and collaborate with member

countries. The resistance is rooted from the gap that occurred in the

different development phases of member countries. More advanced

countries have already developed high quality accreditation and

certification methods within their TVET system; on the other hand,

less developed member countries are still building their systems

based on available resources and potential. The existing gap among

member countries must be addressed properly so that the gap can

be gradually closed.

The internationalization of TVET has become a significant

challenge for Indonesia, although several attempts have been made.

One of the major attempts is developing SMK with international

standards. The 2010-2014 roadmap has stated that every district and

city should have at least one international standard SMK. These

INDONESIA 209

international standard SMKs have been equipped with sophisticated

buildings and facilities and the use English in their daily operation.

Government interventions through directing and monitoring are

needed to ensure that the competencies obtained by these SMK

graduates align with the standards of the international framework.

3. New Agenda and Plans for the Future of the Vocational

Education and Training in Indonesia.

There are challenges that the government should carefully examine

and overcome in order to achieve effective vocational education and

training for the Indonesian people. The first challenge is to boost

the number of school enrollments and graduates, particularly at the

primary and junior secondary levels (the mandatory levels), by

providing better access to education in terms of location, facilities,

and financial assistance. The increasing number of graduates in basic

education and, thus, the decreasing rate of drop outs will support

the increasing number of senior secondary schools, including

vocational secondary schools and college/university enrollments.

Other challenges include those faced by the vocational schools,

which are: the image of vocational schools; affordable and up-to-date

training equipment; provision of trade teachers; classroom and job

availability; and competitiveness. The government is expected to

provide clear direction of the economy, technology, and industry that

Indonesia will embrace in the future to anticipate the skills needed


in the labor market.

In term of training for job seekers, the challenge lies in the

management of BLKs, in which autonomy is given locally, resulting

in BLKs high dependence on the orientation and budget allocated

to human development programs in each province/district. This

autonomy should be supported by the clear target of overall

Indonesia human development, utilizing precise tools and methods

to evaluate the effectiveness of training programs in each province

or district.

The government has identified future core industries which are

expected to serve as Indonesia competitive advantage and prove

essential in determining the direction of skills’ formation within the

TVET system. As previously mentioned, the government will also

involve small businesses in developing the industries. Thus,

providing training for small businesses is paramount.

Future challenges and trends will also be addressed properly to

create an effective TVET system. The challenges and trends include

globalization, ICT revolution, the emerging knowledge society, and

climate change. The government has proposed an integrative

curriculum in the TVET system to answer these challenges, which

include:

∙ Hard Skills or Technical Skills;

∙ Generic Soft Skills;

∙ Sustainable Development Knowledge;

INDONESIA 211

∙ Mobility of Workforce & Transferable Qualifications across

Borders; and

∙ Entrepreneurship & Informal Sector Skills.

Government commitment to providing sufficient funding; tight

monitoring and evaluation; and clear strategy will be needed to

ensure the success of a well-implemented, effective TVET system.


References:

Abduh, M. (2010). Presentation: Responding to Global Challenges

through TVET in the Asia Pacific Region. Manila, Philippines,

2010.

Bangun Sektor Industri 2025 (Industry Development 2025).

Buku Informasi Pelatihan dan Produktivitas 2009 (The Information

Book on Training and Productivity 2009). Directorate General

of Training and Productivity Developent. The Ministry of

Manpower and Transmigration, Republic of Indonesia. Jakarta:

2009.

De Ruyter, A. and Warnecke, T. (2008) ‘Gender, Non-standard Work

and Development Regimes: A Comparison of the USA and

Indonesia’ Journal of Industrial Relations, 50 (5): 718-735.

Dhanani, S. (2004). Unemployment and Underemployment in

Indonesia, 1976-2000: Paradoxes and Issues. Geneva: International

Labour Office.

Garis-Garis Besar Program Pembinaan SMK Tahun 2010 (General

Guidelines of Secondary Vocational School Governance Year

2010). The Directorate of SMK Governance, Ministry of

National Education, Republic of Indonesia. Jakarta: 2010.

Ikhtisar Data Pendidikan Nasional 2007/2008 (Summary on National

Education Data 2007/2008). Ministry of National Education,

Republic of Indonesia. Jakarta: 2008.

Index SMK 2008/2009. Ministry of National Education, Republic of

Indonesia.

INDONESIA 213

Iqbal, M. (2010) Hubungan dan pengaruh personality, strategi daya

tindah dan penyesuaian sosio budaya keatas kualiti hidup Tenaga

Kerja Indonesia (TKI) di Lembah Klang Malaysia. Unpublished

PhD Thesis. Universiti Kebangsaan Malaysia.

Mahfud, T. and Novi, A. (2010) Peran SMK sebagai specific Human

Capital dalam membangun perekonomian Indonesia (SMK role

as specific Human Capital in developing Indonesia’s economy).

http://mahfudz30.wordpress.com/2010/06/22/peran-smk-sebagai-spec

ific-human-capital-dalam-membangun-perekonomian-indonesia/.

Retrieved 8 December 2010.

Manning, C. (2000). Labour Market Adjustment to Indonesia’s

Economic Crisis: Context, Trends, and Implications. Bulletin of

Indonesian Economic Studies, 36 (1): 105-36.

Profil Unit Pelaksana Teknis Pusat (Profile: The Technical

Implementer Unit). Directorate General of Training and Productivity

Developent. The Ministry of Manpower and Transmigration,

Republic of Indonesia. Jakarta: 2008.

Rencana Strategis Departemen Departemen Pendidikan Nasional

2010-2014 (Strategic Plan of the Minustry of National Education

2010-1014). Jakarta, 2010.

Roadmap Pengembangan SMK 2010-2014 (The Roadmap of SMK

Development 2010-2014). The Directorate of SMK Governance,

Ministry of National Education, Republic of Indonesia. Jakarta:

2010.

Sekilas tentang Politeknik (Overview on Polytechnics).

http://www.polmed.ac.id/file/h_1173344851.pdf. Retrieved 9


December 2010.

Siswandari, Murdewi (2005). Certification Model of TVET

Graduates in Indonesia. Manila, Philippines: 2005.

http://www.apacc4hrd.org/conf_workshop/apacc05/CR/ind2/.


Susilowati (2004). Accreditation and Certification in TVET in

Indonesia. Asia Pacific Accreditation and Certification Commission

(APACC): Country Reports. Seoul, Korea: 2004.

http://www.apacc4hrd.org/conf_workshop/apacc04/CR/IS/.


Sugiyarto, G., M. Oey-Gardiner, and N. Triaswati. (2006). “Labor

Markets in Indonesia: Key Challenges and Policy Issues.” In J.

Felipe and R. Hasan (eds). Labor Markets in Asia: Issues and

Perspectives. London: Palgrave Macmillan for the Asian

Development Bank

www.bps.go.id (statistics Indonesia).

www.bnsp.go.id

LAO PDR

LAO PDR 217

Chapter 1

The National Context of TVET


1. GOVERNMENT AND ADMINISTRATION

Lao PDR is a single party socialist republic. A gradual return to

private enterprise and the liberalization of foreign investment laws

began in 1986, and a national constitution was promulgated in August

1991.

Lao PDR is currently divided into 17 administrative divisions

comprising 16 provinces: Attapeu, Bokeo, Borikhamxay, Champasack,

Huaphanh, Khammuane, Luangnamtha, Luangprabang, Oudomxay,

Phongsaly, Saravane, Savannakhet, Vientiane, Xayabury, Sekong,

Xiengkhuang, plus the Vientiane Capital. Provinces have financial

and operational independence within overall state policy frameworks

and planning. Provinces are further organized administratively

through a total of 140 districts.


2. GEOGRAPHY AND DEMOGRAPHY, POPULATION GROWTH

2.1 Geography

Lao PDR has land area of 236,800 square km, and the terrain is

mostly rugged with mountains reaching to around 2,800 meters, and

some plains and plateaus. Most of the country is mountainous and

thickly forested, with alluvial plains and terraces of the Mekong and

its tributaries covering only about 20% of the land area. The overall

arable land is an estimated 4–5% of the country’s surface. The most

densely populated areas lie in the Mekong river basin.

Lao PDR has significant natural resources like forestry, minerals,

and hydro-electric power. Despite the recent declining of its share

in GDP, agriculture remains the major sector of Lao economy,

contributing around 45 percent of GDP (2005) and employing nearly

80 percent of the labor force; industry accounts for a bit more than

29%, and services, for nearly 26%. Landlocked, Lao PDR is in the

center of the Mekong region, bordered by Thailand, Vietnam,

Southern China, Cambodia, and Myanmar, with the first three

neighbors growing rapidly.

Lao PDR has grown strongly for more than a decade. In the 1990s,

real GDP grew by an annual average rate of 6.3 percent-despite the

sharp fall-off in growth during the regional crisis of 1997-1999.

Exports grew at around 15 percent a year; agriculture grew rapidly,

as did industry and services.

LAO PDR 219

2.2 Demography

The population of Laos census in 2005 was 5.62 million (estimated,

2008, 6.00 million), making it one of the least densely populated

countries in Asia at 24 persons per km2. The geographic distribution

of Laos has changed considerably in recent decades, with significant

movements from rural to urban areas. Still, by 2005, some 27% of

the population lived in urban areas; 51% in rural “on-road” areas;

and 21% in rural “off-road” areas. These three categories of location

represent significantly different social and economic conditions.

2.3 Population Growth

The 2005 census showed a surprising decline in the national fertility

rate, but at least as significant as the overall decline was the

geographic distribution of the decline. In the urban areas, the fertility

rate seems to have stabilized at just over 2.0, which is close to the

fertility rates in Europe. In rural ‘on-road’ areas, the fertility rate

is still relatively high at 3.7. In rural “off-road” areas, the fertility

rate is still quite high at 4.7, as shown in Table 1. The overall effect

of the decline in fertility rates is the decline in the size of the new

age cohorts, as shown in [Figure 1. The bulge in the 10-14 year

old age cohort can be expected, of course, to be replicated around

2015–2020.


<Table 1-1> Fertility Rates by LocationLocation Fertility Rate %

National Population 2.2Urban 2.0Rural, on road 3.7Rural, off road 4.7

Source: 2005 National Census

[Figure 1-1] Population Pyramid, 2005

As shown in Table 2 and Figure 2, the population cohorts

corresponding to upper secondary schooling (15 - 17 years) can be

expected to peak in 2010, then decline, then begin to rise gradually

toward the end of the period 2010 – 2020. Also shown are the

enrollment projections for technical and vocational education and

training (TVET) and for upper secondary technical programs,

prepared by the Ministry of Education (MOE) in connection with

the Education Sector Development Framework (ESDF), which is

intended to steer sector development over the period 2009 – 2015.

LAO PDR 221

<Table 1-2> Population and TVET and Upper Secondary Technical Enrolments to 2020

Year Age 15-17 EnrolmentTVET Technical

2005 412,6002006 428,6002007 443,700 15,1002008 456,300 19,5002009 463,800 23,8002010 464,900 28,200 6,5002011 460,800 32,600 15,8002012 455,000 36,900 25,6002013 446,900 41,300 38,2002014 441,200 45,600 53,4002015 437,300 50,000 70,8002016 429,400 79,8002017 422,900 89,9002018 417,300 99,9002019 417,800 106,7002020 418,500 110,000

[Figure 1-2] Population and TVET & Upper Secondary Technical Enrollments to 2020


3. Economy

In 2006, the economy of Lao PDR has continued to grow at a

steady rate. The macroeconomic situation has remained relatively

stable, but signs of monetary expansion in 2006, for the first time

in recent years, created a risk of future inflation. The risks of

potential negative impact of a growing resource sector on the real

economy have also persisted. Exports grew substantially, by nearly

half, driven by copper exports, while agriculture also contributed;

however, exports of wood products, garment industry, and other

non-resource sectors have been on a declining trend.

Real GDP grew at 7.1 percent in 2005 and about 7.6 percent in

2006 and is expected to remain at above 7 percent in 2007. This

growth was in large part due to foreign investment inflows in mining

and hydro-power and growing mineral exports, while the share of

non-mining contributions has increased only slightly this year,

contributing about 4.8 of 7.6 percent to real GDP growth.

<Table 1-3> Annual Percent Growth Rate of GDP

Year %2005 7.12006 8.52007 7.62008 7.32009 (estimated) 6.42010 (projected) 7.52011-15 (mean projected) 7.8

Source: World Bank. Lao PDR Economic Monitor. End-Year Update 2009.

LAO PDR 223

4. EDUCATION

Lao education continues the traditional European structure of a two

semester education year, with the first semester from early September

to late December, and the second semester, from early January to

late June of the succeeding calendar year. From the commencement

of school year 2009-10, a 12 year school system structure comprising

five years of primary; four years of lower secondary; and three years

of upper secondary schooling; replaced the earlier 11 year school

system of five years of primary; three years of lower secondary; and

three years of upper secondary schooling.

The Lao PDR Education Law, 2007 affirms the right of all citizens

to education, and it describes education as a “first priority” of national

financial policy. Primary education (grades 1-5) is universal and

compulsory. The national education system has four components: (i)

Early Childhood Education: crèches and kindergartens; (ii) General

Education: “teaching-learning of basic knowledge” in primary education,

lower and upper secondary; (iii) Vocational Education at three levels

(first, middle and high level); and (iv) Higher Education, described

as the level next to upper secondary and middle and high levels of

vocational education, including five stages from undergraduate to

doctoral level. Education can be attained through the formal school

system or non-formally, each described as different approaches of

similar content and equal value. Informal education is described as

a sub-form of non-formal education that has no limits regarding time,

content, or learning institution.


<Table 1-4> General Education

Items unit 2005 2006 2008 2009Number of Pupils

PrimaryLower secondaryUpper secondary

Number of TeachersPrimarySecondary

Number of SchoolsPrimaryLower secondaryUpper secondaryComplete secondary

Number of ClassroomsPrimaryLower SecondaryUpper Secondary

PersPersPersPers

PersPersPers

PlacesPlacesPlacesPlacesPlaces

RoomsRoomsRoomsRooms

1 278 865 890 821 243 137 144 907

42 254 27 588 9 918

9 245 8 573 641

31

35 160 27 356 5 205 2 599

1 282 522 891 881 243 131 147 510

42 939 27 776 10 068

9 634 8 654 642

28

36 447 28 389 5 306 2 752

1 310 685 900 817 255 083 154 785

47 095 29 541 17 454

9 882 8 830 691

31 330

38 477 29 769 5 712 2 996

1 330 779 908 880 264 579 157 320

46 610 29 060 17 550

9 996 8 871 722

35 368

39 298 30 107 6 003 3 188

LAO PDR 225

<Table 1-5> Vocational Education and Higher Education

Items unit 2005 2006 2008 2009Number of Universities

StudentsTeachers

Number of InstitutesStudentsTeachers

Number of TechnicalSecondary SchoolsStudentsTeachers

Number of TechnicalFirst-schoolsStudentsTeachers

PlacesPersPers

PlacesPersPers

PlacesPersPers

PlacesPersPers

323 575

1 096

2526 207

1 035

3523 845

1 118

123 842

90

330 574

1 385

2830 048

1 148

4726 337

1 540

122 953

142

4 37 795 1 271

91 54 433 1 952

50 20 166 1 914

12 822 157

4 54 167 2 509

96 58 640 2 432

51 16 074 1 326

12 294

…

The formal education system in Lao PDR consists of primary (5

years); lower secondary (3 years); and upper secondary (3 years).

There are also opportunities for post-secondary technical and

vocational education and training, as well as academic studies at the

tertiary level. The Lao Expenditure and Consumption Survey for

2002-2003 shows considerable improvement in educational attainments

since the 1995 population census. The proportion of the population

aged 6 years and above with no school declined from 43 percent,

to 23 percent. Those who completed elementary school increased


from 11 percent, to 15 percent; lower secondary school from 4 per-

cent, to 7 percent; and upper secondary school from 2 percent, to

6 percent.1) While enrollments increased for both sexes, the

participation of girls continues to lag far behind that for boys. In

2002-2003 31 percent of girls 6 years and over had no schooling.

<Table 1-6> Educational Attainment of Population 6+ Years by Sex, Lao

PDR (Percentages)

1995 2002-2003Total Male Female Total Male Female

NoneCompleted primary schoolCompleted lower secondary schoolCompleted upper secondary school

4311

42

3313

53

52932

2315

76

1517

94

3114

62

Source: Committee for Planning and Cooperation, National Statistical Centre, the Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.

1) Committee for Planning and Cooperation, National Statistical Centre, the Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.

LAO PDR 227

<Table 1-7> Children out of school

2000 2001 2002 2003 2004 2005 2006 2007 2008

Number

Male 68,912 74,396 73,464 69,824 78,287 83,073 83,406 75,816 65,200

Female 91,384 95,623 95,283 91,536 95,214 98,039 98,842 89,474 76,419

Total 160,296 170,019 168,747 161,360 173,501 181,112 182,248 165,290 141,619

Rate (%)

Male 18.07 19.08 18.44 17.15 18.89 19.82 19.85 18.19 15.90

Female 24.79 25.39 24.76 23.28 23.78 24.22 24.36 22.24 19.33

Total 21.37 22.18 21.54 20.16 21.29 21.98 22.07 20.18 17.58

Source: World Bank Database

<Table 1-8> Public Education Expenditure

2000 2001 2002 2003 2004 2005 2006 2007 2008

% of GDP 1.50 1.99 2.71 2.28 2.40 2.87 3.04 2.32

% of total government expenditure 7.38 8.85 10.63 10.76 11.71 14.05 15.78 12.21

% of Primary 8.03 9.89

% of Secondary 9.02 5.05

% of Tertiary 70.61 112.08 83.40 27.38

Source: World Bank Database

<Table 1-9> Literacy

(Definition: Age 15 and Over Can Read and Write)

2000 2001 2002 2003 2004 2005 2006 2007 2008

Literacy Rate (%)

Total 69.58 68.73 72.70

Male 81.36 77.01 82.45

Female 58.46 60.90 63.23

Illiteracy Population

Total 930,391 983,779 961,467

Male 282,896 357,749 302,738

Female 647,495 626,031 658,728

Source: Enesco Database


<Table 1-10> School Enrollment(% gross)

2000 2001 2002 2003 2004 2005 2006 2007 2008

Primary(%)

total 110.87 108.06 108.87 109.37 108.56 108.10 107.99 108.87 111.84

male 119.51 116.05 116.69 116.85 115.41 114.79 114.40 114.75 117.27

female 101.93 99.78 100.78 101.63 101.46 101.17 101.36 102.77 106.22

private 2.03 2.06 2.02 2.02 2.07 2.36 2.62 2.78 3.00

Second-ary(%)

total 34.49 36.45 39.36 42.33 44.39 45.00 44.13 43.99 43.86

male 40.42 42.40 45.45 48.52 50.57 51.04 49.54 49.10 48.49

female 28.38 30.32 33.08 35.95 38.04 38.78 38.55 38.73 39.08

private 0.87 0.83 0.85 0.84 1.11 1.57 1.36 1.55 1.92

Tertiary(%)

total 2.71 3.13 4.17 4.93 5.72 7.77 8.99 11.53 13.37

male 3.54 3.92 5.31 6.27 7.03 9.06 10.70 13.37 15.03

female 1.86 2.31 3.00 3.56 4.38 6.45 7.26 9.66 11.67

<Table 1-11> Ratio of Female to Male

2000 2001 2002 2003 2004 2005 2006 2007 2008Level ofEnroll-ment (%)

Primary 85.29 85.98 86.37 86.97 87.91 88.13 88.60 89.56 90.57Secondary 70.22 71.52 72.78 74.10 75.22 75.97 77.81 78.87 80.60

Tertiary 52.61 58.97 56.62 56.80 62.31 71.15 67.83 72.30 77.65

in Primary andSecondaryEducation (%)

81.31 81.91 82.34 82.97 83.81 84.12 85.05 85.99 87.22

<Table 1-12> Primary Education

2000 2001 2002 2003 2004 2005 2006 2007 2008

# of Pupils 831,521 828,113 852,857 875,300 884,629 890,821 891,881 891,807 900,817

% of Female Pupils 45.18 45.37 45.48 45.65 45.92 45.98 46.11 46.36 46.62

# of Teachers 27,592 27,665 28,545 28,571 28,150 28,299 28,741 29,604 29,541

% of Female Teachers 43.40 43.75 44.19 44.41 44.69 45.44 46.45 47.20 48.87

Pupil-Teacher Ratio (%) 30.14 29.93 29.88 30.64 31.43 31.48 31.03 30.12 30.49

LAO PDR 229

2000 2001 2002 2003 2004 2005 2006 2007 2008

Survival Rate to Last Grade of Primary (%)

total 53.22 62.27 64.12 62.57 63.03 62.00 61.45 66.78

male 52.63 61.87 63.60 62.08 63.64 62.28 61.72 65.97

female 53.89 62.72 64.72 63.12 62.32 61.66 61.13 67.68

Primary Completion Rate (%)

total 69.29 69.60 70.08 69.50 69.53 70.88 72.88 73.70 74.70

male 75.08 74.49 74.13 73.46 73.60 74.87 77.78 77.93 78.28

female 63.31 64.56 65.91 65.41 65.33 66.75 67.81 69.32 70.99

Repetition Rate in Primary Grade 1 (%)

total 34.31 35.72 34.73 34.77 34.08 32.87 30.62 31.97

male 34.99 36.42 35.17 35.27 34.76 33.68 31.30 32.72

female 33.49 34.88 34.20 34.19 33.28 31.94 29.85 31.13

Trained Teachers in Primary Education (%)

total 76.69 76.24 76.15 77.52 79.35 83.38 85.76 89.67 96.89

male 69.58 68.93 68.89 70.54 72.79 78.34 81.46 87.12 97.15

female 85.96 85.64 85.32 86.26 87.47 89.44 90.72 92.52 96.61

<Table 1-13> Secondary Education

2000 2001 2002 2003 2004 2005 2006 2007 2008

# of Pupils 264,586 288,389 320,275 353,362 379,579 393,856 395,382 403,833 412,375

% of Female Pupils 40.54 40.99 41.41 41.85 42.23 42.47 43.05 43.36 43.87

# of Teachers 12,402 12,686 13,296 13,771 14,257 15,891 15,987 17,110 18,117

% of Female Teachers 40.12 40.51 42.06 41.90 42.22 42.14 43.07 42.78 44.46

# of Vocational Pupils 3,789 4,019 4,542 5,053 5,159 5,812 4,741 3,741 2,507

% of Vocational Female Pupils 35.55 32.87 34.24 39.58 34.74 37.04 34.51 35.47 40.05

Pupil-Teacher Ratio (%) 21.33 22.73 24.09 25.66 26.62 24.78 24.73 23.60 22.76

AllPrograms

total 264,586 288,389 320,275 353,362 379,579 393,856 395,382 403,833 412,375

female 107,271 118,197 132,632 147,898 160,279 167,266 170,193 175,091 180,890

General Programs total 260,797 284,370 315,733 348,309 374,420 388,044 390,641 400,092 409,868

female 105,924 116,876 131,077 145,898 158,487 165,113 168,557 173,764 179,886

Technical/Vocational Programs

total 3,789 4,019 4,542 5,053 5,159 5,812 4,741 3,741 2,507

female 1,347 1,321 1,555 2,000 1,792 2,153 1,636 1,327 1,004

Source: World Bank and Unesco databases


According to UNESCO data, the gross enrollment rate for secondary

school was 61 percent for Asia, compared to 44 percent for Lao PDR

during 2002-2003.2) Illiteracy remains high, with almost one-fourth

(24 percent) of the population unable to read and write according

to LECS III (14 percent of men and 34 percent of women).3)

Furthermore, there is considerable diversity across groups, as

indicated in Figure 2. The highest proportions of the population aged

15+ that cannot read and write are found in rural areas without roads

(45 per cent) and in the north of the country (32 per cent). The rates

for females are especially high in these areas, with 60 percent and

40 percent, respectively, without basic literacy.

[Figure 1-3] Proportion of the Population Aged 15+ That Cannot Read or

Write by Residence and Sex, 2002-2003

24

9

25

45

32

19

24

14

4

13

29

20

10 11

34

14

35

60

44

28

35

0

10

20

30

40

50

60

70

Lao PDR Urban area Rural with road Rural withoutroad

North Central South

Perc

enta

ge

Total Male Female

2) Web site at http://stats.uis.unesco.org/TableViewer/tableView.aspx?ReportId=52.3) Committee for Planning and Cooperation, National Statistical Centre, the

Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.

LAO PDR 231

Source: Committee for Planning and Cooperation, National Statistical Centre, the Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.

5. NATIONAL DEVELOPMENT PLAN AND STRATEGIES

The National Growth and Poverty Eradication Strategy (NGPES),

approved by the Lao PDR National Assembly in 2003, provides the

broad framework for ongoing national socio-economic planning and

implementation. It, thus, gives the basis for the forthcoming 7th

National Socio-Economic Development Plan 2011-15 (NSEDP)

which will build on the identified achievements of the 6th NSEDP,

2006-10.

The Lao PDR is currently implementing the ten-year socio-economic

development vision 2001-2010 approved by the Seventh Party Congress

in 2001 and subsequently reaffirmed by the directions set by the

Eighth Party Congress in 2006.

The Round Table Implementation Meeting, 3 November 2009,

Background Document, November 2009, provided an overview of

key developments, challenges, and future directions for the 7th plan

period. The Background Document notes that identified challenges

remain to (i) speed up implementation of reforms, projects, and

programs; (ii) further strengthen macroeconomic stability following

the global economic downturn, and (iii) promote sustainable and

pro-poor development.

The Background Document stresses that a number of key challenges

remain in order to ensure achievement, as planned, of all the


Millennium Development Goals (MDGs) by 2015, and the proposed

graduation of the Lao PDR from Least Developed Country (LDC)

status by 2020. These challenges reflect the need for broad-based

and inclusive growth, while ensuring quality investment; improving

resource management capacity; and enhancing the development of

some social sector areas. Key specific proposals identify the need

for (i) continuing the broadening of the production and growth base;

(ii) enhancing of labor force productivity and improving of

competitiveness; and (iii) greater regional and global integration.

Major proposed objectives of the 7th Plan include:

∙ Develop fundamental materials and technology, and provide

necessary conditions to improve the living standards and

livelihoods of the people; reduce poverty and strive to achieve

the MDGs by 2015; and lead the country out of LDC status by

2020;

∙ Ensure economic stability, sustainability, and growth aligned

with industrialization and modernization;

∙ Ensure that development is aligned, harmonized, and sustained

- economic development must be closely linked with social

development and environmental protection;

∙ Enhance efficiency, effectiveness, and transparency of public

management and social protection; and

∙ Continue to expand the cooperation and develop necessary capacity

for regional and global integration.

LAO PDR 233

6. STRATEGIC PLAN 2006-2010 AND MASTER PLAN

2008-2015 FOR TECHNICAL AND VOCATIONAL

EDUCATION AND TRAINING IN LAO P.D.R

6.1 The goal of the strategic and master plan

While the education sector has been expanded, TVET also has

been developed and extended throughout the country in terms of

quality and quantity. In the academic year 2007-2008, every province

has at least 1 vocational school. Actually, there are 22 technical-vocational

schools, centers, and technical colleges under the Ministry of

Education (MoE). Furthermore, there are some technical schools

under other line ministry.

According to the Resolution of the VIIIth Congress of the Party

and the Socio-Economic Development Plan of the Lao Government,

and with reference to the Education Development Plan 2000-2020,

as well as the 4 priority projects of the education sector, and in line

with the strategies for the reform of the National Education System,

MoE has developed the Strategic Plan for the Development of TVET

and the TVET-Master Plan 2008-2015 to make the TVET relevant

for the socio-economic development of the country. These documents

also will be used within other sectors concerned at local and central

level as reference for the training of the workforce to meet the

demand of the labor market.

The Strategic Plan for the Development of TVET 2006-2020

identifies the vision and goals, and 7 development strategies which

include objectives and different projects according to the three


programs for the development of the National Education System,

namely equitable access to education; improvement of education quality

and relevance; and improvement of management and administration.

The TVET-Master Plan identifies targets and objectives of

different projects, and it estimates training needs, as well as potential

for training on the supply side, including the budget and implementing

measures in each period.

The new Strategy for the Development of TVET is in accordance

with the reform and development plan of the education sector up

to 2020, and suitable for the extension and further development of

TVET, whereby gradual, sustainable, systematic development and

the needs of the labor market will be taken into consideration. At

the same time, TVET will contribute to national socio-economic

development to achieve development goals formulated for the nation,

e.g., the implementation of strategy for economic growth and national

poverty eradication, and it finally focuses on the industrialization and

modernization of the country.

The new Strategic Plan is based on three main principles:

development of TVET as for lifelong learning; participation of

society; and continuous development of learning contents and

processes which will be applied within formal, non-formal, and

informal education. For the provision of TVET, different approaches

will be applied, such as integrated vocational education and training;

cooperative training; and the offering of special courses, short-term

courses, e-learning, open learning, distance learning, etc., according

to the environment, conditions, and specialties of TVET providers

LAO PDR 235

and the position of training institutions.

Detailed approaches and methodologies of TVET development

will be provided by the Ministry of Education in cooperation with

relevant bodies responsible for TVET in order to issue detailed and

complete regulations and strategic plans. This has to align with the

three programs within the Education Sector Development Framework,

(ESDF) namely increasing equitable access to education programs;

improving the quality and relevance of program and education

administration; and management program aiming at the complete and

qualitative development of TVET in Lao PDR.

6.2 Current status of vocational and technical education and

training

TVET is an integral and crucial part of the National Education

System. It is a means for preparing the workforce, including

technicians at various levels for employment through training so that

they are equipped with necessary knowledge, abilities, skills, and

attitudes. Objectives include:

- Strengthening the individuals in the workforce to be a good

citizens who possess necessary knowledge and occupational

skills and are able to start up business as entrepreneurs who are

creative and enthusiastic towards the development of the nation

and themselves; who have good health and ethics in order to

fulfil the development requirements of our nation;

- Developing the workforce in line with potentials of regions and


linked to the real way of life of the people, in accordance with

the economic framework of the country to meet the demands

of the national and international labor market, as well as the

requirements for integration into the region and the world; and

- Developing training occupations in line with potentials of

economic development and regions focusing on agriculture and

forestry; industrial processing; electricity, especially hydro-power;

economic exchange; and tourism and mining to create economic

framework based on agriculture and forestry and in connection

with industry and service.

Both the TVET-Strategy and the Master Plan are based on three

key concepts which are used as guidelines for the development of

the Education Sector Development Framework:

∙ Equitable Access;

∙ Quality and Relevance; and

∙ Management and Administration.

Within these key issues, seven strategic projects have been

identified:

1. The construction, upgrading, and expansion of the TVET institutions;

2. The expansion of the TVET offer and approaches;

3. The qualifications, training, and professional development of

TVET teachers and other staff;

4. The quality assurance of TVET;

5. The development of TVET information resources;

LAO PDR 237

6. The improvement of the organizational structure of The TVET

sector; and

7. The formulation of policy and tools at the macro-level for the

development of TVET.

6.3 Recent developments

Strategic Project 1: Construction, Renovation, and Expansion of

TVET;

Strategic Project 2: Expand TVET Offer and Approaches;

Strategic Project 3: Develop and Improve the TVET Teachers and

Staff;

Strategic Project 4: Set up the Quality Assurance System of the

TVET;

Strategic Project 5: Develop the Information System of TVET;

Strategic Project 6: Improve the Organizational Structure of TVET;

and

Strategic Project 7: Formulate the Policy and Tools at the Macro

Level for the Development of TVET.

Section 2. EMPLOYMENT AND LABOR FORCE

1. Employment and Age

The labor force comprises all persons 10 years old and older who

are either employed or unemployed. The activity status of the Lao


population is measured by the “the usually active population”

approach, which means the main activity during the past 12 months.

This is used instead of the “currently active population” approach,

which typically refers to the past week. The “usually active population”

gives a more stable estimate and is better suited to the Lao labor

market because of the seasonal and informal nature of employment

for large proportions of the labor force, especially in the large

informal labor market. The category “unemployed” implies “actually

looking for a job”. So students are by definition “not economically

active”. The distribution of the population by age, location, and

economic activity is shown in Table14.

From <Table 14 it can be seen that the Location indicator is

particularly effective in distinguishing between the urban labor

market and the rural labor markets. It is especially clear that

“unemployment” is an urban phenomenon. Young people in urban

areas tend to enter the labor force some 5 to 7 years later than young

people in rural areas. Unemployment peaks at nearly 5% around the

age 20-24 years in the urban areas. Unemployment in the rural areas

never rises to 1%.

The data in Table 14<Table suggest that in rural off-road

communities, nearly 30% of young people become economically

active, while in the 10-14 year age range, they proceed directly into

employment. By contrast, in urban areas, only a slightly larger

proportion (36%) become economically active, while in the 15-19

year age range, but for many, employment is not immediate, and

unemployment reaches nearly 5%.

LAO PDR 239

<Table 1-14> Population Aged 10 and Above, by Economic Activity (%)

Age Group

Urban Rural On-Road Rural Off-RoadEmploy

edUn-emp

loyed Inactive Employed

Un-employed

Inactive

Employed

Un-employed Inactive

10-14 5.1 1.0 92.5 17.9 0.4 79.9 29.3 0.5 67.815-19 33.0 3.5 62.4 61.4 0.7 36.9 71.9 0.4 26.620-24 65.1 4.9 29.0 91.4 0.7 7.0 94.6 0.3 4.225-29 81.7 3.3 14.1 96.3 0.4 2.5 97.7 0.2 1.430-34 84.4 1.9 12.8 96.9 0.2 2.2 98.0 0.1 1.335-39 85.6 1.2 12.4 97.0 0.2 2.2 97.9 0.1 1.540-44 85.2 0.9 13.2 96.4 0.1 2.9 96.9 0.1 2.545-49 83.6 0.8 14.9 95.2 0.1 4.2 95.3 0.1 4.150-54 74.8 0.6 23.9 84.6 0.1 14.6 82.5 0.1 16.855-59 62.2 0.6 36.4 74.4 0.2 24.7 72.3 0.1 26.860-64 40.3 0.5 58.3 51.3 0.2 47.6 48.9 0.2 50.165-69 27.1 0.4 71.5 39.0 0.2 59.8 38.1 0.2 60.670-74 13.9 0.4 84.2 21.8 0.2 76.7 21.9 0.3 76.675+ 6.8 0.5 90.7 35.9 0.9 84.0 14.3 0.3 83.8

Source: Steering Committee for Census of Population and Housing. Results from the Population and Housing Census 2005.

The data shown in five-year cohorts in Table 15 can be

disaggregated using Sprague interpolation to provide estimates by

individual year cohort for working children and youth under the legal

age of 18. Such a disaggregation is shown in <Table 15. In total,

over 130,000 children between the ages of 10 and 14 years were

employed in 2005, and over 190,000 youth between the ages of 15

and 17 were employed.


<Table 1-15> Number & Percent of Children and Youth Employed, by Age

& Location

AgePercent of Each Age Group Employed Number in Each Age Group Employed

Urban Rural On-Road

Rural Off-Road Urban Rural

On-RoadRural

Off-Road10 0 9 17 26 7,319 5,76911 0 11 23 104 9,705 7,81612 3 16 29 947 13,310 9,83813 8 23 36 2,912 18,632 11,73314 14 32 44 5,615 24,915 13,47615 21 43 54 8,233 30,997 15,21816 26 54 66 10,827 37,220 17,00517 33 65 77 13,450 41,853 18,16718 39 73 83 16,011 43,952 18,407

Source: Author estimate based on disaggregation of published 2005 census results,

In both age groups and in all location categories, the proportion

of girls employed is substantially higher than the proportion of boys

employed. Of the 130,000 children between the ages of 10 and 14

years who were employed in 2005, 60% were girls. Of the 350,000

youth between the ages of 15 and 19 years, 58% were girls.

<Table 1-16> Children and Youth Employed, by Age, Gender, and Location(Percent)

AgeUrban Rural On-Road Rural Off-Road

Males Females Males Females Males Females10-14 3.8 6.3 14.0 22.1 23.0 36.015-19 27.5 38.6 52.2 70.7 61.7 81.7

Source: Census 2005.

LAO PDR 241

In recent years, there have been large increases in direct

employment in exports and in small-scale retail trade, due to

increased imports. According to the TVET Master Plan, overall, to

ensure a growth rate of 7-8% in accordance with the targets in the

Seventh National Social and Economic Development Plan (NSEDP7)

during the period 2006-2010, employment must be created on

average for 130,000 people per year.

2. LAO LABOR MARKET INDICATOR

According to the official estimates compiled by the MOLSW and

NSC, the total population of Lao PDR was 5.7 million in 2003, of

which 49 percent were men and 51 percent were women. Of these

3.2 million were aged 15 years and over. This means the 44 percent

of the population was below working age. Employment and

unemployment are not defined according to international standards

for persons either in “usual status” or “current status”, but figures

reflect the observations of those providing the information.4)

4) Usual status generally refers to main activities over the preceding twelve months with 183 days sometimes used as the measure of whether a person was usually employment, for example. Current status is determined by the principal activity during a short period. According to international standards, a person is counted as employed if he or she engaged in economic activity in the production of goods and services for at least one hour during the seven day reference period


<Table 1-17> Employed and unemployed population aged 15+ years, Lao

PDR, 2001-2003

2001 2002 2003Number (%) Number (%) Number (%)

Employed 15+MaleFemaleTotal

Unemployed 15+MaleFemaleTotal

1,173,0001,272,0002,445,000

54,70073,300

128,000

48.052.0

100.0

42.757.3

100.0

1,194,0001,296,0002,490,000

56,40075,600

132,000

48.052.0

100.0

42.757.3

100.0

1,217,0001,320,0002,537,000

58,10077,800

135,900

48.052.0

100.0

42.857.2

100.0Source: MOLSW and NSC, Official estimates, 2005.

The data for 2003 shows that more women than men were counted

as employed (1,320,000 or 52 percent) and unemployed (77,800 or

57 percent). It is, therefore, not surprising that there are more women

in the labor force defined as the employed plus the unemployed.

<Table 1-18> Labor Force Aged 15+ Years, Lao PDR, 2001-2003


Male 1,227,700 47.7 1,250,400 47.7 1,275,100 47.7Female 1,345,300 52.3 1,371,600 52.3 1,397,800 52.3Total 2,573,000 100.0 2,622,000 100.0 2,672,900 100.0Source: MOLSW and NSC, Official estimates, 2005.

The employment-to-population ratio gives a measure of the extent

that the working age population is actually engaged in the production

of goods and services. It is an indication of the capacity of the

economy to employ its workforce. Four-fifths (80 percent) of the

LAO PDR 243

population aged 15 years and over were employed during 2003.

There has been little change over the past few years.

<Table 1-19> Employment-to-Population Ratios, Labor Force Participation

Rates, Unemployment Rates and Inactivity Rates for Lao

PDR, 2001-2003

2001 2002 2003Labour force participation rate 15+Male 82.9 84.1 83.4Female 86.6 86.0 85.3

Total 84.8 85.1 84.4Employment-to-population ratio 15+Male 79.3 80.3 79.6Female 81.9 81.3 80.5

Total 80.6 80.8 80.1Unemployment rates 15+Male 4.5 4.5 4.6Female 5.4 5.5 5.6

Total 5.0 5.0 5.1Inactivity rate 15+Male 17.1 15.9 16.6Female 13.4 14.0 14.7

Total 15.2 14.9 15.6Source: MOLSW and NSC, Official estimates, 2005.

The labor force participation rate is useful for predicting training

needs and social security. It is generally directly related to agricultural

activities and inversely related to school attendance. This rate was

84 percent in 2003. Given the fact that more women than men are

economically active, it is not surprising that the labor force

participation rate is slightly higher for women (85 percent) than for

men (83 percent).


<Table 1-20> Age-Specific Labor Force Participation Rates by Urban and

Rural, Lao PDR, 1995

Total Urban RuralTotal Male Female Total Male Female Total Male Female

10-14 24.3 22.8 29.7 5.5 4.2 6.9 28.0 21.6 34.715-19 60.6 50.7 72.1 37.2 27.6 46.8 66.4 53.7 78.620-24 89.7 87.2 92.0 73.6 70.3 76.6 94.2 91.9 96.125-29 94.8 96.9 92.8 83.8 91.4 76.8 97.5 98.3 96.730-34 95.5 98.3 92.7 85.8 95.8 76.0 97.8 98.9 96.735-39 95.9 98.5 93.2 86.7 96.5 76.1 97.9 98.9 96.940-44 95.4 98.4 92.3 85.7 96.6 73.5 97.4 98.7 96.245-49 94.3 97.8 91.1 83.5 95.2 70.6 96.4 98.2 94.750-54 84.8 93.6 77.2 73.9 89.5 58.3 86.6 94.1 80.655-59 76.3 87.8 65.3 62.9 79.6 46.1 78.8 88.9 69.460-64 58.1 73.9 43.8 45.2 61.7 29.4 60.4 75.1 47.065-69 47.1 62.8 32.1 33.2 47.8 18.8 49.8 63.8 35.670+ 22.0 35.0 12.9 12.5 20.3 6.2 24.0 34.4 14.8Not classified 0 0 0 0 0 0 1.4 0 2.4Source: State Planning Committee, National Statistical Centre, Results from the

Population Census 1995, Vientiane, April 1997.

The latest statistics available for age-specific labor force

participation rates are from the 1995 population census. This data

measures “usual status” over the past twelve months. On the basis

of the 15+ age group of working age, the labor force participation

rate for the whole country was 81 percent in 1995. At that time,

the labor force participation rates were virtually the same for women

and men. For Lao PDR as a whole the female labor force

participation rates were higher than male labor force participation

rates for children and youth, as shown in Figure 4. In rural areas,

children aged 10-14 were more likely to be economically active than

in urban areas.

LAO PDR 245

{Figure 1-4] Labour force participation rates

0

20

40

60

80

100

120

10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70+

Total Male Female

Source: State Planning Committee, National Statistical Centre, Results from the Population Census 1995, Vientiane, April 1997 and Table 4.

In Lao PDR women and men who were not economically active

represented 16 percent of the population in 2003. According to

official estimates, 64 percent of those not economically active were

students in 2004. Another 17 percent were retired, sick, or too old

to work. Just 12 percent were occupied with household duties.

The 1995 population census shows that the highest rates of

unemployment are for young people aged 15-24 in urban areas.

Unemployment rates for Lao PDR in 2003 were lower than average

for Southeast Asia, as shown in Table 21.


<Table 1-21> Unemployment rates by region and sex, 2001-2003

2001 2002 2003Total Female Male Total Female Male Total Female Male

World 6.1 6.3 6.0 6.3 6.5 6.2 6.2 6.4 6.1Industrialized economies 6.1 6.4 5.9 6.8 7.0 6.7 6.8 7.0 6.7

Transition economies 9.5 9.4 9.5 9.4 9.3 9.5 9.2 9.2 9.2East Asia 3.3 2.7 3.8 3.1 2.6 3.6 3.3 2.7 3.7Southeast Asia 6.1 6.7 5.7 7.1 7.8 6.5 6.3 6.9 5.9South Asia 4.7 6.0 4.1 4.8 6.1 4.2 4.8 6.2 4.3Latin American and the Caribbean 9.0 11.3 7.6 9.0 11.2 7.6 8.0 10.1 6.7

Middle East and North Africa 12.0 16.3 10.5 11.9 16.2 10.4 12.2 16.5 10.6

Sub-Saharan Africa 10.6 9.3 11.6 10.8 9.5 11.8 10.9 9.6 11.8Source: ILO KILM 3rd Edition, CD-ROM, 2005.

According to the official estimates produced for the labor market,

most of the unemployed in Lao PDR are in the south (60 percent)

with 32 percent in the north and 8 percent in the central region of

the country. It is especially difficult for young people entering the

labor market without appropriate skills, since they lack work experience,

as well. While it is not possible to calculate unemployment rates for

youth (15-24 years) and adults (25 years and over) based on the data

that is available for recent years, there are indications that

unemployment rates are still highest among educated youth in urban

areas. In 2003, 19 percent of the unemployed had at least some lower

secondary schooling. The highest level of education for one-fourth

was some upper secondary school. Another 14 percent had

vocational training at the post-secondary or tertiary level, while less

LAO PDR 247

than one percent had some university education or higher degree.<Table 1-22> Unemployed Population by Educational Attainment, Lao PDR,

2001-2003


No education or less than Primary 15,400 12.0 15,800 12.0 16,300 12.0

Primary 23,200 18.1 23,900 18.1 24,600 18.1Lower secondary 24,200 18.9 24,900 18.9 25,700 18.9Upper secondary 32,200 25.2 33,300 25.2 34,300 25.2Vocational-post-secondary and tertiary 17,400 13.6 18,000 13.6 18,500 13.6

University-undergraduate and graduate 400 0.3 400 0.3 400 0.3

Short couses 5,900 4.6 6,100 4.6 6,300 4.6Other 9,300 7.3 9,600 7.3 9,900 7.3Total 128,000 100.0 132,000 100.0 136,000 100.0Source: MOLSW and NSC, Official estimates, 2005.

Indicators for Lao PDR also show that eight out of ten employed

persons were working in agriculture, hunting, forestry, and fishing

during 2003. This has not changed very much over the three years.

However, the percentage in 2003 (82 percent) was lower than in

1995 (85 percent). This data does not indicate significant differences

between men and women. The proportion of persons employed in

industry was almost the same as in services — at around 9 percent

in 2003. The numbers of people employed in industry and services

increased slightly over the three years.


<Table 1-23> Employment by Sector, Lao PDR, 2001-2003


Both sexesAgriculture 2,021,000 82.7 2,053,000 82.4 2,085000 82.2Industry 213,000 8.7 224,000 9.0 235,000 9.3Services 211,000 8.6 213,000 8.6 217,000 8.6

Total 2,445,000 100.0 2,490,000 100.0 2,537,000 100.0

MaleAgriculture 970,000 82.7 985,000 82.5 1,001,000 82.3Industry 102,000 8.7 107,000 9.0 113,000 9.3Services 101,000 8.6 102,000 8.5 103,000 8.5

Total 1,173,000 100.0 1,194,000 100.0 1,217,000 100.0

FemaleAgriculture 1,051,000 82.6 1,068,000 82.4 1,084,000 82.1Industry 111,000 8.7 117,000 9.0 122,000 9.2Services 110,000 8.6 111,000 8.6 114,000 8.6

Total 1,272,000 100.0 1,296,000 100.0 1,320,000 100.0Source: MOLSW and NSC, Official estimates, 2005.

Figure 5 shows the percentage distributions of GDP and

employment by sector in 2003. The agricultural sector accounts for

49 of the GDP, compared to 82 percent of the employed population.

The result is low productivity and low incomes, placing a large

number of the employed population among the working poor.

LAO PDR 249

[Figure 1-5] Distribution of GDP and Employment, Lao PDR, 2003

48.6

25.9 25.5

82.2

9.3 8.6

0

10

20

30

40

50

60

70

80

90

Agriculture Industry Services

Perc

enta

ges

GDP Employment

Source: MOLSW and NSC, Official estimates, 2005 and ADB Key Indicators of Developing Asian and Pacific Countries.

Data for that year shows an annual growth rate of 2.2 percent for

agriculture. Most farmers depend on subsistence rice production,

with just below 37 percent of agricultural products sold in the

market, according to the LECS III. Aside from crops (51 percent),

agricultural households produce vegetables and fruits (11 percent),

meat (15 percent), poultry (5 percent), fish (12 percent), forestry

products (1 percent) and other products (5 percent). Cash crops

include coffee, tobacco, soybeans, and cotton. Given the limited use

of irrigation, most cultivation is rain-fed production. Few farmers use

purchased inputs of improved seeds, fertilizer, and pesticides.

Inadequacy of infrastructure – roads, transport, water, electricity,

schools, and hospitals – is often cited as an obstacle to development.

The data for the proportion of the employed in agriculture is


somewhat misleading, since many workers, classified as employed

in agriculture, have secondary jobs in off-farm activities, such as

household businesses.

According to the official estimates over one-half (56 percent) of

the employed population was self-employed, and another one-fourth

(26 percent) was classified as an unpaid family worker in 2003.

Many work on family farms and in the informal economy. Together,

self-employed workers and contributing family members accounted

for 82 percent of the employed population. Official estimates for

2003 show that only 14 percent were in paid employment. A much

smaller percentage (4 percent) was classified as a private employer,

according to the estimates.

<Table 1-24> Employed Population by Status in Employment, Lao PDR


Private employer 88,000 3.6 92,200 3.7 96,400 3.8Employee-government 132,000 5.4 132,000 5.3 131,900 5.2Employee-private 202,900 8.3 216,700 8.7 233,400 9.2Self-employed 1,352,100 55.3 1,382,500 55.5 1,413,100 55.7Unpaid family worker 670,000 27.4 667,600 26.8 662,200 26.1

Total 2,445,000 100.0 2,491,000 100.0 2,537,000 100.0Source: MOLSW and NSC, Official estimates, 2005

LAO PDR 251

[Figure 1-6] Status in Employment, Lao PDR

Unpaid family worker

26%

Employee - government

5%

Employee - private

9%

Private employer

4%

Self-employed56%

According to the labor market indicators prepared for 2001-2003,

two-thirds of the employed persons in Lao PDR work at least 40

hours per week. Very few (4 percent) worked fewer than 20 hours

in 2003. Altogether 15 percent worked fewer than 30 hours per

week.

<Table 1-25> Hours of Work Per Week, Lao PDR


Less than 20 hours 100,300 4.1 102,100 4.1 104,000 4.120-29 hours 273,800 11.2 279,000 11.2 284,200 11.230-39 hours 449,900 18.4 458,400 18.4 466,800 18.440 hours and over 1,621,000 66.3 1,651,500 66.3 1,682,000 66.3

Total 2,445,000 100.0 2,491,000 100.0 2,537,000 100.0Source: MOLSW and NSC, Official estimates, 2005.


Comparative statistics indicate that Lao PDR has high rates of

labor force participation and a high proportion of the population in

employment, compared with other countries in Southeast Asia. This

is consistent with the large numbers of working poor in the

agricultural sector and informal employment. The unemployment rate

is lower than the Philippines and Indonesia, but higher than other

countries in the sub region with data for this indicator.

<Table 1-26> Comparative Labor Market Indicators, Southeast Asia

Labour force participation rates Employmentto population

ratio

Share ofemployment

in agriculture

UnemploymentrateTotal Male Female

Brunei 66.0 83.3 46.7 na 2.0 naCambodia 83.3 85.1 73.4 70.4 na 1.8East Timor 82.6 89.3 76.3 na na naIndonesia 68.6 na na 62.9 43.8 6.1Lao PDR 84.4 83.4 85.3 80.1 82.2 5.1Malaysia 66.5 83.3 46.7 63.5 18.4 3.9Myanmar 77.1 88.4 66.0 na 62.7 naPhilippines 67.5 82.3 52.8 59.6 37.4 9.8Singapore 68.6 81.1 55.5 65.5 0.3 3.4Thailand 72.7 80.6 64.9 67.7 48.8 2.4Viet Nam 71.9 76.0 66.2 74.3 69.1 2.3Sources: Source: MOLSW and NSC, Official estimates, 2005 and ILO KILM 3rd

Edition, CD-ROM, 2003

LAO PDR 253

<Table 1-27> Lao Labor Market Indicators


Structure of output (% GDPat current factor prices) a/ Agriculture 51.2 50.4 48.6Industry 23.7 24.7 25.9Services 25.1 25.0 25.5

Total 100.0 100.1 100.0Growth of output(annual % change) a/Agriculture 3.8 4.0 2.2Indunstry 10.1 10.3 11.3Services 5.7 5.7 7.4

Total 5.8 5.9 5.8Consumer price index (1999=100) a/ 116.8 129.3 149.3

Gross enrolment ratio inprimary schools b/Male 121 123 124Female 104 106 108

Total 113 115 116Gross enrolment ratio insecondary schools b/Male 44 47 50Female 31 34 37

Total 38 41 44Enrolment in tertiaryeducation b/Male 10,628 17,993 18,064Female 6,117 10,547 10,053

Total 16,745 28,540 28,117



PopulationMale 2,657,400 49.4 2,730,800 49.4 2,806,400 49.4Female 2,719,600 50.6 2,795,100 50.6 2,872,600 50.6

Total 5,377,000 100.0 5,525,900 100.0 5,679,000 100.0Population aged 15+Male 1,480,100 48.8 1,487,300 48.3 1,528,500 48.3Female 1,552,900 51.2 1,594,700 51.7 1,638,800 51.7

Total 3,033,100 100.0 3,082,000 100.0 3,167,300 100.0Population aged < 15Male 1,177,300 50.2 1,243,500 50.9 1,277,900 50.9Female 1,166,700 49.8 1,200,400 49.1 1,233,800 49.1

Total 2,343,900 100.0 2,443,900 100.0 2,511,700 100.0Employed 15+Male 1,173,000 48.0 1,194,000 48.0 1,217,000 48.0Female 1,272,000 52.0 1,296,000 52.0 1,320,000 52.0

Total 2,445,000 100.0 2,490,000 100.0 2,537,000 100.0Unemployed 15+Male 54,700 42.7 56,400 42.7 58,100 42.8Female 73,300 57.3 75,600 57.3 77,800 57.2

Total 128,000 100.0 132,000 100.0 135,900 100.0Economically active population 15+Male 1,227,700 47.7 1,250,400 47.7 1,275,100 47.7Female 1,345,300 52.3 1,371,600 52.3 1,397,800 52.3

Total 2,573,000 100.0 2,622,000 100.0 2,672,900 100.0Economically inactive population 15+Male 252,400 54.9 236,900 51.5 253,400 51.3Female 207,600 45.1 223,100 48.5 241,000 48.7

Total 460,000 100.0 460,000 100.0 494,400 100.0

LAO PDR 255

2001 2002 2003

Number (%) Number (%) Number (%)

Labour force participation rate15+MaleFemale

Total

82.986.684.8

84.186.085.1

83.485.384.4

Employment-to-population ratio15+MaleFemale

Total

79.381.980.6

80.381.380.8

79.680.580.1

Unemployment rates 15+MaleFemale

Total

4.55.45.0

4.55.55.0

4.65.65.1

Inactivity rate 15+MaleFemale

Total

17.113.415.2

15.914.014.9

16.614.715.6

Employment by agriculture and non-agriculture

Both sexesAgricultureNon-agriculture

Total

2,021,000424,000

2,445,000

82.617.4

100.0

2,053,000437,000

2,490,000

82.417.6

100.0

2,085,000452,000

2,537,000

82.217.8

100.0

MaleAgricultureNon-agriculture

Total

970,000203,000

1,173,000

82.717.3

100.0

985,000209,000

1,194,000

82.517.5

100.0

1,001,000216,000

1,217,000

82.317.7

100.0

FemaleAgricultureNon-agriculture

Total

1,051,000221,000

1,272,000

82.617.4

100.0

1,068,000228,000

1,296,000

82.417.6

100.0

1,084,000236,000

1,320,000

82.117.9

100.0



Employment by major sectorBoth sexesAgricultureIndustryServices

Total

2,021,000213,000211,000

2,445,000

82.78.78.6

100.0

2,053,000224,000213,000

2,490,000

82.49.08.6

100.0

2,085,000235,000217,000

2,537,000

82.29.38.6

100.0MaleAgricultureIndustryServices

Total

970,000102,000101,000

1,173,000

82.78.78.6

100.0

985,000107,000102,000

1,194,000

82.59.08.5

100.0

1,001,000113,000103,000

1,217,000

82.39.38.5

100.0FemaleAgricultureIndustryServices

Total

1,051,000111,000110,000

1,272,000

82.68.78.6

100.0

1,068,000117,000111,000

1,296,000

82.49.08.6

100.0

1,084,000122,000114,000

1,320,000

82.19.28.6

100.0Status in employmentPrivate employerEmployee-governmentEmployee-privateSelf-employedUnpaid family worker

Total

88,000132,000202,900

1,352,100670,000

2,445,000

3.65.48.3

55.327.4

100.0

92,200132,000216,700

1,382,500667,600

2,491,000

3.75.38.7

55.526.8100

96,400131,900233,400

1,413,100662,200

2,537,000

3.85.29.2

55.726.1

100.0Employment by hours of work per weekLess than 20 hours20-29 hours30-39 hours40 hours and over

Total

100,300273,800449,900

1,621,0002,445,000

4.111.218.466.3

100.0

102,100279,000458,400

1,651,5002,491,000

4.111.218.466.3

100.0

104,000284,200466,800

1,682,0002,537,000

4.111.218.466.3

100.0Unemployed population 15+Both sexesCentralNorthSouth

Total

10,20041,20076,400

128,000

8.032.259.7

100.0

10,60042,50078,800

131,900

8.032.259.7

100.0

10,90043,80081,200

135,900

8.032.259.7

100.0

LAO PDR 257

2001 2002 2003

Number (%) Number (%) Number (%)

MaleCentralNorthSouthTotal

4,30017,60035,60054,700

7.932.259.6

100.0

4,60018,20033,70056,500

8.132.259.6

100.0

4,70018,70034,70058,100

8.132.259.7

100.0

FemaleCentralNorthSouth

Total

5,90023,60043,80073,300

8.032.259.8

100.0

6,00024,30045,10075,400

8.032.259.8

100.0

6,20025,10046,50077,800

8.032.359.8

100.0

Unemployment by educational attainment

No education or less than primaryPrimaryLower secondaryUpper secondaryVocational- post-secondary and tertiaryUniversity-undergraduate and graduateShort cousesOther

Total

15,40023,20024,20032,20017,400

4005,9009,300

128,000

12.018.118.925.213.60.34.67.3

10.0

15,80023,90024,90033,30018,000

4006,1009,600

132,000

12.018.118.925.213.60.34.67.3

100.0

16,30024,60025,70034,30018,500

4006,3009,900

136,000

12.018.118.925.213.6

0.34.67.3

100.0

Economically inactive population 15+

Household dutiesStudentsRetired, sick or too old to workOthers

Total

55,700294,900

76,80032,700

460,100

12.164.116.77.1

100.0

55,660294,86076,82032,660

460,000

12.164.116.77.1

100.0

59,800316,900

82,60035,100

494,400

12.164.116.7

7.1100.0

Sources: a/ADB Key Indicators of Developing Asian and Pacific Countries, b/UNESCO web sites: c/ MOLSW and NSC, Official estimates, 2005

LAO PDR 259

Chapter 2

TVET System by Target Groups

<Executive Summary>

In June 2007 the Strategic Plan for the Development of Technical

and Vocational Education and Training from 2006 to 2020 (TVET-

Strategy) was approved by the Prime Minister. A master plan was

needed in order to identify and plan all activities, as well as to

determine a budget to carry out various initiatives. An inter-

ministerial team was set up, and it designed the following document,

with the assistance from the Luxembourg Government Cooperation.

Both the TVET-Strategy and the master plan are based on three key

concepts which are used as guidelines for the development of the

Education Sector Development Framework:

∙ Equitable Access;

∙ Quality and Relevance; and

∙ Management and Administration.


Within these key issues, seven strategic projects have been

identified

1. The construction, upgrading, and expansion of the TVET

institutions;

2. The expansion of the TVET offer and approaches;

3. The qualifications, training, and professional development of

TVET teachers and other staff;

4. The quality assurance of TVET;

5. The development of TVET information resources;

6. The improvement of the organizational structure of The TVET

sector; and

7. The formulation of policy and tools at the macro-level for the

development of TVET.

All these projects are detailed in 130 activities, each with its own

indicators, responsible organization, budget, and implementation

plan. They cover key components of the future TVET system, such

as the need to reform curricula; the defining of a qualification

system; the enlargement of the scope of TVET; the necessity to

adjust supply and demand; the importance of developing teacher

qualifications, and the collaboration needed among the different

ministries involved in TVET.

The full cost of the master plan from 2008 to 2015 is US$ 172.42

m, with the main part to be spent for the improvement of schools.

This budget for 2008-2015 includes US$ 156.75 m to be spent on

the master plan investment and follow up, as well as US$ 15.67 m

LAO PDR 261

for the recurrent costs (salaries, basic equipment, and staff development).

Even if the Government of Lao PDR is able to increase its

financial resources as a result of continuous economic development,

donors from various organizations and countries will be needed to

help support these ambitious projects. Their financial input; the

coordination among different ministries and departments; and the

long term follow up and management of this plan will be the key

success factors.

Section 1. Issues to be Addressed

1. Scope of the Technical and Vocational Education and

Training

The scope of technical and vocational education and training

covers the skills level, basic vocational training, and higher

vocational training. Following the TVET strategy, different types of

training programs managed by the MOE of Lao PDR include:

- short courses (less than 6 months);

- courses for skilled workers (6 months to 3 years);

- certificate level courses (2-3 years); and

- diploma courses (2-3 years) at middle and higher level.

The training programs may be full or part-time, and may include

some work experience components (dual courses). TVET institutions


will be encouraged to provide courses for different target groups

including new labor market entrants (school leavers), existing workers,

young people, older adults, and disadvantaged groups.

Because the needs of technical and vocational education at the

lower and the middle levels are still high, technical and vocational

education and training institutions will be expanded to all provinces.

There will be at least one TVET institute in each province and, in

addition, other “centers of excellence” will be developed for various

specialist areas, such as hospitality, automotive engineering, garment

manufacturing, and agriculture

To ensure the optimum use of resources (both equipment and

personnel), the concept of Integrated Vocational Education and

Training (IVET) will be implemented in a step-by-step process.

Using this approach, the various institutions will have more

flexibility to propose a range of courses for different types of

students. Courses can include short remedial courses for those with

a low level of basic education; long courses; and training programs

with work experience components.

2. Integration of Demand Side in Skills Development and

Promotion of TVET

Considering the labor force of Lao PDR as a whole, only a small

percentage of the population have skills and qualifications above the

most basic level. Many lack even basic skills. Of those people with

skills training, more and more are in areas where there is relatively

LAO PDR 263

little demand, and there is a significant need for skilled people in

other areas.

However, there has been little incentive for students to enter

training in areas where there is high demand in the labor market,

such as mechanical engineering, construction, mining, hospitality,

quality assurance, and production planning management.

At the present time, there are skills’ gaps in many employment

sectors and, at the same time, there is an over supply in other sectors.

This appears to be due to the fact that education and training

institutions have been responding to a social demand of training in

business, computing, and English language, as well as for higher

level courses that can give access to a Bachelor Degree level.

But skills’ training needs are in areas such as mechanical

engineering, construction, mining, hospitality, quality assurance and

production planning management. TVET institutions of MOE will

be encouraged to place greater emphasis on these skills shortage

areas, in preference to the general business training programs.

The master Plan includes a review of the process of assessing

training needs (including drawing advice on the Trades Working

Groups, TWG); career guidance; promotion and counseling for

would-be trainees; and new approaches to training that will improve

the relevance of training and the supply of skilled workers to meet

the needs of the developing economy and society.

Promotion of TVET is a critical issue. Lao PDR is facing a

problem shared by many countries. There is “social demand” and

preference for university degrees and general business topics, instead


of practical technical studies. A strong marketing and promotion plan

at the national and provincial level is needed, along with realistic

incentives for parents, students, and training institutions.

3. National Qualification or Certification Framework

At the present time, there is a wide range of formal, non formal,

and informal curricula, certificates, and diplomas available from

many institutions and organizations. Some are for short courses

varying from one week to one year. Others are for skills development

courses with testing in the Ministry of Labor and Social Welfare

(MLSW); Dual Cooperative Training (DCT); and other vocational

and technical courses. Employers, training institutions, students, and

parents do not have any reliable way of assessing the value of any

given certificate, for instance, their value in terms of personal ability

to do the job or proceed to further levels of education.

A National Qualification or Certification Framework can help to

make the system “readable” for all stakeholders and bring consistency,

comparability, and quality. By setting up clearly defined “levels”

against which training course, tests and their certificates can be

measured, they provide coherence and, if they are inclusive, can

address some negative perceptions about vocational/technical

qualifications by showing their equivalence or link to more academic

qualifications.

A National Qualification or Certification Framework is an initial

stage to ensure the quality of the training; upgrade the qualification

LAO PDR 265

closely to regional and international standards; and prepare for the

international integration. Developing such a framework can be a

time-consuming and complex process. However, there is a wealth

of information available to help simplify the process, and this is also

an area with good potential for country-to-country assistance.

Finally, the National Qualification or Certification system in Lao

PDR should be based on the reality of the Lao context, especially

in terms of budget, available human resources, and responsibilities

among concerned ministries. Once it is in place, it can be used for

formal courses, competency assessments, validation of experience, or

Recognition of Prior Learning for those with existing workplace

experience.

Possible information and sources of advice include:

- The Association of South East Asian Nations (ASEAN) skills

recognition development: An agreement has recently been

discussed on a system of four certificate levels and two diploma

levels based on competency based standards. Several countries

were engaged in the initial discussions: Laos PDR, Cambodia,

Vietnam, and Thailand. However, this agreement has yet to be

formally endorsed.

- The European experience can give valuable information on

different kinds of Qualification or Certification systems adapted

to each TVET approach and how they have been integrated

(European Qualification Framework).

- The International Labour Organization (ILO) in Geneva has also

recently produced a publication which provides guidance for the


development of qualification frameworks covering policy and

practical implementation issues.5)

Section 2. Curriculum Method and Content

A Curriculum or course should be based on the needs of Industry

and/or the community. For the past years, professional disciplines

have been developed. They include basic information on professional

standards. This approach could be developed by deeper occupational

analysis using formal processes such as the ‘Developing a Curriculum’

(DACUM) approach which is already used. However, the necessary

duration to implement this method and analytical work required

could be significantly reduced if standards developed by other

international organizations are used.

1. Competency Standards

Competency standards are directly linked to the kind of National

Qualification or Certification system selected. Lao PDR can fully

develop its own standards. However, it will be much more cost

effective to use standards developed in other countries and to adjust

these standards to match the need of Lao trade sectors. ILO has

5) Ron Tuck: An Introductory Guide to National Qualification Frameworks: Conceptual and Practical Issues for Policy Makers, Skills and Employability Department, International Labour Office (ILO), Geneva 2007

LAO PDR 267

already developed Regional Model Competency Standards for a

number of industries, including manufacturing, tourism, and hospitality.

Additional competency sets are also planned for construction,

agriculture, and a number of other areas. Regional cooperation is

developing and sets of competency standards prepared by other

countries can be available for Lao PDR.

Lao TWG can review and adjust these standards, then develop the

suitable curriculum needed for their workers. Competency standards

can also be used to design teaching, learning, and assessment

materials.

2. Student-Centered Learning

Fore many years, rote learning and “teacher centered” approaches

have been applied in many countries in Asia, as described in recent

reports of the World Bank. However, the modern world needs people

who are able to quickly integrate new concepts and technologies,

and it is important to move away from these traditional approaches.

Training within institutions needs to become more “student centered”.

This means that the focus will be on student, rather than teacher

activity, and students will have more choice in the directions their

learning takes. Analytical thinking and problem solving abilities will

be developed.


3. Practical Experience and Knowledge

From a recent survey on the situation of TVET, the directors of

18 schools considered that equipment and building are the most

important needs. Two perceived by as the most important need6).

Development in this area is essential, but practical experience of the

trainees and students will also be gained through better linkages with

companies, including internships. German cooperation is supporting

an important project to promote the DCT concept in Lao PDR.

Several institutions are implementing this system with adjustments

to the context of local companies, which are mostly small and

medium enterprises (SME).

4. Access and Equity

Specific approaches will be implemented to cater for training

disadvantaged groups and people with lower levels of basic

education, such as youth, low-skilled people, people with disabilities,

ethnic minority groups, and the socially excluded. The IVET-concept

of schools will support access through different means, and it

supports the “Education for All” policy. The DNFE can help for this

issue, which will take into account their experience gained from the

Lao-German BAFIS-Project (Berufliche Ausbildung fuer den informellen

Sektor = Vocational Training for the Informal Sector).

6) Source: Final report public technical vocational schools under the MOE, November 2007, VEDC

LAO PDR 269

Section 3. Teacher Development

While good equipment, buildings, and teaching aids are important,

the critical elements of any skills development program are the

teachers. It is recognized that salaries are low, and teachers might

teach longer than they should (30 to 40 hours a week). The students/

teacher ratio varies a lot, depending on the curriculum. However,

solutions will be sought to ensure that teachers are competent and

remain motivated; these solutions will include professional

development and improved career paths.

Many TVET teachers and staff have a comparatively low level of

education. In 2007, within the whole staff involved in TVET in the

MOE7), 2 persons have a PhD; 29 have masters’ degrees; 160, a

bachelor degree; while 793, a level of higher diploma or lower. Most

of the teachers are young; many of them just finished their studies

and go to teach. Many lack real working experience. Consequently,

the upgrading of their education level will be a priority in order to

ensure the quality improvement.

The master plan includes a number of strategies for training and

development in the following areas:

- Pre-service training for new teachers through short courses

focusing on teaching skills, technical skills, and competency-

based training and assessment;

- A project to develop studies at the levels of bachelor, master,

7) in the institutes as well as in the Ministry of Education, TVE Department


then PhD in technical education;

- In-service training through systematic short courses, training

plans, and upgrading of levels;

- Opportunities for teachers to gain experience at work;

- Upgrading and strengthening of the VEDC, as this center will

be the main organization involved in these staff development

activities;

- Attracting personnel from companies in specific fields to come help

teach special subjects (examples: hospitality, wood processing);

- Employing part-time teachers from companies; and

- Setting up standards for teachers that will eventually be based

on skills standards following the precondition submitted in the

World Bank report on teacher reform.8)

Section 4. Cross Cutting Issues

Some cross cutting issues will have to be tackled, such as:

- Poverty Reduction Programs. They will include short courses to

support those in the informal economy. International experience

could be reviewed like the Training for Rural Economic

Empowerment (TREE) Program of the ILO which is designed

to build on existing job-creating programs of the government

and non-government organizations (NGO); make those programs

8) The World Bank (2008), Teaching in Lao PDR

LAO PDR 271

more effective; and fill in gaps where programs are weak or do

not exist;

- Empowerment of women through cooperation with organizations,

like Lao Women’s Union (LWU) and Lao Young People

Revolutionary Union (LYPRU). Special programs will be

provided to assist women in establishing small businesses and

entering the workforce;

- Good governance, thanks to the review of management system

at the central and local levels, including the implementation of

a quality system;

- Respect for the environment by the integration of new courses

on this subject in many curricula;

- Participative dialogue with the beneficiaries, thanks to a strong

development of regional TVET committees, Regional Training

Councils (RTC), and new TWG;

- Self employment by the integration of a special ILO course

“Knowing About Business” (KAB) in all curricula, thanks to the

cooperation of a specialized institution, such as Lao-India

Entrepreneurship Development Center (LIEDC); and

- Sustainability of project activities/interventions through a strong

emphasis on capacity building of the staff and teachers.

Section 5. Labor Market Information

To be most effective, TVET should be based on accurate information

about the needs of the labor market. But a problem related to human


resource development planning in Lao PDR is the lack of

information on the needs of the labor market. Information is usually

collected, analyzed, made available, and published in various

documents, either from the government, or from donors’ projects.

However, coordination, coherence, and reliability of the information

are still lacking.

One priority in this master plan is to analyze needs of all social

and economic sectors for the human resource development in order

to plan the expansion of the TVET network. The MLSW will be

responsible for this issue in close cooperation with the MOE and

other concerned line ministries.

National labor market analysis will be needed to support national

strategies and plans. It can be realized through different ways:

specific surveys (on request); annual labor market reviews; local

skills needs analysis; and permanent sector-based observatories in

close cooperation with the professional associations. They should be

either provincial or sector based in approach.

The master plan includes the creation of professional disciplines

and curricula based on local labor market assessment through

collaboration among different sectors, departments, and trade

working groups at the local level. Schools can be partly responsible

for the implementation of these local surveys. The VEDC will be

in charge of the design of these new professional disciplines and

curricula.

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Chapter 3

Governance of the TVET system

Section 1. Link with Other Sectoral Developments

The TVET master plan defines activities involving other

departments and components of education, and a high level of

cooperation is needed to ensure that master plan activities are

incorporated into the priorities of the different organizations:

- The DGE will progressively integrate vocational subjects in the

general education curriculum;

- The DNFE currently plans (2007-2020 Master Plan) to develop

basic vocational skills in many centers based on the previous

German funded BAFIS project. Targets of NFE are to train

10,000 people by 2010, then 20,000 people by 2015 in ten

professional disciplines. As teachers and trainers will need to be

trained in these basic practical skills, cooperation with VEDC

and DTVE is essential.


- The Ministry of Agriculture and Forestry’s (MAF) master plan

focuses on strengthening the four existing agricultural schools

through improvement of curriculum, competency-based training,

and production facilities. It is essential that this training will be

consistent with the competency-based approach outlined under

this master plan.

- The National Training Council (NTC) is adjusting its roles and

activities to ensure greater effectiveness.

- The MLSW is finalizing its master plan for 2007-2020. It

includes important components to link to the TVET master plan:

strategies on training and assessment for skills standards; labor

market information; and the use of the training fund. Coordination

between both ministries and the National Training Council is

essential, since duplication is to be avoided.

- The MOE should finalize within 2008 an ESDF for 2008-2018

covering all sectors of education, including TVET which sets

forth 2 strategies concerning TVET:

○ Expand TVET according to the needs of the labor market

in the formal and informal economy; and

○ Expand TVET capacity in order to enroll lower secondary

graduates intending to go to technical and vocational education

and training.

When other ministries prepare and regularly review their master

plans, they should include a human resources development

component with precise information on the needs of occupations.

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This information should be sent to the MOE for consolidation.

Section 2. The present Situation of Supply and Demand

1. The Rapidly Changing Lao Socio-economic Context 9)

For the last 10 years, Lao PDR has been experiencing fundamental

changes, especially after Lao PDR became a member of ASEAN in

1997. Over the five-year period 2001-2005, Gross Domestic Product

(GDP) grew at the high rate of 6.24 percent per year, whilst GDP

per capita rose to reach US$49110). This represents an increase of

over 84 percent, compared to 1996. But Official Development

Assistance (ODA) resources still plays a central role in the Lao

economy, contributing over 60 percent of the total cost of the Public

Investment Programme (PIP), and over 70 percent of total public

expenditure in the socio-cultural sectors, including education and

health. The International Monetary Fund (IMF) has predicted a

continuing high ongoing annual growth rate of 6-7 percent11) in real

GDP between 2006 and 2010. External trade is expected to grow

at an average of over 10 percent annually.

9) Chapter 1.1 and 1.12 integrates parts of the report of “An Analysis of the Capacity of the Education System to Meet the Employment Needs of a Lao Modern Economy”, CRC-LBC, 2008

10) Source: CPI (Committee for Planning and Investment).11) Which is just below the target of 7.5 set by the Eighth Lao People’s Revolutionary

Party Congress


The Government’s Sixth Five-Year Development Plan (2006-

2010) places special emphasis on increasing international trade, and

particularly exports, in line with the National Growth and Poverty

Eradication Strategy (NGPES). Around 74 percent of Lao exports

consist of garments, wood, tourism, and electricity, with this

proportion projected to increase rapidly over the next few years. The

NSEDP 2007-2008 mentions an increase of exports in 2006-2007

of 57% higher than the year before, especially due to the increase

of minerals.

2. An Urgent Need for Skills

It is estimated that over 82 percent of the Lao people live in rural

and remote areas12) and that some 80 percent are employed in

agriculture, either directly or indirectly, with an estimated 60 percent

of farms still producing mainly for subsistence, and not for the

market13).

In recent years, there have been large increases in direct

employment in exports and in small-scale retail trade, due to

increased imports. Overall, to ensure a growth rate of 7-8%, during

the period 2006-2010, employment must be created on average for

130,000 people per year.

Inadequate planning, management, and monitoring of labor

development in various sectors persist.14) However, a recent report15)

12) 77% are classified as rural and ethnically diverse13) Source: MAF (Ministry of Agriculture and Forestry), 2005.

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estimated that the critical shortage of the expertise required for

development will pose one of the most serious constraints on

economic development in the Lao PDR; the report also predicted that

strengthening human resource capacity will represent one of the

country’s major challenges over the foreseeable future, and

overcoming this challenge will help Lao attain the NGPES goal of

elevating her from the status of a “least developed country” by the

year 2020.

From the Lao Expenditure and Consumption Survey in 2002-2003,

only 14% of the population had completed the lower education level.

A national training needs analysis16), carried out in 2005, found

that nearly 70,000 additional human resources personnel, skilled at

different levels, would be required by the manufacturing industry

sector by 2010. However, this did not consider the needs of the

government, service, or agricultural sectors. The report concluded

that there would be a significant shortage of training places to

provide the necessary skills at this level, particularly for technician

workers.

As there is no precise labor market information available on needs

of occupations and skills, it is only possible to predict the needs

based on the evolution of the economic sectors.

The 8th Resolution of the Party and the NESDP 2006-2010 give

the key sectors that will push forward Lao economy, among them:

14) Source: The National Socio-Economic Development Plan 2007-200815) United Nations Common Country Assessment (CCA) for Lao PDR, 2006.16) GTZ Lao-Germa HRDME Programme (2005)


- Agriculture, forestry, and aquatic products with 13% of growth

per annum counting for 27-28% of total exports; the kind of

skills needed will reflect the ability to produce chemicals and

biological fertilizer; analyze results and conditions; and plant

seeds.

- Raw materials, energy, and minerals, with 44.6% of the exports

in 2010, especially for electricity-minerals. Exports should increase

18-20% per year; technicians will be needed in gypsum plates,

granites, glass, iron, aluminium, and copper.

- Wood industry, with 7-9% per year export growth, taking into

account the fact that the forest in 2020 should cover 70% of

the Lao surface; food processing will develop.

- Huge programs for construction and infrastructure needing skills

in block and bricks laying, tiling for roof, ceiling, floor, but also

design, building, and property water management.

- Tourism is expected to increase 11-12% per year, as all

provinces are encouraged to promote it, with skills in service,

hospitality, home stay, and restaurants, as well as handicraft

production and the necessary skills in place for bamboo, rattan,

ceramics, weaving, and gold/silver smithery.

- Industrial process will involve skills in productivity improvement,

quality, production planning, installation service and maintenance,

and repairing of machines (heavy, middle, light, production

machines).

- Car and motorcycles sector, with skills in the areas of electricity

and electronics, forming, and painting.

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Section 3. General Situation of the TVET Providers

There is a very wide range of skill learning opportunities offered

by different institutions which eventually can be split in two parts:

- Training aimed primarily at increasing food security or generating

supplementary income in villages; in impoverished rural areas

in skills such as small plant, livestock production, development

of cottage industries, handicraft production, eco-tourism activities;

and

- training aimed primarily at needs in urban or relatively advantaged

areas, in skills such as dress-making, hairdressing/ beautician,

using office computing software, hospitality/hotel services,

general tourism services, foreign languages, plumbing, motorcycle

repair, and air conditioning/refrigeration.

Based on a survey by the DTVE in 2007, there were 50 registered

education curricula in 27 areas covering 4 main fields (agriculture,

business, industry, and handicrafts). A total of 47 public and private

institutions and more than 50 training centers provide short courses.

There are 15 departments; 10 ministries; and 2 mass organizations

which are involved in vocational education and training.

Most of TVET is implemented by institutions under the Ministry

of Education, but many other institutions also provide training:

schools under provincial departments of education; schools under

other ministries; training centers under MLSW, the LPRYU, the

LWU, and Community Learning Centers (CLC); private sector


schools; company training centers; NGOs; and on-the-job training,

including a wide variety of short courses and workshops, not forgetting

training courses taking place in other countries.

If all these training providers are not based on an overall needs

analysis, they will not contribute to a balanced development of

student skills. This will result in an oversupply in terms of subjects,

as well as inadequacies for local needs.

Within the DTVE we find the following institutions:

- Vocational schools recruiting school leavers from lower

secondary schools to prepare them to become skilled worker.

The duration of study is 3 years.

- Technical schools recruiting school leavers from lower secondary

schools to prepare them to become technician. The duration of

study is 2-3 years.

- Integrated vocational schools delivering formal vocational

training and basic vocational training to the non-formal target

groups.

The Education Statistics Technology and Information Center

(ESITC) of MOE estimated the enrollment in TVET institutions was

15,500 students in 2001/2002 and 25,000 in 2005/2006. But for the

lowest level, the total is decreasing (vocational: 3,500 in 2001/2002

and 2,600 in 2005/2006). Institutions from other ministries (Agriculture

and Forestry, Information and Culture*, Health, and Finance)

provided TVET for a total of 7,200 students in 2005/2006. Other

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ministries such as the Ministry of Industries and Commerce (MIC);

the MLSW; and the Ministry of Transport, Roads and Communications

(MRC) also provide training.

There is no precise projection of future numbers but, based, on

the likely changes to the population (presently very young), around

65,000 to 80,000 students can be expected to need training in 2015.

The system should be able to cope with this increase.

These figures show the variety of training and education providers,

as well as the strong trend towards students often seeking higher

diploma level courses, so that they can then obtain bachelor degrees.

MOE will face three important challenges:

- To continue attracting students at the lower level;

- To answer to the needs at the higher level; and

- To organize the coordination among all these providers.

To structure and guarantee efficiency, a quality system will be

developed. It is one of the 7 strategic projects to be implemented

and covers the analysis and setting up of a system of recognition

and accreditations of training institutions and curricula.

This project to develop a quality system will take advantage of

the present situation on curriculum accreditation, as many institutions

from other ministries (MOAF, MLSW, and Health) contact MOE,

and especially VEDC, to gain assistance for curriculum design and

accreditation. By providing these services, the MOE can strengthen

this role in this area in the future.

ISO standards, for example, can help in increasing the recognition


of the quality of training by industry, especially those involved in

the international market.

Section 4. Specific Situation of the TVET Schools under the MOE

A recent survey made in 200717) provides interesting characteristics

on the present situation of 18 TVET schools and colleges running

under the MOE:

- There are already an important number of 58 professional

disciplines: 33 different areas of studies are taught in 4 possible

levels; since each area can be taught at different levels, there

are 58 different curricula available.

- 10% of the students come from the quota system, and 60%, from

the national examination system. But the schools tend to allocate

places for more private fee-paying students.

- The majority of the students chose accounting studies. Construction,

which is the most commonly offered curriculum by institutions,

is only ranked 10th according to number of students enrolled.

- Most of the schools focus their development towards higher

diploma. (80% of the students are at the higher diploma level).

- The government budget share varies from 30% to 98% of the

17) Source: Final Report Public Technical Vocational Schools Under the MOE, November 2007, VEDC

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total budget of the school; the other resources come from fees

paid by students and other contributions.

- Most of the schools already offer short courses for income

generation; in addition to their regular curriculum, but not many

times per year (the average is one time per year for a duration

of 9 days).

This information illustrates the inadequacy of the current

provision; the mismatch between the supply and demand; and also

the risk of having more and more schools willing to satisfy the

potential target, especially privately funded students, without taking

into account the needs of companies. It also shows that the schools

already have experience in developing income generation activities,

such as training and production, which are supported under the

master plan.

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Chapter 4

Financing of TVET

Section 1. The Budget for TVET Reform and Development

The financing and investment in TVET is expensive and requires

an adequate policy and contributions from the public and private

sector, including domestic and foreign assistance. The estimated

budget refers to the needs of agencies concerned with TVET and

the plan of operation up to the year 2010 and from 2010 to 2015.

The plan of operation from 2016 to 2020 could not be planned, due

to the lack of any accurate growth forecasts because of uncertain

trends for the economy in that period.

The budget needed for the period 2009-2015 is explained, as

follows:

- The budget for investment and development, as described in a

log frame and covering 130 activities. This budget includes an


important part supported by organizations of the MOE directly

implementing technical and vocational education: DTVE, VEDC,

and NTC. It also includes a budget that will be under the

responsibility of other organizations, such as the MLSW and the

National University of Laos (NUOL).

- The recurrent budget covering regular operating costs, such as

salaries and scholarships.

These two budgets can be added together, and, by subtracting the

budget already supported by donors, the total budget requirements

can be established. The main part of the master plan budget concerns

the renovation and improvement of schools and colleges (Strategic

Project 1), estimated at 795 million Kip. The contribution from

donors will be requested (see chapters 5.3, 5.4). The budget planning

for the development of TVET is described in the following table:

<Table 4-1> Budget Item

Budget Item Million (US$) Million (Kip)

Total Budget Needed for Implementation of the Master Plan until 2015 156.75 1,410,733

Recurrent Budget (salary, basic, equipment) 15.67 141,073

Total 172.42 1,551,806

Budget Already Supported by Donors in the Master Plan -24.7 -222,300

Total Budget Still Needed for the Implementation of the Activities Until 2015 147.72 1,329,506

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The financial resources of the Lao PDR government and other

training providers including companies will need to increase to

continue to strengthen TVET.

1. The Regular Government TVET Budget

The GOL allocates a regular budget for TVET. However, because

there is a need to improve the quality of the training, the method

of budget allocation should be changed to base calculations on the

unit cost per student.

Referring to the study of Department of Finance, the recurrent

budget provided for TVET by the MOE in 2006-7 was 14,159

million Kip. Based on an estimate of an annual increase of 10% the

total recurrent budget from 2006 to 2015 will need to be approximately

162,538 million Kip.

2. The Consequence of Economic Development on the

Financial Capacities of Companies

As mentioned above, they are positive trends showing the increase

of financial possibilities of Lao PDR, thanks to economic development.

Companies will be able to support directly the cost of training and

staff development.

There are already examples of how they are more and more

involved in paying for training and development:

- Missions of foreign specialists coming to provide “in-house

training” in Lao companies;


- Workers are sent to local private or public training institutions

and even abroad; and

- Scholarships and equipment are being provided to schools and

government institutions.

Other future projects might be set up, similar to those found in

neighboring countries: examples include, support for a complete

workshop in a school, and creation and management of an internal

training center.

3. The Legal Framework to Promote Training in Companies

Lao PDR has decided to implement training funds as stated in the

labor law, promulgated in 2006.:

- Companies will pay 1% of salaries or wages, and workers, 1.5%

to a national skills development fund in the MLSW. However,

in June 2008 there was no mechanism for the implementation

of this strategy, and there was a need to establish a task force

to formulate measures for its implementation.

- A training fund is being discussed for SME and has been

included in the SME-decree.

- As of June 2008 MOE has not been involved in the work on

financing incitation for companies. In order to have a system

covering the overall scope of TVET from all providers, MOE

should participate in the system, as it can help financing specific

training schemes, like apprenticeship for the private sector.

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4. The Support Coming through Cooperation with Other

Ministries

Various ministries and organizations are involved in some

activities of this master plan, such as the development of curriculum;

professional and vocational standards; national qualifications; teacher

training, etc. The budget for those activities should come from the

MOE and other organizations through collaborative project proposals.

MLSW, MAF, MIC, Ministry of Health, Lao National Tourism

Authority (LNTA), and Lao National Chamber of Commerce and

Industry (LNCCI) could be partners to propose staff development

projects, but this will need team work and proactive actions.

Section 2. Loans for TVET Development

TVET development is expensive. Many neighboring countries,

such as Thailand, Vietnam, Cambodia, and Sri Lanka, have been able

to get loans at low interest rates from international finance institutions,

such as Asian Development Bank, to renovate their systems. This

approach has the advantage of providing funds and technical

assistance to implement specific activities, such as building, equipment,

training, and qualifications systems. However, investments of this

kind do not easily generate revenues which can be used to repay

loans, and, as with any external funding source, there is a risk that

local resource streams will not be developed to replace the external


funds, and many of the gains made are lost when the project ends.

1. Possible Foreign and International Assistance for TVET

The budget resources of GOL have not been sufficient to support

the development of TVET, although donor participation from various

countries helped considerably. Within the last 13 years, there were

36 major projects and activities under the DTVE, for a total amount

of 13 million US$.

For the near future, Lao PDR will continue to need foreign and

international assistance for its TVET. Donors will request:

- A clear definition of priorities among all the activities to be

implemented;

- A good cooperation among ministries concerned by the TVET

projects;

- The integration of the TVET component into the ESDF; and

- Coordination and alignment among partners for TVET development.

2. Present Situation of Some Donors Concerning TVET

Already several countries and organizations expressed interest in

this sector; if several of them develop projects, coordination should

ensure a good mapping of the support from donors in coherence with

the master plan:

- Until now, Germany has been the main supporter of TVET.

There are presently 2 important ongoing projects for the

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development of a labor market-oriented and integrated TVET,

with duration until 2011-2012. One is a technical assistance

project, providing consultancy for regulatory framework; public-

private cooperation; IVET; capacity development for TVET

staff; and supplementary equipment. The budget is EUR 6 m

by Deutsche Gesellschaft fuer Technische Zusammenarbiet (GTZ)

and EUR 6 m by Deutscher Entwicklungsdienst (DED), for

providing experts for IVET-schools and business organizations.

The other one is a financial cooperation project for the

construction of buildings and procurement equipment for

IVET-schools in six provinces in the northern part of Lao PDR.

Kreditanstalt fuer Wiederaufbau (KfW, German Development

Bank) provides a grant EUR 8.5 m, which is 80% of the total

project budget;20% is borne by the provinces concerned.

Germany has expressed interest in continuing development

cooperation in TVET until 2015.

- Luxembourg has been supporting TVET for several years,

especially in the development of the TVET institute in Khammouane

Province for 3.3 m. EUR. Luxembourg is interested in continuing

development support for this sector. There could be important

projects in field, like hospitality-tourism, banking/ financing, or

efforts to address more general issues, like curriculum development

or the strengthening of institutes.

- UNIDO-UNDP is more and more involved in the development

of Lao PDR. For the period of 2004-2008, projects amounted

for 5.6 m US$ to support industrial development. A budget


increase is planned to support training and education projects in

the following areas:

○ Increase of productivity and standards, for example, with

short courses for workers;

○ Development of entrepreneurship;

○ Assistance for the expansion of the industrial zone in

Savannakhet, Vientiane;

○ Training in specific sectors, like garment, wood processing,

and agro processing; and

○ Skills development for SME.

- For the last 15 years, there were 103 experts and volunteers who

assisted TVET institutions for durations of a minimum one year,

with the support of organizations and government from Japan,

Germany, Korea, India, Australia, Belgium, China, European

Union, England, Singapore, and Luxembourg. Presently 13

positions are under discussion or ongoing. It is expected that this

assistance will continue within the next years. MOE can help

make it more focused and linked to the national strategies.

- At the ASEAN level SEAMEO-VOCTECH (Regional Center for

Vocational and Technical Education and Training) organizes

each year with two or three sessions of a few days training.

- The Francophonie supports partnerships between the French

speaking countries in Southeast Asia (Lao PDR, Vietnam, and

Cambodia) on teacher training; TVET administration; curriculum

standards for a total amount of 100,000 EUR in 2008.

- Australia is significantly increasing its support for Lao PDR (30

LAO PDR 293

m AUD in 2007-8), especially in education. TVET is traditionally

an important part of Australian cooperation in Asia. There will

be possibilities of assistance that can be either “sector based”,

or focusing on general needs, like qualifications.

- KOICA will increase significantly its support for Lao PDR, US$

6.25 m in 2007 and US$ 10.26 m in 2008. Education is one

of their 4 priorities. A survey of Laotian needs in 2008 will help

to define the priorities for action over the next years. A loan

is possible.

- The European Union (EU) presently does not focus its activity

on TVET, but there will be a review of priorities in 2009. The

ESDF will give the direction. EU also provides budget allocation

to the government to decide its priorities.

- Asian Development Bank (ADB) concentrates presently more on

basic education, but, at the request of the ESDF, the bank is

willing to analyze needs in a broader way. Skills development

is a key component to assist the present growth in Laos and

Asia. At present the ADB has a strategy to support human

resource development, by providing support to technical and

vocational education, as well as to higher education.

- Thailand is willing to increase its support for TVET; a program,

“Sister Schools”, is developing in connection with 9 Thai

schools to assist Lao schools in various fields. Projects to

upgrade Thai teachers in nearby Thai universities are also being

discussed.

- Swiss Cooperation supports skills development projects, mainly


in the agriculture sector. This country supported the development

of the master plan of five training institutes of the MAF.

- The World Bank is currently implementing the 2005-2010 plans

on early childhood and basic education. The new plan for

2010-2015 will be prepared in 2009. It is very likely that other

components of education will be supported. Moreover, the Bank

supports many projects linked to economic development: dams,

constructions, and roads. The support of TVET is possible in

the future.

- UNESCO has defined a national education strategy for

2008-2013 to support Lao PDR. This is presently being reviewed.

It is likely that TVET will be one of the sectors supported more

at the policy level.

- The French government is focusing on other issues and has no

short term plan to assist TVET.

- JICA presently supports, and will support, for the next 2-3 years

agriculture, health, and basic education. They could be interested

by TVET projects case by case, if they are linked to industrial

investment.

- ILO has also provided ongoing technical advice, mainly on

competency standards; TVET policies and financing; and the

role of the industry. It is expected that this support will continue

in the future.

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Chapter 5

Internationalization of TVET

Section 1. Lessons Learnt and Recommendations from the

International Experience for TVET Master Plans and Strategies18)

Countries such as Lao PDR cannot afford to have duplication of

effort with many different government agencies providing different

forms of vocational education and training. One strong coordination

body is needed. NTC can eventually have this role. This must be

supported by all agencies currently providing vocational education

and training, so that there is a consistent message provided to

employers, parents, and students.

Quality standards and systems are essential. If an agreement on

one structure of qualification is possible, there can be many providers,

but they should not be competing for the same groups of students

18) A contribution of ILO Bangkok, 2008


and should not be duplicating competency development; course

development; or providing competing courses to the same groups of

students.

International experience in a few areas may be of particular relevance

to Lao PDR at this time: the link between national economic

development strategies and human resource development; the need

to involve the private sector; and improved coherence and coordination

of national policies and implementation approaches.

On the link between national economic development strategies and

human resource development, ILO has observed that many countries

have explicitly included a human resource development strategy as

part of their national social-economic development plans. Countries

such as Singapore and Malaysia explicitly see human resources as

a key element in their economic development. This approach ensures

that the human resources (skills, numbers, and locations) needed to

realize economic goals are available. If this is not done, there may

be significant barriers to achieving economic goals. Most importantly,

conflicts between educational and economic objectives can be

explored and addressed.

This is most evident in the case of technical and vocational

education and training. These training streams are relatively much

more expensive in terms of equipment and supplies, and the occupations

and education stream are often considered “second choice” by

students and their families. Consequently, almost all economies find

declining enrollment and underinvestment in this area, provoking a

downward spiral, where fewer and fewer people enroll in training

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which is less and less relevant, thus robbing the economy of a key

resource. In many countries, this gap is made up through the

importation of skilled labor from other countries, on a permanent

(in the case of countries like Australia and New Zealand) or temporary

(as in Lao PDR and other countries in the Greater Mekong Region,

GMS) basis.

TVET master plans must be developed in a context that looks at

both supply and demand issues. Simply building additional training

centers will not address the critical issues of adequate numbers and

relevant skills. International experience shows that greater involvement

with, and alignment to the needs of employers and enterprises, is

critical to the success of a TVET strategy. Companies must be fully

involved in defining needs (both for number of workers, and their

competencies), and, it is increasingly recognized, actively involved

in delivering training and assessing the competencies. This is the

most effective way to address both the question of relevance of

training, and the high cost of training in technical areas: rather than

attempting to build institutions that fully matches employers’

realities, schools more effectively focus on core and generic skills,

and work with industry on more specialized, real workplace skills.

Such a partnership ensures that students are trained in the actual

materials and methods in use.

Another important, and sometimes overlooked element, is the

promotion of skilled trades and occupations to young people and to

the parents and educators that influence them. As economies

develop, and more young people are able to stay in and complete


schooling, the existing bias towards academic track education

becomes increasingly pronounced, with the potential for many

negative consequences, including a high graduate unemployment rate

(as noted in a recent ILO and UNESCO work). Conversely, there

is significant and growing need for skilled and technical workers,

as a critical element in economic development. In addition, skilled

and technical occupations offer a good route to successful entrepreneurship

and self employment. Government, social partners, and industry have

a mutual interest in promoting these occupations to young people

and their parents, in order to assure a supply of human resources

for developing employment.

The role of the private sector is also critical. As noted above,

ensuring that training is relevant to company needs depends very

much on the degree to which employers and trades groups are

involved in:

- Defining needs;

- Shaping competencies and qualifications;

- Informing curriculum; and

- Offering opportunities for hands-on training in real work settings.

A range of options exists for promoting greater involvement,

ranging from financing systems (as in Malaysia, Thailand and

Singapore); trades committees and associations with delegated

responsibility for defining standards (same countries), to advisory

and policy bodies (such as the National Training Board in Cambodia).

Finally, countries have taken a range of approaches to improving

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coordination of policy and implementation. In South Africa, much

of the policy and management authority is delegated to industry

councils, who are also responsible for disbursing public and private

funds to training institutions and other providers. Singapore has created

a separate implementation authority, the Workforce Development

Agency, to manage specific tasks assigned from a range of ministries

and departments. Cambodia has assigned lead responsibility for

vocational training to the Ministry of Labor and Vocational Training,

with coordination assured through common high level leadership of

the National Training Board and the Accreditation Council of

Cambodia (which oversees academic stream education). The major

lesson is that, while there is no single “right answer”, the inherent

challenges of coordination between systems designed for “education

for all” versus “training for the labor market” must be acknowledged

and addressed, with continual review to ensure the response chosen

continues to be effective.

LAO PDR 301

Chapter 6

New Agenda and Plans for the Future

This master plan needs a strong follow-up and regular assessment

to ensure a successful implementation. A master plan committee will

be set up under the leadership of the Vice Minister of Education

for TVET with the following responsibilities:

- Review regularly the past activities;

- Plan future activities with clear responsibilities of each

department (see topic responsible organization in the matrix;

- Identify and follow-up the possible sources of financing;

- Adjust the activities based on the evolution of the context; and

- Make an assessment in 2010 and 2015 to adjust the plan for

the following five years.

This operating committee should meet not less than once every

two months in order to implement the important number of activities

scheduled. The members of the master plan committee should


include representatives of the DTVE, DNFE, Department of Planning

and International Cooperation (DPIC), and MLSW.

Section 1. Direction of the Master Plan

At this stage, forecasting the activities and budget for the period

of 2016-2020 is not realistic. There are two main uncertainties:

- Internal factors: The master plan 2006-2015 is ambitious; its

success will highly depend on the available financial resources

and the local human resources ready for implementation. Some

activities might have to be extended to the period 2016-2020.

- External factors: Globalization means that changes in the world

can have direct effects on each individual country. There are

very important financial, environmental, and political uncertainties

for the next 10 years.

The master plan will need a regular follow up, and the review

in 2015 will enable finalization of the detailed activities and budget

at this time, but the 3 main parts should stay the same.

1. Equitable Access Program

In order to bring Lao PDR out of the group of least developed

countries, the TVET schools and colleges will need a continuing

development in quantity and quality:

LAO PDR 303

- Existing institutions will be upgraded and renovated if they have

not been completed during the period 2006-2015. New ones will

be created, especially in remote areas, in cooperation with the

MLSW and the DNFE.

- The workforce will be important, as Lao population is presently

young and continuing training will be needed. They will need

to upgrade their skills and develop new ones, especially for

industrial and IT development, and following the Lifelong

Learning concept, predominant in many countries.

- Curriculum development will continue with many different

forms of learning. Flexibility will be the key word. There will

be a need to follow closely the evolution of the demand at the

local level to assist the forecasted industrial economic

development.

- Promotion and guidance will be always needed, as, even in

many developed countries, students prefer going into general

education, instead of the vocational path, and many sectors lack

of technicians and skilled workers.

- The focus will continue on women and disadvantaged target

groups, so they can have a significant share of training and

development.

- The IVET concept will be disseminated and allow different

target groups to enter training for different durations and

objectives, but with the possibilities linked to a national

curriculum.


2. Improvement of Quality

The period 2016-2020 should be the time that TVET in Lao PDR

reaches international standards in terms of quality.

- Staff and teachers are the key components for the success of

TVET. They will also need to follow the lifelong learning concept.

- New methods; the use of IT for teaching; the cooperation with

the private sector in many forms will change the role of the

teacher to become more facilitator, than only lecturer.

- Short courses for in-service training will be needed, but upgrading

at the level of Bachelor, Master, and PhD will have to continue

in Vientiane and in universities in the provinces.

- Research in TVET will be strengthened to find the suitable tools

and methods for the Lao context. International cooperation will

help human resources’ development through special programs

with other schools, colleges, and universities in South East Asia,

as well as with other countries. It will be the time to implement

long term partnerships among institutions with exchanges of

teachers and, eventually, students.

- The national qualification system will assist in guaranteeing the

quality of the curriculum, as well as the providers, if it has been

developed in a simple way adapted to the Lao context of budget

and personnel.

- Validation of experience and skills testing can become key tools

for the workers development, as most of the Lao workforce does

not have any qualifications. During the phase 2006-2015, this

LAO PDR 305

system must be built in a way that the partners (individuals,

companies, and institutions) have trust in its reliability and

quality, so that it will really provide opportunities for professional

and career development.

- The number of private providers is going to increase at a very

high rate in the next 10 years. Implementation of standards for

curriculum, institutions, and teachers/trainers will be much

needed.

- All ministries and associations will have to be involved in

human resources’ development to provide precise information on

the needs of occupations and skills at the provincial and national

sector levels, based on regular analysis and on request surveys.

3. Continuing Improvement of the Management and

Administration

Within 2006-2015, it is expected that major changes will be

decided and implemented in administration and management of

TVET. But rules and regulations have to adapt constantly, especially

in a developing country. Then, for the period 2016-2020, several

priorities might appear:

- Decentralization will have to be reinforced, because Vientiane

is likely to attract many people to the workforce; new rules and

regulations will be needed to promote local training and

development for work in the provinces.

- Regular review of the master plan will allow adaptation to


economic changes.

- Following the forecast of growth, it is expected that the private

sector will develop and need more people. If TVET institutions

and organizations want to develop at the international level, they

will need to attract qualified people or young graduates with

potential. Salary, career path, and working conditions will have

to be reviewed regularly to increase motivation to become

directors, experts, teachers, and administrative officers.

- For the next years, various donors will continue to support

TVET, but, in the long term, this support might be reduced.

Then, one key issue of the period 2010-2020 will be to set up

a sustainable mechanism to finance most TVET activities.

Cooperation with various partners especially MLSW, professional

associations, LNCCI will be a key success factor in implementing

a suitable financing system.

Section 2. Conditions to Succeed or How to Limit the Risks

To implement successfully the activities of the master plan and

reduce potential risks, there should be the following guidelines:

- The MOE is responsible of the implementation of this Master

Plan in collaboration with all sectors concerned.

- Key activities involving several ministries must be clearly

LAO PDR 307

defined with a description about the extent of responsibilities for

each partner:

○ NTC will be in charge of the national list of professional

standards; qualification system analysis; and regional training

council.

○ DTVE is responsible for the development of TVET institutions

(policy, implementations); the standards of these institutions;

and general performance monitoring and promotion of TVET.

○ DNFE can be responsible for the development of short

courses for disadvantaged and low educated groups and basic

vocational education courses.

○ VEDC is responsible for expertise on competency and

curriculum standards and development; training of staff and

assessors; research on TVET; and an information system.

○ MLSW will be responsible for the development of the

financing system of skills development funding; labor market

analysis and follow up; skills testing and validation of

experience; and job counseling. For each of these subjects,

committees can be set up under the responsibility of MLSW.

○ Other ministries (MLSW, Health) can deliver vocational

education and training curriculum, with the assistance of

VEDC for designing these curricula and submission for

accreditation.

- Activities are precisely defined and feasible in terms of outputs,

time frame, budget constraints, and available manpower to take

care of them.


- Local short term consultants are hired for the implementation

of projects within fix durations to compensate for the lack of

human resources in MOE.

- The actions are linked to the economic and social priorities, as

well as national and local needs analyses.

- There can be implementation of projects using a sector approach

(examples: hospitality, financing, agriculture, garment, wood) or

general topic approach (curriculum development, qualification

system), but with real applications through pilot projects, then

dissemination, if pilot projects are successful.

- The budget tends to come from various sources: government,

private sector, foreign donors and international organizations,

and individuals when possible. Based on Lao’s economic

evolution and the part of the Lao government, provinces and

companies should increase to develop autonomy and sustainability,

as well as reduce the uncertainty of foreign support.

- A strong marketing and promotion plan is implemented to

promote vocational education and training, especially for skills

which are not so popular, but highly requested by companies.

In conclusion, the master plan is ambitious and covers many

activities. Its success will depend on a close follow up by the

partners involved and regular review of its successes and difficulties.

MONGOLIA

MONGOLIA 311

Chapter 1

Policy, Experience, and Trends of Technical and

Vocational Education and Training in Mongolia

Section 1. THE NATIONAL CONTEXT OF TVET:

INTRODUCTION

1. CONTEXT AND BACKGROUND

1.1 Political and Socio-cultural Context.

Mongolia is a landlocked country in East and Central Asia. It is

bordered by Russia to the north and the People’s Republic of China

to the south, east, and west. Although Mongolia does not share a

border with Kazakhstan, its western-most point is only 38 kilometers

from Kazakhstan's eastern tip. Ulaanbaatar, the capital and largest

city, is home to about 38% of the population.

The area of what is now Mongolia has been ruled by various

nomadic empires, including the Xiongnu, the Xianbei, the Rouran,


the Gökturks, and others. The Mongol Empire was founded by

Chinghis Khan in 1206. After the collapse of the Yuan Dynasty, the

Mongols returned to their earlier pattern of constant internal conflict

and occasional raids on the Chinese borderlands. In the 16th and

17th centuries, Mongolia came under the influence of Tibetan

Buddhism. At the end of the 17th century, most of Mongolia had

been incorporated into the area ruled by the Qing Dynasty. During

the collapse of the Qing Dynasty in 1911, Mongolia declared

independence, but had to struggle until 1921 to firmly establish de

facto independence from the Republic of China, and until 1945 to

gain international recognition.

As a consequence, it came under strong Russian and Soviet

influence; in 1924, the Mongolian People's Republic was declared,

and Mongolian politics began to follow the same patterns as the

Soviet politics of the time. After the breakdown of communist

regimes in Eastern Europe in late 1989, Mongolia saw its own

Democratic Revolution in early 1990, which led to a multi-party

system, a new constitution in 1992, and transition to a market economy.

Mongolia’s political system is a parliamentary republic. The parliament

is elected by the people and in turn elects the government. The

president is elected directly. Mongolia's constitution guarantees full

freedom of expression, religion, and others. Mongolia has a number

of political parties, the biggest ones being the Mongolian People’s

Revolutionary Party (MPRP) and the Democratic Party (DP).

The MPRP formed the government of the country from 1921 to

1996 (until 1990 in a one-party system) and from 2000 to 2004.

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From 2004 to 2006, it was part of a coalition with the DP and two

other parties, and since 2006 it has been the dominant party in two

other coalitions. Both changes of government after 2004 were

initiated by the MPRP. The DP was the dominant force in the ruling

coalition between 1996 and 2000, and also an approximately equal

partner with the MPRP in the 2004-2006 coalition. The MPRP won

the last round of parliamentary elections, held in June 2008.

Mongolia is divided into 21 aimags (provinces), which are in turn

divided into 329 sums (districts). The capital Ulaanbaatar is administrated

separately as a khot (municipality) with provincial status.

1.2 Population and Demographics.

At 1,564,116 square kilometers, Mongolia is the 19th largest and

the most sparsely populated independent country in the world, with

a population of around 2.7 million people. It is also the world’s

second-largest landlocked country after Kazakhstan. The country

contains very little arable land, as much of its area is covered by

steppes, with mountains to the north and west and the Gobi Desert

to the south. Approximately 30% of the population is nomadic or

semi-nomadic. The predominant religion in Mongolia is Tibetan

Buddhism, and the majority of the state’s citizens are of the Mongol

ethnicity, though Kazakhs, Tuvans, and other minorities also live in

the country, especially in the west.

As of 2008, the population of Mongolia has reached 2,683,500.

Birth rates and population growth, which had been decreasing since


1990s, have been on the rise again since 2007. In terms of gender

structure, 49.6 per cent of the total population is male and 50.4

percent is female. Regarding age structure, a high proportion of

young and working-age people relative to the entire population

demonstrates the potential boost to economic development though an

emerging “demographic window”. However, the percentage of people

above 65, a proxy indicator of an ageing population, is also projected

to rise in the future. In recent years there has been an increase in

internal migration from rural to urban areas, as well as an increase

in external migration, with citizens seeking employment abroad for

remittances. From 1995 to 2007, population density in rural areas

increased to 0.93 people per square kilometer, from 0.91 people per

square kilometer. For areas where internal migrants most often are

moving, namely, the capital, Ulaanbaatar and Orkhon aimag (a

province), this indicator increased by 1.6 and 1.3 times to 223.9 and

102.3 people per square kilometer, respectively, in twelve years,

from 136.6 and 81.5 people per square kilometer, respectively,

contributing to urban population growth. As of 2008, 61.8 percent

of the total population lives in cities and urban areas, and 38.2

percent lives in rural areas. There are 1,071,700 residents in the

capital city, Ulaanbaatar, accounting for about 38 per cent of the total

population.

1.3 Economy.

Mongolia's economy is centered on agriculture and mining. Mongolia

MONGOLIA 315

has rich mineral resources, and copper, coal, molybdenum, tin,

tungsten, and gold account for a large part of industrial production.

With the demise of the Soviet Union, the Mongolian economy

faced considerable obstacles; during that era, the nation had become

increasingly dependent on the USSR in the provision of resources

and creation of capital. The immediate effects of the fall led to nearly

triple digit inflation (300%) in 1992. There was a 20% decline in

total output, due to recession in the period 1990-1993 and, thus, a

low GDP growth rate. Today, Mongolia boasts of having been

through an extremely turbulent era, but one from which she has been

emerging with strong macroeconomic performance. By implementing

monetary restraint strategies, the inflation rate averages 7%. GDP

growth rate of nearly 7.5% in 2006 indicates that Mongolia has

achieved relative normalcy. GDP per capita in 2008 was approximately

$1,700.

There are currently over 30,000 independent businesses in Mongolia,

chiefly centered around the capital city. The majority of the population

outside urban areas participates in subsistence herding; livestock

typically consists of sheep, goats, cattle, horses, and camels. Agricultural

crops include wheat, barley, potato, vegetables, tomato, watermelon,

sea-buckthorn, and fodder crops.

Although GDP has risen steadily since 2002 at the rate of 7.5%

in an official 2006 estimate, the state is still working to overcome

a sizable trade deficit. Despite growth, the proportion of the

population below the poverty line is estimated to be 35.6% in 1998;

36.1% in 2002–2003; and 32.2% in 2006. Both the unemployment


rate and inflation rate are relatively high, at 3.2% and 6.0%,

respectively (in 2006). Mongolia's largest trading partner is China.

As of 2006, 68.4% of Mongolia's exports went to China, and China

supplied 29.8% of Mongolia's imports.

1.4 GDP growth

In early 1990s, the GDP growth sharply declined to -10%, due

to serious cut back of financial aids from the USSR on which

Mongolia highly depended. Mongolia’s real GDP growth turned

positive at 2.3 percent in 1994, and it reached a peak level of 12.4

percent in 2008.

[Figure 1-1] GDP Growth

1.5 Education.

Education is one of the areas of significant achievement in

Mongolia. Illiteracy was virtually eliminated, in part through the use

of seasonal boarding schools for children of nomadic families.

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Primary and secondary education formerly lasted 10 years, but it

was expanded to 11 years. Since the 2008-2009 school year, new

first graders have been using the 12 year system.

With improving quality of and access to education of all levels

in 2008, secondary schooling was shifted to a 12 year schooling

system, and 6 year old children were enrolled into Grade 1. The legal

environment has been laid out to regulate relations for the pre-school

education of young children, and a policy on pre-school education

training has been approved. A lunch program for pupils of Grade

1-5 at secondary schools has been in place since 2006.

In response to the labor market demands, attention is being paid

to the training of qualified workers in mining and manufacturing.

To this end, the number of students to be enrolled in vocational

training schools has been set, and the curriculum has been updated.

With monthly stipends of 45.0 thousand MNT to each student, the

enrollment in VTPCs shot up. In accordance with the education

sector development master plan of Mongolia for 2006-2015, a policy

to increase the number of engineering and technology students through

economic incentives, rebates, and job placement — as well as the

provision of student loans from the State Training Fund (to three

in every four students majoring in the above disciplines, and one

in four students majoring in other disciplines) — is now being

pursued. As a result, the number of freshman year students majoring

in engineering and technology reached 23.3 thousand in 2008, which

is 0.7 points higher than the preceding year.

Compared with previous years, the investment volume in scientific


laboratories and testing fields has dramatically increased. This

allowed establishment of specialized laboratories for shared use by

research and training organizations. With a view to building technological

infrastructure, work has started on establishing an incubator center

at the Academy of Sciences (AS) with an agricultural technological

park and an extension center; also in progress are a biotechnological

incubator at Agricultural University (AU), and a food technology

incubator at Science and Technological University.

<Table 1-1> Primary School Enrollment, Pupils in Grades 1-5, Literacy Rate

Indicators 1990 2000 2006 2007 2008Net Enrollment Ratio in Primary Education

97.5(1995)

95.0 91.4 92.7 91.5

Proportion of Pupils Starting Grade 1 Who Reach Grade 5

91.0 83.6 86.8 89.9 92.8

Literacy Rate of 15-24Year-olds 99.0(1989)

97.7 97.7(2000)

97.7(2000)

97.7(2000)

<Table 1-2> TVET Enrollment

Years 2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

STUDENT 22,024 23,249 24,766 29,906 37,867 44681New Student 9,765 11,137 11,531 14,416 19,241 19754 Number of Graduates from Basic Education in Certain Year

7,583 9,160 8,796 11,624 14,948 13852

Number of Graduates from Complete Secondary Education in Certain Year

717 762 948 1,227 2,520 3426

from other schools 700 382 285 451 452 308 employed 149 226 133 192 347 510 unemployed 617 607 1369 922 1156 1558Graduates 8,338 7,054 7,033 9,037 11403 15353

MONGOLIA 319

The current education sector distortions can be expressed by the

following graph that compares the enrollment in post-secondary

education in Mongolia prepared by the National Vocational Education

and Training Methodology Center (NVETMC) in November, 2004.

[Figure 1-2] Percentage of Enrollment in Post Secondary Education

The graph above explicitly shows that the higher education sector

enrolls 80 percent of the entire body of post-secondary education

students; the secondary vocational schools enroll 8 percent; and the

primary vocational schools train 12 percent. The comparative ratio

is 80:8:12.

The graph below gives a comparative international perspective to

the study of education enrollments and the vocational education

component. The higher education sector in the major developed

countries enrolls 12-20 percent of the entire number of students; the

upper secondary education schools enroll 20-30 percent; and lower

secondary and primary schools train 50-60 percent. The average


comparative ratio is approximately 17:28:55, while Mongolia’s ratio

is approximately 16:3:81. The graph has been prepared by the National

Vocational Education and Training Methodology Center (NVETMC),

using the data provided by the National Center for Education

Statistics, the Institute of Education Sciences, Washington, D.C.,

USA.

[Figure 1-3] Percentage distribution of education enrollment of 5- to

29-year-olds among levels of formal education

Graph 4 shows a comparative educational pyramid. The Mongolian

pyramid is heavily dominated by the higher education sector, with

the vocational education sector lagging behind and being several

times smaller than the international average.

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[Figure 1-4] Educational Pyramid

The rapid expansion of the tertiary education sector that was

greeted with enthusiasm in mid 1990s is now being reassessed, as

it has led to a serious mismatch between the number of the higher

education graduates and corresponding jobs in the labor market. At

the same time, the industries that will serve as engines of the

country’s economic growth, such as mining, construction, trade, and

service sector (including tourism, communications, and manufacturing),

have been suffering from a lack of workers with occupational skills.

The scarcity of lower level skilled workers and a “bloated” higher

education system present a serious structural distortion that requires

drastic intervention through a policy change in education, including

vocational education as one of the policy priorities.

1.6 National Development Plan and Strategies

Mongolia has in place well-defined millieu of policy frameworks

and programs meet its development goals. It is noteworthy that a


conscious effort has been made, not to have policies and programs

in isolation of each other, but to take into consideration provisions

of each while designing programmes. In practice, however, the

challenge now is implementation of the policies, in a manner that

permits reforms to take root and gainfully enables Mongolia to play

its due role in the chaning global environment.

The primary tier of national frameworks for macro policies, is

provided chiefly through:

- The Development Concept of Mongolia;

- National Development Strategy 2020;

- Economic Growth Support and PovertyReduction Strategy;

- Social Security Strategy; and

- The Concept of Regional Development.

Parallel and complimentary to the national frameworks, Mongolia

dovetails its international frameworks, which include, inter alia:

- Mongolia Millennium Development Goals;

- National Plan of Action for Decent Work;

- United Nations Development Assistance Framework; and

- MDG-based National Development Strategy of Mongolia.

The second tier focuses on sectoral policies and laws, in support

of the reform process, and they include:

- Labor Law;

- Employment Promotion Law;

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- Law on Education;

- Law on Vocational Education and Training;

- Law on Sending Workers Abroad and Employing Foreign

Workers; and

- Policy on Informal Employment.

The third tier is inclusive of programs and projects being

implemented nationally and/or provincially. Some of the most

relevant to TVET include:

- National Poverty Alleviation Program;

- National Employment Promotion Program;

- Social Security Sector Development Program; and

- Programme for Support of Small and Medium-Sized Enterprises.

Section 2. EMPLOYMENT AND LABOR MARKET

1. Employment.

The central role of employment generation in poverty reduction

was acknowledged at the September 2005 World Summit, when

world leaders committed themselves to the following new MDG

target: “Achieve full and productive employment and decent work

for all, including women and young people.”

This decision had been anticipated by Mongolia, which had


already created a third target under MDG 1 in its national MDG

targets: “Develop and implement strategies for decent and productive

work for youth.” The new global employment target is also included

under Goal 1: Eradicate extreme poverty and hunger, and explicitly

recognize the central place of decent work in poverty reduction. This

highlights that halving world poverty by 2015 requires more efficient

use of labor resources; increasing the share of the working-age

population (both male and female), who are engaged in decent work;

and enhancing the quality and productivity of available jobs.

Statistics put Mongolia’s labor force at 1.5 million people, of

whom were unemployed. Of those who were employed, 53 percent

were self-employed and unpaid family workers; 14.1 percent were

in the public sector; and the rest comprised paid employees (40

percent) and employers (9 percent).

Unemployment strikes, irrespective of age and gender in

Mongolia, though mainly among the younger and presumably newly

graduated job seekers. Unemployment appears to be relatively high

for persons in the 20-29 year-old age group. Studies reveal relatively

large proportions of unemployed university graduates.

Informal economy is a new phenomena in Mongolia emerging

with transition to the market economy. Following are some figures

showing the current situation of IE in Mongolia:

∙ 126 thousand people are engaged in the informal economy (LFS,

NSO,2004);

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∙ Main activities comprise retail trade, services, financial services,

manufacturing, transport, and artisanal mining (32 activities

listed as informal for taxation purpose);

∙ 44.9% of IE people are engaged in service; 34.9%, in the

manufacturing and trade sectors;

∙ 55.2 % are male; 44.8% are female; and 64% of the people are

aged 20–40 years;

∙ Of the 115,000 PWDs, 4% are working in the informal economy,

and 90% are unemployed;

∙ 98.9% of total working children are self employed;

∙ 70.9% are from urban areas; 29.1%, from rural; and there is a

rate of high rural-urban migration (1/3 of UB population are

in-migrants); and

∙ 70.5% possesses an education level higher than complete

secondary.

2. Skill Supply and Demand

Employers in newly emerging sectors are trying to recruit skilled

workers but have difficulty finding applicants who are qualified.

Concern exists that young people lack basic skills. A 2004 survey

by the Labor and Social Welfare Agency found that 71 percent of

companies had difficulties recruiting employees; 80 percent thought

applicants did not have suitable skills; and 67 percent replied that

job seekers lacked experience. The same survey predicted employer

demand for practical trades such as bricklayers, decorators, carpenters,


welders, plumbers, and assembly workers. Even while a significant

number of Mongolian people are unable to find good employment,

Mongolia faces significant gaps in filling key jobs critical to

economic development, and foreign workers make up a significant

proportion of the active workforce in the rapidly growing mining,

construction, and road sectors. An interesting development is that

employers are offering their own training on the job. According to

the School-to-Work Transition Survey segment for employers, 70

percent provide training for new hires. Most training is for practical

skills needed for a particular job. This suggests that on-the job

training may be job–specific, with less opportunity for acquired skills

to be used in other firms.

The results using data from the School-to- Work Transition Survey

show that men with a vocational education have a very low wage

premium, compared to those with compulsory education. This suggests

a weakness in the vocational education system.

3. Mismatch

One of the key challenges that is faced by Mongolian education

is a skills mismatch between human capital, in the form of education,

skills, and experience of the labor force, and the demands of the

labor market. A number of factors have contributed to this mismatch.

Some children still drop out of school. Studies show that the

likelihood of dropping out is linked to household poverty, geographical

MONGOLIA 327

area, and family background. Boys in rural areas are more apt to

leave school than girls. Children in poor households are more likely

to drop out than those from non-poor households. There is awareness

— by the government, enterprises and workers — that public and

private training institutions are encountering severe difficulties in

providing the level of skills training needed for modern enterprises.

Technical skills are generally accorded low status and are given little

recognition in Mongolia, and because academic education is seen,

in many cases mistakenly, as a more helpful path toward lucrative

employment, most young people continue to choose academic

education, rather than vocational training. This is despite the fact that

there are significant emerging opportunities in trade occupations and

technical jobs. About 140,000 Mongolian students are attending

university (about 15 percent of Mongolia’s workforce), and many

of these graduates face difficulties in finding jobs because of the

country’s skill mismatch. In 2006, only 7,100 (5.4 percent) of tertiary

graduates were from TVET institutions, of which 48 percent were

female.

According to a study conducted by the State Employment Agency

in 2003, there were 49 graduates of the higher education sector per

one workplace in the construction industry, whereas there were 2.6

workplaces per one graduate of the secondary vocational sector, and

3.8 workplaces per one graduate of the primary vocational sector in

the same industry.


[Figure 1-5] Labor Market Demand Ratio by Education Level (prepared

by the State Employment Agency)

Shifting larger proportions of students into the TVET system may

be one way to address the skills mismatch and improve labor market

outcomes. However, such a policy option would be viable only if

the quality of education and training students receive is of good

quality and relevant to market demands, which can only be achieved

through an overhaul of the existing system. With a good quality

TVET system, graduates are more likely to be employed.

4. Data Monitoring

One of the needs in establishing a coherent and coordinated labor

market information system is the provision of current information

on labor market requirements; this information can serve to inform

those who monitor and evaluate the output of the reformed TVET

system. A good monitoring and evaluation system will ensure that

there is quality control of the output of the TVET system, as it

MONGOLIA 329

provides checks and balances to employers of TVET graduates.

5. New Demands: Industry and Government Policy

At a time when a considerable number of Mongolian people are

unable to find decent work, Mongolia faces sizeable gaps in filling

key jobs critical to economic development, while foreign workers

make up a significant proportion of the active workforce in rapidly

growing sectors. As noted above, this problem is related to both the

education that young Mongolians are receiving, which frequently

does not impart skills useful in the job market, and to more

specialized vocational training for workers, which is also not

adequately linked to the needs of the workplace. Addressing these

problems will require a sustained cooperative effort involving all the

key parties: educational institutions, training providers, employers,

workers, and the government.

Furthermore, an urgent need exists to reform vocational education

and training to overcome the current mismatch between the skills

provided by training institutions and the qualifications sought by

competitive enterprises. Key priorities are skilled workers in certain

service sectors, such as finance and tourism, as well as jobs such

as mechanics, welders, plumbers, electricians, food technologists,

construction engineers, and heavy equipment operators. Vocational

education and training is currently outdated, underfunded, and

inflexible. Although the problem has been identified by special


working groups and donor-funded projects, VET is, for the most

part, centered in institutions and not linked to the workplace. There

is a need to establish standards and develop assessments; upgrade

curricula and train teachers; and revise textbooks and replace

equipment. Young women and men need better bridges between

classroom training and work experience. Consensus exists that

education and training require stronger links to labor markets. This

entails greater participation by employers and workers in reviewing

training courses; setting occupational standards; offering on-the-job

training and developing bridge programs between school and work,

such as through apprenticeships and internships. In order to direct

students to training opportunities, guidance counselors, and employment

services require labor market information that is timely and practical.

In addition to ongoing labor force surveys with comparable statistics

to analyze trends in the labor market, there is a need for information

and analysis to determine the specific needs in emerging sectors.

These issues apply equally well to improving vocational training for

adults looking for new jobs or better employment. Recent surveys

by the Mongolian Employers’ Federation have found high levels of

dissatisfaction among employers regarding the quality and usefulness

of training received through existing training centers.

To achieve these ends, Mongolia needs a national strategy and

legal framework for policy coherence, with greater participation by

employers’ organizations and trade unions together with the Ministry

of Education, Culture and Science; Ministry of Social Welfare and

Labor; other line ministries and government agencies; and non-

MONGOLIA 331

government organizations. This should cover non-formal education

and workplace training. It will require legal frameworks and policy

coordination for education and training.

Training and technical education need to continue strengthening

coordination between line ministries, employers’ organizations, trade

unions, private training providers, non-government organizations,

and other partners. In addition, vocational education and training

must find new sources of financial support. Evaluations in other

countries indicate that successful training often relies on fees from

participants and contributions by employers, as well as funding by

the state.

The government established a national council on vocational

training, skills standards, and certification that is a key step toward

making a large and sustainable improvement in the quality of these

training programs.

This involves key stakeholders to support the development of a

legal framework, financing mechanisms, methodological centers,

vocational standards, pedagogical issues, certification procedures,

teacher training, school management and training facilities, among

others. It leads to a system that identifies skill needs and delivers

training services through formal institutions, non-formal learning and

on-the-job training. Systems should be developed for workers to

continuously advance their skills and qualifications on continuous


bases. Lifelong learning should be open to all workers, including

young people.

Three high-priority sectors for this skills program are mining,

construction, and tourism, all of which are likely to continue to

generate employment opportunities for those able to take advantage

of them. Programs to provide potential employees in these and other

sectors with the needed skills, and with certification of those skills,

have the potential for significant impact. The government is making

efforts to deal with the problem of negative public attitudes,

particularly among young women and men, toward technical jobs

and vocational training. The government encourages schools and

media to promote the value of practical-oriented, hands-on approaches

to developing skills required in the labor market. It is also taking

steps to ensure that youth are able to participate in business

incubators that link enterprise training with follow-up support

through business development services. Business leaders are involved

in mentoring programs to support young entrepreneurs. The

government has been taking the following noteworthy measures:

- Strengthening links between the supply of education and training

and demand for skills in labor markets, through greater

participation by employers and unions in reviewing training

courses; setting occupational standards; offering on-the-job

training and developing bridge programs between school and

work, such as through apprenticeships and internships.

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- Launching a multi-stakeholder effort to reform vocational

education and training to overcome the current mismatch between

the skills provided by training institutions and the qualifications

sought by competitive enterprises. Involve employers, trade unions,

Government and schools in this effort.

- Launching a campaign to change attitudes toward vocational

education and training by promoting the value of practical-

oriented, hands-on approaches to developing skills required in

the labor market.

- Establishing national council on vocational training, skills

standards, and certification, involving key stakeholders who will

work together to support the development of a legal framework,

financing mechanisms, methodological centers, vocational standards,

pedagogical issues, certification procedures, teacher training,

school management and training facilities, among others.

- Establishing professional qualification standards under the

direction of this council that will be of use to Mongolian

workers seeking employment at home and abroad

Section 3. Governance of the TVET System

1. Institutional Framework

TVET is administered under the overall supervision of National

Council on TVET and purview of the Ministry of Education, Culture

and Science (MECS) and government implementary agency for


TVET and the Ministry of Labor and Social Welfare Services (MLSWS).

MECS oversees formal long term TVET (more than two years),

while MLSWS oversees the non-formal short term TVET (ranging

from two weeks to 45 days). On-the-job (apprenticeship) training is

conducted by industry. All schools offering preliminary vocational

education recruit students who have completed 9th grade, while

intermediate vocational education institutions recruit students who

have completed 11th grade.

[Figure 1-6] Framework of the Mongolian Education System

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The is depicted in diagram 1. Diagram 1 indicates that Preliminary

Vocational Education lasts 2.5 years and usually admits students from

16 years onwards. Intermediate Vocational Educational lasts between

1.5 and 3 years.

[Figure 1-7] Mongolia’s Education System

Under informal short-term TVET, the LSWSO of MSWL

coordinates activities related to employment and provides accreditation

to 1,200 training providers to conduct informal short-term TVET. As

of 2010, there are 1,200 training providers, 150 of which were also

accredited to receive funding from labor development funds to train

unemployed people. The main purpose for this short-term vocational

training is to help unemployed people learn a new skill to seek

employment.

In 2009, the government of Mongolia piloted and implemented the

On-the-Job (apprenticeship) Training Project financed by the


Employment Promotion Fund. 93 entities participated in the project.

On-the-job (apprenticeship) training was conducted to provide

advanced and professional skills to employees.

[Figure 1-8] TVET System

The students enrolled in VTPCs after completion of lower

secondary education (basic education or incomplete secondary

education) may continue to upper secondary school, or VTPCs, and

they can access curricula in 152 professions. The students with a

complete secondary education certificate can access technical and

vocational education programs for 28 professions. According to the

MECS statistics, students with complete secondary education account

for only 30% of the total students in VTPCS and technical colleges.

MONGOLIA 337

<Table 1-3> Types of Vocational Education/Training and Graduation

Documents

No Types of Training Duration Provider Degree/Certificate Granted

1 Vocational Education 2.5 years VTPC and colleges

Certificate of Vocational Education

2 Training of Professional Workers

1 to 2years

VTPC and colleges

Occupational Certificate

3 Training of Technicians and Technologists

1.5 to 2 years

VTPC and colleges

Diploma

4 Competency Training 1-2 months Short-term training providers

Competency Certificate

5 Apprenticeship Training 3 months Employers Certificate

The governance structure, which sets the norms and standards for

curricular development for the subsector, is facing capacity and

quality issues. The National Vocational Education and Training

Methodology Center was responsible for the development of skills

standards and curricular materials for both formal and informal

TVET courses; the production of textbooks; the training of TVET

teachers and industry practitioners to develop modular training

materials; teachers’ pedagogical training; and research work on

TVET-related issues, such as labor market studies. From 2010 the

government of Mongolia established a new TVET agency,

responsible for TVET policy implementation and the above mentioned

responsibilities of NVETMC. There is also an accreditation agency

known as the National Council for Education Accreditation

(MNCEA), whose role is to accredit the quality of TVET programs.


The current TVET system can, thus, be described at best as

fragmented. Different agencies responsible for different roles in the

TVET system are working in silo without much coordination,

interaction, and synergy.

Graph 7 shows the TVET professional development training

system.

[Figure 1-9] TVET Professional Development Training System

Training Provider

Government Implementing AGENCY for VET

Sector Councils

NCVET

Regional Methodology

Center


Center


Center


Center

Training Provider

Training Provider

Training Provider

Training Provider

•TVET School administrators•TVET in-service teachers and instructors•TVET pre-service teachers

• VET short term training providers• MECS and VET Authority staff

Professional Development

In addition, dated equipment, insufficient training, and the lack of

skill development opportunities for teachers all seem to suggest that

the developed standards and curricula have not been deployed at the

school level.

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Section 4. TVET System by Target Groups:

The TVET sub-sector comprises specialized upper secondary

schools, as well as post-secondary diploma programs housed in

various types of technical and vocational education institutions.

∙ School-based vocational education: At the secondary school

level, vocational education starts after completion of middle

school. The training duration is 2.5 years, leading to an award

of a Professional Certificate and Complete Secondary Education

Certificate. The other option starts after high school for a

one-year specialized training with a professional certificate.

∙ Technical Education: Technical education begins at the post

secondary school level, with Grade 11 or a Complete Secondary

Education Certificate as the common entry qualification. This

arm of the system covers 2 years of advanced training for

higher-level skills development, leading to a professional diploma.

Completion of the diploma program can be linked with higher

education after 2 years of further study, or 3-4 years after the

professional certificate.

The table below describes the composition of 63 TVET institutions

under MECS:


<Table 1-4> Summary of TVET institutions

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

TOTAL TVET SCHOOLS 41 47 52 56 63 63State Owned VTPCs 22 21 21 23 23 23Privately Owned VTPCs 1 3 7 10 12 12State Owned Colleges (with multi step training)

6 9 9 9 8 8

Privately Owned Colleges (with multi step training)

4 4 5 4 5 5

Branch or Attached School to Higher Education Institutions

7 8 8 8 14 14

Secondary Schools Combined with Vocational Training

1 2 2 2 2 2

Vocational school teaching within the formal educational sector is

predominantly organized according to school subjects. Contents are

mainly of a general educational and theoretical nature, thus primarily

providing preparation for further educational pathways, leading to

qualification as a technician at a trade and technical school, or as

an engineer. The labor market relevance of such training content and

its applicability to occupational practice is, thus, relatively low.

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<Table 1-5> TVET Subject

Two Year Vocational Education School

2.5 Year Vocational Education School

3 Year Vocational Education School

Firstyear

General education with professional content



Second Year




Third Year

Professional theories and practice

Professional theories and practice

Professional practice at some schools

General education and professional content at some schools

<Table 1-6> Training Subject

One year training 1.5 year training

First Semester Core skills and professional subjects

Core skills and professional subjects

Second Semester

Core skills and professional subjects in the first half of the semester. Production practices in the second half of the semester.

Core skills and professional subjects

Third semester Production and prior graduation practice


Section 5. TVET INFRASTRUCTURE

1. Teachers and Instructors

Teachers, trainers, and in-company trainers lack knowledge in the

field of new technologies and in the methods of employment-oriented

teaching. The age of the teaching staff in schools, who were

generally trained before the change of the political system, is

relatively high. In addition, very little in the way of continuing

training opportunities have been open to them thus far. They, therefore,

lack the technical and didactic know-how to train skilled workers

in a way which meets requirements. To a more limited extent, the

same is true of trainers in companies. Although the fact that they

are confronted with technical innovations in the companies on a daily

basis means they have fewer deficits in the field of new technologies,

they lack didactic and pedagogical qualifications. In order to bring

about successful reform of skilled worker training, advanced training

of pedagogical staff needs to be the first step.

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[Figure 1-10] TVET TEACHERS 2009-2010

682

586

268

517 generel education

vocational

practical

voc&prac combained

Total 2033 1256 female61%905 up to 30 years old881 up to 31-50134 up to 51-54Doctor Ph 25Master 434Bachelor -1281Others -293

There is currently no structured and coordinated pre-service or

in-service teachers’ pedagogy or technical skills training. Teachers’

pedagogy training has been left very much to the initiative of the

TVET schools. For technical skills upgrading, some schools send

their teachers periodically for skills training. However, because of

the lack of modern equipment that is in line with the needs of the

employers, it is likely that most teachers would need technical skills

training when new equipment and machines are put in place by

schools.

2. Facility and Equipment

Most of the infrastructure of TVET schools needs rehabilitation

and expansion. Interviews with TVET school directors revealed that

the existing infrastructure of most schools, including practical


training facilities, may not be able to meet the training needs of

implementing a demand-led competency-based TVET curriculum.

For most schools, practical training equipment and machines are

either outdated, broken, or of insufficient quantity to meet the

requirements of practical training. Many schools are still using

Russian-era equipment. The policy of providing stipends for students

attending preliminary vocational education has led to an increase in

enrollment of TVET students and, as a result, put additional pressure

on existing facilities and infrastructure. Indeed, while some updated

equipment donated by developmental partners has been helpful, it

is most often only in limited quantity and may not be sufficient to

meet the needs of an increased class size.

3. National Qualification Framework

As for our country, before 1990 the organization of the granting

vocational degrees for qualified workers and the content development

of vocational education and training had been carried out in accordance

with the official reference book of salary tariffs for vocations.

The failure of the recommendation to fulfill a path to free market

economy and the abolishment of the state committee for labor and

salary caused an unsuccessful infrastructure for TVET.

In 2001 the Ministry of Social Welfare and Labor developed a

rule and instructions to adjust the previous recommendation of

vocation salary tariffs to the new conditions of market economy.

However, the new rule doesn’t cover the entire country, but is

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designed only to fix the vocational degrees of the workers and

regulate the sizes of salaries of involved ministries, vocational

associations, and enterprises based on their multi-side agreement.

Therefore, issue of these documents has not been adequate to fully

satisfy current conditions, and the situation is worsened by the lack

of an appropriate regulatory structure.

The national skills standard NQF is a relatively new concept for

Mongolia, and it is understood to become a common vehicle in

providing new regulations and co-ordination for vocational education,

training, and employment.

4. Current Status of NQF and TVET

With the implementation of the goal to transform Mongolia into

an agricultural-industrial society, many new industries and enterprises

had been newly established. Technical and technological innovations

made it necessary for people to fully master new equipment and

technologies, thereby increasing industrial and labor productivity.

This prerequisite and the government’s educational policy have

improved the organization and growth of vocational education and

training in 1964-1990. Two subsystems evolved: technical and

vocational schools and onsite training.

Under this system worked various regulatory organizations, such

as the Department of Vocational School Affairs; training methodology

cabinet; regulatory council in charge of technical and vocational

training affairs; and methodological councils of technical vocations


under the State Committee of Labor and Salary Affairs. In 1984 the

General Authority of Technical and Vocational Schools evolved with

broader rights and functions. In addition the mid career training

service for the workers of TVSs, and the training and methodological

councils at ministries, industrial combinations, and individual

enterprises helped develop more policies and implemented more

vocational education and training.

A framework was established for developing the training

curriculums, content, and methodologies for technical and vocational

education, and for providing instructors with methodological

guidance. The main documents to determine the vocational education

and training content, such as the reference of vocational degrees and

respective salary calculations, vocational definitions, training plans,

and curriculums were developed and followed in the entire country.

<Table 1-7> Connection between the Training Types of Vocational Education

and Qualifications for the Beginning and Intermediate Levels

А.

Occupations Activity/Function Training Resource

Vocational Degree

Technical Staff with Primary & Intermediate Level Vocational Education

Production Technician

To assist in production and preparation activities

Technical College

4 Degrees, with Diploma

Non Production, General Technician

To assist in research and processing activities

Technical College

Vocational Staff

To implement production and preparation of activities

Vocational Training Institutes

Vocational Degree 1-4

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Skilled Workers

MasterProduction and Technology Management

Completed A VET, technical and vocational secondary school; subsequently worked in respective industry for more than three years; attended a master’s course


Highly Skilled Worker

To perform high qualification activities in the broad vocational framework

Completed A VET, technical and vocational secondary school; subsequently worked in respective industry for more than a year; involved in professional advancement courses


Skilled WorkerTo perform the work of the vocation degree

Completed A VET, technical and vocational secondary school, or non formal training; subsequently worked in respective industry for 1-2 years; attended high skill training programs


Low Skilled or Unskilled Worker

To perform the low level or specific works of the vocation

Obtained vocational skill by non formal training, secondary school, and labor training


B.

In the first years of the economic transition the whole system

collapsed and failed to function, and the national framework for

granting vocational degrees ceased working. The majority of the

vocational schools are now subordinate to the respective ministries,

creating the inability to regulate training content and duration;

vocational directions for students; and student numbers, etc.


In 1998 according to the order of the Ministry of Health and Social

Welfare, a national occupational classification scheme was developed

parallel to the international standard classifications of vocations. The

methodology “to develop the reference of vocations and relative

salaries, and qualifications” resulted in 2001 by the order of the

Minister of the Social Welfare and Labor.

One of the major differences from the previous recommendation

is that the organizations are entitled to establish their own by laws.

The methodology of how to develop and implement norms for

workers and industries has been developed.

However, the failure to implement the bylaws in most industries

led to an absence of vocational degrees being granted by the

three-sided national Committee on Labor and Social Convention. The

national vocational and qualification system was, thus, in a precarious

state.

5. Imperatives in Developing the National Qualification

Framework

Along with the lack of the universal rules and regulations for

vocations and related salaries, there was inadequate implementation

of the order of the Minister of Social Welfare and Labor, dated

November 11, 2001, which obliged each enterprise and organization

to establish its own occupational and positional bylaws and labor

norms; the granting of vocational degrees remained uncertain.

Vocational definitions, based on job and occupational analysis, and

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vocational education and training standards, which defined the

functions and tasks of vocational education and training, were

inadequate to serve as nationally universal skills’ standards.

A number of private sector enterprises, ranging in size from

medium to large, have voluntarily come together under private sector

leadership to identify broad vocational competencies as possible

learning outcomes, and as a basis for upgrading technical and

vocational training. Yet, there is no formal organization or agency

that assumes the responsibility for advancing a coherent categorization

of industry-recognized competencies, qualifications, and skills. This

gap continues to weaken Mongolia’s progress towards a demand-driven

and fully credentialed TVET system.

Instructional programs and the formal curriculum in Mongolian

TVET colleges and post-secondary school institutions continue to be

discipline and subject-structured according to a traditional supply-driven

model. Mongolia’s dynamic economy and labor market require a

modernized TVET system, with labor market relevant occupational

practice in line with regional and international standards though the

TVET Project. The Government of Mongolia seeks to upgrade the

TVET and higher education systems to ensure that graduates enter

the labor market with the required skills and competency sets for

new and emergent economic sectors.

To evaluate and certify the education and respective skills, a state

and private sector partnership is necessary for conducting high

quality training aimed to help students master the skills fit for the

labor market demands. The project of the Millennium Challenge


Corporation of the USA has begun the task of establishing national

skills standards. The following work is undertaken:

∙ Development of agreed skills standards and a national vocational

qualifications framework (NVQF) and the integration of current

fragmented provisions for technical and vocational education

and training into a single and uniform TVET system governed

by the NVQF;

∙ Regular revision and adaptation of TVET instructional programs

to new economic and business needs in line with the NVQF;

∙ Development, installation, and piloting of a competency-based

training system that reflects the agreed upon educational and

skills standards; modern and relevant TVET curriculum programs;

teaching and learning methodologies; updated instructional

materials; and new evaluation processes;

∙ Establishment of a national learning resource center (NLRC) to

support new approaches to TVET, including training technologies

for on hands-on experience by students; and

∙ Definition, design, development, and implementation of a

national training program for TVET instructors, in support of

a continuous learning approach to professional development.

The overarching curriculum model will follow Mongolian-agreed

NVQF principles and provide for a seamless and sequenced program

of courses, units, and content that can be offered for short-term,

credit (certificate) and non-credit training. It will provide the backbone

for longer-term and formal education training, leading towards

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advanced certificates and associate diplomas, with articulation into

degree studies within technology institutes and universities. It will

be a competency-based curriculum framework, infused with a variety

of approaches to learning, including alternative delivery systems. The

competency-based approach to learning will enable self-paced

learning and virtual applications, including virtual textbooks and

laboratories.

The new curriculum framework and NVQF will be guided by a

proposed NQTF11 and comprise the most recent and relevant

technologies required by industry and employers. Although new

curricula and learning resources will be carefully and comprehensively

installed in all TVET institutions, content of the program must be

maintained on a digital learning management platform. A curriculum

development process based on DACUM and SCID approaches.

6. Strategy:

Design, develop and a support a national vocational qualifications

framework as the underpinning instrument for the development of

a policy, legislative, and regulatory framework to guide rationalization

and equalization of the national TVET system.

∙ Identify and describe in detail the process of consolidating the

key instruments and stakeholders involved and critical to the

creation, installation, and maintenance of the NVQF;

∙ Identify, describe, and define the processes, conditions, expectations,

and steps to be taken for recognizing and validating trade and


occupational skills and competencies central to a functional

NVQF;

∙ Develop and establish a provisional NVQF that provides a

cohesive and coherent structure, drawing on all existing

post-secondary school qualifications that are offered in recognized

TVET colleges and organizations, into a single national and

uniform framework and one that is appropriate to the skill

development needs of Mongolia;

∙ Define the scope, pathways, and articulation of recognized

qualifications included in the NVQF;

∙ Define each of the levels of the framework through level

indicators and descriptors;

∙ Identify potential entry and exit points for improved articulation

and career pathways;

∙ Develop a provisional credit transfer matrix for discussion and

agreement;

∙ Develop and trial a draft policy matrix addressing management

approaches, quality assurance procedures and routine operation

of the NVQF;

∙ Design and develop a national registration and quality assurance

structure detailing relevant systems and procedures;

∙ Design, define, and develop a testing and certification system;

∙ Facilitate internal quality assurance for the TVET institutions

and regulatory bodies;

∙ Define and set skill standards for each qualification level,

illustrating competency sets and skill development steps;

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∙ Suggest to the NCVET a salary and wage rate system based

on agreed skill sets and TVET qualifications obtained within

registered TVET colleges and training organizations; and

∙ Revise and refine trade tests, taking account of new education

and skill and occupational standards, in line with new

competency sets within the proposed competency-based system.

Section 6. National Vision and Strategic Direction of TVET

The Government has made a strategic initiative on national TVET

development. The new TVET Law was approved by the national

Parliament in February 2009. One major outcome of the new TVET

law was to establish the National Council of TVET to improve

effectiveness of national TVET management and resources in

promoting a more market-oriented and demand-driven TVET system.

Under the new framework, the following challenges are identified:

(i) inadequacy of the skills produced by the education and training

systems to meet the needs of the labor market; (ii) mismatch between

the skills that workers bring to the labor market and those demanded

by the labor market; (iii) under-utilization of human capital; (iv)

insufficient public-private partnership for TVET development; (v)

improvement of teacher qualifications; (vi) amendment of the

national training standard to the new labor market principle; and (vii)

improvement of quality learning environment. Strategic policy on


vocational education and training has been implemented, since the

transition to a market economy. The transition policy and phases can

be grouped into 4-distinct stages:

Stage 1. covers the period from 1993 to 1997, when the first

ADB-supported education and human resource master plan was

implemented. This stage coincides with Mongolia’s transition to a

market economy. A strategy to make fundamental changes in the

system of technical and vocational education was put forward by

objectives detailed in the 1994 Education Master Plan. They

included:

∙ Providing basic vocational skills and basic education within the

general secondary education system;

∙ Developing technical education as a next level to general

education; and

∙ Merging and privatizing training organizations that provide

vocational training and re-training courses outside the general

secondary education system.

Stage 2. covers the period 1998 to 2003. The national program

on vocational education and training was adopted, along with a

subsequent action plan. Five objectives were put forth in support of

activities:

∙ Creating a new management and organizational system and

mechanisms for activities in technical and vocational education

and improving capacity of human resource management;

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∙ Undertaking capital investment in technical education and

vocational training; renewal of its training programs, practice

technology, and equipment supply to improve the training

environment and comprehensive development of sector financing

mechanisms;

∙ Developing flexible training content that meets the requirements

of the customer interests and needs, as well as developments

in production, technical, and technological fields; training

students with skills levels that meet the new standards; piloting

and implementing multi-optional approaches in training;

∙ Identifying an effective and comprehensive structure, modality,

and location of technical education and vocational training

organizations and increasing accessibility of training services

delivered to trainees; and

∙ Ensuring better coordination to improve efficiency of programs

and projects implemented through national and international

cooperation schemes.

Stage 3. The Education Sector Strategy, 2000-2005 was approved

by the government in February, 2000, as a continuation of the 1994

Master Plan. The aim was to create a new system of technical

vocational education in a market economy for a newly transformed

Mongolia. The following strategic objectives were put forth within

this mid-term strategy:

∙ Matching technical education and vocational training with labor

market demand and needs;


∙ Modernizing training standards and the assessment system of

graduates;

∙ Training TVET teachers, including re-training, skills training,

and in-service training;

∙ Reforming technology and equipment supply of the sector and

enhancing the training and learning environment;

∙ Renewing textbooks and supplying the system with new training

tools and instruments; and

∙ Developing comprehensive financial mechanisms.

Within the Social Security Sector Development program, the

National Vocational Methodological Center was established under

MECS, in addition to 6 regional vocational methodological centers;

25employment training centers (18 of them at VETC, and 7, at the

Employment Office) and 40 employment education centers in the

secondary schools, as well as 6 business incubators and 7 employment

training units.

Stage 4. Education Sector Development Master Plan

The government of Mongolia adopted the “Master Plan to Develop

Education of Mongolia for 2006-2010.” The following objectives are

put forth within its framework:

- Expand the services of TVET;

- Support establishment of private TVET schools;

- Comply TVET training with the demands of the work force;

- Improve technical support bases; supplies of training equipment;

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and tools of TVET schools;

- Prepare teachers and re-train teachers;

- Improve management and funding mechanisms; and

- Establish social partnerships.

The government of Mongolia has introduced a 2006-2015 master

plan to increase the enrollment of TVET by 56.1%. The education

statistics show that the enrollment rate in TVET increased by 62%

between 2005 and 2008, and by 92% between 2005 and 2009.

Within the development policy of TVET, the government, in

cooperation with donors, the private sector, and civil society, has

undertaken the following actions:

1. Reforms to TVET policy and operational framework, which

aims to strengthen the policy and operational framework; create

an efficient governance and standard setting mechanism; and

secure private sector participation for TVET.

2. Creation of innovative skills standards and competencies

focused on the establishment of skills standards and a competency-

based qualification training system which will be installed in

training institutes.

3. Competency-based training to implement the new competency-

based training system in TVET schools.

4. Career guidance to provide career guidance and employment

information services.

5. Improvement of learning environments in TVET schools

through supplying select colleges and schools with essential


equipment, instructional technology, and media.

Section 7. Legal Frame for TVET Adults and Lifelong Learning

In January 1992, a new constitution was adopted for Mongolia that

incorporated the principles of a democratic society based on a market

economy and the guarantee of fundamental human rights. The

constitution has been the basis for political and legal development

in Mongolia, including the legal framework for the education sector.

The government has granted the education sector a premium role,

both in the Soviet era and since, as traditionally, Mongolians regard

education as an important asset. The rapid social and economic

changes from 1990 started with reforms to move the education

system away from an old-fashioned education mechanism more

suited to a centrally planned society.

Several legal and policy documents, such as the 1995 government

Policy toward Education, affirm that education is a priority sector

and should play an important role in fulfilling the country’s

development goals. The policy document advises that the Mongolian

government recognizes that the source for Mongolia’s future

progress is the continually developing, creative citizen with highly

developed education and intellectual abilities and skills and so it

places education as a priority sector of society. This document

MONGOLIA 359

advises that education is the source for sustainable and accelerated

economic and social growth, science and technology progress,

intellectual and welfare creation, national sovereignty and security.

Accordingly, education reform is a political priority in the national

development agenda of the government, as a market economy will

need different skills from those previously provided by the education

system. Recently, the government focused on fighting poverty and

regarded education as a key instrument for improving equity, living

standards, and economic capacity. The government Policy toward

Education and the Education Law identify the following principles

governing the right of people to education and government

responsibility in the provision of education service delivery:

∙ Education is to be developed as a priority sector. The

government will continually support and nourish it while

monitoring and coordinating its activities;

∙ The government will provide free basic secondary education for

all;

∙ Citizens will be provided with an equal opportunity to learn in

their own mother tongue by not discriminating on account of

social origin, status, race, color, age, sex, wealth, job, position,

or religious belief;

∙ It is prohibited to organize any training activities contradictory

to the interests, health, and security of individuals and of

society, or contradictory to democratic beliefs; and

∙ The government will support education institutions without


discriminating on the grounds of ownership.

The legislation and policies on TVET and Adult Education are

being supported through the following laws:

- The Constitution of Mongolia;

- Law on education;

- Law on TVET;

- Law on primary and secondary education;

- Law on higher education;

- Labor law; and

- Law on employment promotion, and other legislative acts

enacted in conformity with therein.

The Constitution of Mongolia of 1992 states, “Everyone has the

right to education, the Government provides free basic education for

all.” It ensures all with the opportunities to have educational access

appropriate for them in time, form and place.

In 2002, the first independent law on VET was adopted. The

purpose of professional education and training is to provide

professional skill and education, to enhance the profession and

develop both labor and communication culture in accordance with

the main principles of education, and international common trends

and norms, based on the citizens’ talent, interest, and need to engage

in labor. The law provides legal framework for:

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- Management;

- Content and standards;

- Types of training institutions;

- Quality assessment;

- Rights and responsibilities of the participants in training

relations; and

- Financing and its sources.

Section 8. NATIONAL DEVELOPMENT AND TVET

POLICY

1. TVET Policy History and Priority

In fulfillment of the social need to prepare skilled workers, the

first vocational school, “Mongol Trans”, was established in 1929.

Then Technical Vocational School was founded by the 265th degree

of Ministers’ Council of the People’s Republic of Mongolia in 1964

and became a foundation of the current TVET system.

Until 1980, TVET in Mongolia was the responsibility of industry

and technical ministries, and it was delivered by agencies which

were directly answerable to technical ministries independent of the

Ministry of Science and Education. In 1985-1986, the Ministry of

Science and Education was given responsibility for policy on TVET,

but training institutions remained under the supervision of other


ministries. It was not until the structural reform of the economy at

the beginning of 1990s and the concomitant restructuring and closure

of state companies and technical ministries that full responsibility

was transferred to the Ministry of Science and Education. The 1991

Education Acts provided a framework for TVET. From 1992

onwards, a number of different types of institution came into being,

offering various levels of training after the eighth and tenth years

of schooling.

The government of Mongolia declared 2007 as the Year of Great

Construction and Workplace Increase. It set out objectives to create

800 thousand new workplaces in all sectors of the economy and

focused on fighting unemployment and poverty. It regarded

education, in particular, technical and vocational education and

training, as a key instrument for improving equity, living standards,

and economic capacity.

2. Economic Development and TVET: National Development

Plan and TVET Policy

Mongolia has entered into a new era of growth. The nation’s

Human Development Index (HDI) is now at its highest level ever,

and it has increased in every region. All three components of the

HDI, indicators measuring status of health, education, and income,

have risen significantly in the last seven years, and the HDI has

improved significantly in all aimags. In the last five years, the gap

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in the HDI between more and less advanced aimags has been

shrinking. Mongolia is also showing progress in most of the

Millennium Development Goals. Achievement of 60 percent of the

22 national targets is on track, including the vital infant and maternal

mortality goals. This progress is taking place as the overall economic

situation dramatically turns for the better, with economic growth

averaging 8.7 percent for the last four years; budget revenues and

expenditures rising by more than 30 percent per year; and a rapid

expansion of the banking sector. Conditions are present for a

sustained economic expansion and for a major government effort to

promote human development throughout the country. Numerous

national policies and strategies are being implemented for national

economic and social development:

- Development Concept of Mongolia;

- National Development Strategy 2020;

- Government Action Plan for 2008-2012;

- Economic Growth Support and Povert Reduction Strategy;

- Social Security Strategy;

- Concept of Regional Development;

- Mongolia Millennium Development Goals;

- National Plan of Action for Decent Work;

- United Nations Development Assistance Framework;

- MDG-based National Development Strategy of Mongolia;

- National Poverty Alleviation Program;

- National Employment Promotion Program;

- Social Security Sector Development Program; and


- Program for Support of Small and Medium-Sized Enterprises.

Taking these national development policies into account, TVET

policy is set to:

- Increase access;

- Improve quality and relevance;

- Renew management and organization of TVET; and

- Increase participation by private sector and industry.

3. Social Partnership and TVET

Within the framework of transition occurring since the 1990’s,

major changes have been undertaken in the country’s economy; labor

economy and social welfare mechanisms; and new structures of

public and non-governmental organizations, such as employment

organizations; chamber of commerce and industry; employer’s

associations; free trade unions; and others that have evolved. As

transition into market-oriented relations has deepened, the industries

and economic entities that provide workplaces, equipment, tools,

materials, and facilities for practical training and skills development,

as it used to be, have virtually disappeared. Difficulties have

emerged in relation to the training of skilled workers through an old

system. To align technical and vocational education with labor

market needs and demands, a need has emerged for introducing

regulation and coordination with respect to the legal environment;

management systems and structure of training institutions; training

MONGOLIA 365

content and technologies; and financing mechanisms for activities

being implemented by stakeholders in the field of training skilled

workers. A working group was established that is comprised of

representatives from various social partners and stakeholders,

including MECS, MSWL, and other line ministries and organizations

to develop a draft of the Law on Vocational Education and Training

which, in fact, was endorsed by the Parliament in 2002.

Today Mongolia has been experiencing public and private sector

partnerships in connection with the start of economic reform and

transition to a market economy.

Changes in social relations between administration, employees,

and employers require them to review contracts and their entire legal

regulations. During the transition to a market economy, labor relations

with full regulations by administration have been progressing toward

negotiation, in other words, partnership between the public and

private sectors.

As a result of the transition, a basis for contracts - the norms of

social partnership based on triple negotiations of labor and social

consensus - was founded. A plenipotentiary commission was founded

with triple parties comprising the state sector (government ministries);

employees’ interest-protecting organizations (Trade Unions); and

representatives of employers’ organizations (e.g., Confederations of

Employers; administrations of enterprises; and Chamber of Trade

and Commerce).

The above triple commission for social partnership is charged with

keeping an optimal balance in implementing interests and equal


rights of hired workers and employers on the basis of their joint

cooperation in circumstances of market economy relations.

The main task of the state is to rationally determine rules for social

partnership. Currently, the Mongolian state has been executing this

main task in partnership with the private sector.

Since the founding in 2000 of the plenipotentiary commission,

social partnerships have deepened significantly, allowing the

achievement of contract norms. Aspects of social partnership and

registration of joint contracts and consensus were included in the

Labor law as a chapter. Many other issues have been regulated by

a number of legal acts, such as the law of import and export of

workforces and law for support of employment.

Norms and contract documents have been executing the role of

lever for strengthening social partnerships and providing greater

impetus for organizations and structures to regulate work relations

between employers, trade unions, and state organizations. As a result,

a new and open legal system paves the way for more democratic

and less bureaucratic labor relations.

People’s aspiration for the establishment of an open, humanitarian,

developed, and democratic society, combined with their desire for

high socio-economic growth, has become the preferred approach of

administration. For Mongolia, the democratic model of social

administration was chosen in connection with the transition to a

market economy, because of the establishment of various types of

proprietorships. The most formalized 3 types of economic interests

include private, state and employers.

MONGOLIA 367

As these parties do not always reach consensus, it is necessary

to study the essence of their interests and interactions, and to

determine appropriate ways to create cooperation mechanisms to

transition to new type of administration.

Creation of social partnerships in the vocational education sector

will greatly depend on determining labor market demands in

coverage, and sectoral levels by the training organizations; developing

training curriculum and standards; improving training quality; and

establishing and implementing contracts by employers that situate

graduates in the workplace.

Social partnerships will create an opportunity to implement the

main task of satisfying labor market demands with vocational

employees. Currently, vocational training organizations cannot timely

feel and answer the employers’ demands and requirements.

The main problem facing this sector is that the older staff members

do not fully grasp the rules of the new game and consequently are

not ready for innovation and change. Therefore, administrative staff

members, trainers, and other employees must be systematically

prepared and are required to consciously change their thinking.

Specifics of vocational education, including direct connection to

labor market; benefits to all social members; practical lessons carried

out in practical workshops; and production necessarily require the

training organizations to cooperate with training beneficiary parties.

The social partners are state institutions, employers, workers, trade

unions, professional associations, labor regulating organs, and

training organizations. Unless these partners establish cooperation


mechanisms in all stages to develop legal acts; determine policies

and strategies for vocational education; implement administration in

national, regional, local and organizational levels; define professions,

its requirements and training curriculums; organize training and

practices; give graduation examinations; and provide graduates with

workplaces, it is impossible to prepare specialists who can meet the

market demands.

When the first law on vocational education clearly defined the

cooperation directions of social partners, the cooperation mechanisms

were unclear, and, on the other side, previous cooperation traditions

and experiences were insufficient. In the previous social system,

market demands were provided with free employees prepared by the

state training institutions, but the law regulated production training

and practical student work through contracts between training

organizations and enterprises. Most of the practical student works

is being carried out in workshops of the training organizations--

meaning it is impossible to make considerable positive changes in

the quality of profession attainment.

Thus, in order to achieve goals and objectives of vocational

education system in meeting market demands, it is essential to have

both state-compulsory and state-public, or consensus administration

of parties benefitting from this sector, plus an economic lever. In

other words, in order to develop the vocational education sector and

attract interests of students, it is necessary to evaluate each profession

and provide relevant financial and economic support, such as that

for tuition, clothes, transport expenses, accommodations, and any

MONGOLIA 369

additional fee for academic purposes, taking into account students’

living levels and sectors’ specifics. Particularly, over 70 percent of

students studying in vocational training schools in Mongolia come

from families with income lower than subsistence level, so both state

organizations and social partners should necessarily consider poverty

when granting funds.

Mongolia has been executing duties to develop education

standards; keep education balances; certify education organizations

and their trainers; develop target programs in the education sector;

compile a list of professions being taught in vocational schools;

develop norms of financing and material supply; establish funds for

vocational education development; and strengthen implementation of

vocational education law.

Section 9. CURRENT STATU from S OF SOCIAL

PARTHNERSHIP

For Mongolia, a new legal framework for vocational education and

training has been created; it comprises a national council which

regulates inter-sector activities, enhancing cooperation between social

partners and ensuring the application of employment policies set by

the state; school management boards; and national and regional

methodology centers.

Provincial and regional councils are comprised of representatives


from the education sector, employment office, employers’ branches,

trade unions, parents and children’s support funds, etc.

At the national level, a council for vocational education and

training will conduct following tasks:

∙ Provide assistance in developing backgrounds for policy and

legal regulations to develop vocational training and technical

education;

∙ Regulate vocational education and training activities carried out

by state and non-government vocational education organizations,

employers’ unions, and enterprises;

∙ Issue reports on the implementation of legal acts related to

vocational training and technical education;

∙ Issue proposals and recommendations on vocational training and

technical education;

∙ Approve national occupational classification;

∙ Approve national professional system, with vocational education

standards certified by sectoral and professional committees;

∙ Study and make proposals on joining the international

conventions and recommendations on vocational training and

technical education; and

∙ Enforce implementation of resolutions and recommendations

issued by the council.

The national council has a work division and specialized committees

for sectors and professions. The committees’ duties include:

∙ Bear witness to the national professional system; national

MONGOLIA 371

occupational classifications; professional standards; and standards

for vocational training and technical education;

∙ Develop regular legal, independent evaluations of professional

skills and establish independently managed evaluation centers;

∙ Bear witness to the independent evaluation of professional skills

and a testing database that provides information on graduates’

professional skills;

∙ Determine criteria for occupational skills;

∙ Draw conclusions on the correlation of approved budget, quality

number, professional directions or strategies of the regions with

activities of the training institutions; and

∙ Draw conclusions on the development and implementation of

training institutions’ strategic planning.

For creation of social partnerships between vocational schools,

external factors become the driving force; influences include

aspirations of the state and region, and the interest groups which

increase direct contributions to vocational education in terms of

economic growth. Internal factors include finding new income

sources if direct state budgets are decreased and answering the

demands of a variable labor market, as well as individual needs in

more optimal ways. In recent years, the above mentioned driving

forces are likely to be created in Mongolia.

Moreover, demands of vocational employees; growth of training

and production capacity of the schools; technological and

management capacities; state policies, programs, projects, structures,


initiatives, and financial incentives supporting cooperation partnership;

the schools’ experiences in production; schools’ skills in handling

practical activities; schools’ culture; and schools’ support for social

partnerships are all factors affecting cooperation. All these factors

are being created, but are somehow insufficient.

A project for the promotion of vocational education and training

was funded by the German government and implemented by the

German Technical Cooperation from January of 2000 through 2002.

A major output of this project has been advocacy and proof of

employer participation and understanding by school management and

employers.

Within the “Social Security Sector Development Programs” which

had been implemented during 2003-2006, training equipment and

materials were supplied to more than 20 vocational training and

production centers, with the aim of providing skills development for

unemployed youth and poor adults, as well as for 40 secondary

schools. In addition, many activities aimed at improving skills of

practical teachers; strengthening capacity of managers; and

introducing modular based training technologies, etc. The importance

of this project lies in fulfilling the role of a bridge to expand

cooperation between the MSWL, MECS, and various agencies

functioning under them.

MONGOLIA 373

Section 10. ISSUES AND INNOVATIVE PRACTICES

As vocational education and training have become necessary,

demands for people to live in the wealthy circumstances of a market

economy have spurred relations to alleviate unemployment and

poverty. Parties creating social partnerships acknowledged that

vocational education and training are meeting the demands through

improved policies and planning of vocational education — increasing

quality; effectiveness and outreach; strengthening of social partnerships,

support for the private sector; and improved correlations between

foreign aid and loans, and the signed “Social Consensus Memorandum

for Development of Vocational Education and Training” in 2008.

This document aims at developing state policies, strategies, concepts,

directions, projects, and programs on vocational education and

training; creating private sector involvement; updating the legal

environment; creating financing mechanisms with multi sources; and

coordinating foreign aids and loans.

According to the consensus, the following objectives will be

resolved, including:

1. Updating the legal environment;

2. Updating organizational management;

3. Reforming the training organization’s type and structure;

4. Continuing reform of the training system;

5. Creating mechanisms to provide social partners’ involvement in

vocational education and training;

6. Ensuring private sector involvement in vocational education


sector;

7. Rationally exploiting foreign aids and investment support;

8. Updating finance mechanisms for vocational education and

training;

9. Updating the information database of vocational education and

training;

10. Updating training content, technology, and methodology and

providing training materials and textbooks;

11. Innovating the training environment and technologies;

12. Increasing human resource capacities and resolving social

issues; and

13. Establishing evaluation systems to raise the reputation and

improve competitive skills of vocational training institutions,

students, and graduates.

Section 11. FUTURE PLANS FOR SOCIAL PARTHERSHIP

In order to satisfy the increased demands of the labor market with

skillful vocational employees, it is necessary to reform whole system

of vocational education and training to the level that prepares

vocational employees to make a decent living by his/her obtained

professions.

It is necessary to guarantee sustainable activities by balancing the

involvement of public and private sectors and vocational training

institutions with policy and decision-making. Social partnerships

MONGOLIA 375

must ensure regular activities to increase the involvement of

representatives from the private sector and vocational institutions in

today’s national council for vocational education and training.

It is advised to newly reorganize government agency structures

which can integrate state policy on vocational education and training

and state budget, through integration of duties distributed to various

organizations. In addition, it is also necessary to take measures to

create a favorable legal environment that guarantees private sector

involvement; establish effective cooperation and partnerships

covering all parties in vocational education and training; and

strengthen a system responsible for the implementation of national

occupational classification, skill standards, and training modules, in

accordance with labor market circumstances.

[Figure 1-11] Financing of TVET

TVET FINANCING /present situation/

Ministry of Social Welfare and Labor

(Employment promotion fund )

Ministry of Education, Culture and Science

Labor and Welfare Services

Authority

Short term vocational training

centers

TVET schools (not considering types

of property)

Training cost

Variable cost per a

student

Duration up to 3 months: 400000-500000 tugrics1300Tugric =1$

10 months : 300000 tugrics


Mongolia’s TVET sector receives bits of financing from various

sources, but the bulk of financing is derived from the state budget.

In 2006, more than 80% of financing came from the government

(MECS and MSWL); nearly 10% from tuition; and around 5% from

self-income generating activities of VET schools (Diagram 3). In

contrast, in the higher education sector, only 23.6% of total revenue

came from state financed sources,1) while 57.3% of total revenue

came from non-state sources in the form of tuition fees.2) The higher

education sector has been much more successful in attracting private

investment, given that it has a much higher (98%) private rate of

return-- compared to TVET graduates’ (38%) private rate of return.3)

[Figure 1-12] 2006 revenue sources by sector (%)

Source: World Bank, 2009 “Public Expenditure and Financial Management Review”

1) These are tuition revenues from students, whose tuition is being paid by the state.

2) World Bank (2009) “Public Expenditure and Financial Management Review.”3) World Bank (2009) “Public Expenditure and Financial Management Review.”

MONGOLIA 377

<Table 1-8> Public Expenditure on Education, 1991, 2002 and 2007

1991 2002 2007GDP per capita (US$) (nominal)Education Expenditure as Share of GDP (%)Education Share of Total Public Expenditure (%)% share of total education expenditure: Primary Secondary Technical & vocational TertiaryPer student public spending (as % of GDP p.c.) Primary Secondary Technical & vocational Tertiary

92912%18%

n/an/an/a

15%

17%n/a

10%10%

1,1138%

16%

40%26%

5%15%

17%14%

5%12%

1,4316.2%17%

27%37%

6%10%

13%18%

6%14%

Compared to the other education sectors, TVET has received the

smallest share of the state budget allocation. In 2007, the share of

TVET expenditure in total education spending was only 7%,

compared to 37% for secondary; 27% for primary; and 10% for

tertiary education (graph 10). With tertiary education receiving most

of its financing from tuition fees, and primary and secondary

education getting the bulk of the state’s allocation on education, the

TVET sector finds itself desperately in need of increased financing

from additional sources, if it is to be overhauled to meet growing

needs of the private sector and a growing economy. Total

expenditure on TVET was .37% of total GDP for the year 2007,

which was two times smaller than the average TVET spending of

transition economies in Eastern Europe.4) While public spending is

4) The figure .63% of GDP as calculated in “Financing VET in the EU


roughly 6% of the education budget, 45 % of the TVET budget is

used for stipends to students (mainly to those recruited after the 8th

grade), and less than one percent on improving infrastructure and

training equipment5). The policy of providing stipends for TVET

students has increased the enrollment of TVET students, and has put

more pressure on existing facilities6).

[Figure 1-13] Percentage of TVET budget in the Total budget for education

TVET Finance

7 6.97

54.344.14.2

3.73.4

0

1

2

3

4

5

6

7

8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

TVET Institutions are financially dependent from the Government. The budget allocated to TVET sector is insufficient (only 7% of total budget for education)

Private sector financial support to the VET institutions is minimal.

There are about 15 private VET institutions that operate on tuition

fee revenues. (These tend to receive erratic support from bilateral

member states and candidate countries” (2005) by European Training Foundation (ETF)

5) World Ban, 2010 “Tertiary Education in Mongolia: Meeting the Challenges of the Global Economy”


MONGOLIA 379

partners and the MSWL, and they are specialized by sectors, with

courses of varying duration and quality.) Given that the outcomes

at the public VET schools are below industry standards and

competencies (only 11 schools delivering TVET are accredited, and

only 10% of their programs, accredited7)), the larger mining and

construction companies have started building their own training

facilities, and, in some cases, serving the needs of related companies

in their sectors.

External development partners have been focused more on other

educational sectors, rather than TVET. Primary and secondary

education has so far attracted most of the donor financing, and

rightly so. In 2009, it stood at 14 million USD, while a much smaller

level of assistance, at 390,000 USD, went to the TVET sector (Table

9). More recently, the MCA has pledged over 47 million USD to

upgrade and restructure the sector, a quantum leap in financing for

the sector. The ADB and the GTZ continue to be active in the sector.

<Table 1-9> Current donor commitments for education sector by level(In $US ‘000)

2007 2008 2009Total 28,994 13,699 14,009Pre-primary 529 798 421Primary & Secondary* 42,311 22,789 20,681TVET 1,351 525 390Higher Education 2,118 2,118 2,118Source: World Bank, 2009 “Public Expenditure and Financial Management Review”



Section 12. TECHNOLOGY: ICT, E-LEARNING

1. Current Status of ICT in Education

The Erdemnet network of education information and administration

was established. The Ministry of Education, Culture and Science;

educational and cultural centers of the aimags and the capital city;

and about 25 universities and colleges, 70 secondary schools of both

state and private sectors (with appropriate conditions) were connected

to the “Erdem” network and were provided with computers and

equipment; internet access; e-mail; and a local administration

network. This network aims to become the united information

network of the Mongolian education sector in the future. As a

beginning, the educational and cultural centers of all aimags were

supplied with network equipment, devices, and appropriate servers.

Multi-leveled training for the teachers and students on the use of

computer and information technology signals a starting point in the

new phase of information technology development in the education

sector. Presently about 513 secondary schools; regional center schools;

and educational organizations have been provided with 2,882

computers.

On March 12, 2008 the government issued resolution number 92

about implementing a program entitled “Computer for Every Child”.

The unit charged with implementing this program was established

by order 354, dated July 3, 2008, of the Ministry of Education,

Culture, and Science, as a part of the resolution. The unit is comprised

MONGOLIA 381

of seven staff members of the Ministry of the Education, Culture,

and Science, and the Agency of Information and Communication

Technology.

In 2007 the Ministry of Education, Culture, and Science issued

an order governing certain measures of information technology in

the higher and vocational education sector. Under the order, the

following steps have been initiated and implemented:

(ⅰ) To make specific recommendations to the directors of the

secondary schools about connecting their schools to the

Erdemnet;

(ⅱ) To establish a central electric library of educational organizations;

(ⅲ) To establish an E-School under the University of Sciences

and Technologies, responsible for distance training for the

domestic universities and colleges;

(ⅳ) To provide the universities, colleges, and vocational schools

with information technology teachers and to determine their

efficiencies in the use of English language information

technology language; and

(ⅴ) To connect the vocational training centers to the main

network; help them have own websites; and improve their

publicity via their websites.

2. Best Practices in Teaching and Learning through ICT

Despite the rapid development of information technology in

Mongolia and its recognizance by the state and private sectors, the


advanced e-training systems have not yet reached proper development.

However some progress has been made in the field.

One of the pioneers in the field is the E-learning center under the

University of Science and Technology. Initially the database of the

internal activities was created, and subsequently the management and

information system was developed and put into operation.

Since 2005, the charge to transform the teaching materials into

electric form, as a part of the universal goal of introducing

E-learning into their activities, have been carried out, and presently

some outputs are employed in the training of master’s program of

the university.

Due attention is paid to strengthen the abilities of teachers in

developing training aids for e-training and applying information

technology in their activities.

3. Issues and Challenges in ICT Education

The most rapidly developing Asian countries see information and

communication technology as their key educational development

factor. More importantly, for Mongolia, a landlocked country with

vast space and sparse population, it is urgent catch all the possibilities

to overcome the distance obstacles. It is very necessary for Mongolia

to introduce the latest information and communication technologies

to the all sectors of Mongolia, specifically the educational sector.

The main hindering factors against the consistent introduction of

information and communication technology in the educational sector are:

MONGOLIA 383

∙ Lack of the primary legal environment;

∙ Lack of organized and universal concept and usage of

information and communication technology at all management

levels and in a unified system;

∙ Lack of the implementation method and uncertainty about

financial resources, despite the effort to initiate information

technology into education sector;

∙ Weak attention to improving use of information technology in

the educational sector, and in preparing technical staff in the

field;

∙ Lack of international information and communication backbone

access via land;

∙ Persistent differences in information access and provision;

∙ Weak tradition of information and communication technology

in the educational sector;

∙ No support or joint efforts made to promote ICT;

∙ Unequal introduction of information and communication

technology throughout the country, coupled with weak provision

of equipment and information and communication technology in

the countryside; and

∙ Inadequate average level of knowledge of ICT among the

population.

4. Future Plans

Currently an E-Education program is in progress to introduce


information and communication technology in the educational system

of the nation under the framework of the “E-Mongolia” program.

The following goals and objectives are presented under the program:

∙ To ensure equal opportunity for educational access, regardless

of the location of the people, as it is critical for such a country

with vast territory and scarce population.

∙ To make Mongolian education degrees universally recognized,

helping the nation export and ensure the high quality of

education.

Objectives:

∙ To raise the information technology-related educational level of

the population to the world average by 2012;

∙ To create distance training capacities for all towns and

settlements by 2012;

∙ To introduce e-training for all training levels; establish model

schools; and upgrade at least 50% of the schools as e-schools;

and

∙ To strengthen the information technology-oriented schools and

raise their research capacity to international standards.

Activities to be implemented include:

1) Establish a management system to promote the new educational

system;

MONGOLIA 385

2) Develop the information infrastructure in the educational sector;

3) Build human resources while developing education; and

4) Promote public education of information technology.

Section 13. International Cooperation: Bilateral,Multilateral and International Organizations

1. Donors’Activity in TVET

The increased role of vocational education and training in

Mongolia has turned this issue into a key focus of government

policy, and consequent actions have been taken for promoting

national and donor investment in the VET area. The government of

Mongolia has reached an agreement with donors, such as ADB, GTZ,

and Millennium Challenge Corporation, on supporting vocational

education and training.

Mongolia is entering a new period of education sector planning.

With the support of the Asian Development Bank, activity

management in the education sector will be guided by sector-wide

planning, whereby the multilateral development banks, and multilateral

and bilateral donor agencies, will aim to better coordinate and

harmonize investment in the sector according to government

planning priorities. The following proposal for funding from the

Millennium Challenge Account is based on the selection of activity


in support of the national reform of the TVET system that is

consistent with (a) the Master Plan to Develop Education of

Mongolia, 2006-2015; and (b) progress in sector-wide planning,

including the annual implementation plan for education projects and

activity under MECS.

International support for the national reform of the TVET system

is being provided, initially, through the Third Education Development

Project, or TEDP. With the support of Deutsche Gesellschaft fur

Technische Zusammenarbeit (GTZ), proposals are being prepared for

the development of a TVET policy framework. This framework will

focus on a reformed system for initial and continuing vocational

training and education. Proposals from GTZ discuss the need to plan

TVET, taking account of both formal and non formal training

provisions (i.e., a dual system). Examples of early application of non

formal approaches to TVET include the Non formal skills training

for unemployed youth and adult project, jointly funded by ADB and

government of Japan.

Taking account of the parameters of the Master Plan for the TVET

subsector, the TEDP will aim to develop a national policy framework

promoting demand-driven TVET. The proposed policy framework

will (i) streamline legislative, regulatory and institutional arrangements

in support of the reform process; (ii) provide national skills

standards; and (iii) develop a national vocational qualification

system, based on standards of competency set by industry and

MONGOLIA 387

employers. The terms of reference, objectives, and outputs of the

TEDP will go some way forward in preparing the necessary policy

studies and background studies for a range of reforms. Still, key

activity, including definition of the roles of stakeholders; reaching

consensus on national training standards; and preparation of a new

TVET oriented curriculum, will take time.

The MCC funded Vocational Education project will be a valuable

contribution to the VET system reform (47.5 million USD). The

MCC Vocational Education Project will consist of the following

activities:

Activity1. Reforms to TVET Policy and Operational Framework

Activity:

- Legal and regulatory reforms that will create and allow the

implementation of demand driven TVET;

- Establishment and support of the National Advisory Board for

Vocational Education and Training (“NABVET”); and

- Creation of efficient governance and standard-setting, with secure

private sector participation for technical and vocational education

and training.

Activity 2. Creation of Skills Standards and Competencies System

Activity.

- Establishment of national TVET standards for short-term and

long-term career training fields;


- Development of new, modern, curricula, courses, and instructional

materials for short-term and long-term career training fields;

- Development of an assessment and credentialing system to

support the new standards and modernized TVET system;

- Improvement of the capacity of regional and national methodology

centers to create and distribute materials and training resources

to instructors in all types of TVET institutes; and; and

- Strengthening the linkage between in-service and pre-service

vocational technical teacher training programs to improve the

sustainability of the TVET teacher training system.

Activity 3. Competency-Based Training System Activity.

- Extension of training to vocational teachers and administrators;

- Provision of equipment and materials needed to deliver the new

curriculum; and

- Identification and management of environmental, social, health,

and safety concerns.

Activity 4.Career Guidance System Activity.

- Installation of employment information services in eight regional

methodological centers; and

- Establishment of a career guidance service and web-based career

information system.

MONGOLIA 389

2. Sustainability

To ensure the sustainability of the vocational education projects,

the government of Mongolia

is focusing policy to develop legal and regulatory reforms, which

are expected to improve TVET institutes’ income-generating capacity,

which, in turn, lead to increased funding for TVET institutes. To

ensure the environmental and social sustainability of the vocational

education projects as a whole, the government of Mongolia

organized public consultations with various stakeholders (including

women and other vulnerable groups) to participate in the development

and implementation of vocational education projects and amendment

of existing law on VET.

Section 14. Future Trends and Objectives of TVETs

An Action Plan for Education Development to 2015, which was

developed with support of Asian Development Bank and adopted by

the Government of Mongolia in August of 2006, was highly

evaluated by international donor organizations. The plan included

following objectives and strategies on TVET.


Section 15. TVET Objectives & Strategies (2006 to 2015)

А. TVET coverage will be increased by 56.1 percent.

- To increase share of privately owned vocational schools;

- To expand vocational schools’ service types and coverages;

- To render state support to students of vocational schools;

- To increase operation and capacities of vocational schools; and

- To support new establishment of vocational schools in connection

with national strategy on regional development and local

demands;

B. Improving TVET Content and Creating Supply, Matching the

Demands of Vocational Workers to the L Market

The following objectives are methods of improving content and

creating supply in the labor market:

- To innovate TVET standards and contents in connection with

market demands;

- To develop teaching staff supply, their professional capacities

and skills;

- To increase state support for improving supply of training

materials and textbooks of TVET;

- To increase supply of TVET practice instruments and equipment;

- To improve connection between training and practice;

- To strengthen accrediting capacities of TVET institution and

programs and to create quality control system;

MONGOLIA 391

- To connect TVET training with workforce demands;

- To conduct qualitative and quantitative and social benefits

surveyes on labour market demands;

- To establish information database on labour market demands;

- To develop vocational training contents and standards connected

with labour market demands;

- To increase production and service participation in management,

training and planning of TVET;

- To establish training module database;

- To improve supply of material basis, training equipment, and

materials of TVET;

- To resolve financial issues of repairworks of state-owned TVET

institutions;

- To increase supply of practice workshop equipment, instruments,

and investments of TVET institutions;

- To develop and implement a policy for composing, designing,

and printing textbooks;

- To increase employers’ participation in supply of textbooks and

to develop training standards and modular programs of primary

vocational training that can be conducted in general secondary

schools; and

- To supply general secondary schools with primary vocational

training with practice workshop and laboratory equipment and

training materials.


C. Training, Re-training and Qualification Upgrading of Teachers

As stated in the master plan of education, proposed is the increase

of finances in this sector to 6.3 percent by 2015, using the general

education budget to increase teachers’ wages and assist with the

practical attainment of education; expenses of training materials; and

qualification upgrading of teachers. Therein are the following

objectives:

- To establish a national system for qualification upgrading of

teachers working in TVET;

- To increase financing for qualification upgrading of teachers

working in TVET;

- To develop standards and contents of training for qualification

upgrading of master teachers;

- To create training center of new technique and updated technologies

for qualification upgrading of vocational teachers; and

- To increase qualified teachers capable to teach theoretical and

practical vocational lessons.

D. Innovating TVET Management

To innovate TVET management it is necessary:

- To update types of management and financing of TVET

institutions;

- To update and follow financing norms on the basis of real

expenses required to prepare vocational workers needed in the

labor market;

MONGOLIA 393

- To implement policies for developing the TVET in the direction

of training, production, enterprenuership, and service;

- To implement policies and programs for improving national and

local schools’ management capacities;

- To strengthen accrediting capacities of TVET institutions and to

create a quality control system; and

- To create favorable environment supporting foreign investments

in TVET institutions.

E. Creating Social Partnership Structure

In creating social partnerships to strengthen TVET, it is critical to:

- Engage representatives of employers and professional unions of

production, service and businesses in the development of policies

and planning at national levels; and

- Match training, production, and service to the structure of social

partnerships and place graduates in the workplace.

PHILIPPINES

PHILIPPINES 397

Chapter 1

TVET POLICY, EXPERIENCE, AND TRENDS

IN THE PHILIPPINES

Section 1. The National Context of TVET

1 Context and Background

1.1 Political and Socio-Cultural Context

The Republic of the Philippines is located in the heart of Southeast

Asia and is the second world’s largest archipelago. It comprises

7,107 islands and islets in the western Pacific Ocean.

The Philippines was under Spanish colonization from 1565 until

its independence in 1898. From 1898 to 1946, it was under the

United States, which strongly influenced the country’s educational

system; the use of English language; and its contemporary pop

culture. The influence of the United States has declined in recent

decades.


The two official languages in the Philippines are Filipino and

English. Filipino, which is based on Tagalog, is the national language.

English is widely used and is the medium of instruction in education.

The Philippines is a democratic and republican state, with a

presidential form of government. There are three branches of

government: executive, legislative, and judiciary. The highest

authority of the government is the President who is elected for a

six-year term and serves as the Chief Executive. The legislative

branch of the government is bicameral in nature. It consists of the

Senate and the House of the Representatives. The judicial branch,

on the other hand, which consists of systems of courts, is headed

by the Supreme Court.1)

The country is divided into provinces, municipalities, and chartered

cities, each enjoying a certain degree of local autonomy. Within the

municipalities and cities are communities or barangays, which constitute

the smallest political unit. Each of the provinces is headed by a

governor; the municipalities and cities, by a mayor; and the

barangays, by a barangay captain. The Local Government Code of

1991 provided for a more responsive and accountable local-

government structure. Local governments are to be given more

powers, authority, responsibilities, and resources through a system

of decentralization.

As of December 31, 2009, the Philippines had 80 provinces, 137

cities, 1,497 municipalities, and 42,023 barangays.

1) Syjuco, A.G. (2006). The Philippine TVET System. TESDA

PHILIPPINES 399

1.2 Population and Demographics

The Philippine population has been steadily rising, as evidenced

by the results of the census of population and housing. The census

year of 1990 placed the country’s population at 60.70 million. This

increased to 68.62 million in 1995; 76.5 million during the 2000

Census; and further to 88.6 million in the last census in the year

2007. As of 2010, the country’s population was projected at 94.01

million.

The annual growth rate of Philippine population was at 2.36

percent during the 1995 to 2000 period and 2.04 percent for the years

2000 to 2007. The projected average annual population growth for

2005 to 2010 is 1.95%. Population growth impinged a lot on the

provision of social services by the government , especially in terms

of education, health, and nutrition — and even in employment.

<Table 1-1> Philippine Population by Census Year

Census Year Population (in millions)1990 60.701995 68.622000 76.502007 88.57

Source: National Statistics Office

The country’s population is predominantly young, with 43.4

million representing 56.5% Filipinos aged 24 years old and below.

The age group, 25-54 years of age, numbered 28.5 million

representing 37.3%. A little of more than 8 % or 6.4 million belong

to age group 55 years old and over.


Age Group Both Sexes Male FemaleTotal 76,504,077 38,524,267 37,979,810

Under 1 1,917,431 986,506 930,9251-4 7,752,071 3,965,426 3,786,6455-9 9,694,781 4,962,013 4,732,768

10-14 8,949,614 4,541,197 4,408,41715-19 8,017,298 4,017,830 3,999,46820-24 7,069,403 3,522,518 3,546,88525-29 6,071,089 3,053,616 3,017,47330-34 5,546,294 2,804,522 2,741,77235-39 4,901,023 2,496,821 2,404,20240-44 4,163,494 2,120,314 2,043,18045-49 3,330,054 1,696,712 1,633,34250-54 2,622,316 1,318,632 1,303,68455-59 1,903,649 943,133 960,51660-64 1,633,150 786,137 847,01365-69 1,138,843 533,469 605,37470-74 797,970 361,614 436,35675-79 505,356 218,622 286,734

80 and over 490,241 195,185 295,056

There are more males than females with 38.5 million (50.4%) and

38 million (49.6%), respectively. The male-female ratio is registered

at 101:100.

Thirteen percent (13%) or roughly 11.6 million Filipinos are

residing in the National Capital Region (NCR), a highly urbanized

region wherein Manila, the capital of the Philippines and the seat

of the national government is located.

<Table 1-2> Population by Age Group, by Sex and 2000 by Region: 2000

Source: 2000 Census-based projection, NSO

The growing population of the country is manifested with the high

birth rate. As of 2001, birth rate was registered at 22.0%. However,

PHILIPPINES 401

data from the NSO show a decreasing trend in birth rate. Birth rate

in 2015-2020 is projected to go down to 18.5%.

<Table 1-3> Birth Rate, 2001-2005; 2015/2020

Year Birth Rate (per thousand population)2001 22.02002 21.02003 20.62004 20.72005 20.0

2015-2020 18.5

Source: 2000 Census-based projection2008 Philippine Statistical year Book

Educational Attainment

The educational level of the population of the Philippines, as

presented in Table 4, showed that a significant number have not

completed any grade. This means they have not even gone to school

and most likely, lack the necessary knowledge and skills for

employment for those of working age. The bulk of the population

have completed elementary and high school, accounting for 27.9

million and 18.9 million, respectively. This is understandable,

considering that the country’s population is predominantly young.


<Table 1-4> Household Population 5 Years Old and Over by Highest

Educational Attainment 1990, 1995, 2000

Highest Educational Attainment 1990 1995 2000

Total Population 5Years Old & Over 48,865,341 59,071,714 66,666,156

No grade completed 2,838,844 4,394,719 3,962,330Preschool 432,359 1,931,882 1,542,884Elementary 24,630,569 25,620,407 27,924,770High school 12,780,193 16,448,857 18,903,125Post secondary 1,088,665 1,340,813 2,561,983College undergraduate 3,737,464 4,071,236 6,685,949Academic degree holder 3,121,304 4,380,472 2,876,616Post baccalaureate - 114,839 267,713Not stated 235,943 768,489 1,940,786Source: The Philippines in Figures, 2010, National Statistics Office

Functional Literacy

Results of the 2008 Functional Literacy, Education, and Mass

Media Survey (FLEMMS) indicate a functional literacy rate of 86.4

percent, higher than the 2003 FLEMMS results of 84.1 percent. A

total of 58 million of the estimated 67 million Filipinos who are

10 to 64 years old are functionally literate. A functionally literate

person is one who can read, write, and compute, or one who can

read, write, compute, and comprehend. Persons who completed high

school or a higher level of education are also considered functionally

literate.

The functional literacy rate among the females is higher than

males, with 88.7 percent and 84.2 percent, respectively.

As expected, the functional literacy rate is higher among persons

with a higher level of education. Among those who had reached,

PHILIPPINES 403

but did not finish high school, 89.8 percent were functionally literate,

and, of those who had finished elementary, 80.8 percent were

functionally literate. By comparison, 67.0 percent of those with some

elementary education were functionally literate, while only five

percent among those with no formal education were functionally

literate.

<Table 1-5> Functional Literacy Rate of Population 10-64 Years Old by

Highest Educational Attainment and Sex: Philippines 2008

Population10-64

Yrs. Old

Highest Educational Attainment

No GradeCompleted

Elem. Level

Elem. Graduate

High School Level

High School

Grad. Or Higher

Philippines 86.4 5.3 67.0 80.8 89.8 100.0

Male 84.2 5.3 63.9 79.8 88.6 100.0Female 88.7 5.2 71.1 81.9 91.1 100.0

Note: Persons who graduated from high school or completed higher level of education are, in this tabulation considered functionally literate.

Source: National Statistics Office, 2008 Functional Literacy, Education and Mass Media Survey (FLEMMS)

Poverty Incidence

The incidence of poverty, or the proportion of individuals whose

annual income falls below the annual poverty threshold in the

country, worsened from 30.0 percent in 2003, to 32.9 percent in

2006. Poverty incidence of Filipino families reached 24.4% in 2003

and rose to 26.9% in 2006.

In absolute terms, this is translated to the number of poor


households increasing from 4.1 million in 2003, to 4.7 million in

2006. These families failed to meet the minimum income needed by

a family of six to satisfy their food or nutritional requirements and

other non-food basic needs. This can primarily be attributed to rising

food prices; slower growth of incomes; and faster household formation.

The 2006 Family Income and Expenditures Survey (FIES) pointed

out that “33 percent of the population or roughly 27 million are poor

or living on incomes below PhP6,300 (US$137) for a family of five.

This translates to PhP42 (US$0.90) per person per day, or Php210

(US$4.5) a day or PhP75,600 (US$1,637) a year per family.” This

would mean that around one-third of Filipinos are living with less

than US$1 per day, which is considered poor by UN standards.

<Table 1-6> Incidence of Poverty, Philippines: 2003 and 2006

Indicators Year2003 2006

Annual Per Capita Thresholds (PhP) 12,309 15,057Magnitude of Poor Families (‘000) 4,023 4,677Magnitude of Poor Population (‘000) 23,836 27,617Poverty Incidence of Families (%) 24.4 26.9Poverty Incidence of Population (%) 30.0 32.9Source: National Statistics Coordination Board (NSCB)

Migrant Filipinos

One important aspect of the Philippine economy is the fact that

the Philippines is one of the leading sources of migrant workers in

the world. From more than half a million (615,095) migrant Filipinos

registered in 1991, the number continues to increase, and in 2009,

a total of 1,912,000 were working around the world.

PHILIPPINES 405

<Table 1-7> Overseas Filipino Workers: 1991-2009

Year Overseas Filipino Workers (OFWs)1991 615,0191992 723,4481993 696,6301994 719,6021995 654,0221996 660,1221997 747,6961998 831,6431999 837,0202000 841,6282001 867,5992002 891,9082003 867,9692004 933,5882005 988,6152006 1,062,5672007 1,077,6232008 2,002,0022009 1,912,000

Sources of Data: National Statistics Office; Commission of Filipinos Overseas;Philippine Overseas Employment Administration

In 2009, the proportion of male overseas Filipino Workers (OFWs)

(52.8%) remained higher than female OFWs (47.2%). Female OFWs

were generally younger than male OFWs, with half of the female

OFWs belonging to ages 25 to 34. Male OFWs have a lesser

proportion (42.7%) in that same age category. There were more male

OFWs (20.9%) than female OFWs (10.8%) in age group 45 and over

(Table 8).

OFWs who were laborers or unskilled workers comprised 32.3

percent of the total OFWs during the period April to September


2009. Those who worked as trades and related workers made up 14.9

percent; service workers and shop and market sales workers, 14.7

percent; and plant and machine operators and assemblers, 13.8 percent.

<Table 1-8> Number and Percentage Distribution of Overseas Filipino Workers

by Selected Characteristics, Philippines: 2008 and 2009

Selected Characteristics 2008 2009Philippines (‘000) 2002 1912Type 100.0 100.0 Overseas Contract Workers 94.0 98.8 Other overseas Filipino workers 6.0 1.2Sex 100.0 100.0 Male 51.7 52.8 Female 48.3 47.2Age GroupBoth Sexes 100.0 100.0 15-24 10.0 9.8 25-29 25.7 24.8 30-34 21.0 21.7 35-39 15.1 15.5 40-44 11.8 12.0 45 and over 16.4 16.2Male 100.0 100.0 15-24 6.7 7.1 25-29 22.8 22.7 30-34 21.8 20.1 35-39 14.7 15.7 40-44 13.2 13.5 45 and over 20.8 20.9Female 100.0 100.0 15-24 13.5 12.9 25-29 28.8 27.2 30-34 20.3 23.5 35-39 15.6 15.3 40-44 10.3 10.3 45 and over 11.6 10.9Source of Data: National Statistics Office (NSO)

PHILIPPINES 407

OFWs by Major Occupation/Place of Work 2008 2009Philippines (‘000) 2,002 1,912Major Occupation 100.0 100.0 Officials of government and special-interest

organizations, corporate executives, managers, managing proprietors and supervisors

2.7 2.5

Professionals 9.6 10.1 Technicians and associate professionals 6.2 6.3 Clerks 5.6 4.9 Service workers and shop and market sales workers 14.3 14.8 Farmers, forestry workers and fishermen 0.6 .03 Trades and related workers 15.7 14.9 Plant and machine operators and assemblers 13.0 13.9 Laborers and unskilled workers 32.4 32.3 Special occupations - 0.1Place of Work (in %) 100.0 100.0 Africa 1.5 2.0 Asia 78.2 79.3 East Asia 18.8 17.5 Hongkong 5.9 6.0 Japan 5.1 4.5 Taiwan 4.2 3.4 Other countries in East Asia 3.6 3.5 (including China and South Korea) Southeast and South Central Asia 10.3 9.6 Malaysia 2.6 1.8 Singapore 6.2 6.0

One out of five (21.6%) OFWs worked in Saudi Arabia, which

remained the top destination of OFWs in April to September 2009.

This was followed by UAE with 15.4%. OFWs in Europe and North

and South America were registered at 8.3% and 7.9%, respectively.

<Table 1-9> OFWs by Major Occupation and by Place of Work: 2008-2009


OFWs by Major Occupation/Place of Work 2008 2009 Other countries in Southeast and South Central 1.5 1.8 Asia (including Brunei) Western Asia 49.1 52.1 Kuwait 3.7 3.7 Qatar 5.1 6.1 Saudi Arabia 20.4 21.6 United Arab Emirates 14.6 15.4 Other countries in Western Asia (including Bahrain

5.4 5.4

Israel, Lebanon, Jordan)Australia 2.4 2.6Europe 9.4 8.3North and South America 8.4 7.9Other Countries 0.2 -Source of Data: National Statistics Office (NSO)

1.3 The Philippine Economy

Table 10 shows the GDP growth rate from 1994-2009. The

Philippine economy posted positive GDP growth rates (at constant

prices), except for 1998, wherein growth rate was -.58. Highest GDP

growth rate was in 2007 at 7.19%. In 2009, however, the Philippines

posted a GDP2) growth rate of 1.1 percent (at constant prices), lower

than the 3.6% growth of 2008. This was expected, considering the

spike in rice and oil prices and the global financial crisis.

2) Note: Source of GDP data is the National Statistical Coordination Board (website: www.nscb.gov.ph)

PHILIPPINES 409

<Table 1-10> Gross Domestic Product Growth Rate 1994-2009

Year GDP (%)Current Price Constant 1985 Price

1994 14.82 4.391995 12.58 4.681996 13.95 5.851997 11.73 5.191998 9.82 -0.581999 11.70 3.402000 12.69 5.972001 8.25 1.762002 9.15 4.452003 8.89 4.932004 12.86 6.382005 11.75 4.952006 10.82 5.402007 10.20 7.192008 11.45 3.542009 3.64 1.06

Source: National Statistical Coordination Board

By industrial origin, the agricultural sector comprised 15% of GDP

and employed around 34% of total employment. The service sector’s

share to the GDP is registered at 55% (2009) and continuously

expanding and increasing its contribution to the GDP and employment.

This is attributed to the business process outsourcing (BPO) which

is expected to generate around US$11.6B in 2010.

The services sector showed the highest GDP growth in 2009 of

2.8 percent. The Industry sector experienced a decline of 0.9 percent.

Despite the effects of typhoon Ondoy and Pepeng in agriculture,

fisheries, and forestry, the sector was able to maintain the same level

of outputs.

While the GDP registered 1.1% growth rate, the GNP on the other


hand, grew by 4.0 percent in 2009, attributed largely to the increasing

remittances of overseas Filipino workers (OFWs). The strong and

sustained inflow of OFW remittances has kept the Philippine

economy afloat and not falling into recession. OFW remittances3)

reached US$ 4.722 billion during the 2nd quarter of 2010.

<Table 1-11> Gross National Product and Gross Domestic Product By

Industrial Origin: Annual 2008 and 2009 at Current and

Constant 1985 prices, in Million Pesos

INDUSTRY/INDUSTRY GROUP

At Current Prices At Constant Prices

2008 2009Growth

Rate(%)

2008 2009Growth

Rate(%)

Agri. Fishery, Forestry 1,102,465 1,138,334 3.3 259,410 259,424 0.0Industry Sector 2,347,803 2,318,882 -1.2 464,502 460,205 -0.9Service Sector 3,959,102 4,221,702 6.6 693,176 712,486 2.8GROSS DOMESTIC PRODUCT 7,409,371 7,678,917 3.6 1,417,087 1,432,115 1.1

(in Million US$) 168,394.8 174,520.8 Net factor incomefrom the rest of the world 852,121 1,131,067 174,022 222,821

GROSS NATIONAL PRODUCT 8,261,492 8,809,984 6.6 1,591,109 1,654,936 4.0

Source: National Statistical Coordination Board (NSCB)

Comparing the 2nd Quarter of 2009 and 2010, a more improved

economic performance, as shown in Table 12, was noted. A more

optimistic growth is expected for the whole year of 2010 and

beyond. This can be attributed to the peaceful national elections;

improved investors’ confidence, especially among local investors; the

3) Bangko Sentral ng Pilipinas website: www.bsp.gov.ph

PHILIPPINES 411

global economic recovery; increased capital expenditure of government;

and a low base fueled domestic economy. The continued increase

in the earnings of the country’s overseas workers sustained the

NFIA.

<Table 1-12> Gross National Product and Gross Domestic Product by

Industrial Origin: 2nd Quarter 2009 and 2nd Quarter 2010,

in Million Pesos

INDUSTRY/INDUSTRY GROUP

At Current Prices At Constant 1985 Prices

Q2 2009 Q2 2010Growth

Rate(%)

Q2 2009 Q2 2010Growth

Rate(%)

AGRI.FISHERY,FORESTRY 245,244 248,232 1.2 59,126 57,328 -3.0INDUSTRY SECTOR 561,749 674,986 20.2 117,942 136,594 15.8SERVICE SECTOR 1,052,888 1,166,206 10.8 178,624 189,989 6.4GROSS DOMESTIC PRODUCT 1,859,880 2,089,424 12.3 355,692 383,911 7.9

Net factor incomefrom the rest of the world 290,521 325,853 57,375 61,788

GROSS NATIONAL PRODUCT 2,150,401 2,415,277 12.3 413,067 445,700 7.9

Source: National Statistical Coordination Board (NSCB)

1.4 Philippine Education System

The education system in the Philippines embraces formal and

non-formal education. It is closely related to the American model

of education but differs in the number of school years, as other

countries have 12 years basic education. In the Philippines, however,

elementary education is composed of 6 years, and secondary

education is 4 years which, together with the tertiary education,

comprise the formal education system.4)


[Figure 1-1] Philippine Education System

The Congressional Commission for Education (EDCOM) recommended

that the different levels/categories of education should be managed

separately, so that the specific needs of each category can be

identified and well attended to for effective and efficient

implementation. Thus, the management of the country’s educational

system is trifocalized with the Department of Education managing

basic education (elementary and secondary levels); the Technical

Education and Skills Development Authority (TESDA) responsible

for post-secondary technical-vocational education and training; and

the Commission on Higher Education (CHED) managing tertiary

education in community colleges, universities, and specialized colleges.

4) Excerpt from Syjuco, A.G. The Philippine TVET System.

PHILIPPINES 413

As to the magnitude of schools in the Philippines providing

education and training in all levels of education, there are around

44,691 elementary schools;10,066 secondary schools; 2,180 colleges

and universities; and 4,041 TVET institutions.

Basic Education

Despite the fact that basic education is free, not all Filipinos of

school-age population go to school. Around about 2.2 million children

(17% of 13.2 million children aged 6-11) were unable to attend

elementary schools in SY 2006-2007 for various reasons, mostly due

to economic reasons.

In terms of key basic education indicators presented in the

following table, the country is far short of the commitments / targets

set for Education for All (EFA) and the Millennium Development

Goal (MDG).


<Table 1-13> Key Performance Indicators in Basic Education Basic

Education Performance Indicators, 2004-2009

Indicators 2004 2005 2006 2007 2008 2009 Target 2010

ELEMENTARY Net Intake Rate in Grade 1 41.3 36.6 39.7 45.6 48.0 48.4 86.3Gross Enrolment Rate 104.2 101.1 99.9 102.0 102.1 100.8 Net Enrolment Ratio 87.1 84.4 83.2 84.8 85.1 85.0 96.0Cohort Survival Rate 71.3 70.0 73.4 75.3 75.3 74.4 80.0Completion Rate 69.1 68.1 71.7 73.1 73.3 72.2 Dropout Rate (School Leaver) 7.0 7.3 6.4 6.0 6.0 6.3 3.0NAT Result (MPS ) 58.73 54.66 59.94 64.81 66.33 69.21**SECONDARY Gross Enrolment Rate 83.9 80.5 79.5 81.4 82.9 82.2 Net Enrolment Ratio 60.0 58.5 58.6 61.9 60.7 62.4 85.0Cohort Survival Rate 78.1 67.3 77.3 79.9 79.7 78.5 93.0Completion Rate 72.4 61.7 72.1 78.7 75.2 73.7 Dropout Rate (School Leaver) 8.0 12.5 6.6 7.5 7.5 8.0 2.0NAT Result (MPS Secondary)* 46.80 46.97 46.64 49.26 47.40 46.38**

* Administered to 4th year students from 2004 to 2005 and 2nd year students from 2006 onwards

** Public onlySource: Department of Education

The total enrolment in elementary level showed an increasing

trend, registering 12,760,243 pupils enrolled in SY 2000-01, to

13,686,643 enrolled in SY 2008-09. In secondary education, enrollment

also showed an increasing trend, from 1,245,682 enrolled in SY

2000-01, to 1,342,296 enrolled in SY 2008-09.

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<Table 1-14> Elementary and Secondary Enrollment: SY 2000-01 to SY

2008-09

School YearEnrollment

Elementary Secondary2000-01 12,760,243 1,245,6822001-02 12,878,600 1,281,1932002-03 12,980,743 1,219,4032003-04 12,986,360 1,244,2522004-05 13,015,487 1,268,2552005-06 12,913,845 1,287,9852006-07 13,145,210 1,290,7922007-08 13,411,286 1,332,8462008-09 13,686,643 1,342,296

Source: Department of Education

Technical Vocational Education and Training

Total enrollment from 2001 of 624,723 reached 1,982,435 in 2009.

From 2001 to 2007 there is a significant increase in total enrollment,

except in 2004. Then from 2008 to 2009, a downward trend was

observed.

On the other hand, total graduates in 2001 were 567,930 and

reached 1,903,793 in 2009. From 2001 to 2009, there is a significant

increase in total graduates, except in 2003 and 2004.


<Table 1-15> TVET Enrolled and Graduates: 2001 to 2009

Year Enrolled Graduates2001 624,723 567,9302002 1,240,099 1,127,3632003 1,318,088 1,006,5612004 1,220,438 839,8982005 1,683,382 1,154,3332006 1,736,865 1,340,6202007 2,142,414 1,702,3072008 2,013,920 1,812,5282009 1,982,435 1,903,793

Source: TESDA

Higher Education

The total enrollment in higher education was registered at

2,440,202 in SY 2000-2001, increasing to 2,483,645 in SY 2005-2006.

<Table 1-16> Higher Education Enrollment: SY 2000-01 to SY 2005-06

School Year Enrollment2000-2001 2,430,842 2001-2002 2,466,0562002-2003 2,426,976 2003-2004 2,431,378 2004-2005 2,402,315 2005-2006 2,483,645

Source: CHED

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1.5 The Medium Term Philippine Development Plan (MTPDP)

MTPDP 2004-2010

The MTPDP is the Philippines’ detailed roadmap towards

economic and social development. For the MTPDP 2004-2010, the

basic task of the plan is to fight poverty by building prosperity for

the greatest number of the Filipino people. The plan also articulated

that the country must open up economic opportunities; maintain

socio-political stability; and promote good stewardship – all to ensure

better quality of life of its citizens. The focus on strategic measures

and activities will spur economic growth and create jobs. This can

only be done with a common purpose of putting the economic house

back in order.

The 10-point agenda of the government to be achieved by 2010

as contained in the plan are as follows:

LIVELIHOOD - Ten (10) million jobs shall have been created.

EDUCATION - Everyone of school age will be in school, in an

uncrowded classroom, in surroundings conducive to learning. Three

thousand school buildings a year shall have been build and a

computer put in every high school.

FISCAL STRENGTH - The budget shall have been balanced with

the right revenues collected and spending on the right things ensured.

DECENTRALIZED DEVELOPMENT

1. The network of transport and digital infrastructure on which the


government embarked in 2002 shall have linked the entire

country.

2. Power and water shall have been regularly provided to the entire

country.

3. Metro Manila will have been decongested with economic

activity growing and spreading to new centers of government,

business, and community in Luzon, the Visayas, and Mindanao.

4. The Subic-Clark corridor will have become the most competitive

international service and logistics center in the Southeast Asian

region.

NATIONAL HARMONY

1. Elections will no longer raise a doubt about their integrity. The

electoral process will have been completely computerized.

2. Peace will have come to Mindanao and all insurgency areas.

3. The divisive issues generated by EDSA 1, 2 and 3 will have

had a just closure.

Based on the 10-Point Agenda, the targets of the MTPDP

2004-2010 are as follows:

∙ GDP growth accelerating to 7-8% by the years 2009 and 2010;

∙ An investment in GDP ratio nearing 28% by 2010;

∙ Exports exceeding $50 billion by 2006;

∙ A balanced budget by 2010;

∙ Annual job creation exceeding 1.7 million jobs by 2009; and

∙ Poverty incidence reduced to below 20% by 2009.

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MTPDP 2011- 2016

The Philippines is now in the process of crafting the Medium-

Term Philippine Development Plan for 2011-2016. The new plan will

focus on translating President Benigno S. Aquino’s III development

agenda, as contained in his “Social Contract with the Filipino

People”, into strategies, polices, and programs. The social contract

specifies changes leading to the following:

A. Transparent and accountable governance;

B. Upliftment and empowerment of the poor and vulnerable;

C. Growing the economy through:

1. Public infrastructure development,

2. Strategic public-private partnerships, and

3. Policy environment for greater governance;

D. Creating sustainable development for reform through:

1. Peace,

2. Justice, and

3. Integrity of natural resources.

The plan formulation, given the intended changes, shall focus on

the following approaches:

A. Attain a high and sustained economic growth;

B. Provide equal access to development opportunities; and

C. Formulate effective social safety nets.


2. Employment and Labor Market

Correspondingly, with the rise in population, the Philippine labor

force is also increasing. From 28.1 M Filipinos in the labor force in

1995, the figure grew to 37.9 M in 2009. However, the labor force

participation rate decreased from 65.6% in 1995, to 64.0% in 2009. The

highest labor force participation rate was registered in 2003 at 67.5%.

Over the last 15 years, employment rate was highest in 2007 at

93.7%, and unemployment rate at the manageable level of 6.3%. As

of July 2010, the country’s employment rate was 93.1% (36.3

million) and is slightly higher than in 2009.

<Table 1-17> Household Population 15 and Over by Employment Status:

1995-2010

Year Household Population,

15 Years Old and Over (in 000)

In the Labor Force (in 000)

Labor Force Participation

Rate (%)Employment

Rate (%)Unemploymen

t Rate (%)

1995 42,770 28,057 65.6 91.6 8.41996 45,034 29,632 65.8 92.6 7.41997 46,214 30,270 65.5 92.1 7.91998 47,415 31,294 66.0 90.4 9.61999 48,637 32,003 65.8 90.6 9.42000 48,076 30,913 64.3 89.9 10.12001 49,424 33,361 67.5 90.2 9.82002 50,841 33,657 66.2 89.8 10.22003 52,305 35,097 67.1 89.8 10.12004 53,569 35,623 66.5 89.1 10.92005 54,799 35,510 64.8 92.6 7.42006 55,988 35,832 64.0 92.1 7.92007 56,845 35,926 63.2 93.7 6.32008 58,183 37,063 63.7 92.9 7.12009 59,237 37,912 64.0 92.5 7.5

2010* 60,934 38,993 64.0 93.1 6.9* as of July 2010

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Source: National Statistical Coordination BoardAs to the employment rate by sex, it will be noted that from 2000

to 2010, the female employment rate was higher than that of their

male counterparts. In terms of total magnitude, however, there are

more males employed than females. It is interesting to note also that

employment rates are higher in the older age groups, i.e. 35-44,

45-54, and 64 and over categories. The age group 15-24 registered

the lowest employment rate across age groups and periods. This

could be attributed to the fact that most of the young people have

just completed their schooling and have yet to earn experience which

is one the requirements of the employers in hiring. Others, however,

are inadequately educated and lack the necessary skills and

qualifications to be employable.

<Table 1-18> Employment Rate by Sex, By Age Group: 2000-2010

Sex and Age Group YearBy Sex 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Male 89.7 90.6 89.9 90.0 89.6 92.6 92.4 93.6 93.0 92.6 Female 90.1 89.7 89.8 89.7 88.3 92.6 93.2 94.0 93.4 93.3 By Age Group 15-24 78.8 81.0 78.6 80.3 78.3 83.6 83.1 85.1 83.5 83.4 25-34 89.3 88.9 89.3 90.4 89.7 92.0 92.0 93.2 93.0 92.0 35-44 94.7 94.8 94.6 94.8 94.3 96.3 96.5 97.3 97.0 96.8 45-54 95.0 95.0 95.2 93.9 93.5 96.6 97.0 97.6 97.3 97.3 55-64 94.6 94.6 94.6 92.7 92.4 97.5 97.5 97.6 97.3 97.6 65 and over 93.4 93.1 92.7 93.4 92.5 98.9 98.9 99.0 99.0 98.9

Source: Labor Force Survey, National Statistics Office

Of the estimated 36.3 million employed persons in July 2010, the

services sector was the largest group, comprising more than half


(51.2%) of the total employed population. The highest employed

workforce in the services sector were in wholesale and retail trade;

repair of motor vehicles and motorcycles; and personal and household

goods (19.4% of the total employed).

Workers in the agriculture sector accounted for 33.9 percent of

the total employed, with those engaged in the agriculture, hunting,

and forestry sub-sector making up the largest sub-sector (29.9% of

the total employed). Only 14.9 percent of the total employed were

in the industry sector, with the manufacturing sub-sector making up

the largest percentage (8.3% of the total employed).

Among the various occupation groups, the laborers and unskilled

workers comprised the largest group, posting 31.8 percent of the total

employed population.

By class of worker, wage and salary workers in July 2010

accounted for 53.2 percent of the total employed. Government

workers, or those working for government corporations, comprised

only 8.4 percent of the total employed, while 5.0 percent were

workers in private households.

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<Table 1-19> Employed Persons by Industry, Occupation, Class of Worker

and Hours Worked, Philippines: July 2009 and July 2010 (in

Percent)

Selected Indicators July 2009 July 2010Employed Persons (in ‘000) 35,508 36,285Industry Sector 100.0 100.0 Agriculture 33.6 33.9 Industry 14.9 14.9 Services 51.5 51.2Occupation 100.0 100.0 Officials of government and special interest organization, corporate executives, managers, managing proprietors and supervisors

13.8 13.6

Professionals 4.5 4.7 Technicians and associate professionals 2.6 2.6 Clerks 5.1 5.7 Service workers and shop and market sales workers 10.5 10.3 Farmers, forestry workers and fishermen 16.2 16.8 Trades and related workers 7.8 7.8 Plant and machine operators and assemblers 6.1 6.2 Laborers and unskilled workers 33.0 31.8 Special Occupations 0.4 0.4Class of Worker 100.0 100.0 Wage and salary workers 55.3 53.2 Own Account 33.9 34.8 Unpaid family workers 10.8 12.0Hours Worked 100.0 100.0 Working: Less than 40 hours 34.1 35.0 40 hours and over 64.9 64.3 Did not work 1.0 0.8Source: July 2010 LFS, National Statistics Office

The number of unemployed persons was higher among males

(62.6%), than among females (37.4%). More than half (52.4%) of


the unemployed were in the age group of 15 to 24 years. About

one-third (32.5%) of the unemployed were high school graduates;

22.7 percent were college undergraduates; and 20.5 percent were

college graduates.

<Table 1-20> Unemployed Person by Age Group, Sex, and Highest Grade

Completed, Philippines: July 2009 and 2010

Selected Indicators July 2009 July 2010Unemployed Persons (in ‘000) 2,922 2,708Age Group 100.0 100.0 15-24 52.8 52.4 25-34 28.0 28.4 35-44 9.3 9.7 45-54 6.1 6.1 55-64 3.1 3.0 65 and Over 0.7 0.4Sex 100.0 100.0 Male 62.6 62.6 Female 37.4 37.4Highest Grade Completed 100.0 100.0 No Grade Completed 0.5 0.4 Elementary 13.4 12.4 Undergraduate 6.3 5.8 Graduate 7.2 6.6 High School 45.0 44.0 Undergraduate 12.0 11.5 Graduate 33.0 32.5 College 41.1 43.2 Undergraduate 21.5 22.7 Graduate 19.6 20.5

Source: July 2010 LFS, National Statistics Office

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2.1 Skill Supply and Demand: Skill Level and Numbers

Skill Supply

There are only two (2) government agencies that have a licensing/

certification mandate. TESDA is for certification of skilled workers/

middle-level manpower, while the Professional Regulation Commission

(PRC) is for the professionals. On the average, almost 500 thousand

certified workers in different qualifications are added to the pool of

qualified / skilled workers. On the other hand, around 200 thousand

professionals from different fields are licensed.

<Table 1-21> Persons Assessed and Certified by Priority Sector: 2005-2009

Sector2007 2008 2009*

A C % A C % A C %Agriculture & Fishery 3,704 2,743 74 2,751 2,377 86 4,958 4,513 91Automotive 39,361 21,736 55 37,107 28,216 76 60,233 45,391 75Construction 26,495 18,855 71 20,295 17,179 85 50,168 40,968 82Electronics 11,519 5,877 51 15,801 11,318 72 37,185 25,607 69

Footwear & Leathergoods - - - - - - 35 35 100

Furniture 310 212 68 1 1 100 - - -Garments 3,998 2,309 58 3,799 2,984 79 8,177 6,575 80Health 107,963 97,294 90 122,283 115,939 95 187,052 173,791 93HVAC-R 4,314 3,233 75 4,584 3,892 85 9,818 8,060 82ICT 82,540 42,744 52 126,364 74,706 59 132,618 86,791 65Maritime 62,195 59,137 95 50,632 48,699 96 61,117 58,629 96Metals & Engineering 21,462 14,981 70 24,999 19,931 80 63,929 51,848 81Tourism 34,148 23,505 69 69,113 59,191 86 210,067 178,646 85Processed Foods - - - - - - 10,775 9,983 93Utilities 702 593 84 - - - - - -Others - - - 74,627 47,054 63 - - -

Total 398,711 293,219 74 552,356 431,487 78 836,131 690,836 83Note: A – Assessed, C – CertifiedSource: TESDA


Annually, the higher education system is producing around

500,000 graduates of degree courses. Performance in licensure

examination recorded in the PRC, however, shows an average

passing rate of only 36.26% across all disciplines as of 2009.

<Table 1-22> Enrolment and Graduates of Degree Program by Discipline:

2007-2009

Discipline Group 2006-2007 2007-20082 2008-20091

Enrollment Graduates2 Enrollment Graduates Enrollment GraduatesAgri, Forestry, Fisheries, Vet. Med. 59,397 15,555 63,074 15,980 60,759 16,861Architectural and Town Planning 19,015 3,485 20,305 3,623 20,040 3,865Business Admin. And Related 572,174 111,283 520,711 111,530 511,301 114,872Education and Teacher Training 331,416 87,351 339,065 90,691 329,279 96,646Engineering and Teachnology 315,412 57,817 309,130 60,003 308,376 63,919Fine and Applied Arts 12,216 2,002 12,225 2,087 12,694 2,232General 20,698 2,568 15,892 2,120 10,803 1,717Home Economic 5,568 1,371 4,684 1,431 4,354 1,532Humanities 26,558 5,725 29,300 5,928 30,343 6,302Information Technology 251,661 44,133 259,384 45,985 266,903 49,168Law and Jurisprudence 16,977 3,796 18,080 4,028 18,068 4,379Maritime 54,870 7,160 55,521 5,287 49,961 3,504Mass Communication and Documentation 30,020 5,466 26,150 5,564 25,812 5,820

Mathematics 14,553 2,028 12,697 1,969 12,843 1,962Medical and Allied Services 609,659 73,781 622,548 79,647 693,240 87,900Natural Science 23,149 4,661 22,819 4,659 22,315 4,787Religion and Theology 8,568 1,608 6,729 1,662 6,421 1,764Service Trades 19,740 2,469 17,650 2,465 18,352 2,529Social and Behavioral Science 67,452 15,821 70,506 16,270 71,705 17,184Trade, Craft and Industrial 9,891 3,438 11,807 3,853 13,322 4,388Other Disciplines4 135,455 22,095 127,257 23,741 132,904 26,096Total Enrollment of Priority Discipline 1,679,132 295,971 1,704,543 307,844 1,763,716 328,612

Grand Total 2,604,449 473,613 2,565,534 488,523 2,619,795 517,427Note: Shaded row refers to Priority Discipline

1 Forecasted data2 Preliminary dataIncludes graduates in pre-bacalaureate, post-baccalaureate, master’s and doctorate programsAs of 03 December 2008

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Demand for Professionals and Skilled Workers

The in-demand occupations refer to active occupations/job vacancies

posted/advertised recurrently by and across industries/establishments.

On the other hand, hard-to-fill occupations refer to job vacancies for

which an establishment has encountered difficulties in managing the

recruitment process for various reasons, such as no applicants,

applicant’s lack of experience, skill or license, preference for

working abroad, seeking higher salary, problem with location, and

other reasons.

The Bureau of Labor and Employment (BLES) 2008 Occupational

Shortages and Surpluses Survey provided statistical figures that

substantiate the initial findings in the PROJECT JOBSFIT.

Table 22 shows the hard-to-fill and in-demand occupations in the

different industry sectors. The results are only in qualitative Form,

and there are no indications on the level and quantity.

The Project JobsFit validated the existence of labor supply and

demand mismatch with the following major issues and gaps raised

by the stakeholders:

1. Lack of experienced and highly skilled workers;

2. School curriculum not responsive to industry needs; and

3. Poor dissemination of labor market information.


INDUSTRY IN-DEMAND HARD-TO-FILLA. KEY EMPLOYMENT

GENERATORS

1. AGRIBUSINESS

Animal HusbandryAgricultural EconomistAqua-culturistCoconut FarmerEntomologist(Plant)Farmer(Fruit, Vegetable and Root Crops)FishermanHorticulturistPlant MechanicRice Tresher Operator-MechanicVeterinarianPathologist

Feed Processor/Food Technician Fishery Technologist

2.CYBERSERVICES

Animation

Back Office Processing

Customer Contact

Medical Transcription

Software Development

AnimatorAccountantHR Outsourcing SpecialistCall Center AgentMedical Transcription EditorMedical TranscriptionComputer ProgrammersDeveloper (Software, Web)IT(MIS Developer,PlatformEngineer)Specialist (Learning Solution,System and Technical Support)

3. HEALTH AND WELLNESS

NurseHerbologistOpticianOptometrist

DoctorPhysical TherapistPharmacistMedical TechnologistPhysician/SurgeonSpa/Massage TherapistMasseur

4. HOTEL AND RESTAURANT & TOURISM

Front Office Agent/AttendantBakerFood Server and HandlerFood and Beverage ServiceAttendantWaiterBartenderRoom AttendantOther Housekeeping ServicesReservations Officer and otherFrontline OccupationTour Guides

Cook

5. MINING GeologistMining Engineer

<Table 1-23> Hard-to-Fill and In-Demand Occupations

PHILIPPINES 429

INDUSTRY IN-DEMAND HARD-TO-FILLGeodetic EngineerMetallurgical EngineerMining & Metallurgical Technicians

6. CONSTRUCTION FabricatorPipe FitterWelder

Engineer (Civil, Electrical,Design,Structural,Planning and Contract)

7. BANKING & FINANCE Operations ManagerTeller

Accounting ClerksBookkeepersAuditorCashierCredit Card AnalystFinance Analyst/SpecialistAccountant (Account Officer, Analyst)Risk Management Officer/Manager

8. MANUFACTURING Electrical TechniciansFinance and Accounting Managers Food TechnologistMachine OperatorsSewer

ChemistElectrical EngineerIndustrial EngineerIT SpecialistMachinistMechanical EngineersMechanical TechniciansChemical Engineer

9. OWNERSHIP DWELLINGS & REAL ESTAE

Building ManagerConstruction ManagerConstruction WorkerForemanMasonWelderReal Estate Agents/BrokersMarketer

Civil EngineerMechanical EngineerSurveyorArchitect

10. TRANSPORT & LOGISTICS

CheckerMaintenance MechanicsStewardess

Gantry OperatorGround EngineerHeavy Equipment OperatorLong Haul DriverPilotTransport and Logistics MachineryOperatorAircraft Mechanic and other related skills

11. WHOLESALE & RETAIL TRADE

Merchandiser/BuyerSalesman/SalesladyPromodizer

Cashier

Source: Project Jobsfit DOLE 2020 Vision


New Demands: Industry and government policy

Annually, the Philippines, through the Board of Investments (BOI),

formulates the Investment Priorities Plan (IPP) which is approved

by the President. The IPP provides a platform for the country to

maximize the opportunities and benefits of global economic

developments and the implementation of its international agreements.

It provides for priority investment areas which are covered by

incentives. In 2010, the priority areas identified are those that can

provide the greatest push for the country to attract more investments

and generate more jobs. This covers the Regular List, which contains

priority investment areas to support the current priority programs of

the government; the Export Activities, which covers manufacture of

export products, export services, and activities in support of

exporters; the Mandatory List, which now includes the recently

passed Republic Act No. 9593; the Tourism Act of 2009, which

covers all areas/activities where the inclusion in the IPP and/or the

grant of incentives under Executive Order 226 is mandated by law;

and the ARMM List, which covers priority investment areas that

have been determined by the Regional Board of Investments of the

Autonomous Region of Muslim Mindanao (RBOI-ARMM), in

accordance with Executive Order 458. The economic activities listed

in the ARMM shall be entitled to incentives, provided that the said

activities are undertaken in the ARMM region.

Information on industry demand and priorities, such as those in

the IPP, is regularly monitored, as this is critical in determining the

PHILIPPINES 431

availability of employment opportunities.

Section 2. The Philippine TVET System5)

Technical vocational education and training (TVET) in the

Philippines has long been recognized as an instrument in preparing

students and other clients for employment. It also addresses the skills

training requirements of those who are already in the labor market

and would need to upgrade or acquire new competencies to enhance

employability; improve productivity; or facilitate career shift.

The challenge for TVET remains as to how to make it more

responsive to the dynamic changes in the local labor market,

particularly with the structural adjustment and the changing patterns

of trade and competition in the world economy. The continuing

pressure on the technical vocational education and training sector to

develop skills more efficiently in the face of globalization; the fast

pace of technology change; and the need to effectively address the

issue of jobs and skills mismatch calls for a TVET system that can

address these concerns.

The paradigm of SEEK+FIND+TRAIN+CERTIFY=EMPLOYABILITY

fully illustrates the order of business in the TVET sector to enhance

the employability of the TVET graduates. As the mandated government

agency for TVET, TESDA seeks the jobs; finds the people that can

5) Excerpts ased from the Investing on the Filipinos Thru TVET: TESDA Report. July 201


fill them; and trains them based on the standards of industry;

assessed and certified the workers, as evidence of competence and

qualification of the jobs; and facilitate the employment of the

qualified graduate for available jobs.

[Figure 1-2] The TVET Development Loop to Employability

This paradigm is operationalized through the TVET Development

Loop to Employability. This consists of four main components: the

TVET Support System; the TVET Delivery System; TVET Financing;

and the TVET Quality Assurance System, which are interrelated and

mutually reinforcing.

PHILIPPINES 433

1. TVET Support System

This pertains to pre- and post-training support to ensure the

best-job-fit of workers and students. The major components include

social marketing and advocacy campaign to elevate the status of

TVET; labor market intelligence; career profiling and guidance

services; job bridging and placement assistance; TVET scholarships;

and TVET Trainer Development.

Support is done in the form of labor market intelligence from our

industry sector partners. In this respect, the availability of timely,

relevant labor market information is very critical. The needed

information from employers include where and when the jobs are

needed and what specific skills and competencies are required from

the workers. At the same time, information on how many; what skills

and competencies are possessed by the graduates of the education

and training system; and where are they located, are also essential

features of a truly functional labor market information system.

TESDA also utilizes labor information for career guidance

activities. There are two mechanisms available in the Philippines to

facilitate career guidance. One is the National Career Assessment

Examination (NCAE) of the DepEd administered to 4th year high

school students. TESDA has career profiling services for other

clientele not reached by NCAE. The Career Profiling Program is a

complete guidance delivery system to help young Filipinos make

right career choices and displaced workers redirect themselves to

new occupation paths, based on an objective assessment of their


strengths and interests, coupled with information on job/employment

opportunities. Through this program, students and parents are

equipped adequately to make the right career decision leading to a

greater job fit and greater value to education and training investment.

The career profiling efforts for the youth are anchored in the

Seek-Find-Train Paradigm and proactive job-skills matching approach

that aims for the BEST JOB FIT. The industry provides the cues

to industry need; the Department of Labor and Employment- Public

Employment Service Office (DOLE PESO) provides job facilitation

services; and the network of public and private TVET providers

delivers the training programs.

After training, job referral and placement services are provided to

shorten the job search period. It is also very critical that a tracking

system is established to measure the effectiveness of our training

interventions. In TESDA, the regular tracking of TVET graduates

is being done every two years to determine their employability. At

the institutional level, the TVET institutions are also encouraged to

monitor the employment of their graduates within six months to one

year after the end of the training program.

The TVET Trainer is an important and critical element in the

delivery of quality TVET programs. More than increasing the

trainers in number, the greater challenge is ensuring their quality.

TESDA has adopted the Philippine TVET Trainers Qualifications

Framework (PTTQF) to guide the development and recognition of

qualifications of trainers in the TVET sector.

The PTTQF has the following features:

PHILIPPINES 435

∙ Qualification Levels I to IV, from Trainer I to Mentor/Master

Trainer;

∙ The qualification level is a combination of Competencies in

Technology and Methodology / Professional streams;

∙ The technology levels follow the Philippine TVET Qualification

Framework, a system of assessment and certification for workers;

∙ A trainer must have a National Certificate level higher than the

qualification level of the trade he/she is teaching;

∙ A TVET trainer must be at least NC II certified;

∙ Only Mentors/Master Trainers are allowed to handle training of

Trainers; and

∙ The methodology levels shall follow the Trainers development

paradigm.

With the PTTQF as the framework, TESDA has embarked on an

intensified effort to capacitate the TVET trainers through the TVET

Trainers Development Program (TTP). As a matter of policy, all

TVET trainers must be at least TQ1 qualified to be allowed to teach

TVET programs registered in qualifications with Training Regulations.

Being TQ1 means the TVET Trainer is a qualified trainer and

assessor. The trainer/assessor development program is a continuing

initiative to raise the level of the TVET trainers from TQ1 to TQ2,

and higher.

TESDA’s recognition of the importance of the TVET trainer is

clearly manifested by the establishment of the National TVET

Trainers Academy (NTTA). The NTTA is tasked to manage the


nationwide conduct of the Trainers/Assessors Methodology Program

and ensure the development of qualified TVET trainers. From 2005

to 2009, a total of 20,381 TVET trainers have been certified as TQ1.

2. TVET Delivery

The Philippine technical-vocational education and training (TVET)

system can be characterized as competency-based, accessible and

open, flexible and responsive to industry requirements and quality

assurances. TVET in the Philippines is delivered through by the

network of public and private institutions through the following

modes: school-, center-, enterprise--, and community-based technology

training programs. The programs are registered with TESDA to

ensure that they meet the minimum standards set by industry.

∙ School-Based Programs - These programs refer to the direct

delivery or provision of TVET programs by the public and

private providers, including the TESDA administered schools.

These school-based programs include post-secondary course

offerings of varying duration depending on the training regulation.

∙ Center-Based Programs - These programs refer to training

programs being undertaken in the 16 TESDA Regional Training

Centers (RTC); 45 provincial training centers (PTC); and

specialized centers, such as the TESDA Women’s Center,

TESDA Training Center Taguig Campus Enterprise (TTCTCE),

and Korea-Philippines Training Centers, as well as private

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training centers. Program offerings in the centers are also

qualification- or TR-based, similar to the TVET schools.

∙ Enterprise-Based Programs – These programs are training

programs being implemented within companies/firms. They

programs can be any of the following:

- Learnership Program is practical, on-the-job training for

approved learnable occupations for a period not exceeding

three (3) months. Only companies with TESDA approved and

registered learnership programs can hire learners. Learners are

absorbed by the companies after training.

- Dual Training System (DTS) is an instructional delivery

system that involves two venues of learning – 30% in the

school/training center and 70% in the company/ establishment.

The training is based on a training plan collaboratively

designed and implemented by an accredited dual system

educational institution/training center and accredited dual

system of agricultural, industrial, and business establishments.

The dual system aims to 1) encourage increasing levels of

investments in TVET by both public and private institutions;

2) enhance the employability and productivity of graduates;

and 3) strengthen training cooperation between the

establishments and educational institutions. Schools/training

centers and business establishments interested in adopting

DTS must register their programs and apply for accreditation

through TESDA.

- Apprenticeship Program - This is an enterprise-based training


undertaken within the company which involves a contract

between a trainee and an enterprise on an approved

apprenticeable occupation. The program serves as a bridging

mechanism to enhance the government’s skills development

and employment facilitation programs, and it provides new

entrants to the labor force with the opportunity to acquire

basic skills and work experience, which are of prime importance

to employers in hiring new employees.

∙ Community-based Training – These are TVET programs conducted

in the communities, mostly in partnership with local government

units (LGUs) and non-government organizations. Programs

conducted are usually based on the local skills requirements and

resources available in the area.

∙ Community-based Training – These are TVET programs conducted

in the communities, mostly in partnership with local government

units (LGUs) and non-government organizations. Programs

conducted are usually based on the local skills requirements and

resources available in the area.

As of December 2009, there were 4,041 public and private TVET

institutions nationwide. TESDA directly administers 126 TESDA

Technology Institutions, including specialized centers like the TESDA

Women’s Center; the TESDA Language Skills Institutes; and the

Korea-Philippines Information Technology Centers.

Within a 5-year time frame from 2005-2009, total TVET output

has been on the rise, reaching 1.9 million graduates in FY 2009,

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from only 1.2 million in FY 2005, representing a 65% increase over

the 5-year period.

The total number TVET graduates from 2005 to 2009 is 7,913,581.

These graduates are equipped with the necessary skills and

competencies that can make them employable and productive.

3. TVET in Secondary Education

One of the priority programs of the Department of Education

(DepEd) from 2007 to 2010 is the Strengthened Technical-

Vocational Education (STVEP). This program is aimed at providing

the tech-voc (technical-vocational) high school students with relevant

and certifiable skills to give them greater chances of being employed,

even if they drop out of high school or do not proceed to college.

STVEP is also directed at linking basic education to post-secondary

and/or higher education through the ladderized education system.

DepEd recognizes the need to ensure that the tech-voc programs

in high school comply with standards prescribed by industry through

the training regulations promulgated by TESDA. TESDA provided

assistance to DepEd in the training of more than a thousand

principals, administrators, head teachers and teachers from 282

tech-voc high schools on competency-based system; training

methodology; and curriculum and learning materials development.

Support was also provided in the development of the competency-

based curriculum (CBC); conceptual learning materials (CLM); and

learning materials. The DepEd is now implementing the CBC, CLM,


and instructional modules in their tech-voc high schools.

A total of 1,676 DepEd teachers have been certified in various

qualifications, 102 of which have CoCs; 182 have NC I; and 1,392

have NC II.

4. TVET Quality Assurance

TESDA ensures that all TVET programs are delivered in

accordance with the minimum national standards through the

enforcement of mandatory TVET program registration. As a vital

quality assurance mechanism, TESDA also enforces mandatory

assessment of all TVET graduates. All trainees who pass the

assessment are given their certificates of competency which serve

as a national trade credential. At the moment, TESDA is now

working towards an ISO 2001-2008 certification.

The TVET quality assurance mechanisms in place are described,

as follows:

4.1 Training Regulations (TRs)

Training Regulations (TRs) are developed in consultation with

industry and promulgated by the TESDA Board.

The TRs contain the national qualification; competency standards;

training standards; and assessment and certification arrangements.

They spell out the parameters for ensuring quality in delivery of a

TVET program. They also serve as the bases for competency

assessment and certification, registration, and delivery of TVET

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programs, and development of curriculum and assessment instruments.

As of September 2010, a total of 218 training regulations have

been promulgated by the TESDA Board.

4.2 Unified TVET Program Registration and Accreditation

System (UTPRAS)

The Unified TVET Program Registration and Accreditation

System is the quality assurance mechanism for the mandatory

registration of technical-vocational programs with TESDA.

Registration signifies compliance of the TVET program in the

following: curriculum design, qualification of trainers, facilities, and

tools and equipment.

UTPRAS is primarily intended to promote public interest and

welfare by ensuring the quality of TVET Programs.

The registration system is anchored on the competency-based

system, wherein TVET programs adopt the qualification titles being

prepared for and the competency or set of competencies that are to

be acquired. The system prescribes compliance with minimum

standards provided in the TRs promulgated by the TESDA Board.

The registration system is referenced on the Philippine TVET

Qualification and Certification System (PTQCS). As such, TVET

programs shall be categorized on the basis of the qualification levels

in the Philippine TVET Qualification Framework (PTQF) namely:

National Certificate (NC) I; National Certificate (NC) II; National

Certificate (NC) III and National Certificate (NC) IV. It leads to a


more efficient and effective management of the TVET sector.

In order to ensure and monitor adherence to prescribed standards,

compliance audits are being done regularly by the field offices.

There were 19,706 registered TVET Programs as of September

2010.

A component of UTPRAS is voluntary accreditation, which refers

to the process of assessing and upgrading the quality of TVET

programs through self-evaluation and external assessment by a

TESDA-recognized accrediting body. The system provides multi-level

accreditation status, public recognition, and conferment that a TVET

program meets the standards set beyond the minimum requirements

of program registration.

TESDA has recognized the Asia Pacific Accreditation and

Certification Commission (APACC) as one of the accrediting bodies

for TVET. The APACC is a regional accreditation and certification

body established by Colombo Plan member governments which

recognize the need to cope with the rapid changes in the labor market

and skills taught in technical and vocational education and training

(TVET) institutions. The 7 APACC Accreditation Criteria used in

the process include:

∙ Governance and Management;

∙ Teaching and Learning;

∙ Faculty and Staff;

∙ Research and Development;

∙ Extension, Consultancy, and Linkages;

∙ Resources, Financial Resources, Physical Plant and Facilities,

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Library, Workshops/Laboratories Information Technology; and

∙ Student Services.

The implementation of program accreditation through APACC is

initially focused on the 126 TESDA technology institutions (TTIs).

As of 2009, there were three (3) TTIs that have been accredited as

silver by APACC, and eight (8) were given Bronze Level accreditation.

4.3 Assessment and Certification

Assessment and certification ensures that the TVET graduates and

skilled workers have the necessary competence to perform the tasks

consistent with the required standards in the workplace. As a matter

of policy, TESDA requires mandatory assessment for graduation in

qualifications covered by a promulgated training regulation.

The assessment process is done to confirm that the graduate or

worker can perform to the standard expected in the work place,

based on the defined competency standards. Certification is provided

to those who meet the standards. This ensures the productivity,

quality, and global competitiveness of the middle-level workers. The

national certificate (NC) issued to the worker/graduate is renewable

every 5 years.

TESDA has a registry of certified workers which provides

information on the pool of certified workers for certain occupations

nationwide. TESDA also has accredited assessment centers, as well

as competency assessors, who conduct competency assessment


processes for persons applying for certification.

TESDA is one of the only two (2) government agencies that have

licensing/certification mandate. The Professional Regulation Commission

(PRC) is for the professionals, while TESDA is for skilled workers/

middle-level manpower.

The assessment and certification performance for the past 5 years

showed an upward trend, signifying an increasing number of

competent and skilled workers who are job-ready and meet the

standards of industry. This also reflects the response of TVET

institutions in meeting quality and competency standards defined in

the training regulations.

The number of persons assessed has risen considerably, from

223,984 in 2005, to 836,131 in 2009, or an increase of more than

270%, from the 2005 level. The number of persons certified

increased from 108,361 in 2005, to 690,836 in 2009, or an increase

of more than 500%. The certification rates also increased over time

from 48.3% in 2005, to 82.6% in 2009.

Section 3. GOVERNANCE OF THE TVET SYSTEM


1.1 The Creation of TESDA

The Technical Education and Skills Development Authority

(TESDA) was created through the enactment of Republic Act No.

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7796, otherwise known as the “Technical Education and Skills

Development Act of 1994”. It was signed by President Fidel V.

Ramos on August 25, 1994.

Under TESDA, the functions of the National Manpower and Youth

Council (NMYC); the Bureau of Technical Vocational Education

(BTVE) of the Department of Education, Culture and Sports

(DECS); and the apprenticeship program of the Department of Labor

and Employment (DOLE) were integrated. The creation of TESDA

was initiated by virtue of the findings of the Congressional

Commission on Education (EDCOM) way back in 1991. The

EDCOM was tasked to review and assess the Philippine education

and manpower training system. The major finding of the EDCOM

is that the quality of education is continuously deteriorating, as

indicated by the following:

∙ Elementary and high-schools are failing to teach the competence

the average citizen needs to become responsible, productive, and

self-fulfilling;

∙ College and technical vocational education are not producing the

manpower needed to develop the economy; and

∙ Graduate education is mediocre and does not generate the

research-based knowledge needed to create more jobs and raise

the value of production.

The EDCOM concluded that the education and manpower training

system is deteriorating because of the following reasons:


∙ The government is not adequately investing in the education

system; and

∙ The education system is poorly managed.

1.2 Mandate and Objectives

Mandate

TESDA is mandated by law, “to provide relevant, accessible, high

quality and efficient technical education and skills development in

support of the development of high quality Filipino middle-level

manpower responsive to and in accordance with Philippine

development goals and priorities. It shall encourage active

participation of various concerned sectors, particularly private

enterprises, being direct participants in and immediate beneficiaries

of trained and skilled workforce, in providing technical education

and skills development opportunities”. (Sec. 2 R.A. 7796).

Objectives

TESDA is tasked to meet the following goals and objectives:

∙ Promote and strengthen the quality of technical education and

skills development programs to attain international competitiveness;

∙ Focus technical education and skills development on meeting

the changing demands for quality manpower;

∙ Encourage critical and creative thinking by disseminating the

scientific and technical knowledge base of the middle-level

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manpower development programs;

∙ Recognize and encourage the complementary roles of public and

private institutions in technical education and skills development

and training systems; and

∙ Inculcate desirable values through the development of moral

character with emphasis on work ethics, self-discipline, self-reliance

and nationalism.

1.3 Vision, Mission and Value Statement

The vision, mission, and value statement of TESDA express its

highest aspirations and reasons for being and serve as the unifying

framework for all its activities.

Vision - TESDA is the leading partner in the development of the

Filipino workforce with world class competence and positive work

values.

Mission - TESDA provides directions, policies, programs, and

standards towards quality technical education and skills development.

Value Statement - TESDA believes in demonstrated competence,

institutional integrity, personal commitment, and a deep sense of

nationalism.

Quality Policy - We measure our worth by the satisfaction of the

customers we serve through: Strategic decisions, Effectiveness,

Responsiveness, Value Adding, Integrity, Citizen Focus, and Efficiency.


1.4 The Straddling Role of TESDA

TESDA’s socio-economic objectives and the multiplicity of its

mandates and responsibilities, requires it to straddle three essential

roles: education and training, employment, and poverty alleviation.

As an education and training agency, its objectives call for the

development of the knowledge, skills, and attitudes that will

empower the Filipino workers to harness their potential and become

creative citizens.

As an agency contributing to employment, it provides the

necessary competencies to make the person employable and

economically productive.

Both the education and training and employment objectives of

TESDA and TVET ultimately, contribute to poverty alleviation.

1.5 Organizational Structure

TESDA is composed of both the Board and the Secretariat.

Together, they constitute TESDA as an authority.

The TESDA Board

The TESDA Board is the highest policy-making body, and it also

represents the public-private partnership that works together for the

benefit of its constituents. Its composition includes the key

stakeholders of the whole TESD sector. As the Authority’s highest

policy-making body, the composition of the TESDA Board reflects

the public-private partnership that operates in the technical vocational

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and education (TVET) system.

The Board has twenty-two (22) members, with the majority (14)

coming from the private sector, consisting of 4 employers groups;

2 from investors groups; 6 labor groups;, 2 from associations of

TVET institutions; and the remaining 8 from the government sector.

The Secretary of the Department of Labor is the chair of the TESDA

Board. Sitting as co-chairs are the Secretaries of Trade and Industry

and Education.

Powers and Functions

Under Sec. 8 of RA No. 7796, the TESDA Board shall be

primarily responsible for the formulation of continuing, coordinated,

and fully integrated technical education and skills development

policies, plans, and programs.

The TESDA Board has the following powers:

a) Approve and promulgate, after due consultation with industry

groups, trade associations, associations of technical-vocational

schools, employers and workers, the National Technical

Education and Skills Development Plan for middle-level

manpower and the policies, programs and guidelines as may

be necessary for the effective implementation of the plan and

of the Act.

b) Organize and constitute various standing committees, subsidiary

groups, or technical and working groups for efficient integration,

coordination, and monitoring of technical education and skills


development programs at the national, regional, and local

levels;

c) Enter into, make, execute, perform, and carry out domestic and

foreign contracts subject to existing laws, rules, and regulations;

d) Restructure the entire sub-sector, consisting of all institutions

and programs involved in the promotion and development of

middle-level manpower through upgrading, merger, and/or

phase out, following a user-led strategy;

e) Approve trade skills standards and trade tests, as established

and conducted by private industries;

f) Establish and administer a system of accreditation of both

public and private institutions;

g) Establish, develop, and support trainor’s training and/or programs;

h) Lend support and encourage increasing utilization of the dual

training system, as provided for by Republic Act No. 7686;

i) Extract reasonable fees and charges for such tests and trainings

conducted, and retain such earnings for the use of the TESDA,

subject to guidelines promulgated by the TESDA Board;

j) Allocate resources, based on the TESDA Secretariat’s

recommendations, for the programs and projects it shall

undertake pursuant to an approved national technical education

and skills development plan;

k) Determine and approve systematic funding schemes, such as

the levy-and-grant scheme for technical education and skills

development purposes;

l) Create, when deemed necessary, an advisory committee which

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shall approve expert and technical advice to the board to be

chosen from the academe and the private sector: Provided, that

in case the advisory committee is created, the board is hereby

authorized to set aside a portion of its appropriation for its

operation;

m) Create such offices, as it may deem necessary, to carry out

objectives, policies, and functions of the TESDA;

n) Review and approve annual and other reports to the President

on technical education and skills development;

o) Manage and administer the TESDA Development Fund and

formulate its implementing guidelines; and

p) Perform such other duties and functions necessary to carry out

the provisions of the Act.

The TESDA Secretariat

The TESDA Secretariat is the development and implementing arm

of the Authority. At present, TESDA’s organizational structure is

largely based on the proposed Rationalization Plan (per E.O 366)

approved by the TESDA Board in 2005 which rationalized the

structure by the creation of additional units to address more

efficiently and effectively the needs of the TVET sector.

Functions and Responsibilities

The TESDA Secretariat is mandated to have the following

functions and responsibilities:


a) To establish and maintain a planning process and formulate a

national technical education and skills development plan in

which the member-agencies and other concerned entities of the

Authority at various levels participate;

b) To provide analytical inputs to policy decision-making of the

Authority on allocation of resources and institutional roles and

responsibilities, as shall be embodied in annual agencies

technical education and skills development plans, in accordance

with the manpower plan for middle-level skilled worker as

approved by the Authority;

c) To recommend measures, and implement the same upon

approval by the Authority, for the effective and efficient

implementation of the national technical education and skills

development plan;

d) To propose to the Authority the specific allocation of resources

for the programs and projects it shall undertake, pursuant to

the approved national technical education and skills development

plan;

e) To submit to the Authority periodic reports on the progress and

accomplishment of work programs for the implementation of

plans and policies on technical education and skills development;

f) To prepare for approval by the Authority an annual report to

the President on technical education and skills development;

g) To implement and administer the apprenticeship program, as

provided for in Section 18 of this Act;

h) To prepare and implement upon approval by the Authority a

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program for the training of trainers, supervisors, planners, and

managers, as provided for in Section 23 of this Act;

i) To enter into agreement to implement approved plans and

programs and perform activities as shall implement the declared

policy of this Act; and

j) To perform such other functions and duties as may be assigned

by the Board.

The TESDA Secretariat is headed by the Director General who

exercises general supervision and control over TESDA’s technical

and administrative personnel.

The Technical Education and Skills Development Committee

As mandated by the law, TESDA established the Technical

Education and Skills Development Committees (TESDCs) at the

regional and local levels to coordinate and monitor the delivery of

all skills development activities by the public and private sectors.

The TESDCs perform their functions based on the principle of

subsidiary. They have full authority and power to address and act

on TVET issues and concerns specific to their area of responsibility,

provided that their actions are within the bounds of the general

guidelines promulgated by the TESDA Board or other relevant

bodies. The TESDCs do not exercise powers vested solely to the

TESDA Board unless provided with appropriate authority by the

TESDA Board.

Consistent with the principle of subsidiary, the TESDCs primarily


support and attend to the core business of TESDA on direction

setting, quality assurance, support to TVET provision, and institutional

capacity building. They ensure policy coherence, particularly at the

sub-national level.

To date, there are 17 regional TESDCs; 86 provincial TESDCs

; and 3 city TESDCs established nationwide.

2. National Development and TVET Policy6)

TESDA is mandated to formulate the National Technical Education

and Skills Development Plan (NTESDP) which serves as a roadmap

towards improving the quality of training and the development of

the Filipino workforce to enhance their competitiveness and chances

of success in the global market. The NTESDP is anchored to the

Medium Term Philippine Development Plan. Together with the

NTESDP, regional and provincial TESDP plans are formulated and

implemented at the sub-national level.

The NTESDP serves as the plan for technical education and skills

development for the entire country. It became the basis for resource

allocation decisions within the middle level skills development

sub-sector.

Guided by the government’s 10-point Agenda and the MTPDP

2004-2010, the Second Cycle NTESDP 2005-2009 responds to the

national development objectives in terms of generating 6-10 million

6) Taken from the National Technical Education and Skills Development Plan 2004-2010, the new framework is still ongoing

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jobs until 2010, especially in the agriculture and fisheries sector.

These national development objectives are:

Decent and Productive Employment. This means that productive

employment is available, from which is derived adequate income for

all at work. Sufficient productive employment is available, and

workers have full access to income earning opportunities. Essential

to decent employment is a continuous enhancement of competencies

through building up of capabilities for skills training on global

competitiveness and positive work ethic to make them more

productive, under conditions of freedom, equity, security, and respect

for fundamental rights at work. Industry and employees shall support

this process by pursuing their institutional human resources

development programs for their workers.

Quality TVET Provision. Standards on systems, processes, and

procedures among TVET providers will be applied accordingly to

ensure quality graduates/workforce.

Supply Matches Demand. It is recognized that economic growth

triggers socio-economic improvements. However, the provision of

training programs will be guided by adequate and timely labor

market information, both in terms of quantity and quality set by

industries, especially in critical occupations and in areas where there

are high demand.

2.1 Strategic Framework

The plan operates within the context of the PSALM approach to


TVET planning: Policy-oriented; Sector-focused; Area-based and

Labor Market-driven. It considers development imperatives; labor

market conditions, both local and overseas; and TVET interventions.

Development Imperatives. These are social development concerns

lined up by the national government, particularly for the special or

socially excluded sectors of society, such as the poor, differently-

abled persons, out-of-school youths, and unemployed.

Labor Market Conditions. These cover area and industry

requirements, both local and overseas, gathered and disseminated

with the assistance of the private sector.

TVET Interventions. These are policies, programs, and standards

developed through a process of participation among stakeholders and

partners, and carried out through established networks of

participative public and private TVET providers.

TVET for Social Integration. Based on the universal principle of

social inclusion, this puts people, particularly those who are socially

excluded, in the mainstream of development, not only as

beneficiaries, but also as active participants in the development

process. It also addresses the provision of a wide range of economic

and social options among poor and other needy Filipinos.

TVET for Rural Development. This mainstreams the countryside

in national development by addressing the skills requirements of

economic activities in the rural areas, especially in pursuing

technology-based and greater value-adding agriculture and fishery

development.

TVET for Global Competitiveness. This addresses the skills

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required by export-oriented activities, catalytic industries, industries

undergoing economic adjustments, support industries, and overseas

industries vis-à-vis acceptable global standards, in providing human

resources capable of delivering quality products and services.

2.2 Three key result areas have been identified:

Improved Access and Equity in TVET. This describes the state

where opportunities are available and affordable for all clients that

include, but are not limited to special clientele groups, like women,

differently-abled persons, and indigenous people, among others.

Relevant, timely information on training opportunities will be made

available for prospective beneficiaries.

Improved Assessment and Certification. There is an increased

number of TVET graduates with verified/validated competence to

perform a particular skill according to quality standards defined by

industry. Also, the registry of certified TVET graduates is readily

available to prospective employers, both for local and overseas

employment.

Enhanced Employability of TVET Graduates. This is the environment

where TVET graduates have improved access to employment

opportunities, both here and abroad. Graduates will also have

improved prospects for entrepreneurial and self-employment endeavors.

2.3 Objectives of the Plan

With this framework and the overall vision to generate a globally


competent Filipino workforce, the plan has three key objectives:

1. TVET shall help in ensuring that priority sectors are assured

of their critical skills requirements;

2. TVET shall help in poverty alleviation, by giving equitable

TVET opportunities for the poor, deserving, and qualified

clients in filling up gaps in critical skills; and

3. TVET shall help communities achieve self-sufficiency in skills

and bridge them to the local and overseas labor markets.

3. Assessment of TVET Policy7)

Improved access and equity in TVET (Efficiency)

Despite limited public resources, TVET grew at a moderate pace,

with the private sector contributing heavily, specially through school-

and center-based delivery.

Private institutions account for about 70 percent of total enrolment

in formal TVET financed almost exclusively by tuition fees and

endowment income, with minimal government subsidy.

Over the years, TVET enrollment and graduates continued to

increase, due to the expanded provision of TVET opportunities and

the availability of additional scholarships given by the government.

7) Taken from the Impact Evaluation Studies 2008 and the National Technical Education and Skills Development Plan 2004-2010 and the TVET Statistics…

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Increased private and local government units’ (LGUs) investments

and accountability in TVET

TESDA has capitalized on its partnership with the LGUs through

the TESDA initiative project “Invigorating Constituents Assistance

in Reinforcing Employment (I-CARE). I-CARE is a counterparting

funding arrangement between TESDA and the legislators through

their priority development assistance funds, the local government

units, and other non-government organizations.

A number of scholarship programs were implemented, resulting

in a notable increase of scholarship slots available for deserving

TVET clients. Beneficiaries of scholarship programs, specifically the

Training for Work Scholarship Program (TWSP) which started in

mid 2006, totaled 1,265,864 for the period 2006-2009.

TESDA has also embarked on partnership arrangements and

linkages. Full participation and mobilization of the industry, labor,

and LGUs were maximized in the development of TVET systems

and standards; policies and plans; advancement of TVET agenda;

implementation of TVET programs and scholarships; and

co-management partnership for shared responsibilities.

Improved assessment and certification (Effectiveness)

The number of takers of competency assessment showed an

increasing trend. This increase can be attributed to the mandatory

assessment policy as pronounced by the TESDA Board. This can also

be due to the free assessment service of TESDA (FAST). Improvements


in certification rates are also observed over the years which could be

an indication also of the quality of TVET provision. The installation

of a quality assurance system from standards development, to program

registration, and up to assessment and certification, also contributed

significantly to improvements in TVET performance.

Improved employability of TVET graduates (relevance, effectiveness,

and social impact)

To measure the possible impact of TVET programs for its

graduates, Impact Evaluation Studies of TVET programs are

regularly conducted. They aim to measure the TVET graduates’

employability, relevance, and effectiveness of training, among other

criteria.

The relevance and responsiveness of TVET interventions, as

measured in terms of the labor market performance of graduates, has

reached decent levels when gauged against the average employment

rates of the youth age group in the labor market. Based on the July

2010 labor force survey, youth (age 15-24) employment rate is

registered at 47.6%. This indicates high unemployment among the

youth, which is placed at 52.4%.

Based on the 2008 Impact Evaluation Study (IES) commissioned

by TESDA, the employment rate (as a percentage of the labor force)

of TVET graduates was 55.1 percent, which is lesser than the 2005

IES figure of 64.6 percent. The decline can be attributed to factors

like: the effects of the global financial crisis, which slowed down

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economic activities and resulted to job losses; skills mismatch

between the requirements of the available jobs and the skills

possessed by workers; and geographical mismatch between locations

of job openings and job seekers, among others.

Section 4. Financing TVET

TVET financing largely comes from the government. The TVET

share of the total education budget from the General Appropriations

Act (GAA) averaged 2.6% in 2005-2009. Basic education, through

DepEd, has the highest share at 84.7%, while higher education,

composed of CHED and SUC budgets, accounted for 12.7% of the

total education budget. The total budget for TVET for the last five

years fluctuated, from PhP 1.70B in 2005, to PhP 3.48B in 2009

(GAA Regular Operations).


[Figure 1-3] Average Annual Education Budget, 2005-2009

TESDA had been a recipient of foreign assisted projects (FAPs)

from 2005 to 2009 which were all aimed at addressing the relevance,

quality, and equity improvement of the delivery of TVET programs.

<Table 1-24> TESDA Foreign Assisted Projects (‘000 pesos): 2005-2009Foreign Assisted Projects 2005 2006 2007 2008 2009

TOTAL 685,766 633,766 633,766 271,000 249,177ADB-TESDP 504,202 578,766 466,167 102,656 Expansion of Dual Education

and Training Project (EDETP) 127,064Center of Excellence in Modern Manufacturing Technologies (CEMMT) 2,500 55,000 167,599 168,344 249,177Korea-Philippines Training Centers (IT and Agriculture) 55,000

With funding assistance from various sources, including the

foreign assisted programs (FAPs), support for TVET increased

tremendously from 2006-2009. The Training for Work Scholarship

(TWSP), which was launched in 2006, increased substantially the

PHILIPPINES 463

total financial resources of TESDA by PhP 8.07 billion for the 2006

to 2009 period.

TESDA also capitalized on its partnership with the local government

units (LGUs) through I-CARE. A total of PhP 897 M in additional

TVET financing was generated out of the PDAF of the Senators and

Congressmen from 2005 to 2009.

However, the study, “Investment in TVET in the Philippines”,

conducted by the UNESCO11 in 2003 indicates the following

findings:

With 53.5%, the private sector contributes more than the government

in funding TVET in the Philippines. In the private sector, according

to the study:

∙ Trainees contribute 26.8% through tuition fees;

∙ Companies fund apprenticeship and learnership programs with

15.6%; and

∙ NGOs, with 6.8%.

Also, the UNESCO study8) identified three main market sectors

by funding mode:

∙ A regulated sector, in which access to government funds is

limited to public (primarily TESDA) institutions, and in which

resource allocation and training delivery are subject to relatively

high levels of government planning and regulations;

8) David Atchoaréna, et al.,Investment in Technical Vocational Education and Training (TVET) in the Philippine (International Institute for Educational Planning, 2008), 11


∙ A partially regulated or quasi-market sector, in which public

funds are allocated to public and private providers via regulated

processes, such as funding submissions. These funding programs

are subject to partial government regulation (provider and

program registration) and coordinated at the local level, in

particular community-based programs.

∙ An open-market or commercial sector, in which trainees directly

purchase training programs from providers under free market

conditions, providers being in direct competition for clients and

resources and delivering training relatively free from

government regulation.

Section 5. Internationalization of TVET

1. Impact on TVET Policy

1.1 Impact on TVET: FTA and DOHA Agreement

At present, the Philippines has not made any commitment on the

TVET sector in any international or free trade agreements, such as

the GATS-WTO or ASEAN. There are constitutional provisions/

limitations and other laws and regulations that have to be observed

by the foreign TVET providers intending to enter into the Philippine

market.

In this respect, there has been no significant impact yet on TVET

as expected to be brought about by free trade and DOHA agreements.

PHILIPPINES 465

Nevertheless, the opening up of markets to global competition,

such as the free trade agreements and DOHA agreements, has put

pressures on TVET to meet the changing requirements of industry

for highly skilled and qualified workers.

1.2 Labor Market Change: Migration and International Providers

The Philippines has to take into account the significantly large and

continuously growing population of overseas workers. The government

is under tremendous pressure to address the growing scarcity of skills

needed by domestic industries, as more and more workers leave the

country and avail themselves of opportunities abroad. The government,

at the same time, is under pressure to provide training and other

services that will enable these workers to qualify for better paying

foreign jobs that will them to more easily assimilate into foreign

countries. The prospect of earning much higher incomes from skilled

work abroad has lead to a significant increase in the demand for

education and training in the country.

Raising the quality of TVET graduates to meet international

standards has become necessary. This is important to gain

recognition of the competencies possessed by the workers in their

countries of destination.

1.3 Technology: ICT and E-learning

Information and communications technology (ICT), including the

development of new broadband communication services and the


convergence of telecommunication with computers, offers opportunities

for TVET to expand its capacity and enhance the learning process.

In the Philippines, there are already initiatives to maximize the use

of ICT in TVET. TESDA has established an e-portal which is

envisioned to eventually provide viable technical learning online, as

well as blended learning. This is expected to broaden the reach and

capacity of the TVET system, thereby expanding access to training

opportunities, including those persons who are difficult to reach.

2. International Cooperation: Bilateral, Multilateral, and

International Organization

As indicated in the discussion under Financing TVET, the

Philippines has been supported by donors under bilateral and

multilateral arrangements. Other than the loans from the Asian

Development Bank and the KfW, TESDA is also a recipient of

various grants on TVET from the Australian government, through

AusAid; the German government, through GTZ; the Korean

government, through KOICA; and the Japanese government, through

JICA. International organizations, such as the ILO and other UN

organizations, have also provided support to TVET in the Philippines.

The assistance is wide-ranging and comes in the form of financing;

facilities and equipment; learning materials; provision of technical

experts / consultants who assist in policy development; and standards

and systems development, among others.

TESDA also actively participates in international fora, such as the

PHILIPPINES 467

ASEAN and APEC. In all these fora, key policy positions being

advocated include the use of competency-based systems in education

and training; job-focused skills development; and seamless and

borderless development of an education system that establishes

bridges and pathways in all the education ladders, among others.

TVET is being advocated as a strategic and viable option for

developing human resources.

Efforts are also being worked out by the Philippines for mutually

beneficial arrangements with labor-receiving countries where

bilateral arrangements on technical cooperation are available to allow

the assessment of workers based on the host country’s qualification

standards. This allows for comparability and benchmarking of the

country’s standards against the standards of the host countries


The Philippines maintains its position not yet to liberalize the

post-secondary education or TVET. Foreign nationals intending to

establish TVET schools in the Philippines must comply with the

Philippine Constitutional provision of 60-40 equity. However, as

provided in the Philippine Constitution, the management of

institutions is solely by Filipino citizens. In addition, compliance

with the domestic laws and regulations, relative to TVET establishments,

has to be addressed. This includes meeting the minimum set of

standards set by TESDA for registration TVET programs in terms

of curriculum, facilities and equipment, and trainer qualification.


To date, there are some TVET institutions in the Philippines that

have existing partnership arrangements with foreign institutions, or

with investments from foreign nationals. Their partnerships are in

course/skills offerings which are highly in-demand, like tourism

(hotels and restaurants), ICT, and languages.

Section 6. NEW AGENDA AND PLANS FOR THEFUTURE

1. Expanding Access and Equity to TVET Opportunities

TVET is recognized as a poverty alleviation tool. It serves as the

common man’s ticket to upward social and economic mobility.

TVET must be made accessible and available to the broad range of

clientele, particularly the poor and the marginalized sectors.

TVET aims to reach the grassroots and empower those already

reached. TVET will assure quality training and lifelong education

to develop and enable all TVET learners with job opportunities

through employability enhancement and provision of technical skills.

Modular progression in training design is applied in TVET for

quality short-term courses resulting in National Certifications (NC

I, II, III, IV) that can be easily attained at the grassroots level by

the TVET clients — eventually opening opportunities for employment.

Scholarships, student financial assistance and free training in public

TVET institutions serve as the mechanisms to expand access and

PHILIPPINES 469

equity to TVET opportunities. Sustainable and adequate TVET

financing is therefore crucial to realize this objective.

Alternative modes of delivery in TVET, such as on-line and

blended learning, facilitated by ICT can also help expand access to

TVET opportunities.

2. Ensuring Sustainable and Adequate Financing for TVET

and Funding the TESDA Development Fund

Quality TVET provision, by nature, is expensive, considering the

cost of training equipment, tools, facilities, and supplies and

materials and the need for highly competent trainers. To be effective,

there is a need for adequate and sustainable TVET financing.

TESDA’s proposals on TVET Financing are as follows:

∙ Funding the TESDA Development Fund

Despite the provision in the TESDA Law, the TESDA

Development Fund (TDF) remains unfunded in terms of the

one-time lump sum appropriation from the national government

and contributions from the OWWA.

The TDF should have been an additional sustainable source of

TVET financing to award grants and provide assistance to

training institutions, industries, and local government units for

improving the quality, relevance, efficiency, and effectiveness

of TVET provision.

At present TVET financing, particularly, scholarships, comes


mainly from the General Appropriations Act (GAA) and in the

past, from the Contingency Fund of the Office of the President.

There might be a need for legislation to identify other sources

of funds for the TDF to make it fully operational. Options

include:

∙ Increasing budgetary allocation in the GAA for education,

including TVET;

∙ Increasing allocation for PESFA – TVET under the

GASTPE; and

∙ Maintaining the budget allocation for training for work

scholarship program (TWSP).

3. Strengthening Industry-TVET Linkage, including

Enterprise-based Training

The involvement of industry/employers is essential to link training

supply with demand. Being the end-user of skilled manpower,

industry is in the best position to determine what type of skills and

competencies have to be developed. Its involvement in the

development of competency standards and in the design of

curriculum has to be strengthened and sustained.

More importantly, given the fact that skills are better learned in

the workplace, enterprise-based training, such as apprenticeship, dual

training, on-the-job training, and other related schemes need to be

intensified and realigned to suit industry requirements.

To fully harness the participation of industry / employers in the

PHILIPPINES 471

delivery of skills training, TESDA proposes the passage of the

Enterprise-Based Training Bill. This bill aims to strengthen

enterprise-based training by consolidating the apprenticeship/learnership,

dual training, on-the-job training, and all other industry-based

training arrangements into one (1) rationalized system of enterprise-

based training.

TESDA is also making efforts to revive/organize industry boards

or associations to increase participation of the industry and

employers in TVET.

These initiatives will help improve industry-academe linkage and

address the perennial problem of skills and jobs mismatch.

Participation of Industry in TVET

To facilitate sustainable systems of quality TVET programs, the

involvement of the private sector is necessary. With its scarce

resources, there are limits in what the government can offer in terms

of skills formation. The delivery of TVET programs is a very costly

undertaking, especially with the vast capital outlay for facilities,

tools, and equipment. The private sector needs to do their share in

skills formation by bearing some of the costs of skills formation.

The cooperation of the private sector for much needed help and

contribution can be done through sharing of expertise and training

resources.

Contributions in cash or in kind, like the use of their facilities in

training, can be shared by the private sector.


Government needs to provide the policy environment and

mechanisms to encourage industry participation in TVET. The

provision of incentives to industry/enterprises, which should have

been funded under the TDF, is one mechanism to encourage industry

participation.

4. Institutionalizing the Philippine National Qualifications

Framework and a System of Skills /Qualification

Progression /Career Shifts and Lifelong Learning

The Philippine National Qualifications Framework was developed

and approved in principle by the three (3) education agencies in 2005

through the National Coordinating Council on Education (NCCE).

It has also been presented to the Presidential Task Force on

Education (PTFE).

The PNQF has been developed to establish a coherent national and

internationally benchmarked structure for all qualifications awarded

in the Philippines.

The PNQF unifies the three sectors of the Philippine education

system (Elementary, Secondary, and Tertiary which covers both

higher education and post-secondary TVET). It is a national system

covering all levels of formal and non-formal education qualifications,

from the pre-school levels to doctoral degrees. All qualifications

listed in the PNQF are quality assured so that there may be

confidence not only in their academic standards and vocational

relevance, but also in the quality of teaching, assessment, and the

PHILIPPINES 473

awarding of credentials.

The PNQF promotes lifelong learning, building flexible pathways,

with a variety of learning entry and exit points and access ramps

across levels of education; it also facilitates the international

recognition of qualifications and labor mobility.

The development of national qualifications framework is deemed

critical in the light of international developments, such as the

Bologna Process, the Washington Accord, and other agreements that

deal with comparability, benchmarking and recognition of academic

degrees, professions, and skills qualifications which the Philippines

is now pursuing.

The Training Regulations are aligned with the TVET component

of the PNQF.

The enhancement and formal adoption of the PNQF by the

education agencies is deemed critical for a seamless and flexible

education system.

Promoting TVET as a Viable Career

Career in TVET is viewed as a dead-end with limited options for

qualification progression. This image contributed to the traditional

bias against TVET as inferior to college education.

Deliberate social marketing efforts and strong career guidance to

improve awareness and appreciation of TVET, including “blue-collar”

occupations, should be made. Advocacy should be made to all

sectors, particularly the students, parents, and the industry.


Recognition of Prior Learning and Career Progression

TVET provision should also be part of continuing education within

the framework of lifelong learning to expand the opportunities of

the graduates and the skilled workers, allowing them to move up

in career ladders. Broad provision should be made for enabling all

persons, whatever their prior qualifications, to continue their

education by facilitating seamless educational pathways through

articulation, accreditation, and recognition of all prior learning and

relevant work experience.

TVET should develop close interfaces with all other education

sectors to facilitate seamless pathways for learners, with an emphasis

on articulation, accreditation, and recognition of prior learning.

5. Improving Labor Market Information and Addressing

the Labor Supply and Demand Gaps and Matching

Problems

Strong labor market intelligence and a functional labor market

information system are critical to address the jobs and skills

mismatch. This means ensuring the availability and accessibility of

the relevant labor market information, anytime, anywhere to the

industry, students, parents, educational institutions, and other

stakeholders.

The industry/employers play a very crucial role in making this a

reality, since they provide the information on jobs and skills in

demand. TVET is directed towards employment, and the availability

PHILIPPINES 475

of timely and relevant information on where and what the jobs are

will contribute significantly in making TVET provision more relevant,

thereby enhancing the employment chances of the graduates.

The DOLE’s PhilJob Net, and the Public Employment Service

Offices (PESOs), as well as other public and private job boards, are

essential elements of the country’s labor market information system.

TESDA’s efforts to address the job-skills mismatch, other than

directing training to available jobs, include the Job Bridging and

Referral program. This program is aimed at shortening the job search

period and assisting the TVET graduates, particularly the TVET

scholars, in finding immediate employment. It is implemented

through the establishment of “blue desks” in all TESDA regional and

provincial/district offices; TTIs and private TVIs; and jobs’ bridging

events all over the country. The “blue desks” served as one-stop

centers for TESDA information and services to include, but not be

limited to job referral and placement assistance services, career

profiling, and coaching.

6. Continuing Quality Improvement in TVET Provision

TVET needs to continuously adjust and adapt to technological

changes and advancement. Training inputs, such as curriculum,

facilities, equipment, tools, equipment, and materials, need to be

regularly upgraded. TESDA ensures that program offerings of TVET

institutions comply with the minimum standards prescribed by

industry, as contained in the training regulations, through a quality


assurance mechanism called the Unified TVET Program Registration

and Accreditation System (UTPRAS).

The TESDA policy on mandatory assessment of TVET graduates

in programs/qualifications covered by training regulations should be

fully supported and strengthened. Assessment and certification

ensures that the TVET graduates and skilled workers have the

necessary competence to perform tasks consistent with the required

standards in the workplace. Industry acceptance of certification shall

also be promoted.

7. TVET Trainers’ Development

The TVET Trainer is an important and critical element in the

delivery of quality TVET programs. More than increasing the

number of trainers, the greater challenge is ensuring their quality.

This calls for an extensive implementation of development programs

for TVET trainers, with an estimated stock of 23,000 nationwide.

In addition to qualifying the trainers, industry exposure/ immersion

is also crucial in upgrading their competence. This is an area that

will have to be addressed.

8. TVET for Sustainable Development

Education for sustainable development is a global concern, given

the issues on climate change and the need to protect the environment.

There is a need to re-orient curriculum towards sustainability,

PHILIPPINES 477

keeping the principles of the 5Rs: Reduce, Reuse, Recycle, Repair,

and Rethink in the subject domain. Entire teaching and learning need

to be geared up to take up these challenges. This is a new initiative

that shall have to be addressed in the Philippines

9. Preparing the Workers for the Knowledge Society

The rapid pace of innovation and technological change, especially

in the areas of information and communication technology and

biotechnology, impacts heavily on the country’s education and

training system. The lack of relevant skills, if the education and

training system is not able to respond, may be a major impediment

to the ability of a country to restructure its economy and industries;

exploit emerging opportunities; and undertake technological innovations.

The deepening of technical knowledge raises more demand for

knowledge workers with a competitive edge in performing work fit

for high-end and emerging technologies. The integration of

technological knowledge and skills in education training needs to be

emphasized to expand the lifelong capabilities of a knowledge-

based worker.

The need to upscale the competencies of the current and future

workforce to meet these requirements is essential. The development

of Higher Order Thinking Skills (HOTS) which includes critical

thinking, creative thinking, innovation, and problem solving, can

augment and enhance learning outcomes in education and training.

Teaching generic soft skills is also a pre-requisite in effectively


preparing the workforce for the world of work and to be more

flexible. Skills including cognitive, interpersonal, work values, and

adaptability are skills requirements to complement core technical

skills. “Learning to learn” is the key to survival in an era of rapid

technological change. These are the essential elements that shall have

to be addressed by TVET in the country.

PHILIPPINES 479

References

TESDA Reports and Other TVET Related Sources

1. Department of Labor (2010): Project Jobs Fit: DOLE 2020

Vision or PROJECT JOBSFIT

2. Syjuco, A.G. (2006). The Philippine TVET System. TESDA

3. The Medium Term Philippine Development Plan 2004-2009

4. Technical Education and Skills Development Authority (2010)

Report: July 2010

5. Technical Education and Skills Development Authority. (2006).

2nd Cycle National Technical Education and Skills Development

Plan 2004-2009

6. Technical Education and Skills Development Authority. (2006).

TVET Outlook

7. TVET Statistics 2005-2009

8. Valisno, M. (2009). Beat the Odds: The Philippine Main

Education Highway. Towards a Knowledge-Based Economy.

Department of Education. Philippines

Websites

1. Department of Education at www.deped.gov.ph

2. Bangko Sentral ng Pilipinas at www.bsp.gov.ph

3. National Statistical Coordination Board at www.nscb.gov.ph

4. National Statistics Office at www.census.gov.ph


5. Philippine Overseas Employment Authority at www.poea.gov.ph

6. TESDA at www.tesda.gov.ph

7. The Philippine Business Registration at

http://philippinesbusinessregistration.com/foreign-owned

8. Wikepedia on Culture of the Philippines at

http://en.wikipedia.org/wiki/Culture_of_the_Philippines on Oct.

7, 2010

Philippine Laws

1. 1987 Philippine Constitution

2. Executive Order 358: Ladderized Education

3. Republic Act 7796: TESDA LAW

4. Republic Act 7722: CHED Law

5. Republic Act 7686: Dual Training System

SRI LANKA

SRI LANKA 483

Chapter 1

TVET Policies and Implementation Process of

Sri Lanka

Section 1. Political and Socio-Cultural context,

1. Government and political party system in Sri Lanka.

Politics of Sri Lanka take place within the framework of a

presidential, representative, democratic republic, whereby the President

of Sri Lanka is both head of state and head of government, and of

a multi – party system. Executive power is exercised by the

government. Legislative power is invested in both the government

and parliament. Since the beginning, the party system has been

dominated by the socialist Sri Lanka Freedom Party and the

conservative United National Party. The Judiciary is independent

of the executive branch and the legislature.

At independence in 1948, Sri Lanka, then called Ceylon, was a

commonwealth realm, with the monarch represented by the Governor


General. The parliament was bicameral, consisting of a Senate and

a House of Representatives. In 1971 the Senate was abolished, and

the following year, Ceylon was renamed Sri Lanka, and became a

republic within the Commonwealth of Nations, with the last Governor

General becoming the first President of Sri Lanka. Under the first

republican constitution, the unicameral legislature was known as the

National State Assembly.

In 1978, a new constitution was adopted, which provided for an

executive president, and the legislature was renamed Parliament. Sri

Lanka’s two major political polities, the United National Party

(UNP) and the Sri Lanka Freedom Party (SLFP) embrace democratic

values, international nonalignment, and encouragement of Sri Lankan

culture. Past differences between the two on foreign and economic

policy have narrowed.

The President, directly elected for a six year term, is head of state,

head of government, and commander-in-chief of the army forces.

The election occurs under the Sri Lankan form of the preferential

vote. Responsible to Parliament for the exercise of duties under the

constitution and laws, the President may be removed from office by

a two third vote of parliament with the concurrence of the Supreme

Court. The President appoints and heads a cabinet of ministers

responsible to Parliament. The President’s deputy is the Prime

Minister, who leads the ruling party in Parliament. A parliamentary

“no-confidence vote” requires dissolution of the Cabinet and

appointment of a new one by the President.

SRI LANKA 485

Alliances and Parties Votes % SeatsDistrict National Total

United People’s Freedom Alliance. ∙ All Ceylon Muslim Congress ∙ Ceylon Workers Congress ∙ Communist Party of Sri Lanka ∙ Eelam People’s Democratic Party ∙ Jathika Hela Urumaya ∙ Lanka Sama Samaja Party ∙ Mahajana Eksatha Peramuna ∙ National Congress ∙ National Freedom Party ∙ Sri Lanka Freedom Party ∙ UP- country People’s Front

4,846,388 68.33 127 17 144

United National Front ∙ Democratic People’s Front ∙ Sri Lanka Muslin Congress ∙ United National Party

2,357,057 29.34 51 9 60

2. Legislative

The Parliament has 225 members, elected for a six year term; 196

members, elected in multi-seat constituencies; and 29 by proportional

representation. The President may summon, suspend, or end a

legislative session and dissolve Parliament any time after it has

served for one year. Parliament reserves the power to make all laws.

The primary modification is that the party that receives the largest

number of valid votes in each constituency gains a unique “bonus

seat”.

3. Summery of the 2010 Sri Lankan Parliamentary Election

<Table 1-1> Summery of the 2010 Sri Lankan Parliamentary Election


Alliances and Parties Votes % SeatsDistrict National Total

Tamil National Alliance ∙ Eelam People’s Revolutionary

Liberation Front ∙ Illankai Tamil Arasu Kachchi ∙ Tamil Ealam Liberation

Organization

233,190 2.90 13 1 14

Democratic National Alliance ∙ Janatha Wimukthi Peramuna

441,251 5.49 5 2 7

Independence List 38.947 0.48 0 0 0

Up Country People’s Front 24,670 0.31 0 0 0

Tamil Makkai Viduthalai Pulikal 20,284 0.25 0 0 0

Sinhalaye Mahasammatha Bhoomiputhra Pakshaya

12,170 0.15 0 0 0

Tamil United Liberation Front. 9,223 0.11 0 0 0

Tamil National People’s Front ∙ All Ceylon Tamil Congress

7,544 0.09 0 0 0

Democratic People’s Liberation Front 6,036 0.08 0 0 0

Sri Lanka National Front 5,313 0.07 0 0 0

Others 31,644 0.39 0 0 0

Valid Votes 8,033,717 100 196 29 225

Rejected Votes 596,972

Total Polled 8,630,689

Registered Electors 14,088,500

Turnout 61.26

Source: Department of Elections Sri Lanka.

SRI LANKA 487

4. Civil Service Structure

The country is divided into 25 Districts, each of which has a

district secretary, the GA or Government Agent, who is appointed.

Each district comprises 5-16 divisions, each with a DS or divisional

secretary, again appointed. At the village level Grama Niladhari

(Village Officers), Samurdhi Niladhari, and agriculture extension

officers work for the divisional Secretary.

5. Local Government System Provincial council structure

The centralized system of Sri Lanka which is a unitary state, failed

to satisfy the aspirations of the people, and there was growing

insistence on decentralization of administrative processes in order to

achieve rapid economic and social development of the country.

Many attempts have been made to decentralize administrative

decision–making. As early as 1955, there were proposals for

decentralization, but they were declined for political and other

reasons. There were repeated demands for decentralization, and

those demands resulted in the following attempts:

• 1973/74 District political authority system;

• 1970/80 District development councils; and

• 1987/88 Provincial council system.

In the Sri Lankan context, devolution means transferring political

and administrative decision-making authority from the central


government to elected bodies at lower levels.

6. The Instruments of Devolution

Ⅰ. The thirteenth Amendment to the constitution (1987); and

Ⅱ. The provincial councils Act No 42 of 1987.

The thirteenth Amendment to the constitution provides for:

• The establishment of provincial councils;

• The appointment and powers of the Governor of provinces;

• Membership and tenure of provincial councils;

• The appointment and power of the Board of Ministers;

• The Legislative powers of the provincial councils;

• Alternative arrangement where there is a failure in the

administrative machinery;

• The establishment of High Courts of the province; and

• The establishment of the Finance Commission.

The Provincials councils act No. 42 of 1987 provides for:

• The membership of provincial councils;

• Meetings and conduct of business in provincial councils;

• The financial procedure of the provincial council; and

• The establishment of provincial public service.

A provincial council is not:

• A government ministry or department;

SRI LANKA 489

• A Local Authority;

• A statutory corporation or Authority; or

• A public company.

A provincial council:

• Is an autonomous body and is not under any ministry;

• Derives its authority and powers from the constitution and

acts of Parliament;

• Undertakes activities which had earlier been undertaken by

the central government ministry, Departments, corporations

and statutory Authorities.

There are nine (9) provinces in Sri Lanka. However only eight

(8) provincial councils were established because the Northern and

Eastern provinces have been temporarily merged into one in terms

of the Indo Sri Lanka Accord. They were originally established in

1988 for a period of five years and were dissolved in 1993. Fresh

elections were held after five years.

Powers Devolved to provinces:

• Executive power to the Governor; and

• Legislative power for the Provincial Council.


7. Functions of Provincial Councils

The functions of the Government and the provincial councils are

listed in the Ninth schedule to the constitution, which comprises

three lists:

List ⅰ. - Provincial council list;

List ⅱ. - Reserved List; and

List ⅲ. - Concurrent list.

Organization of Provincial Councils:

ⅰ. The Governor;

ⅱ. The Council (Legislature);

ⅲ. The Chief Minister;

ⅳ. Four Provincial Ministers;

ⅴ. The Provincial Public Service Commission;

ⅵ. The Chief Secretary;

ⅶ. The Provincial Secretariat; and

ⅷ. The Provincial Fund.

SRI LANKA 491

Indicator Ref. Year Sri LankaMid-Year Population. Mn. 1980

19902000200620072008

14.816.318.519.920.020.2

Population Growth % 200620072008

1.10.61.0

Section 2. Population and Demographics <Table 1-2> Population

Item 1981/82 1986/87 1996/97Population by Sex and Age Groups, %

MaleFemale13 Years and Below14-18 Years 19-25 Years26-35 Years36-45 Years46-55 YearsAbove 55 Years

49.051.034.011.313.514.49.98.08.9

48.551.530.811.712.514.311.28.411.1

48.451.625.111.511.714.413.310.713.3

Literacy Rate, %MaleFemale

85.489.981.1

88.692.285.2

91.894.389.4

Educational Attainment, %No SchoolingPrimarySecondaryTertiary

15.142.929.212.8

11.841.132.115.0

8.635.235.520.7

1. Demography

<Table 1-3> Demography


Indicator Ref. Year Sri LankaDensity of Population (Persons per Sq.Km.)Population By Age Group, %0-14 Years15-64 Years65 Years and AboveUrban Population, %Crude Birth Rate, per 1,000Crude Death Rate, per 1,000

2008

200720072007200720072007

321.9

23707

15.119.06.0

Total Fertility Rate, Birth per WomanInfant Mortality Rate (per 1,000 Live Births)Maternal Mortality Rate (per 100,000 Live Births)

200720072005

1.9

58Life Expectancy at Birth, Year 2007 74.0

Indicator Ref. Year Sri LankaGross National Product (GNP), Mn. US $ 2000

200620072008

16,29227,87832,33239,744

GNP Per Capita, US $ 2000200620072008

8811,4011,6171,968

GDP Per Capita PPP, US $ 2007 4,243

Real GDP Growth, % 2005200620072008

6.27.76.86.0

Sectoral Composition of GDP,%AgricultureIndustryServices

200820082008

15.230.654.1

2. National Accounts

<Table 1-4> National Accounts

SRI LANKA 493

Expenditure and Savings, % of GDPPrivate ConsumptionGovernment ConsumptionGross Capital FormationDomestic SavingsNational Savings

20082008200820082008

69.716.227.014.118.2

Source: Sri Lanka Socio – Economic Data – 2010Central Bank of Sri Lanka – 2010 JuneVol XXXIII

Section 3. Governance of the TVET system


The Technical Education and Vocational Training (TVET) sector

in Sri Lanka comprises a diverse mix of study programs offered by

the government, private sector, and non-government organizations

(NGOs) catering to a variety of target groups, including the poor.

Sri Lanka’s TVET system has evolved over a period of 117 years.

It is officially recorded that the technical education in Sri Lanka was

initiated in the year 1893. The specific event was the establishment

of the very first technical training institute by the government. From

there on the technical and vocational education and training (TVET)

sector has developed to the present state. It is now estimated that

there are more than 5000 training institutes in Sri Lanka belonging

to the government, private and non-governmental organizations.

Even today the government plays a key role in providing education

and training in the TVET sector through a number of government


departments and other agencies. Under the present government, the

Ministry of Youth Affairs (former Ministry of Vocational and

Technical Training) has been mandated the vocational education and

technical training subject. Almost all leading public sector TVET

institutions, whose primary function is training, function under the

Ministry of Youth Affairs. In addition, many ministries and

provincial councils through the Departments and corporations under

their purview, undertake training as an associate function.

2. Government Bodies Responsible for TVET

Outlined here are the evolution mandates and functions of the key

agencies which are mainly responsible for policy formulation,

planning, and delivery of technical education and vocational training.

2.1 Central Government Level

Ministry of Youth Affairs

The main responsibility of formulating and implementing the

national policy for technical education and vocational training is

vested in the Ministry of Youth Affairs (former Ministry of

Vocational and Technical Training).

Objectives of the Ministry

▪ Promote knowledge and skills for productive employment in

the field of Technical Education and Vocational Training;

▪ Produce trained labor for productive job opportunities in the

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industrial sector;

▪ Contribute to the national development process by way of

reducing poverty through the provision of more jobs in the

field of TVET; and

▪ Make awareness to reach the higher professional level (Degree

level) in the TVET sector.

Functions

▪ Introduce develop and implement training courses for public

and private sector training institutions which conduct technical

education and vocational training in complying with national

and international labor market requirements;

▪ Extend TVET to rural areas of the country and increase access

to this sector for women, the disabled, and poor;

▪ Promote private sector participation for the TVET sector;

▪ Implement entrepreneur development programs and promote

self employment opportunities for trained youth;

▪ Invest intensely in developing a sufficient and high quality

teaching staff which possesses pedagogical qualifications and

professional skills;

▪ Encourage stakeholders, such as industries and the corporate

sector that provide funding for TVET initiation;

▪ Work with donor agencies to support implementation of TVET

related reform programs;

▪ Develop and disseminate career and training information to


students, graduates (job seekers), employers and, members of

the community;

▪ Maintain international relations to get technical, technological,

and financial assistance to develop the TVET sector.

2.2 Tertiary and Vocational Education Commission (TVEC)

The Tertiary and Vocational Education Commission, which

functions under the Ministry of Youth Affairs, is the national level

apex body responsible for policy formulation, planning, quality

assurance, coordination, and development of tertiary and vocational

education in the country. The major programs of the TVET are:

Ⅰ. Vocational Education and Training Plans (TVET);

Ⅱ. Quality Assurance;

Ⅲ. Labor Market Information System; and

Ⅳ. Systems Development;

Vocational Education and Training (VET) plans have been

prepared for selected growing industry sectors. A VET plan for a

particular industry identifies the manpower and training needs;

assesses the existing training supply; analyzes the gaps and surpluses

between the demand and supply of skills; and introduces interventions

to provide required human resources to the industry sector. These

TVET plans are regularly updated in consultation with the industry,

and the training providers are advised to be guided by the target of

the plans.

TVET’s quality assurance responsibilities are performed through

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the program of registration of institutes and accreditation of courses.

Over 1,500 training institutes have been registered with the TVEC,

and national training standards are prepared to provide the basis for

course accreditation.

The Labor Market Information system provides a series of

Labor Market Information Bulletins, which provide signals to the

training providers on trends in the job market on a regular basis.

System development is mainly through new projects and

development work for the benefit of the TVET system. The national

skill profile of Sri Lanka is the recent system development project

accomplished. The National Skill profile provides data on the

educated skill base and the output of the TVET system. This

information is valuable for prospective investors and employers.

2.3 Department of Technical Education and Training

This department has a 116 year history. It delivers formal,

institutional type training at 38 technical colleges located in major

provincial and district capitals.

The objective of this department is to produce competent and

productive man power for better livelihood through quality and

relevant occupational training to meet the challenges of changing

global socio-economic and technological goals.

Its main study areas are:

∙ Technician Studies;

∙ Craft Studies;


∙ Business Studies; and

∙ General Studies.

Under the recent reforms, 9 colleges have been upgraded as

colleges of technology, to offer middle level technician study

programs.

2.4 Vocational Training Authority of Sri Lanka

The Vocational Training Authority was established in 1995 as a

statutory body, with the intention of providing vocational training

for the cut-off schools and unemployed youths. It facilitates self

employment and supplies urgently needed skills, particularly for the

informal sector through employment-oriented short courses. The

Vocational Training Authority of Sri Lanka consists of six (6)

national training institutes; 22 district vocational training centers; and

237 rural vocational training centers.

Functions

▪ Conduct carrier guidance and counseling programs;

▪ Conduct national trade tests;

▪ Carry out research and development programs;

▪ Facilitate the trained youth for further training and provide

employment or self-employment opportunities;

▪ Provide bank loans for the trained youths to start small scale

self-employment projects;

▪ Establish public and private sector partnership programs with

the industry; and

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▪ Liaise and establish links with International vocational training

organizations and institutions.

2.5 National Apprentice and Industrial Training Authority

Formal Apprenticeship is the responsibility of the National

Apprentice and Industrial Training Authority (NAITA), which was

established in 1990. The main task of the authority is to impart skills

pertaining to an occupation through industry- based apprenticeship

training. In this connection, about 3,500 government and private

sector, industrial/service organizations participate, and, in addition to

that, dual apprenticeship training (imparted at the center and in

industry) is implemented by the 3 national institutes and 54 regional

apprenticeship training centers. Apprenticeship is essentially a

contract between a learner, employer, and the government, which is

normally the regulatory body. For Sri Lanka, NAITA represents the

government. The learner agrees to be trained on the job under an

employer for a fixed period, depending on the trade or occupation.

The employer is committed to provide training and pays wages

according to the stipulated norms. In the case of NAITA, it pays

a stipend to the apprentices, not to the employers. Training

conducted in industry is supplemented by theoretical and related

instructions given on full or part time basis at an institution.

Functions:

▪ Plans, organizes, and provides vocational training;

▪ Specifies standards in relating to vocational training;


▪ Conducts examinations and issues certificates and other awards

in relation to vocational training;

▪ Conducts National Trade Test;

▪ Conducts research and development in vocational training;

▪ Holds competitions to promote the developments of various

skills;

▪ Develops the training capacities of establishments and other

institutions which provide vocational training;

▪ Advises the Tertiary and Vocational Education Commission in

regard to vocational training;

▪ Links with institutions in Sri Lanka and abroad having similar

objects and equates or validate certificates, diplomas, and

degrees in allied subjects and courses.

▪ Provides on-the-job training to trainees of other vocational

training organizations;

▪ Provides in-plant training to engineering undergraduates of the

universities;

▪ Issues National Vocational Qualification (NVQ) certificates

through recognition of prior learning (RPL) in respect of

informally skills acquired craftsman.

▪ Conducts entrepreneurship development programs and refers

trainees to grant loans.

▪ Conducts career guidance programs for school children school

leavers and other targeted groups; and

▪ Develops national competency standards for the vocational

training sector.

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2.6 University of Vocational Technology

The University of Vocational Technology (UNIVOTEC) was

established as the first ever university for the vocational education

and training sector in 2008.

Functions:

▪ Facilitates the students of vocational and technical training

sector to continue their education up to university level;

▪ Provides training on training technology for the employees of

the vocational sector and industry;

▪ Creates opportunity for middle level technicians by developing

educational programs to enter the university; and

▪ Establishes partnerships with state and private sector

organizations to develop degree level programs.

3. Regional Level

Technical education and vocational training remains a national

functions, as it has not been constitutionally devolved in provincial

councils. The training centers and technical colleges though located

in the districts and rural areas, are planned and managed by their

head offices in Colombo. However, decentralized management

arrangements have been made through the establishment of provincial/

district offices. The practice of planning and management from the

centers has hindered the orientation of training to the needs of

provinces, districts, and rural areas. Attempts are now being made

to prepare district plans based on district needs and to allocate


human and physical resources based on such plans by the relevant

training organizations. However, much is needed to decentralize the

TVET planning and management through developing institutional

capability at the provincial /district level for training need analysis,

ordination, and evaluation .

The Department of Technical Education and Training, which has

the biggest training network in the country, is in the process of

upgrading nine (9) technical colleges as colleges of technology (COT)

on a provincial basis. Students who have completed National Vocational

Qualification level 4 courses (certificate courses) from district technical

colleges will attend to colleges of technology to follow diploma and

higher diploma courses (NVQ level5 and 6 courses). Students who

have completed NVQ level 4 courses from other districts and

regional training centers, and state training organizations (such as the

Vocational Training Authority and National Apprentice and Industrial

Training Authority) also can attend the provincial colleges of

technology to follow diploma and higher diploma courses. In addition

to this state training network, a large number of private and non

government organizations conduct training programs in district and

rural level.

4. Relationship between Government Bodies

Sri Lanka’s TVET system has evolved over a period of more than

100 years, registering rapid expansion after her independence in the

1950s and, thereafter, from 1970-1990. The expansion was largely

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driven by the concerns of the successive governments to find

solutions for unemployment in TVET, an initiative that received the

support of donors. During 1970-1990, several training agencies and

institutions were establish under different ministries.

The proliferation of TVET institutions and programs and resultant

duplication of misguided effort were much of the debate in the latter

part of 1980’s. This led to the creation of agencies such as the

Human Resource Development Council and Tertiary and Vocational

Education Commission, for planning and coordination, and the

National Institute of Technical Education of Sri Lanka (NITESL) for

specialist services, such as curriculum development and technical

teacher training.

The public sector is the largest provider of institutional training.

Public policies on education and training, employment, human

resources development, poverty alleviations, and underpinning equity

concerns have created an expanded network of training institutions

in the public sector spreading across a number of ministries. There

are two types of agencies undertaking training in the public sector.

They are:

Ⅰ. Agencies whose primary responsibility is training; and

Ⅱ. Agencies that undertake training as a subsidiary function.

4.1 Agencies Whose Primary Responsibility Is Training

Ⅰ. Sri Lanka Institute of Advanced Technical Education

(SLIATE). SLIATE has a network of 12 colleges offering


National Diploma courses in technical and commerce subjects.

Ⅱ. Department of Technical Education and Training (DTET).

DTET manages 29 technical colleges located in the city

centers of the districts and 9 colleges of technology (COTS)

in which there is one college per province. Annually, about

16,000 youths are admitted to the technological, technical, and

craft-level courses of these colleges.

Ⅲ. Vocational Training Authority of Sri Lanka (VTA). The focus

of the VTA is on training for rural youths, For this purpose,

it maintains a network of 237 rural vocational training centers

(RVTC); 22 district vocational training centers (DVTC); and

6 national level training centers.

4.2 Public Sector Agencies that Undertake Training as a

Subsidiary Function

Sectoral ministries and their major departments and statutory

bodies maintain training centers mainly to provide training for new

entrants and skills upgrading for existing employees in support of

their specialized technical functions. The departments of Agriculture,

Fisheries, Posts, Health, Railways, Social Services and Cooperatives

are major examples. The National Youth Service Council also has

a network of training center that provide skills training. Provincial

departments of Industries, Textiles, etc., have small training centers

that provide skills training in their respective fields. There has been

a tendency to offer pre-employment training by these agencies, as

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well.

All the agencies where primary responsibility is training have been

instructed to follow the national TVET policy. They have been

advised to get their training curricula accredited by the Tertiary and

Vocational Education Commission.

5. National Vision and Strategic Direction of TVET.

With socio-economic development, various opportunities are

evolving in the technical and vocational sector, which seems to be

expanding in Sri Lanka. Though technical and vocational education

and training (TVET) is conceived as the industrial sector in the

present context. It is, in fact, the “service sector” that dominates the

other. For example, sectors such as agriculture, and sub sectors, like

civil, mechanical, chemical, electrical, electronics, production, mining,

materials, textile and garment, etc., are providing avenues for so

called blue color jobs, and had been dominant in TVET. But, on

the other hand, Accounting, Human Resources, Administration,

Management, Marketing, Banking, Hospitality, Health, Insurance,

Security, Trade and Commerce, Transport and Logistics, etc., could

encompass a major portion of the service sector, which is considered

white color.

Following are increased vocational opportunities in the industry

and service sectors. The tertiary education system, in particular, has

not adequately made appropriate reforms. Nor have they guided

youth in a direction which will help them set and achieve goals, or


enabling them to acquire skills and competencies required to meet

the demands of both sectors. The national education system, which

leads to ordinary level and advanced level certificates, does not

provide competencies for youth to be employable in the TVET

sector. As such, the demand for technical and vocational training

courses is high, and as a result public, private, and NGO’s have

mushroomed in the country to cater to the demand, formally and

non formally.

Employers and employees are faced with the dilemma as to what

type of vocational training courses / or diploma they should choose

or recognize among the vast spectrum of vocational training courses

available in public, private, and NGO sectors in Sri Lanka. In the

meantime, it is also observed that the Tertiary and Vocational

Education Commission (TVEC) as an apex body of the TVET sector

under the Ministry of Vocational and Technical Training, has

introduced a national vocational qualification (NVQ) framework; this

new reform seeks a unified system for TVET in the country.

The following issues have been identified and need to be

addressed in the technical and vocational sector, as set forth in the

“Ten Year Horizon Development Framework 2006-2016” of the

“Mahinda Chinthana” vision for a “New Sri Lanka”:

• Lack of focus on knowledge, skills, and attitudes to perform

a particular occupation in a rapidly changing technical

environment;

• Absence of mechanisms to ensure the quality of trainee output

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against set standards;

• Absence of trustworthy qualifications that reflect the level of

competency of the trainee against the publicly known standard;

• Internal and external inefficiencies, including duplication of

courses, outdated curricula and equipment, shortage of good

trainers, as well as in-optimal utilization of workshops,

laboratories, training, and equipment — leading to a high

dropout rate of around 20% - 25%;

• Lower social acceptance of technical and vocational education

and training and, hence, the inability to attract persons to

training courses;

• Gender imbalance in enrollment;

• Need for the diversification of providers and creation of an

enabling environment for the private sector investment;

• Inadequate coordination and linkage among public, private,

and non-government stake holders;

• Lack of sufficient awareness of the available opportunities;

• Need for sustainability through cost recovery and other

means; and

• Inadequate linkage between technical and vocational

education and general education, on the other hand, and

university education, on the other.

In resolving or finding solutions to the key issues above, a policy

framework to achieve a theme of “Skills for Life – Jobs for Skills”

has been proposed; it will provide nationally and internationally

recognized training in keeping with advancing technology that meets


the demand of labor markets, at home and abroad. A new network

of vocational training institutes will be set up to significantly

increase student output. The priorities of this policy framework

entail.

∙ Improving the quality and relevance of programs;

∙ Improving quality and opportunities for upward career paths;

∙ Ensuring uniformity in national standards;

∙ Promoting the relevance of courses; and

∙ Increasing enrollment in technical and vocational Institutions.

Section 4. Government Policy

1. Evolution of TVET Policies

The TVET institutional framework and training policies have

evolved over the past three decades. One policy objective, however,

had remained constant: government provision of pre–employment

technical and vocational training to address the problem of high

youth unemployment. However, other policy considerations have

emerged with changes in the macroeconomic environment, including

meeting the skill needs of industrial restructuring and

competitiveness in the global economy.

The State Council in the 1940s and the Parliament after

independence have considered many proposals or expansion of

TVET systems as a measure of human resources development. In

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1961, a national committee to review technical education had been

appointed to make recommendations on the development and

management of technical education in Sri Lanka. Thereafter, TVET

has undergone fast expansion, focused on solving unemployment and

training skilled technicians for work. On the “demand” side, the

promotion of TVET began with the post-1977 pro-market reforms,

which continued through the 1980s. The 1977 policy reforms of

trade and industry and the adoption of export-led growth strategies

led to expansion of the secondary and tertiary sectors of the

economy, creating additional demand for skilled, semi-skilled, and

unskilled labor. The state TVET sector did not have the resources

or the institutional flexibility to respond, which created opportunities

for private sector providers to enter and fill this unsatisfied demand

for training. The private sector training role was explicitly

recognized as part of a larger strategy of promoting TVET for

national competitiveness within the 1989 industrialization plan of the

Ministry of Industrial Development, but, this expansion did not focus

on quality and relevance. Therefore, from 1990 an attempt has been

made to coordinate different training institutions to deliver relevant,

quality training according to the nationally agreed plan. This was

symbolized by the establishment of the Tertiary and Vocational

Education Commission (TVEC), the apex body in TVET, and the

creation of a separate ministry for TVET in 1994. The policy

statement issued by the President in January 1995 is instructive; it

stated that “despite its high levels of literacy, the Sri Lankan work

force lacks the requisite skills that are essentials for industrial


upgrading and diversification. The numerous short-run skill

development programs and the general education system are

essentially supply-driven and therefore have a poor record of

providing industry-relevant skills. The vocational training system

will be extensively restructured so as to be demand-driven, in

cooperation with the private sector who will be the eventual

employers.” The 1995 budget speech emphasized the importance of

“consolidating the variety of dispersed and uncoordinated facilities

for vocational training and directing them to create skills which are

sorely needed by the growing economy.”

In 1995, the Ministry of Industrial Development identified three

major areas for TVET reforms;

Ⅰ. Restructuring tertiary education and vocational training, system;

Ⅱ. Setting up a skills development fund; and

Ⅲ. Reorienting public sector technical institutes to meet market

needs.

In October, 1997 a special task force was established to study

inter-ministerial barriers and to come up with policy recommendations

for TVET sector development involving both the public and private

sectors. Its findings led to major changes in the TVET sector in

terms of rationalization; recognition of vocational training as a

ministerial function; and coordination of TVET activities at the

national level.

Since 2001, a large number of policy documents have been

published highlighting the challenges facing the TVET sector;

proposing further reforms to and rationalization of public training

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institutions; introducing competency standards and accreditation; and

offering new financial incentives and policy instruments for fostering

demand-led training.

“Vision 2010” (2001) identified three major challenges facing the

TVET sector: quantitative and qualitative mismatches in certain areas

of skills demand; external and internal inefficiencies in the sector

with duplication of courses, outdated equipment and curricula,

shortage of good trainers, and high dropout rates; and sub-optimal

use of public sector workshop and laboratories. In response to these

challenges, policies in the TVET sector should:

Ⅰ. Promote private sector – led skills training;

Ⅱ. Target youth with an entrepreneurial mind-set;

Ⅲ. Link performance and budgets and provide institutions with

increased autonomy;

Ⅳ. Foster more skilled training through a system of skill

accreditation;

Ⅴ. Provide skills to compete in global labor market; and

Ⅵ. Train to match industry’s skill needs.

“Regaining Sri Lanka“ (Sri Lankan government, 2001), noted that,

“post secondary skills training institutes suffer from a mismatch

between the training offered and the skills required in a modern,

market economy. Management deficiencies, outdated equipment and

curricular and shortage of capable trainers lead to high dropout rates

and low returns of training.” It proposed that:

Ⅰ. Performance standards for vocational training be revised along

the line of competency based training based on standards


derived from industry, and

Ⅱ. A higher Institute of applied technology is established to lead

the vocational training process and provide a recognized

system of professional certification in the vocational trends.

The “Draft National Employment Policy” (Ministry of Employment

and Labor, 2002) recommended six major policy reforms for the

TVET sector:

Ⅰ. Training systems restructured to meet future demands.

Ⅱ. Promotion of vocational training for the informal sector;

Ⅲ. Fostering government – industry partnership in training;

Ⅳ. The government to function as a facilitator, standard setter,

and regulator of training; and

Ⅴ. Financial incentives for training targeting the corporate sector

and provision to disadvantaged groups of financial assistance

for training.

The budget speech for 2003 and 2004 elaborated on the operational

details of these recommendations, including the establishment of

Human Resource Endowment Fund (HREF) that would provide

training vouchers for unemployed youth and skills upgrading for

employees, as well as soft loans to upgrade training facilities for

providers.

The “National Policy and Action Plan for the Development of

Technical Education” (National Education Council, 2002) called for

the reorganization and upgrading of the TVET sector. Seven major

elements are to considered essential in formulating the national

policy framework for the TVET sector:

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Ⅰ. Skills laddering to facilitate upward mobility of skills acquisition;

Ⅱ. Better linkages of TVET with the school and university

systems;

Ⅲ. Private sector participation in training;

Ⅳ. Improved functions of the technical and vocational Education

commission (TVEC) as the apex body for TVET;

Ⅴ. Accreditation and quality monitoring of public and private

training institution;

Ⅵ. Nationalization of the public sector TVET system and;

Ⅶ. Setting up a degree awarding institution for TVET.

In 1995 a presidential task force was appointed to make

recommendations on the development of the TVET sector. As a

result, in 1998 then Ministry of Skill Development, Vocational and

Technical Education, established a skill development project with the

assistance of the Asian Development Bank to introduce major

reforms to the VT sector with following objectives:

• Establish a unified qualification framework based on national

occupational standards to issue VT qualifications;

• Convert certificate level VT courses into competency based

training (CBT) to facilitate issue of level I to 4 NVA

certificates;

• Establish a network of career guidance centers and a learning

resource development center with a network of learning

resource utilization centers;

• Incorporate entrepreneurship development into TVET;


• Establish a quality assurance system in each training center

awarding NVQ certificates and leading them to accreditation;

• Develop a management Information system and labor market

Information system; and

• Develop institutional capacity to conduct research in TVET.

The Ministry of Vocational and Technical Training established

another ADB assisted project. The Technical Education Development

Project (DEDP) transitioned the NVQ framework from level 5 to level

7. In addition, actions have been taken to develop 9 technical colleges

in 9 provinces as colleges of technology to award NVQ level 5 an

6 qualification. Further, the first ever university for the TVET sector,

the University of Vocational Technology was established in 2009 to

award NVQ level 7 (degree) qualifications. According to the above

analysis, the TVET sector has evolved with the establishment of

different institutions from time to time. Due to wide diversity in

training needs in the TVET sector, different institutions have focused

on different aspects of vocational training. Legislations of TVET

institutions have listed certain policies. The presidential task force has

focused some policy issues. NVQ framework has introduced some

policies. The “Mahinda Chinthana “election manifesto of the present

government and 10 year development plan have outlined some policies.

Unfortunately the numerous and varying policies are unknown to many

stakeholders in the TVET sector, and different aspects of these policies

will not be effective in addressing the range of needs in the TVET

sector. It is, therefore, imperative to have one unified policy document

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covering all issues relevant to the TVET sector.

2. Assessment of TVET Policies

The strategies adopted by the Sri Lankan government over the last

decade have been highly relevant to evolving needs, opportunities,

and government priorities. One distinctive theme was reducing the

gap between education/training and the needs of the labor market

by improving the quality, relevance, and efficiency of education and

training over time. The sector strategy also addressed the reduction

of disparities in access to quality education and training by the poor

and disadvantaged. The sector strategy and program has been in

harmony with government priorities on promoting equity, social

mobility, and human development. The government has been committed

to improving quality access, equity, and student competencies

throughout the country’s education system – a system that covers

general education, TVET, and institutions of advanced learning. The

focus on human capital enhancement and knowledge creation is a

cornerstone for developing the economy, reducing poverty, and

fostering social harmony; more specifically, recent programs and

propjets have been structured to meet critical needs and gaps in

programs.

Two projects in TVET implemented by the Asian Development

Bank (ADB) — the skills Development Project and the Technical

Education Development Project — have supported strategies to


achieve the government objective of reforming this sector to increase

its external efficiency. Project components are relevant to reforming

the high incidence of male and female youth unemployment, and

meeting increased demand for skills at craft, at middle and higher

technological levels and for entrepreneurship development. They also

meet the need to establish a structure that permits an alternative

career path to higher education. Poverty reduction strategy focuses

on the need of making education and TVET responsive to market

needs and broadening access to education-supported economic

growth and social development. The sector strategy and program

aimed to reduce the gender gap in access to TVET and information

technology, and recognize that education and skills development

must be complemented by women’s access to microcredit and other

vital services. This was consistent with expanding women’s

economic opportunities to reduce poverty, and it was aligned with

the government’s policy on gender and development in support of

strategic and multifaceted solutions to redress gender disparities.

3. Effectiveness

In the TVET sector a planned set of strategies and programs

implemented through foreign funded projects has replaced ad-hoc

interventions in national policy. A sense of direction has been given

to this sector, as seen in the following summary of achievements:

Ⅰ. An institutionalized competency based training system, starting

with 45 trades, was introduced in all state training institutions

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and for the private sector, as well;

Ⅱ. More than 20 courses are being conducted in competency

based training (CBT) mode;

Ⅲ. The NVQ system comprises seven levels that established

standards from craft level, to middle level and higher level

technological course (offering a career path as an alternative

avenue to higher education, while vocational training centers

have worked toward the goal of offering courses, approved

for NVQ levels);

∙ 341 training centers (public and private) were registered and

renewed under (TVEC);

∙ 145 courses were accredited by TVEC;

∙ Opportunities have been provided for local and overseas staff

development programs;

∙ Career guidance and placement by district career guidance

units of around 20,000 persons for on-the-job training and

linkages with the job net program of the Ministry of Labor;

∙ 9 technical colleges were up graded as colleges of technology

in 9 provinces;

∙ A separate university, University of Vocational Technology

(UNIVOTEC) was established in 2006 for the TVET sector;

∙ Introduced modular based certificate, diploma and degree

level teacher training courses for trainers in the TVET sector

by the UNIVOTEC;

∙ Introduced Bachelors Degree of Education in Technology

(B.Ed.Tec) of National Vocational Qualification (NVQ) Level 7;


∙ Developed 18 new curriculum for the B.Ed.Tec. (technology

degree) of the University;

∙ Set up 7 sector policy and training derisory councils (SPTACS)

for Construction, Plantation, Production and Mechanical,

Handicrafts, Hotel and Restaurant, Creative Arts and ICT;

∙ Implementation of quality management system in training

institutions, where 15 quality manuals have been prepared and

8 quality procedures have been reviewed by TVET;

∙ Local and foreign job opportunities were provided to the

students who have passed out from technical colleges,

providing local employment to 2,806 persons and foreign

employment to 1,246 during 2009;

∙ Provided 887 TVET course training programs to 46,007

students in technical colleges during 2009;

∙ 47 people were directed by the Sri Lanka Vocational Training

Authority (SLVTA) to foreign employment; 338 self

employment; and 4,197 to local employment during 2009;

and

∙ Autonomy was granted to two technical colleges at Kandy

(central province) and Maradana (Colombo capital) to

generate income through special mechanisms (i.e., issuance of

a ministerial order and establishment of a private guaranteed

company) to ensure sustainability.

Although significant progress has been made, equity in the

distribution of physical and human resources needs to be further

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addressed. For instance, while there are well equipped skills

development programs in district vocational centers, some rural

vocational training centers have limited curricula, minimal staff, and

little prospect of accreditation for NVQ levels. There is a shortage

of qualified staff.

4. Efficiency

The skills development project (SDP) implemented under the

Asian Development Bank’s (ADB) loan scheme has seen steady

progress. It has achieved its targets in developing skills standards

and competency based training. Vocational training center registration

and accreditation; training of around 800 staff; and establishment of

a learning resource development center (LRDC) in Colombo and 50

learning resource utilization centers (LRUCC) for vocational training

in different districts. The project has also established a national

information center; 5 regional centers; and 59 village centers conducting

fee-levying national certificate courses and a 1 – year diploma course

in Information Technology, and 52 career guidance units. It has

organized a management Information system in 90 vocational

centers, established linkages with industry; and conducted awareness

programs to improve the social image of TVET.

Under the ADB assisted Technical Education Development

Project, almost all the programs and activities that were planned

during the project period have been successfully completed. It paved

the way for a alternative career path in technology and technical


education by successfully implementing NVQ level 5 Diploma

programs in 6 colleges of technology from the 1st Quarter of 2009,

and it established the University of Vocational Technology. There

has been institutionalization of technical teacher education; voluntary

registration and accreditation with active peer participation for

training institutions and programs; facilitation of the Tertiary and

Vocational Education Commission (TVEC) to strengthen policies

which upgrade TVEC sector’s laddering system; and linkage with

higher education for tertiary and vocational education and training

based on Internationally benchmarked training standards, among

other achieved objectives.

But, in a sector which has a multiplicity of centers and at least

four island-wide institutionalized networks, inevitably much more

needs to be done to reduce disparities.

5. Impact

The Sri Lankan TVET sector has achieved a significant

development with the implementation of the projects funded by the

Asian Development Bank (ADB), KOICA, JICA, and G.T.Z.

Specifically the ADB’s distinctive contributions to the TVET sector

have been in:

Ⅰ. Streamlining TVET under the Ministry of Vocational &

Technical Training, which brought multiple and fragmented

TVET institutions under a single umbrella;

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Ⅱ. Establishing an NVQ framework, which has served as a

unifying policy mechanism for bringing coherence to the

TVET sector and for formulating qualification standards;

Ⅲ. Introducing competency -based training; and

Ⅳ. Strengthening the Tertiary and Vocational Education Commission

as a policy making and regulatory body for TVET.

One impact study on TVET in Sri Lanka conducted by the Asian

Development Bank found that the project-funded technical colleges

have underutilized and operated below capacity, due to the lack of

recurrent expenditure budget. The effectiveness of the teaching-

learning process was hampered by the lack of textbooks; teachers’

lack of practical skills; and absence of continuing staff development.

More proactive social marketing programs are necessary to change

the negative attitude of private sector employers, parents, and

students to state TVET institutions. The poor employment record of

those who have attended short courses needs to be considered in

planning programs. Career guidance centers in isolated locations

have had little impact. Six months of on-the-job training after the

completion of a course facilitated access to employment but support

services are inadequate to utilize loans for self employment. While

policies have been gender sensitive, they have been relatively

ineffective without concomitant motivation programs to encourage

women to enroll in technical training programs.


Section 5. Legal Framework of TVET for Students and

Adolescents

a) Part 1 of the Tertiary and Vocational Education (TVE) Act No.

20 of 1990, establishes the Tertiary and Vocational Education

Commission with a mandate to set general policy, planning, and

coordination, as well as to set standards and regulate the TVET

sector. This act was revised in 1990 with the provision of

additional powers granted to the Commission for Funding and

Research.

b) Part II of the TVET Act No. 20 of 1990, which converted the

National Apprentice Board (NAB ) to the National Apprentice

and Industrial Training Authority (NAITA), undertakes the

public sector apprenticeship program trade tests.

The Tertiary and Vocational Education Commission has the

legal authority to prepare guidelines for initial training, the

maximum number of trainees to be trained under different

categories; qualification of staff; provision of on-the-job

training etc.

c) The Sri Lanka Institute of Advance Technical Education Act

No. 29 of 1995 provides training towards Higher National

Diploma and Diploma level qualifications.

d) The Vocational Training Authority of Sri Lanka Act No. 12

of 1995 establishes the Vocational Training Authority with a

special focus on training youth in rural areas.

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e) The National Institute of Technical Education of Sri Lanka

established under Act No.59 of 1998 performs the functions of

technical teacher training and curriculum development activity

for the TVET sector, and also provides training at the certificate

and diploma levels, as well as planning degree level programs.

f) UNIVOTEC will be included.

In the past, many acts have been carried out in isolation.

Therefore, many acts show repetition. Unlike in the past, there is

now more coordination and cooperation among institutions and their

staff. From 1990, attempts have been made to co-coordinate different

training institutions to deliver training with quality and relevance

according to the nationally agreed plan. This was symbolized by the

establishment in 1990 of the Tertiary and Vocational Education

Commission, the apex body in TVET, and establishment of a

separate ministry for the TVET in 1994. A presidential taskforce was

appointed in 1995 to make recommendations on the development of

the TVET sector. The NVQ framework, which was introduced by

order of the Minister, also has well explained the role of each

institution, as it provides a context for rationalization.


Section 6. Qualifications

1. National Culture of Skill and the Skilled

A significant feature of Sri Lankan technical and vocational

education (TVET) is its heterogeneity with regard to training delivery

and assessment of skills and knowledge on completion of training

programs. Training is delivered mainly by registered, as well as non-

registered training institutions belonging to public, private, and

non-governmental organizations. In addition, the upgrading of

programs organized by business companies allows them to cater their

own skills requirements — a key feature of training delivery.

Traditional craftsmanship has been a conventional mode of skill

acquisition in rural areas, where skills are transferred to the next

generation, without properly organized training and assessment of

skills. In this context, to cope up with skills’ needs of the growing

economy of Sri Lanka and the demands of international labor market,

it is of utmost importance to assure quality of training delivery and

consistency of assessment, so that national and international skills

demands can be fulfilled. It is, therefore, very important to provide

the right competencies, as required by the industry, so that the

employability of skilled craftsman can be increased, and industry can

be strengthened with an appropriately qualified labor force.

In 2005, The Ministry of Vocational and Technical Training of

Sri Lanka introduced a national vocational qualification framework

(NVQ). It provides the opportunity for sustainable, strategic solutions

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for national training needs, as well as for the employment mis-match

in both the formal and the informal sectors. The NVQ qualification

system will easily be able to achieve international recognition for

qualification, skills, and knowledge of Sri Lankans in an increasingly

globalized and competitive world.

This will enhance the mobility of Sri Lanka workers nationally

and internationally.

The expectations sought from the establishment of the national

vocational qualification framework relate to increasing the relevance

and quality of skills development of vocational and technical

education and training. Specifically there shall be:

• Greater alignment with national goals;

• Strengthened linkages with industry, commerce, and other

external state holders;

• Increased responsiveness to industry training needs;

• Convenient and flexible access for potential trainees;

• More proactive education and training strategies;

• Improved international linkages and recognition;

• Collaboration and nationalization among the training agencies;

• Enhanced quality, relevance, performance effectiveness,

efficiency, and transparency; and

• An education and training culture of responsiveness and

excellence.


2. National Vocational Qualification (NVQ) System

Developing the NVQ system shall ensure that all current and

newly emerging technical and vocational education and training

activities are well coordinated.

<Table 1-5> The system awards qualifications of seven levels as given

below.

Level No. Qualification DescriptionLevel 1 National Certificate This level I recognizes the acquisition

of a core entry level skill.Level 2Level 3Level 4

National CertificateLevels 2, 3, and 4, recognize increasing levels of competencies. Level 4 qualification provides for full national Craftsmanship.

Level 5Level 6 Diploma

Levels 5 and 6 recognize the increasing levels of competencies, ranging from technician level, to management level.

Level 7 Bachelors Degree or Equivalent

This level includes resource planning and management processes.

3. Private Qualification System

Before the introduction of NVQ, the private and NGQ sector

training providers were conducting different types and levels of

training programs. The programs varied in content and duration

according to the educational attainment, age, and experience of the

learners. Those who planned and provided technical education and

vocational training had a diversity of interests and overlapping

SRI LANKA 527

mandates. Training programs conducted by the private sector training

providers were not always market oriented. Duplication of training

was provided, absent of unified standards, and curricula often did

not match the requirements of the labor market. In most cases

teachers and instructors were not qualified. In order to establish a

unified technical and vocational education and training system, the

Ministry of Vocational and Technical Training formulated policies

and guidelines for the public, private, and NGQ training providers.

Private sector training providers are required to be registered under

the Tertiary and Vocational Education Commission (TVEC), if they

want to award NVQ certificates which are certified and issued by

the Director General of the TVEC for the trainers who have

successfully completed the training programs. In order to maintain

the quality and relevance of the TVET sector in the country, the

TVEC has advised the private sector training providers on the

following aspects:

• Registration of training Institutions at the TVET;

• Accreditation of courses;

• Quality management systems;

• Selection and training of competency based assessors;

• Apprenticeship training;

• Good practices for efficient and effective delivery of training;

and

• Access to TVET for vulnerable groups.


All the structured programs conducted by the public and private

sectors can be considered as formal and can be recognized under

the NVQ framework. All the other non-structured programs that are

conducted by the private sector fall into the category of non-formal.

The number of vocational training programs conducted by private

and non-governmental organizations in Sri Lanka is too numerous

to list. Even to prepare a list of all the training providers in Sri Lanka

is a difficult task, as many of them may not have registered with

the register of companies, or with the TVEC. Most of the private

sector training providers are conducting only certificate level courses,

while a very few private sector training institutions offer diploma

certificates, but no signal private sector training institute has obtained

accreditation with the TVEC to be eligible to offer diploma level

certificates.

4. Role of Qualification in Labor Market

A recent survey conducted by the Technical Education Development

Project (TEDP), funded by the Asian Development Bank (ADB)

under the Ministry of Vocational and Technical Training, revealed

that most employers were of the opinion that employees were needed

in Plant training. Sixty-eight percent of the employers were satisfied

with the training that they had received and were willing to train

them further. About 75% of the employees at the national level; 60%

at the regional level; and about 25% at the village level felt that

their employers were satisfied with the skills acquired. Employers

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also provide in-house training to trainees to supplement their training

obtained at vocational institutes. Employer satisfaction of the

qualifications and training of the employees ranged from 50%, to

72% among the various institutes. About 8% of the employees

reported employers’ dissatisfaction. The main reason for employers’

dissatisfaction was low productivity and low skill level.

Section 7. National Development and TVET Policy

The principal policy document of the present government is the

“Mahinda Chinthana” vision for a new Sri Lanka. A ten year

development framework 2006-2016 identifies three distinct sub

sectors: General Education, Technical & Vocational Education, and

Higher Education. This document identifies three main policy

initiatives in the technical and vocational education and training

(TVET) sub sector:

Ⅰ. Improving the quality and relevance of programs;

Ⅱ. Increasing enrollment at TVET institutions; and

Ⅲ. Improving operational and management efficiency at TVE

institutions.

Policy relating to financial and economic aspects of TVET is

closely related to the third policy initiative stated in the Mahinda

Chinthana policy document. This policy document also identifies key


issues to address in policy formulation, such as:

1. Lack of focus on knowledge, skills, and attitudes to perform

a particular occupation in a rapidly changing technological

environment;

2. Absences of mechanisms to ensure that the quality of trainee

out-put conforms to set standards in the labor market;

3. Absence of a trustworthy qualification that reflects the level of

competency of the trainee against a publicly known standard;

4. Internal and external inefficiencies, including duplication of

courses; outdated curricular and equipment; shortage of good

trainees; and in-optimal utilization of worships, laboratories and

training equipment, leading to a high dropout rate of around

30 percent; and

5. Need for sustainability through cost recovery and other means.

Taking the above key issues into consideration, the government

has initiated the following strategies for implementation by

relevant agencies:

Ⅰ. Improving the quality and relevance of programs;

Ⅱ. Increasing enrollment in technical and vocational

institutions from secondary schools and the workforce;

Ⅲ. Improving the operating and managerial efficiency of

technical and vocational education institutions;

Ⅳ. Providing opportunities for upward carrier path; and

Ⅴ. Ensuring uniformity in national standards.

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1. Economic Development and TVET

In Sri Lanka a large member of students who are successful at

the G.C.E.(A/L) examinations are not able to gain entry to university

education, due to the lack of capacity in the university system.

Vocational training provides a ready alternative to these students for

continuing their higher education goals. The vocational training

system provides a wide variety of job-oriented courses from which

these students can choose to pursue higher education and training.

Despite the shortcomings in the current TVET system, evidence

shows that only about 25% of the trainees remain unemployed after

vocational training. With a few adjustments and improvements to the

curriculum, quality certification, and market orientation of courses

in the vocational training sector, it is likely that the unemployment

rate can be brought down further, providing greater opportunities for

G.C.E. (A/L) qualified young persons to be absorbed into the

economic mainstream of the country. Foreign employment is another

avenue that vocational trainees can pursue. There is high demand

for personnel in certain types of vocational trades. Thus, another

tangible benefit of vocational education is the opportunity created

by vocational training for employment abroad, particularly in the

Middle East. The economic benefits include higher pay, and greater

savings in income sent back to the country, resulting in greater

wealth creation and further economic development. The housing

sector received considerable investment from such inflows. The

income flow originating from the vocational trade sector does have


a multiplication effect on the general economy — creating more

employment, income, investments, and contribution to the country’s

GDP. The estimated direct contribution of the TVET sector, as

worked out from the models developed by consultants under the

Technical Education Development project (TEDP, funded by the

Asian Development Bank, ADB, functioning under the Ministry of

Vocational and Technical Training Technical) is Rs.22 billion per

annum, or the equivalent of 0.8% of the national GDP (current

market price) of Rs. 2802 billion for 2006.This estimate is based

on the extrapolation of the study carried out by the said consultants

for the entire TVET sector, comprising only the registered VT

institutes as published by the Ministry. If the unregistered VT

institutes are included, the actual contribution may be higher.

2. Social Development and TVET

A recent survey carried out by the Ministry of Vocational and

Technical Education (through the Technical Education Development

Project (TEDP) under the ADB, Asian Development Bank) reveals

that a greater proportion of national level trainees reported housing

improvements and increases in movable and fixed asserts, than other

trainees. Investment in fixed assets remained around 17% and was

more or less similar for all types and levels of institutes. Investment

in real estate was low, but with a higher proportion reporting from

national level institutions. Except for trainees from village level

institutes, over 50% of trainees from all other types and levels of

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institutes reported increases in food and other expenditures.

Improvement in family nutrition was reported by a greater proportion

of trainees in national institutes. Only a small proportion (13%) of

trainees reported being indebted before training, with highest

percentage reported by national level private trainees. Except for

village level trainees, over 50 % of those indebted had commenced

repayment after training A very small proportion of trainees had

taken life insurance, and most had taken such insurance after the

training.

About 7.2 million persons (excluding those in the northern and

eastern provinces) were employed in the 1st Quarter of 2009; of these

employed persons, about 4.7 million (64%) were males, and 2.6

million (36%) were female. The employment rate gradually increased

from 2003 through 2008. Agriculture sector recorded the highest

employment (about 2.5 million) in the 1st quarter of 2009. The lowest

employment of 7,000 persons was recorded in the industries. More

than 80 percent were eligible for the Employment Provident Fund

(EPF). Pensions for the occupational categories of senior officials

and managers; professionals, technicians, and associate professionals;

and unspecified workers accounted for only 13 percent of the total

skilled. Agricultural and fishery workers were eligible for

EPF/pension in the 1st half of 2009. From January to June 2009,

a large member of workers, 116,961, have sought foreign

employment. The highest number of departures for foreign employment

was recorded for Saudi Arabia; female participation in foreign

employment (54%) was higher than male participation (46%). The


highest departures were recorded for the Housemaid category.

The TVET sector contributes substantially to the economy. It was

estimated that the TVET sector contributes up to 0.8% of the GDP

of the country. Individual trainees have also received considerable

economic and social benefits, in addition to the financial benefits

of employment. Their housing, nutrition, social acceptance, and

expenditures have increased. Over 60% have obtained wage or self

employment, and a further 15% have sought more training to

improve their chances of employment, although 24S of the trainees

remain unemployed. The overall benefits to the country and trainees

have been positive. In addition, the income generated by the TVET

sector will have multiplier effects and contribute further to the

country’s economy, as 60% of the previously unemployed trainees

begin spending their newly earned incomes.

Section 8. TVET System by Target Groups

1. TVET for Students by Level of Education under the

Secondary Level Compulsory Education

Sri Lanka’s education is divided into five parts: primary, junior

secondary, senior secondary, collegiate and tertiary. Primary education

lasts five to six years (Grades 1-5) and at the end of this period,

the students may elect to take a national exam called, “The

Scholarship Exam”, which allows students with exceptional skills to

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move on to better schools. After primary education, the junior

secondary level lasts for 4 years (Grades 6-9), followed by 2 years

(Grade 10-11) of the senior secondary level, which is the preparation

for the General Certificate of Education (GCE) Ordinary Level

(O/Ls). According to Sri Lankan Law, it is compulsory that all

children go to school until grade 9 (age 14), at which point they

can choose to continue their education, or drop out and engage in

apprenticeship for a job or farming. However, the Ministry of

Education strongly advises all students to continue with their studies

at least till the GCE Ordinary Level. Students who are pursuing

tertiary education must pass GCE/OL in order to enter the collegiate

level to study for another 2 years (Grades 12-13) and sit for the GCE

Advanced Level. On successful completion of this exam, students

can move on to tertiary education. Therefore, the GCE A/L is the

university entrance exam in Sri Lanka.

2. Government Schools

Most of the schools in Sri Lanka are maintained by the government

as a part of the free education. Currently there are 9,410 government

schools. With the establishment of the provincial council system in

the 1980s, the central government handed control of most schools

to the provincial councils. There are two types of government

schools:

• National schools; and

• Provincial schools.


National schools come under the direct control of the Ministry of

Education and therefore are directly funded by the state. Most of

these schools were established during the colonial period and were

well established institutions.

Provincial schools constitute the vast majority of schools in Sri

Lanka. Funded and controlled by the local governments, many suffer

from poor facilities and a shortage of teachers.

3. Private School

There has been a considerable increase in the number of private

schools in Sri Lanka, due to the emergence of the upper-middle class

during the colonial era. Private schools follow the local curriculum

set up by the Ministry of Education in the local language medium

of Sinhala, Tamil, or English. Many of the private schools have

better access to new facilities than state run schools. Currently there

are 98 private schools approved by the government.

Enrollment rates are provided from 2006 through 2009:

<Table 1-6> Enrollment rate (2006-2009)

Item 2006 2007 2008 2009Total No of Schools 10,461 10,430 10,445 10,205Government 9,714 9,678 9,662 9,410Private 93 94 92 98Total No. of Pupils 4,000,714 4,111,022 4,101,509 4,032,760Government Schools 3,837,548 3,942,185 3,930,374 3,860,176Private Schools 107,874 113,884 115,070 114,486

Source: Ministry of EducationSri Lanka socio – Economic Data – 2010Central Bank of Sri Lanka – June 2010

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4. Secondary Level, Upper Secondary Level, and Non-

schooling Level; Vocational and Academic Rate; and

Apprenticeship Enrollment Rate

Most trainees (70%) have either completed the A/L or have studied

up to the A/L classes. About 43% of the trainees have obtained

apprenticeship training. A further 38% have obtained institutional

training, while 15% have completed dual training. Thus, there

appears to be greater preference for apprenticeship training, which

may due to the market demand for such trained persons.

Certificate level training was the main type of training provided,

with about 80% trainees following such courses. Diploma training

was reported by only 6% of the trainees. It may be useful to establish

whether the low enrollment in diploma course is due to the lack of

facilities in the institution, or whether it is due to fewer institutions

providing such training. The low level of enrollment in diploma level

courses may also be attributed to the lack of demand in the job

market; longer duration and higher cost; stringent entry requirements;

lack of capacity to meet demand; or poor quality of training.

Student enrollment and output statistics are provided for the institutions functioning under the Ministry of Vocational and Technical Training which are the major training providers of the country. The entry level qualification for the trainees is secondary or upper secondary level.


<Table 1-7> Student enrollment and output statistics

Institution Year Intake Completed Dropout DropoutRate

Department of Technical Education and Training (DTET)

2006/2007 18,604 14,630 3,690 19.83%2007/2008 21,984 11,673 6,486 29.50%2008/2009 13,958 16,857 3,568 26.51%

Vocational Training Authority (VTA)

2006 21,495 16,322 3,192 14.85%2007 24,302 18,471 3,884 15.98%2008 25,362 21,068 4,507 17.77%

National Apprentice and Industrials Training Authority (NAITA)

2006 15,810 8,368 4,016 25.40%2007 18,261 10,732 4,653 25.48%2008 25,585 15,428 4,250 16.61%

National Institute of Technical Education ofSri Lanka

2006 1,973 1,647 14 1.00%2007 1,144 898 23 1.69%2008 1,359 1,259 33 2.43%

National Institute of Business Management (NIBM)

2006 3,899 3,654 38 1.00%2007 3,671 2,871 54 1.50%2008 7,932 4,159 164 2.00%

Total2006 63,040 45,725 11,031 17.49%2007 70,470 45,655 15,198 21.56%2008 74,595 60,115 12,707 17.03%

Source: Statistical unit – Ministry of vocational and Technical Training.

More than two thirds of the trainees have followed or passed ALs,

indicating that training is a major vocational avenue for those who

have failed to enter universities. An additional economic benefit of

vocational training is that it provides greater opportunities for

educated youth to contribute to the economy; it provides further

education and training and fills job vacancies less preferable to

University graduates.

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5. Training Scheme for Non-schooling

Recognition of prior learning (RPL) is a kind of terminal assessment

conducted mainly in the workplace. The main objective of RPL is

to recognize skills and competencies acquired through non-institutional

training, informal training, or work place experience. RPL is one

route to awarding National Vocational Qualification (NVQ) certificates.

This route helps people obtain NVQ qualification without following

a structured course.

Those who acquire skills through the following means are eligible

to appear for RPL assessments:

∙ Workplace experience; life experience; self directed study;

informal/uncertified learning; formal uncertified learning;

informal study; on the job-training; open learning or distance

education; community-based learning; and overseas education,

training, or experience.

RPL assessments are conducted based on the requirements of the

national skills standards. RPL assessments are conducted mostly with

the use of supportive evidence.

6. TVET and Enterprises

Young people are the current and future leaders of any community.

Encouraging civic enrollment and investing in youths key concerns

must be and urgent priority of the government and civil society.

Young people are the forefront of social, economic, and political


developments, and they are often agents of change and innovation.

The world of work provides the environment through which youth

can actively participate in society; contribute their talents and visions

for the future; and develop a sensor of commitment.

There is a growing realization about the potential contribution of

small enterprises in Sri Lanka. Healthy small business is rightly

considered to be the backbone of the economy. Entrepreneurship

training is increasingly tried to promote local business, and it

accelerates the pace of small enterprise development. It is needless

to emphasize that quality and quantity of entrepreneurship input are

crucial in the process of entrepreneurship development. The subject

of entrepreneurship has, thus, become important and necessary for

the education sector which is widely responsible for the development

of the economy. Sri Lanka has identified the small business sector

as an important sector of economy. The technical and vocational

education and training (TVET) sub sector within the education sector

is specifically responsible for providing technical and skilled

manpower to the large medium and small scale enterprises and

industries. The government, private, and NGO vocational training

providers have introduced entrepreneurship concepts and initiated

entrepreneurship programs in their instructions.

Training cannot create employment. However, training is a powerful

means of preparing young people for employment. But training alone

is not sufficient for self employment. The key government training

providers, Vocational Training Authority (VTA) Department of

Technical Education and Training (DTET) and National Apprentice

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and Industrial Training Authority (NAITA) of Sri Lanka, focused

more attention on promoting self employment programs by providing

necessary skills, start-up capital, business know how, access to raw

materials, and markets.

7. Self Employment Promotion Initiative (SEPI)

The government of Sri Lanka entered in to a loan agreement with

the Asia Development Bank (ADB) in 2004 to improve the quality

and relevance of training and build a high quality workforce; they

restructured and reoriented the vocational training system by

introducing competency based training (CBT). One of the components

of this project is innovative Interventions and NGO private sector

participation. Under this component, the Self Employment Promotion

Initiative (SEPI) was established to provide skills training through

qualified government, NGO, and private sector institutions, including

a credit component to provide graduates with resources to purchase

basic equipment and raw materials required for start up businesses.

SEPI was a pilot initiative to support poor people who had

completed skills training programs. It provided initial financial

support to establish a small-scale entrepreneurial or self employment

activity. This was mainly covered the initial purchase of basic

equipment and materials. Seventy percent of beneficiaries were

males selected according to agreed upon criteria. The project was

implemented in 18 districts.

The issuing of loans began in January 2004, and a sum of Rs.


94,542,103.37 (US. $ 851,730) was issued among 886 loan applicants.

It was the responsibility of the vocational training institute officers

to guide the youth who were selected and provide them with

knowledge to maintain a successful enterprise. Although there had

been a high recovery rate of 83.38%, it was observed that the failure

of some was due to several factors:.

1. Adverse selection of prospective borrowers, due to inadequate

screening to ascertain their honesty, integrity, and repayment

capacity;

2. Poor quality of products/services;

3. Lack of marketing facilities and marketing linkages;

4. Inadequate skills training; and

5. Weak entrepreneurial skills.

8. TVET Infrastructure

8.1 Teachers and Instructors

Technical and vocational education and training (TVET) is a

comprehensive educational process that goes beyond general education,

helping trainees to achieve knowledge, skills, attitudes and mental

preparedness necessary for a variety of vocations and jobs. It ensures

that those who are educated and trained will enter the labor market

and be employed in the workplace using their acquired knowledge

and skills. It is important to develop high quality human resources

in the TVET sector. The most important issues are the qualifications

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and the quality of teaching and training staff. As a result, the

achievement of the goals of the TVET sector depends mainly on the

TVET system, in general, and on the compliances and qualifications

of the trainers, in particular.

The quality of TVET programs is directly impacted by the

qualification and compliances of staff delivering the training and

assessment. Presently there are no specific or distinct human

resource management and development policies in the TVET sector

in this country. The rules, regulations, and procedures drawn by the

government are generally adapted by the training organizations in

the public sector. Although these organizations adapt personal

management practices, only a few organizations really pursue HRD

policies. Currently there are no policies or guidelines stipulated for

training organizations that cover all the areas — recruitment,

development, transfers, promotions, and staff development, to name

a few. Although there were certain guidelines and procedures laid

down for recruitment, deployment, and transfers, there seem to be

anomalies creating disadvantages for staff members of different

organizations. Therefore, it has become important to introduce a

common and nationally accepted HR development policy for the

entire TVET sector.

All organizations perform HR planning, formally or informally. At

present a common process for recruitment is not practiced by either

public or private sector training organizations. Although the open

advertisement procedure is mostly applied for recruitment, qualifications

considered for a post seem to vary from organization to organization.


Particulars of teaching and training staff in major organizations

functioning under the Ministry of Vocational and Technical Training

at the end of 2009 are as follows.

<Table 1-8> Particulars of teaching and training staff in major organizations

functioning under the Ministry of Vocational and Technical

Training at the end of 2009

Institute No. of Centers

No. of courses Employee strengthPart-time

Full time Academic Non

academicDepartment of Technical Education and Training (DTET)

38 24 46 240 2045

Vocational Training Authority (VTA) Rural Training Centers Regional Training CentersNational Training Centers

265

2372206

148 884 1075 559

National Apprenticeship & Industrial Training Authority (NAITA)National InstituteRegional Training CentersRural Training InstitutesAffiliated Centers

104

05065538

83 235 582 367

9. Staff Development & Teacher Training

At present there is no proper policy for staff development.

Although in-service training is provided for the staff of many

organizations in an ad-hoc manner, pre-service training, which is

comparatively important, could not be seen in the public or private

sector. Faced by socio-economic and technology challenges, human

resource management in TVET providers needs to bring to the

SRI LANKA 545

forefront the development of multi skill and core competencies of

the staff. Knowledge and competencies of both academic and

non-academic staff of TVET providers will continuously be updated

and upgraded in par with current global trends.

The National Institute of Technical Education of Sri Lanka

(NITE-SL) was responsible for professional services in Human

Resources, learning resources, research curriculum development, and

consultancy for public sector technical teachers and vocational

trainers. In 2009, with the establishment of the University of

Vocational Technology, the functions of the NITE-SL were absorbed

by the university. The University of Vocational Technology

(UNIVOTEC) provides training in technology for the employees of

the vocational and technical training sector and industry. The

UNIVOTEC has introduced a modular-based certificate, with

diploma & degree level teacher training for trainers in the TVET

sector.

9.1 Issues to be Addressed

Because the TVET management staff are not adequately exposed

to the changing dynamics of TVET, their thinking is stereotyped and

conventional, making them non-responsive to market demand.

Though there is a significant change in the education sector in Sri

Lanka, in terms of quality and quantity, some important issues

emerge in the teaching and training of staff in technical and

vocational education, including:


• Lack of qualified staff in technical and vocational education;

• Uneven distribution of teachers and the imbalance between

the supply and the demand of teachers;

• Mismatches between the teachers’ educational background

and the subjects being taught;

• High percentage of unqualified and under qualified teachers

in the technical and vocational schools;

• Low quality in teacher performance and conservative teaching

methods; and

• Weaknesses in continuing education; employment and career

development; the rights and responsibilities of teachers;

teachers’ salaries; and social security.

Section 9. Employment and the Labor Market

The total labor force within Sri Lanka is approximately 7.5

million, and it is estimated that approximately 1.5 million Sri

Lankans work overseas at any given time. According to the survey

results of the Department of Census and Statistics, only about 16%

of the labor force have received formal vocational or technical

training. Approximately 25% of those who have received vocational

training are unemployed, proving that their training was not in

keeping with labor market demands.

SRI LANKA 547

Year

HouseholdPopulation(10 Years & Over)

Labor Force

Not in Labor force

Number

Total Labor Force

Labor Force

Partici: Rate (%)

Employed Unemployed

Number

Rate (% to total Labor Force)

Number

Rate (% To Total

Labor Force)

1990 11573941 6001148 51.9 5047354 84.1 953794 15.9 5572793

1991 11795793 5877198 49.8 5015517 85.3 861680 14.7 5918596

1992 12058463 5808062 48.2 4962105 85.4 845957 14.6 6250400

1993 12278055 6032383 49.1 5201474 86.2 830910 13.8 6245675

1994 12492850 6078863 48.7 5281272 86.9 797591 13.1 6413985

1995 12736185 6106138 47.9 5357117 87.7 749021 12.3 6630048

1996 12831240 6241889 48.6 5537285 88.7 704604 11.3 6589365

1997 12870791 6266160 48.7 5607881 89.5 658279 10.5 6604630

1998 12881790 6660520 51.7 6049238 90.8 611285 9.2 6221274

1999 13169250 6673487 50.7 6082641 91.2 590846 8.9 6495782

2000 13564660 6827312 50.3 6310145 92.4 517168 7.6 6737345

2001 13870479 6772834 48.8 6235588 92.1 537246 7.9 7097644

<Table 1-9>Statistics for 2009

Sri Lanka Male FemaleLabor Force Employed PopulationEmployment Rate

8,073,6887,602,414

94.2%

5,186,4574,963,176

95.7%

2,887,2112,639,238

91.4%

(Sri Lanka Labor Force Survey, Annual Report – 2009)Employment: Number of Employed 1990-2009

Employment Rate by Gender andAge 2000-2010

<Table 1-10> Historical Table of Labor Force Status (Current) of the

Household Population. 10 Years of Age and Over – Both Sexes


Year


Labor Force

Not in Labor force

Number

Total Labor Force

Labor Force

Partici: Rate (%)

Employed Unemployed

Number

Rate (% to total Labor Force)

Number

Rate (% To Total

Labor Force)

2002 14201396 7145382 50.3 6519415 91.2 625967 8.8 7056014

*2003 15651479 7653716 48.9 7012755 91.6 640961 8.4 7997763

**2004 16593431 8061354 48.6 7394029 91.7 667324 8.3 8532077

***2005 16870976 8141347 48.3 7518007 92.3 623341 7.7 8729628

#2006 14833801 7598762 51.2 7105322 93.5 493440 6.5 7235040

#2007 15047882 7488896 49.8 7041874 94.0 447021 6.0 7558986

*2008 16319065 8081702 49.5 7648305 94.6 433397 5.4 8237363

#2008 15078016 7568715 50.2 7174706 94.8 394009 5.2 7509301

*2009 16578628 8073668 48.7 7602414 94.2 471254 5.8 8504961

#2009 15397595 7572388 49.2 7139537 94.3 432852 5.7 7825206* Including Eastern province, but Excluding Northern province** Excluding Mulathivu, Kilinochchi districts.*** All the districts are included# Excluding Northern & Eastern provinces.Source – Labor Force Survey – Annual Report 2009

SRI LANKA 549


Household Population. 10 Years of Age and Over –Male.

Year


Labor Force

Not in Labor force

Number

Total Labor Force

Labor Force

Partici: Rate (%)

Employed Unemployed

Number

Rate (% to total

Labor Force)

Number

Rate (% To Total Labor Force)

*1993 6109486 3989443 65.3 3601779 90.3 387663 9.7 2120044*1994 6228064 4072937 65.4 3678648 90.3 394289 9.7 2155127*1995 6318003 4068608 64.4 3700951 91.0 367656 9.0 2249395*1996 6373670 4200886 65.9 3857147 91.8 343741 8.2 2172784*1997 6372365 4184248 65.6 3862087 92.3 322168 7.7 2188110*1998 6344453 4281996 67.5 4004504 93.5 277491 6.5 2062456*1999 6506662 4402713 67.7 5107497 93.3 295217 6.7 2103953*2000 6702871 4501597 67.2 4241477 94.2 260120 5.8 2201274*2001 6837264 4529016 66.2 4248877 93.8 280139 6.2 2308248*2002 6935012 4705586 67.9 4395164 93.4 310421 6.6 2229427

**2003 7657368 5144206 67.2 4833483 94.0 310723 6.0 2513162***2004 8049643 5372897 66.7 5049426 94.0 323471 6.0 2676746

****2005 8103016 5436362 67.1 5134765 94.5 301597 5.5 2666654*2006 7098813 4837308 68.1 4610643 95.3 226664 4.7 2261505*2007 7174676 4862788 67.8 4653067 95.7 209721 4.3 2311888

**2008 7713680 5227427 67.8 5033449 96.3 193978 3.7 2486253*2008 7122164 4838462 67.9 4663277 96.4 175184 3.6 2283702

**2009 7783492 5186457 66.6 4963176 95.7 223281 4.3 2597035*2009 7221475 48155541 66.7 4609198 95.7 206343 4.3 2405934

* Excluding Northern & Eastern provinces.** Including Eastern province but Excluding Northern province*** Excluding Mulathivu, Kilinochchi districts.**** All the districts are included Source – Labor Force Survey – Annual Report 2009



Household Population. 10 Years of Age and Over – Female.

Year

HouseholdPopulation

(10 Years & Over)

Labor Force

Not in Labor force

Number

Total Labor Force

Labor Force Partici: Rate

(%)

Employed Unemployed

Number

Rate (% to total

Labor Force)

Number

Rate (% To Total Labor Force)

*1993 6168572 2042941 33.1 1599695 78.3 443247 21.7 4125631*1994 6264782 2005927 32.0 1602625 79.9 403302 20.1 4258857*1995 6418183 2037530 31.7 1656166 81.3 381364 18.7 4380652*1996 6457583 2041002 31.6 1680138 82.3 360864 17.7 4416583*1997 6498427 2081906 32.0 1745794 83.9 336112 16.1 4416521*1998 6537344 2378526 36.4 2044732 86.0 333795 14.0 4158818*1999 6662613 2270782 34.1 1975153 87.0 295629 13.0 4392047*2000 6861794 2325716 33.9 2068667 89.0 257048 11.0 4536078*2001 7033214 2243818 31.9 1986711 88.5 257107 11.5 4789396*2002 7266384 2439796 33.6 2124250 87.1 315546 12.9 4826588

**2003 7994111 2509510 31.4 2179272 86.8 330238 13.2 5484600***2004 8543788 2688457 31.5 2344604 87.2 343853 12.8 5855331

****2005 8767960 2704985 30.9 2383241 88. 32744 11.9 6062975*2006 7734989 2761454 35.7 2494679 90.3 266775 9.7 4973535*2007 7873206 2626108 33.4 2388807 91.0 237300 9.0 5247098

**2008 8605385 2854275 33.2 2614856 91.6 239419 8.4 5751110*2008 7955852 2730253 34.3 2511429 92.0 218825 8.0 5225599

**2009 8795136 2887211 32.8 2639238 91.4 247973 8.6 5907926*2009 8176119 2756847 33.7 2530339 91.8 226508 8.2 5419272

* Excluding Northern & Eastern provinces.** Including Eastern province but Excluding Northern province*** Excluding Mulathivu, Kilinochchi districts.**** All the districts are includedSource – Labor Force Survey – Annual Report 2009

SRI LANKA 551

1. Skills supply and demand

The main responsibility of the technical and vocational educational

programs is the development of knowledge, skills, and attitudes

necessary for ensuring placements in the workforce, at levels ranging

from trade, through to professional. The national vocational

qualification framework, implemented by the state and private sector

training providers, offers a unified technical education system. It

Identifies levels of training according to process and learning

demand.

The stakeholders of TVET are aware of the features of the

qualification system on national standards; competency-based

curricula; competency-based assessments; and unified certification.

Fifty three percent (53%) of the vocational pass outs are employed

in the private sector. This is about three times the number employed

by the government sector. A comparatively high percentage of

vocational pass outs have acquired the competencies that are needed

at employment.

2. Skills Mismatch, Skill Shortage, and unemployment.

Employment in the service and production sectors have indicated

that the training received and skills gathered were not adequate to

keep pace with employer demands. In the workplace, new employees

confront unfamiliar machines, equipment, tools, and procedures to

which they had no prior exposure. Some of the machines, such as


CNC Lathes, are so sophisticated and expensive that the employers

were reluctant to provide on-the-job training to the trainees.

In the field of information technology trainees, had no opportunity

to learn new software packages. Especially given the rapid

development of technology, employed vocational pass outs are not

able to meet all the requirements of the employer.

About 10% of the vocational graduates were either partly

satisfied or not satisfied. The main reasons for dissatisfaction with

the courses at national level were: 1) poor quality of training; and

2) courses and curricula were not broad enough to enable trainees

to work in a wider field of employment. At the regional and village

levels the main reasons for dissatisfaction with the training courses

were: 1) poor job market demand; and 2) limited scope of courses

offered by employers.

Some of the employees feel that there is a demand for knowledge

and skills at the workplace on certain items, like electronic fuel

injection (EFI); automatic transmission; sensors/digital technologies;

modern vehicle repairs; IC programing/ robotics; machine/transformer

installation; English to understand manuals; gas analyzers /emission

test; mechtronics; computer assisted drawing (CAD); customer

service; and handling of construction equipment.

A high percentage of employers is in favor of vocational pass outs

in the fields of practical knowledge; attitude to learn; improving

mathematics; English and scientific theory; and general updating of

trainer knowledge. Sixty eight percent (68%) of the employees have

said the mismatch between employer requirements and training skills

SRI LANKA 553

gathered at the technical training Institution is nil, or at a very low

extent. Only 33% have said that there is a mismatch.

3. New Demands

Seventy seven present (77%) of the employees are in favor of

upgrading their knowledge and skills to meet employer demand. The

highest percentage of responses is for the need of practical

knowledge in the field (20%). The lowest percentage is for

management & planning skills (11%). The employees are confident

that they have acquired the basic theoretical knowledge; the basic

practical skills; and the ability to manipulate equipments and tools,

as required by the employer at the training. However, some of the

employees feel that there is a demand for knowledge and skills on

modern equipment at the work place. Considering the future labor

market demand for vocational pass outs, the trades can be ranked

based on the responses of employers.

Rank Order of Trades

Rank Order Trade/Field

1 - Welder

2 - Electrician

3 - Others

4 - Auto Electrician

5 - Auto Mechanics


6 - Auto A/C Technician

7 - Computer Assistant

8 - Auto Service Supervisor

9 - Mason

10 - Carpenter

The Labor Market Information Bulletin of the Tertiary and

Vocational Education Commission (TVET- Volume 01/’09 -June

2009) ranks the demand for local jobs and lists the top 10 demand

jobs under the following categories.

• Senior Officials and Managers ;

• Professionals;

• Technicians & Associate Professionals;

• Clerical & Related Workers;

• Service Workers & Shop and Market Sales Workers;

• Craft & Related Workers;

• Manufacture of Food Products & Beverages;

• Manufacture of Clothing Apparel;

• Construction;

• Computer & Related Activities;

• Sale, Repair & Maintenances of Motor Vehicles & Motor

Cycles; and

• Manufacture of Furniture.

SRI LANKA 555

Section 10. International Corporation: Bilateral,

Multilateral and International Organization

Sri Lanka is the member of the Commonwealth of Nations; the

United Nations; the South Asian Association for Regional Cooperation

(SAARC), the World Bank; and the Asian Development Bank.

International development agencies have assisted the country to

achieve the Millennium Development Goals through financing

schemes that develop key economic sectors and support much-needed

reforms in public finance management and government. Bilateral and

multilateral development agencies have provided assistance in

infrastructure; education and vocational training; health; public sector

reforms; and in other areas vital for the Sri Lanka’s overall human

development.

Support for reforms in tertiary and vocational education have been

under way since the 1970s, including quality and curriculum

development capacity development; enhancing physical facilities;

staff development for teachers and management; and increasing

responsiveness to labor market demands.

The World Bank (1981) funded the Construction Industry Training

Project and the Institute for Construction Training and Development

(CITP – ICTAD). This was a sector wide project to develop: skill

standards for construction craftsman (module on practices developed

in the United Kingdom); and standard curricula for construction

training teaching, including learning materials and associated trainer


training. The outputs were adopted by several major training agencies.

The partner delivery agencies were the Department of Technical

Education and Training (DTET); technical colleges; the Department

of Labor District and Mobile Training Centers (the Department of

Labor District and Mobile Training Centers were adsorbed into the

Vocational Training Authority in 1988); several non- governmental

organizations; and other government agencies providing construction

related training. The World Bank initiative went as far as the design

of training workshops for the delivery of efficient teaching- learning,

including the development and monitoring of on-site training.

Several major bilateral donor agencies are actively involved in

supporting the tertiary and vocational education and training (TVET)

sector, but their inputs are primarily aimed at disadvantaged and

vulnerable groups, with the understanding that established national

structures, processes, and standards will be adopted by the respective

vocational training deliverers in their training related operations.

A significant wave of donor input was funded by the Asian

Development Bank (ADB). There were two projects, both with

national remit and highly influential in terms of paving the way for

the establishment of the national vocational qualification (NVQ)

framework. The first was the Skills Development Project (ADB Loan

No 1707 SRI), which ran between March 2001 and January 2007

(with an extension). It forecasted the reform of TVET and involved

all training providers. The main objectives of this project were to:

1) Strengthen the national sectoral apex body, the Tertiary and

Vocational Education Commission, so as to coordinate

SRI LANKA 557

interventions to improve the quality and market relevance of

skills training programs;

2) Rationalize the resource allocation and budgeting for vocational

training agencies;

3) Standardize competency-based training standards; curriculum;

teacher training; and the quality of instructional materials

across the 300 public sector vocational training centers;

4) Develop 20 new skills training courses and convert 25 existing

courses into competency-based format;

5) Develop skills standards with corresponding training standards

and trade tests for the 45 competency-based training courses;

6) Develop test, produce, and distribute competency-based

training materials for all 45 courses; and

7) Establish a national vocational qualification framework,

including the development of an accreditation system; assessor

training and certification; expansion of the national trade

testing programs; and establishment of a quality management

system, preparing the ground for full implementation (in terms

of human capacity building, system building, and institutional

building.)

The second was the Technical Education Development Project

(ADB Loan No. 2197), which runs from April 2006 to October 2010

(parallel with the end of ADB Loan 1707-SRI). It focused on

linkages between TVET and higher education. The main objectives

of this project were to:

1) Strengthen the Ministry of Skills Development, Vocational and


Technical Education (the predecessor of the current Ministry

of Vocational and Technical training and other relevant

institutions in support of market- responsiveness);

2) Strengthen policy analysis in the sector;

3) Embed the standards developed in the first project and develop

standards for technologists and technicians;

4) Strengthen quality assurance systems in TVET;

5) Enhancing the public image of the sector;

6) Establish the University of Vocational Technology, focusing on

technical and technological education and developing University

administration and technical capacity, student selection

procedure, new curricular and upgrading facilities and equipment.

Both projects were concerned with strengthening national

coordination and management through TVEC to ensure quality,

relevance, effectiveness, and efficiency. The projects attempted to

tackle the rationalization of resources, particularly to support

less-resourced vocational training centers in rural areas and in some

economically disadvantaged districts.

In addition to the ADB funded project, the Japan International

Corporation Agency (JICA); Korean International Corporation

Agency (KOICA); and the Rehabilitation, Reconstruction, and

Modernization of Technical and Vocational Training Institutes

(REVO) — Project-GTZ — also provided financial and technical

assistance for the development of the TVET sector in Sri Lanka. The

JICA, KOICA, and GTZ projects assisted three technical colleges

SRI LANKA 559

with modern equipment and local and International training for

academic staff members. Several other international NGOs are also

conducting training programs in mostly rural areas of the country,

in line with the policies introduced by the government.

Section 11. New Needs for New Skills

Technological, economic, and social trends have clearly posed

profound implications on TVET systems in the region. The changing

nature of the world of work, pressed by globalization and technological,

economic, and social changes, requires the identification of major

development pockets and deeper understanding of how they impact

upon the quality of TVET systems.

Rapid technological changes require workers to adapt to the fast

changing technological environment. Teaching generic soft skills has

become a pre-requisite in effectively preparing the workforce for the

world of works. Skills including cognitive reasoning, interpersonal

communication, work values, and adaptability must complement core

technical skills. The globalization of economies has spurred the

movement of knowledge workers and seekers across the world. It

has opened up new doors for technology, services, products, and

labor to come freely, while emerging skills and competencies are

demanded to meet industry needs.

Possession of the optimum combination of generic and technical

competencies raises the opportunities for any person to be employed,


due to his/her anticipated ability to move horizontally or vertically,

as may be required by the workplace. Therefore, greater emphasis

should be given to employability, rather than employment. The

knowledge workers of today require the ability to jump between

fields of technical specialization and capture the key issues quickly.

High capacity to learn skills of scientific concepts and processes

reduce the time taken to master new areas, when emerging tasks and

work processes occur. Therefore, trainable recruits are more important

than trainee recruits. With the emergence of key climate issues and

their impact on all aspects of living, there is a greater need for

environmentally-oriented adjectives.

After 30 years of prevailing conflict, Sri Lanka in 2009 began

experiencing rapid economic growth. This economic growth has

caused the significant rise in demand for TVET skills to meet job

requirements in the industries, particularly in the country’s northern

and eastern regions. The apparent distance of the TVET system from

the industry, which is also marked by the current mismatch between

the skills taught and those actually in demand, is attributable to the

general disconnect between TVET, industry, and the supply-driven

nature of government policies regarding TVET. Developing

public-private partnerships and maintaining close interactions with

industry are necessary to overcome the skills mismatch and make

TVET more market oriented.

The concept of small and medium scale enterprises (SME) bears

particular significance, as it involves providing formal skill training

to the poor and backward sections of society for whom the length

SRI LANKA 561

and cost of usual formal training options are impractical due to social

and economic constraints. The SME embodies the idea of imparting

various types of minimum skills that enable a person to obtain

gainful employment. Moreover, the importance of developing

entrepreneurial skills is also increasing, as current trends indicate that

the majority of the workforce is likely to be absorbed in the

un-organized and informal sector in the near future. Therefore,

encouraging workers to develop micro and small enterprises, or to

become self-employed, is likely to provide a better option for earning

a livelihood than wage labor. The flexibility of such modular

credit-based courses in TVET is likely to lead to skill upgrading,

multi skilling, multi-point entry and exit, vertical mobility, and

recognition of prior learning through certification of skills acquired

informally.

Preparing teachers to face the challenges of an ICT enriched

teaching and learning environment is crucial. Teachers need to be

equipped with the fundamentals of ICT tools and sufficient

understanding of the integration of these tools in teaching and

learning. Efforts must be oriented towards changing mind set and

developing positive attitudes towards ICT application in teaching and

learning, to improve TVET delivery and promote quality in

instruction.

New approaches to institutional management and learning are

rapidly catching up and taking over traditional management

approaches. The Quality Management System (QMS) movement is

cross-cutting every field and is given particular emphasis in the


TVET sector. Improvement of internal efficiency and effectiveness

of programs and institutions allow TVET systems to respond to

industry needs and support appropriate monitoring, evaluation, and

quality assurance.

Section 12. Future Challenges and Opportunities

ADB, KOICA, JICA, and GTZ Projects have injected dynamism

into the previously stagnate TVET sector. The challenge is to

continue this momentum and optimize the benefits of the changes

that have been introduced. Programs need to be directed toward

achieving following crucial goals:

∙ Meet the labor market demand for relevant skills and the

demand for training and employment by over 200,000

secondary school leavers each year;

∙ Improve the quality of training to make it an acceptable

alternative path to further education;

∙ Reduce geographical disparities in the provision of TVET

facilities;

∙ Maximize the resources of the existing network of institutions

and expedite the development of the training institutions and

University of Vocational Technology;

∙ Reduce gender imbalances in technical related training;

∙ Improve the poor image of TVET institutions among

SRI LANKA 563

employers, parents, and students in the private sector;

∙ Improve the quality of TVET and its output in terms of

standardized qualifications and employment;

∙ Reduce dropout and failure rates and recruit, train, and retain

qualified staff;

∙ Provide equitable distribution of career guidance units;

∙ Establish a revolving fund for loans for employment, with

flexibility on the part of banks to ensure easy access to loans

and support for the currently marginalized sections of the

informal sector;

∙ Establish production units in the training institutions that can

generate income for the training centers and facilitate the

application of the knowledge and skills acquired in the TVET

institution;

∙ Provide necessary facilities to rural training institutions where

standards are uneven — some rural centers are, as yet, outside

the ambit of recent developments, such as competency- ased

training; NVQs; and provision of qualified staff and modern

equipment;

∙ Ensure effective management and continuous monitoring, and

move tracer studies to prevent dilution of current programs

and their outcomes;

∙ Review the distribution of training centers/institutions to

further improve access, and in so doing monitor effectiveness,

efficiency, and sustainability of training programs;

∙ Foster commitment to the TVET development strategy and


NVQ, mapping NVQ with international qualification frames;

developing a TVET development plan that is in harmony with

a human resource development policy; and building effective

linkages with secondary education and tertiary education;

∙ Introduce higher order thinking skills to advocate critical

thinking, analysis, and problem solving to augment and

enhance learning outcomes in TVET;

∙ Enable possession of generic soft skills, a pre-requisite in the

new work place. Skills including cognitive reasoning,

interpersonal communication, attitudes, values, work habits

and enterprise, innovation and creativity must be embedded

in capacity building in TVET. Learning to learn becomes a

key attribute;

∙ Secondary education will have strong vocational component

in the curriculum to ensure that students can be sufficiently

equipped both in knowledge and skills to directly join the

labor market and have the option to pursue higher studies;

∙ Many jobs in the current labor market do not require long

term rigorous training. Therefore, specific skills will be

imparted through short modular courses for informal sector

workers to develop micro and small enterprises or to become

self employed;

∙ Identify the skills requirements of the informal sector and

facilitate skill development to enhance productivity and

develop an enabling environment for the vulnerable sections

of the society. It is necessary to overcome the skills shortage

SRI LANKA 565

in the sector;

∙ Strengthen research and development to accommodate

innovations of emerging technologies, along with development,

in particular, of technology in local and international areas;

and

∙ Conduct a comprehensive impact evaluation of the new

developments and provide a recommendation to the relevant

authorities.

References

1. ADB Sector Paper - Sri Lanka Country Assistance Program

Evaluation. August 2007.

2. Performance Report, 2009. The Ministry of Vocational and

Technical Training.

VIETNAM

VIETNAM 569

Chapter 1

TVET POLICY, EXPERIENCE, AND TRENDS

IN VIETNAM


Vietnam’s territorial waters make around 1,000,000 km2, with

over 3,000 km long coastline lines. Vietnam lies along the

Indochinese Peninsula and circles the old southeastern part of the

Asian continent with its back turned to the Eastern Sea (Pacific

Ocean). These mountain and sea areas boast a diversity and richness

in natural resources, as well as minerals.

1. Population

Vietnam’s population size increased from 77.63 million in 2000,

to 86.03 million in 2008, and it ranks 13th in the group of nations

with densely populated rate.

The majority of the population gathers in rural areas. In 2008


the proportion of the Vietnamese population living in rural areas still

occupied 72.15% (62.07 million). The population structure by sex

has not experiences much decline, remarkably with the proportion

of female (50.84% in 2000 and 50.73% in 2008) slightly higher than

that of the male.

The Vietnamese population is young, and step close to the

“golden” change. In this period, over half of the Vietnamese

population belongs to the age group of less than 25 years. The

proportion of the age from 15 and up is rather high (67.99% in 2000

and 74.94% in 2008). The rate dependent on population reduced

from 71% in 1999, to 58.63%.

<Table 1-1> Population in 2000-2008

2000 2004 2005 2006 2007 2008 2015Population

(‘000s) 77635.80 82031.70 83106.30 84136.80 85171.70 86210.80 93647.00Male 38166.40 40310.50 40846.20 41354.90 41868.00 42384.50 46410

Female 39469.40 41721.20 42260.10 42781.90 43303.70 43826.30 47237Source: Statistical Yearbook 2000-2008, General Statistical Office, Vietnam, 2009.

2. The Vietnamese Economy

Vietnam is a developing market economy. Since the mid 1980s,

through the “Đổi mới” (reform) period, Vietnam has made a shift

from a centrally planned economy, to a socialist-oriented market

economy. Over that period, the economy has experienced rapid

growth. Today, Vietnam is in the period of integrating into the

world's economy, as a part of globalization. Vietnam has been rising

as a leading agricultural exporter and an attractive foreign investment

VIETNAM 571

Total

Of whichAgriculture,

forestry and fishing Industry and construction Service

Bill. Dongs1990 41955 16252 9513 161901991 76707 31058 18252 273971992 110532 37513 30135 428841993 140258 41895 40535 578281994 178534 48968 51540 780261995 228892 62219 65820 1008531996 272036 75514 80876 1156461997 313623 80826 100595 1322021998 361017 93073 117299 1506451999 399942 101723 137959 1602602000 441646 108356 162220 1710702001 481295 111858 183515 1859222002 535762 123383 206197 2061822003 613443 138285 242126 2330322004 715307 155992 287616 2716992005 839211 175984 344224 3190032006 974266 198798 404697 3707712007 1143715 232586 474423 4367062008 1485038 329886 591608 5635442009 1658389 346786 667323 644280

Structure (%)1990 100.00 38.74 22.67 38.591991 100.00 40.49 23.79 35.721992 100.00 33.94 27.26 38.801993 100.00 29.87 28.90 41.231994 100.00 27.43 28.87 43.701995 100.00 27.18 28.76 44.061996 100.00 27.76 29.73 42.511997 100.00 25.77 32.08 42.151998 100.00 25.78 32.49 41.73

destination in Southeast Asia.

In 2009, the nominal GDP reached $92.439 billion, with a nominal

GDP per capita of $1,060.

<Table 1-2> Gross Domestic Product at Current Prices by Economic Sector


Total

Of whichAgriculture,

forestry and fishing Industry and construction Service

1999 100.00 25.43 34.50 40.072000 100.00 24.53 36.73 38.742001 100.00 23.24 38.13 38.632002 100.00 23.03 38.49 38.482003 100.00 22.54 39.47 37.992004 100.00 21.81 40.21 37.982005 100.00 20.97 41.02 38.012006 100.00 20.40 41.54 38.062007 100.00 20.34 41.48 38.182008 100.00 22.21 39.84 37.952009 100.00 20.91 40.24 38.85

Source: General Statistical Office (GSO) of Vietnam, 2009

Although industry contributed 40.1 percent of GDP in 2004, it

employed only 12.9% of the workforce. In 2000, 22.4% of industrial

production was attributable to non-state activities. During 1994-2004,

industrial GDP grew at an average annual rate of 10.3 percent.

Manufacturing contributed 20.3 percent of GDP in 2004, while

employing 10.2 percent of the workforce. During 1994-2004,

manufacturing GDP grew at an average annual rate of 11.2 percent.

The top manufacturing sectors ― food processing, cigarettes and

tobacco, textiles, chemicals, and electrical goods ― experienced

rapid growth.

In 2004, services accounted for 38.2 percent of the gross domestic

product (GDP). During 1994-2004, GDP attributable to the services

sector grew at an average annual rate of 6.0 percent.

Table 3 provides detailed data for each sector of the Vietnamese

economy:

19

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

08Pr

el.

2009

TOTA

L22

8892

2720

3631

3623

3610

1739

9942

4416

4648

1295

5357

6261

3443

7153

0783

9211

9742

6611

4371

514

8503

816

5838

9

By O

wner

ship

Stat

e91

977

1086

3412

6970

1444

0715

4927

1701

4118

4836

2056

5223

9736

2797

0432

2241

3642

5041

0883

5277

3258

2674

Non

-Sta

te12

2487

1432

9615

8203

1803

9619

6057

2128

7923

0247

2564

1328

4963

3273

4738

2804

4445

6052

7432

6836

5477

1688

Colle

ctiv

e23

020

2727

127

946

3213

135

347

3790

738

781

4280

045

966

5071

857

193

6362

271

059

8402

590

410

Priv

ate

1702

020

129

2262

526

153

2900

432

267

3824

344

491

5050

060

703

7461

291

710

1165

0515

5905

1826

84

Hou

seho

ld82

447

9589

610

7632

1221

1213

1706

1427

0515

3223

1691

2218

8497

2159

2625

0999

2892

2733

9868

4437

2449

8594

Fore

ign

inve

stmen

t se

ctor

1442

820

106

2845

036

214

4895

858

626

6621

273

697

8874

410

8256

1341

6616

5456

2054

0027

3652

3040

27

By K

ind

of E

cono

mic

Act

ivity

Agr

icul

ture

and

for

estry

5555

565

743

7069

681

474

8907

293

450

9395

410

3043

1141

6012

8519

1430

3716

0462

1864

6227

1477

2850

30

Fish

ing

6664

9771

1013

011

598

1265

114

906

1790

420

340

2412

527

474

3294

738

335

4612

458

409

6175

6

Min

ing

and

quar

ryin

g11

009

1528

219

768

2419

633

703

4260

644

345

4615

357

326

7249

288

897

9970

211

1700

1466

0716

5310

Man

ufac

turin

g34

318

4129

051

700

6190

670

767

8197

995

211

1102

8512

5476

1454

7517

3122

2070

2724

3142

3021

3633

3166

Elec

trici

ty,

gas

and

wat

er

supp

ly47

0165

3886

0410

339

1172

513

993

1602

818

201

2222

425

090

2892

933

464

3986

947

169

5859

2

Cons

truct

ion

1579

217

766

2052

220

858

2176

423

642

2793

131

558

3710

044

558

5327

664

503

7971

295

696

1102

55

Who

lesa

le a

nd r

etai

l tra

de;

repa

ir of

mot

or v

ehic

les,

mot

or c

ycle

s an

d pe

rson

al

and

hous

ehol

d go

ods

3749

143

125

4891

455

783

5938

462

836

6778

875

617

8329

796

995

1137

6813

2794

1564

4221

2139

2449

33

<Tab

le 1-3> G

ross

Dom

estic

Produc

t at C

urrent P

rice

s by Owne

rship a

nd b

y Kind o

f Eco

nomic A

ctivity

19

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

08Pr

el.

2009

Hot

els

and

resta

uran

ts86

2597

7611

307

1240

413

412

1434

315

412

1715

418

472

2252

929

329

3586

144

992

5706

767

394

Tran

spor

t, sto

rage

and

co

mm

unic

atio

ns91

1710

390

1241

814

076

1554

617

341

1943

121

095

2472

530

402

3662

943

825

5111

866

359

7241

2

Fina

ncia

l in

term

edia

tion

4604

5148

5444

6274

7488

8148

8762

9763

1085

812

737

1507

217

607

2075

627

215

3161

7

Scie

ntifi

c ac

tiviti

es a

nd

tech

nolo

gy14

0516

2917

7420

2619

0223

4526

4630

0936

9443

1552

4760

5970

6592

9610

581

Real

esta

te,

rent

ing

and

busin

ess

activ

ities

1239

213

507

1535

517

683

1826

019

173

2158

924

452

2728

731

304

3363

536

814

4350

953

743

6023

4

Publ

ic a

dmin

istra

tion

and

defe

nse;

com

pulso

ry s

ocia

l se

curit

y82

7894

1710

460

1184

911

683

1206

612

784

1381

616

676

1906

123

038

2673

731

310

4127

947

042

Educ

atio

n an

d tra

inin

g82

9398

8711

274

1320

214

004

1484

116

245

1807

121

403

2333

526

948

3071

834

843

3826

142

780

Hea

lth a

nd s

ocia

l w

ork

3642

4007

4381

4979

5401

5999

6417

7057

8865

1085

112

412

1409

316

160

1917

821

537

Recr

eatio

nal,

cultu

ral

and

spor

ting

activ

ities

1259

1511

1844

2068

2378

2558

2800

2987

3376

3693

4158

4617

5200

5842

6964

Act

iviti

es o

f pa

rty a

nd o

f m

embe

rshi

p or

gani

zatio

ns22

328

144

357

758

461

465

171

277

488

510

5412

1714

2519

0920

46

Com

mun

ity,

soci

al a

nd

pers

onal

ser

vice

act

iviti

es49

7963

1978

5588

7493

2398

5310

412

1141

212

497

1435

416

293

1878

921

959

2870

433

843

Priv

ate

hous

ehol

ds w

ith

empl

oyed

per

sons

545

649

734

850

895

953

985

1037

1108

1237

1421

1642

1927

2551

2898

Sour

ce:

Gen

eral

Sta

tistic

al O

ffice

(G

SO)

of V

ietn

am,

2009

VIETNAM 575

3. Education System of Vietnam

Education in Vietnam is divided into five levels: pre-primary,

primary, intermediate (lower secondary), secondary (upper

secondary), and higher education. Formal education consists of

twelve years of basic education. Basic education consists of five

years of primary education; four years of intermediate education; and

three years of secondary education. The majority of basic education

students are enrolled on a half-day basis.

Vietnam is currently trying to overhaul its education system, with

a view to 1) preparing students for the increasing role of English

as the language of business; and 2) emphasizing the importance of

internationalizing the education system, to maintain a workforce

equipped to maintain the rapid economic growth of the last two

decades.

[Figure 1-1] The Education and Training System of Vietnam

<Tab

le 1-4> N

umber o

f Sch

ools a

nd C

lasses

of Gen

eral E

duc

ation

as o

f 30

Sep

tember

19

95 -

19

9619

96-

1997

1997

-19

9819

98-

1999

1999

-

2000

2000

-

2001

2001

-

2002

2002

-

2003

2003

-

2004

2004

-

2005

2005

-20

0620

06-

2007

2007

-20

0820

08-

2009

2009

-20

10N

umbe

r of

sch

ools

(Sch

ool)

2104

921

754

2266

423

414

2401

224

692

2522

525

825

2635

226

817

2722

727

593

2789

828

114

2840

8

Prim

ary

scho

ol11

701

1214

512

764

1325

913

517

1385

913

903

1416

314

346

1451

814

688

1483

414

933

1505

115

172

L

ower

sec

onda

ry s

choo

l59

0263

4062

5871

6474

1777

4180

9683

9687

4590

4193

8396

3597

8199

0210

064

U

pper

sec

onda

ry s

choo

l64

470

389

496

211

0112

5813

9615

3216

6418

2819

5220

4421

4921

9222

67

Prim

ary

& lo

wer

sec

onda

ry s

choo

l21

0118

3420

4713

4913

1611

8912

6511

9711

4310

3488

977

372

767

461

1

Low

er &

upp

er s

econ

dary

sch

ool

701

732

701

683

661

645

565

537

454

396

315

307

308

295

294

Num

ber

of c

lass

es (

Thou

s. O

f cl

asse

s)43

6.4

459.

747

6.9

494.

650

1.2

509.

651

8.4

522.

252

0.9

519.

750

8.7

501.

249

5.2

486.

248

4.5

P

rimar

y 31

0.3

317.

932

3.4

327.

332

2.4

320.

131

4.5

308.

829

9.4

288.

927

6.6

270.

226

6.4

265.

126

8.1

L

ower

sec

onda

ry10

4.3

117.

212

4.9

133.

413

9.5

144.

415

3.7

161.

316

5.7

170.

916

7.5

163.

816

0.2

154.

315

0.0

U

pper

sec

onda

ry

21.8

24.6

28.6

33.9

39.3

45.1

50.2

52.1

55.8

59.9

64.6

67.2

68.6

66.8

66.4

Inde

x(pr

evio

us y

ear

= 10

0) -

%Sc

hool

104.

710

3.3

104.

210

3.3

102.

610

2.8

102.

210

2.4

102.

010

1.8

101.

510

1.3

101.

110

0.8

101.

0

Prim

ary

scho

ol10

6.5

103.

810

5.1

103.

910

1.9

102.

510

0.3

101.

910

1.3

101.

210

1.2

101.

010

0.7

100.

810

0.8

L

ower

sec

onda

ry s

choo

l11

1.9

107.

498

.711

4.4

103.

610

4.4

104.

610

3.7

104.

210

3.4

103.

810

2.7

101.

510

1.2

101.

6

Upp

er s

econ

dary

sch

ool

104.

710

9.2

127.

710

7.6

114.

411

4.3

111.

010

9.7

108.

610

9.9

106.

810

4.7

105.

110

2.0

103.

4

Prim

ary

& lo

wer

sec

onda

ry s

choo

l82

.387

.311

1.6

65.9

97.6

90.3

106.

494

.695

.590

.586

.087

.094

.092

.790

.7

Low

er &

upp

er s

econ

dary

sch

ool

104.

510

4.4

95.8

97.4

96.8

97.6

87.6

95.0

84.5

87.2

79.5

97.5

100.

395

.899

.7Cl

ass

106.

610

5.3

103.

710

3.7

101.

310

1.7

101.

710

0.7

99.8

99.8

97.9

98.5

98.8

98.2

99.7

P

rimar

y10

3.7

102.

410

1.7

101.

298

.599

.398

.398

.297

.096

.595

.797

.798

.699

.510

1.1

L

ower

sec

onda

ry11

4.6

112.

410

6.6

106.

810

4.6

103.

510

6.4

104.

910

2.7

103.

198

.097

.897

.896

.397

.2

Upp

er s

econ

dary

114.

111

2.8

116.

311

8.5

115.

911

4.8

111.

310

3.8

107.

110

7.3

107.

810

4.0

102.

197

.499

.4

Sour

ce:

Gen

eral

Sta

tistic

al O

ffice

(G

SO)

of V

ietn

am,

2009

<Tab

le 1-5> N

umber o

f Te

ache

rs &

Pup

ils o

f Gen

eral E

duc

ation

(Dec

)

19

95

-199

619

96 -

19

9719

97 -

19

9819

98 -

19

9919

99 -

20

0020

00 -

20

0120

01 -

20

0220

02 -

20

0320

03 -

20

0420

04 -

20

0520

05-

2006

2006

-20

0720

07-

2008

2008

-20

0920

09-

2010

Num

ber

of

dire

ct

teac

hing

te

ache

rs (

Thou

s. of

per

s)49

2.752

1.056

5.660

4.563

1.766

1.769

4.172

3.575

5.477

1.078

0.578

9.680

0.680

6.981

8.7

P

rimar

y29

8.931

1.533

3.134

6.035

1.335

5.935

9.936

3.136

6.236

2.435

4.834

9.534

8.734

9.735

5.2

L

ower

sec

onda

ry15

4.416

7.018

4.220

2.721

6.223

3.825

4.127

1.829

0.430

2.531

0.231

4.931

7.531

7.031

7.2

U

pper

sec

onda

ry39

.442

.548

.355

.864

.272

.080

.188

.698

.810

6.111

5.512

5.213

4.414

0.214

6.3

Num

ber

of p

upils

(Th

ous

of

.pup

ils)

1556

1.016

348.0

1697

0.217

391.1

1768

5.317

776.1

1787

5.617

699.6

1750

5.417

122.6

1665

0.616

256.6

1568

5.215

127.9

1491

2.1

P

rimar

y10

228.8

1035

2.710

383.6

1022

3.910

033.5

9741

.193

15.3

8815

.783

46.0

7744

.873

04.0

7029

.468

60.3

6731

.669

08.0

L

ower

sec

onda

ry43

12.7

4839

.752

04.6

5514

.356

94.8

5863

.662

59.1

6429

.765

69.8

6616

.763

71.3

6152

.058

03.3

5468

.751

63.2

U

pper

sec

onda

ry10

19.5

1155

.613

82.0

1652

.919

57.0

2171

.423

01.2

2454

.225

89.6

2761

.129

75.3

3075

.230

21.6

2927

.628

40.9

Inde

x (P

revi

ous

year

= 1

00)

- %

Dire

ct t

each

ing

teac

her

105.4

105.7

108.6

106.9

104.5

104.7

104.9

104.2

104.4

102.1

101.2

101.2

101.4

100.8

101.5

P

rimar

y10

3.710

4.210

6.910

3.910

1.510

1.310

1.110

0.910

0.999

.097

.998

.599

.810

0.310

1.6

L

ower

sec

onda

ry10

8.610

8.211

0.311

0.010

6.710

8.110

8.710

7.010

6.810

4.210

2.610

1.510

0.899

.810

0.1

U

pper

sec

onda

ry10

6.210

7.911

3.611

5.511

5.111

2.111

1.311

0.611

1.510

7.410

8.910

8.410

7.310

4.310

4.4

Pupi

l10

7.110

5.110

3.810

2.510

1.710

0.510

0.699

.098

.997

.897

.297

.696

.596

.498

.6

P

rimar

y10

2.010

1.210

0.398

.598

.197

.195

.694

.694

.792

.894

.396

.297

.698

.110

2.6

L

ower

sec

onda

ry11

7.911

2.210

7.510

6.010

3.310

3.010

6.710

2.710

2.210

0.796

.396

.694

.394

.294

.4

U

pper

sec

onda

ry12

0.911

3.311

9.611

9.611

8.411

1.010

6.010

6.610

5.510

6.610

7.810

3.498

.396

.997

.0

Sour

ce:

Gen

eral

Sta

tistic

al O

ffice

(G

SO)

of V

ietn

am,

2009


University entrance is based on the scores achieved in the entrance

examination. High school graduates need high scores to be admitted

to universities. Securing a place in a public university is considered

a major step towards a successful career, especially for those from

rural areas or disadvantaged families. The pressure on the candidates,

therefore, remains very high, despite the measures taken to reduce

the importance of these exams. In 2004, it was estimated that nearly

one million students took the exam, but on average only 20% passed.

19

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

08Pr

el.

2009

Num

ber

of s

choo

ls(*) (

Scho

ol)

178

191

202

214

230

277

322

369

393

403

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109

9611

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313

114

816

817

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720

124

327

530

532

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6

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3023

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Num

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of t

each

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pers

.)32

.335

.938

.740

.047

.648

.653

.456

.160

.765

.1

P

ublic

22.8

23.5

24.1

26.1

27.1

27.9

31.4

33.4

34.9

40.0

42.0

45.7

51.3

54.8

57.5

N

on-p

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4.54.5

5.35.1

7.66.6

7.74.8

5.97.6

Num

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(Th

ous.

Stud

ents)

899.5

974.1

1020

.711

31.0

1319

.813

87.1

1666

.216

03.5

1719

.517

96.2

P

ublic

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509.3

662.8

682.3

734.9

795.6

873.0

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1182

.012

26.7

1456

.714

14.7

1501

.315

47.4

N

on-p

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103.9

101.1

111.9

137.1

137.8

160.4

209.5

188.8

218.2

248.8

Of

whi

ch:

Full-

time

train

ing

173.1

236.3

357.6

401.7

421.4

552.5

579.2

604.4

653.7

729.4

836.7

917.2

1033

.212

03.5

1295

.0

Publ

ic45

2.448

0.849

3.852

9.660

1.869

8.475

4.986

4.998

2.110

32.7

Non

-pub

lic10

0.198

.411

0.612

4.112

7.613

8.316

2.316

8.322

1.426

2.3

Num

ber

of g

radu

ates

(Th

ous.

stude

nts)

162.5

168.9

166.8

165.7

195.6

210.9

232.5

234.0

222.7

246.6

P

ublic

58.5

78.5

74.1

103.4

113.6

149.9

157.5

152.6

152.6

180.8

195.0

216.5

215.2

208.7

223.9

N

on-p

ublic

12.6

11.4

14.2

13.1

14.8

15.9

16.0

18.8

14.0

22.7

Inde

x (P

revi

ous

year

= 1

00)

- %

<Tab

le 1-6> U

nive

rsity

& C

ollege

Educ

ation

19

9519

9619

9719

9819

9920

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0120

0220

0320

0420

0520

0620

0720

08Pr

el.

2009

Scho

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7.310

5.810

5.910

7.512

0.411

6.211

4.610

6.510

2.5

P

ublic

100.0

88.1

114.6

111.8

106.5

113.0

113.5

106.5

104.5

107.5

120.9

113.2

110.9

105.6

101.2

N

on-p

ublic

76.7

100.0

117.4

107.4

117.2

138.2

136.2

110.9

108.5

Teac

her

106.7

111.1

107.6

103.4

119.1

101.9

109.9

105.1

108.2

107.4

P

ublic

105.1

103.1

102.6

108.3

103.8

102.9

112.6

106.3

104.6

114.5

105.0

108.7

112.2

106.8

105.1

N

on-p

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138.4

101.3

116.7

96.1

150.9

85.8

117.8

62.8

122.1

128.3

Stud

ent

109.3

108.3

104.8

110.8

116.7

105.1

120.1

96.2

107.2

104.5

P

ublic

146.5

171.0

130.1

102.9

107.7

108.3

109.7

104.1

109.4

118.9

103.8

118.8

97.1

106.1

103.1

N

on-p

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117.8

97.3

110.6

122.6

100.5

116.4

130.6

90.1

115.5

114.0

Of

whic

h: F

ull-t

ime

train

ing

126.4

136.5

151.3

112.3

104.9

108.5

104.8

104.4

108.2

111.6

114.7

109.6

112.6

116.5

107.6

Publ

ic10

7.410

6.310

2.710

7.211

3.611

6.110

8.111

4.611

3.510

5.2

Non

-pub

lic11

4.011

2.311

2.670

.710

2.810

8.411

7.410

3.713

1.611

8.5

Gra

duat

e13

3.610

4.098

.799

.311

8.110

7.811

0.210

0.695

.211

0.7

P

ublic

158.5

134.2

94.4

139.5

109.9

131.9

105.1

96.9

100.0

118.5

107.8

111.0

99.4

97.0

100.5

N

on-p

ublic

157.0

90.4

124.7

91.8

113.5

107.9

100.2

117.5

74.5

162.5

(*)

From

200

8, i

nclu

de m

embe

r co

llege

s.(*

*) F

rom

200

9, e

xclu

ding

inv

ited

teac

hers

.(*

**)

From

200

9, e

xclu

ding

num

ber

of s

tude

nts

study

ing

seco

nd d

iplo

ma,

dist

ance

trai

ning

, com

plet

e kn

owle

dge

and

inte

r-le

vel d

iplo

ma.

Sour

ce:

Gen

eral

Sta

tistic

al O

ffice

(G

SO)

of V

ietn

am,

2009

VIETNAM 581


1. Employment

In Vietnam, the labor force is understood as people from 15 years

old who may have a job or be unemployed. According to this

definition, in 2008, the labor force was 47.72 million and 49.1

million in 2009

In 2008, the female labor force was 23,066,670 people, accounting

for 48.33 percent of the total labor force. This rate slightly decreased

in comparison to that of 2000 (49.66 percent). The reason is that

the growth rate of the female labor force during the period of

2000-2008 is lower than that of the whole labor force (2.28 percent

yearly, compared to 2.71 percent yearly).

[Figure 1-2] Labor Force 2000-2008 (In Millions of Persons)

39.3 40.1 43.2 44.4 45.6 46.7 47.7

19.5 19.9 21.2 21.6 22.1 22.6 23.1

0102030405060

2000 2001 2004 2005 2006 2007 2008

Labour Force Female Labour Force

Source: Statistical data of employment and unemployment in Viet Nam 1996-2006- Labor - Social Publishing House, 2006 and MOLISA 2007. Statistical data of employment and unemployment in Vietnam 0n 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009.


Labor is concentrated in agricultural and rural areas. The scale

of rural labor in 2008 was about 35.58 million (increased by 5.6

million compared to 2000). The average annual number of rural

workers increased about 707 thousand, so the number of rural

workers accounted for 58.02% of the workforce of the increasing

labor force nationwide. However, the proportion of rural workers has

decreased from 77.42% in 2000, to 73.51% in 2008.

[Figure 1-3] Structure of Workforce by Region and Sex


VIETNAM 583

<Table 1-7> Labor Force in 2000-2008 2000 2004 2005 2006 2007 2008 2015

Working age population 15+ (‘000s) 54284.48 60556.74 62441.45 64867.24 66967.58 68106.53 69587 Male 25961.70 29221.81 30143.43 31367.51 32401.79 33290.47 Female 28322.78 31334.93 32298.01 33499.73 34565.79 34816.06Labor force (‘000s) 39253.33 43242.04 44382.09 45579.43 46707.92 47719.13 53127 Male 19760.05 22059.17 22757.86 23430.19 24096.61 24652.46 27629 Female 19493.28 21182.87 21624.23 22149.24 22611.31 23066.67 25498Not in labor force (‘000) 15031.15 17314.70 18059.36 19287.82 20259.65 20387.40 16460 Male 6201.65 7162.64 7385.57 10069.54 8305.18 8638.01 Female 8829.50 10152.06 10673.79 11350.49 11954.48 11749.39Labor force participation rate (%) 72.31 71.41 71.08 70.27 69.75 70.0 76.35 Male 76.11 75.49 75.50 69.94 74.37 74.05 Female 68.83 67.60 66.95 66.12 65.42 66.25


2. Unemployment

Unemployment in Vietnam is understood as people from 15 years

old who, in the week before the survey, were unemployed, but were

able to work and actively looked for jobs. In other words, the

unemployed is considered as a part of the labor force.

In line with economic growth, the unemployment rate in Vietnam

in the last several years decreased. The unemployment rate of the

labor force representing working ages in urban areas was 4.8 percent

in 2006; it decreased to 2.42 percent in 2007, and in 2008 it was

2.20 percent.


[Figure 1-4] Unemployment Rate 2002 - 2009 (%)

Source: Statistical data of employment and unemployment in Viet Nam 1996-2006- Labor - Social Publishing House, 2006 and MOLISA 2007. Statistical data of employment and unemployment in Vietnam 0n 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009

The majority of the unemployed people have low-skilled technical

qualifications. Of the total unemployed, the proportion of

under-medium qualified ones takes the majority (63.89% in 2004,

and 53.62% in 2007). If classified under the qualified and technical

category, the majority of unemployed people (88.20% in 2003, and

76.17% in 2008) have qualifications under secondary technical

school.

The job shortage has gradually improved, and the majority of

unemployed persons have not had any skills and technical

qualifications. The unemployment rate in rural areas is higher than

that in urban areas, and unemployed persons are mainly those with

no technical qualifications (85.4%).

3. The number of workers related to jobs

In 2008, there were 46,256,580 workers situated in jobs relevant

VIETNAM 585

to their training; females made up 48.25 percent of this figure. The

number of employed persons has been rising dramatically during the

past 4 years, from 39.6 million in 2003, to 46.25 million in 2008.

In 2008, two thirds (66.92%) of the population aged 15 and above

(age 15+) had jobs relevant to their training. This ratio has been

decreasing during the past 10 years, from 70.68 percent in 2000, to

67.92 per cent in 2008.

<Table 1-8> Number of Employment 2000-20082000 2003 2004 2005 2006 2007 2008

Employment (‘000s) 38367.59 41175.72 42315.62 43452.40 44548.93 45578.75 46256.58 Male 19292.05 20959.21 21649.33 22312.83 22893.51 23525.30 23949.33 Female 19075.54 20216.51 20666.29 21139.57 21655.41 22053.45 22307.25Employment - to-population 15+ ratio (%) 70.68 70.39 69.88 69.59 68.68 68.06 67.92 Male 74.31 74.40 74.09 74.02 68.34 72.60 71.94 Female 67.35 66.66 65.95 65.45 64.64 63.80 64.07


4. Employment by industry

The data shows that, the proportion of employed workers in the

agriculture-forestry-aquaculture sector continued to decrease, from

56.7 percent in 2005, to 52.5 percent in 2008. In contrast, the

proportion of employed workers in the industry-construction sector

and services sector increased continuously, from 17.9% and 25.4%

in 2005, to 20.8% and 26.7%, respectively.


There is a big difference among these sectors in term of

employment structure. The employment proportion of the agriculture-

forestry-aquaculture sector was always the highest, followed by that

of the services sector and industry-construction sector.

With respect to transformation in employment structure, the trend

is that the proportion of employment in the agriculture-forestry-

aquaculture sector is decreasing, while that of services sector and

industry-construction sector is increasing. This trend also reflects that

of industrialization and modernization, as well as integration in the

national course of economic restructuring.

<Table 1-9> Employment by Industry on 1/7/2008

Total

By IndustryAgriculture- Forestry-Aquaculture

Industrie-Construction Services

2005 people 43452.4 24637.51 7777.98 11036.91% 100 56.7 17.9 25.4

2006 people 44548.93 24368.26 8152.45 12028.21% 100 54.7 18.3 27

people 45578.75 24316.26 8819.49 124432007 % 100 53.35 19.35 27.3

people 46256.46 24284.64 9621.34 12350.472008 % 100 52.5 20.8 26.7


VIETNAM 587

<Table 1-10> Employment by Kind of Job in 2000-2008Unit: Percent

2000 2004 2005 2006 2007 2008Total 100 100 100 100 100 100∙ Agriculture and forestry 62.46 55.37 53.61 51.78 50.2 48.87∙ Fishery 2.63 3.38 3.49 3.59 3.7 3.75∙ Mining and quarrying 0.68 0.78 0.8 0.85 0.9 0.96∙ Manufacturing 9.44 11.62 12.34 13.05 13.5 14.04∙ Electricity, gas and water supply 0.22 0.33 0.36 0.4 0.45 0.5∙ Construction 2.77 4.62 4.7 4.93 5.13 5.33∙ Whole sale and retail trade; repair of

motor vehicles, motor cycles and personal and household goods 10.36 11.46 11.6 11.8 11.98 11.96

∙ Hotel and restaurants 1.82 1.82 1.8 1.81 1.84 1.85∙ Transport, storage and communications 3.12 2.89 2.84 2.8 2.76 2.72∙ Financial intermediations 0.2 0.3 0.37 0.42 0.48 0.49∙ Other 6.3 7.43 8.09 8.57 9.06 9.53

5. Employment by position-based

The number of employed people in Vietnam’s work force accounts

for a large proportion. However, employed laborers are mainly in

the form of self-employment or household economy, especially in

the agricultural and rural sectors. In 2005, the number of laborers

of this kind accounted for 73.95% in the employed work force. In

2008, this proportion was 67.34%.


<Table 1-11> Employment by Position-Based in 2000-2008Unit: Percent

2000 2005 2006 2007 2008Percentage shares (%) 100 100 100 100 100Paid worker 18.43 25.65 21.49 30.3 29.5Enterprise owner 0.21 0.4 0.91 3.2 3.08Self employed 43.02 40.96 39.16 53.5 48.25Unpaid Household Worker 37.04 32.99 38.43 12.9 19.09Others 1.3 0 0 0.1 0.07Source: Statistical data of employment and unemployment in Viet Nam 1996-2006-

Labor - Social Publishing House, 2006 and MOLISA 2007. Statistical data of employment and unemployment in Vietnam 0n 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009.

The table shows that the proportion of paid workers tends to

increase, while the proportion of self-employed and unpaid

household workers tends to decrease, with marginal differences.

6. Employment by ownership sector

By ownership, the rate of workers, who were employed in state

enterprises, was decreasing (from 9.9 percent in 2004, to 9.3 percent

in 2008), and the rate of workers employed in the foreign investment

sector was increasing, from 1.5 percent, to 3.1 percent.

VIETNAM 589

<Table 1-12> Structure of Workers by Ownership in 2004-2008Unit: Percent

By ownership Total State-Owned sector

Non-State Owned Sector

Foreign Investment Sector

A 1 2 3 42004 100.0 9.9 88.6 1.52006 100.0 9.2 89.2 1.62007 100.0 9.3 88.7 2.02008 100.0 9.0 87.9 3.1

Source: Statistical Data of Employment and Unemployment in Vietnam 1996-2006, Labor-Social Publishing House, 2006, and MOLISA 2007. Statistical Data of Employment and Unemployment in Vietnam on 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009.

7. Employment by job performed

Related to jobs performed, among the employed people, manual

employees account for a large proportion (61.68% in 2005, and

61.50% in 2008). Those who belong to the highly skilled and middle

skilled levels in technical areas account for 7.90% (about 3.5 million

in 2008). This shows that the quality of work force in Vietnam is

still restrictive, which reflects the current technology level in

Vietnam’s industries. Skilled craftsmen in 2008 made up 11.50% of

the total employed workers.


<Table 1-13> Employment by Occupation Performed in 2008Unit: Percent

Job Groups 2004 2006 2007 2008Total 100.00 100.00 100.00 100.00

1- Administrator 0.74 3.22 3.82 3.502- High level of technical profession 3.49 3.90 4.02 4.103- Middle level of technical profession 3.18 2.71 2.80 3.804- Professional worker 0.99 0.89 0.90 1.005- Staff for personal service and social

security 8.53 6.41 6.90 6.60

6- Skilled employees in agriculture, forestry 6.29 4.60 4.62 4.30

7- Skilled craftman 12.38 12.14 11.05 11.508- Manichary installer and operator 3.39 3.63 4.87 3.709- Manual employees 61.01 62.51 61.02 61.50Source: Statistical data of employment and unemployment in Viet Nam 1996-2006-

Labor - Social Publishing House, 2006 and MOLISA 2007. Statistical data of employment and unemployment in Vietnam 0n 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009

Section 3. The TVET System in Vietnam

1. In General

1.1 Establishing practical technical training for socio-economic

development

According to the Law on Education in 2005 and Vocational

Training Law in 2006, the vocational training system has been

developed with three training levels to provide direct technical labor

for production, business, and services. Accordingly, legal documents

guiding vocational training operations have been promulgated timely

VIETNAM 591

and adequately, such as the list of training occupations; regulations

on developing frame curriculum; documents on procedures for

establishing vocational secondary schools and vocational colleges;

documents on monitoring vocational training quality; and other

relevant policies and mechanisms. The above-mentioned legal

documents and policies have created a comprehensive and consistent

legal corridor for implementing vocational training effectively,

proving the soundness of targets set-forth in Education Strategy

2001-2010.

The master plan for developing vocational colleges, vocational

secondary schools, and vocational training centers by 2010 and

directions towards 2020 has been implemented. The network of

vocational colleges, vocational secondary schools, and vocational

training centers has been diversified in terms of ownerships and

training modes. As compared to that in 2001, the number of

vocational training establishments has increased by 3.3 times1).

These establishments are allocated according to development

conditions of individual economic regions. The master plan is

currently being studied and supplemented to facilitate vocational

training establishments in their delivery of national standards

occupations which are comparable with training levels of developed

countries.

1) As of July 2009, there are 102 vocational colleges, 265 vocational secondary schools, more than 700 vocational training centers and hundreds of universities, colleges, professional secondary schools and enterprises participating in vocational training


1.2 Expanding the scale of vocational training by level and

adjusting training structure

Vocational training has been transferred from supply-driven to

demand-driven by various policies and measures, such as developing

and issuing a list of training occupations, with 385 occupations listed

at the secondary level, and 301 occupations, at the college level -

all suitable to the labor demand of enterprises and labor market. Pilot

application of training orders on the basis of enterprises' demand and

local socio-economic orientations will be conducted. Through this,

vocational training establishments need to link training plans with

the demand of enterprises. This is a preparatory step to transform

training methods, from state-granted, to state-ordered.

To contribute to economic and labor restructuring, in parallel with

overall mechanism and policies, vocational training for farmers and

labor in intensive farming areas (including tobacco, tea, and rubber

farming areas) has been implemented on a pilot basis.

Given timely mechanisms and policies, vocational training has

been gradually restructured in relation to the structure of labor

demand by technical level; industries and trades; and regions.

1.3 Improving the quality and efficiency of vocational training

During the implementation of Education Strategy, beside scale

expansion, attention has been paid to the improvement of vocational

training quality and efficiency. Some progress has been made.

Investment in a vocational training network has transitioned from

VIETNAM 593

a dispersed and average approach, to a concentrated method, through

to involvement by key vocational training establishments. At the

same time, investment should be focused on vocational training

establishments in areas with difficulties so that conditions ensuring

vocational training quality will improve.

The contingent of vocational trainers has increased in terms of

quantity and gradually improved in quality2). It is being standardized

by such indicators as: training level and pedagogical and

occupational skills (currently, occupational skill is a weakness of

vocational teachers). A training program for vocational trainers of

the UK is currently applied on a pilot basis; this is a training

program in which occupational skills of trainers are appreciated. A

model is being implemented for establishing vocational pedagogical

faculties in vocational colleges to train vocational pedagogical

professionals and trainers in occupational skills. At present, there are

only five pedagogical technical schools which cannot meet the

demand for vocational trainers.

The number of vocational managerial staff in vocational training

establishments, ministries, industries, and localities has increased, but

their management skills are still weak. Short-term supplementary

training programs for this target group have been developed, but the

content is limited. A pilot supplementary training program for

vocational managerial staff of the UK has been implemented.

Sets of frame curriculum at vocational secondary and vocational

2) In 2008, there were 10,195 trainers in vocational schools and vocational training centers — a figure 2.88 times higher than that in 1998.


college levels have been promulgated. Vocational training programs

have been developed using advanced methods, with participation by

enterprises3).

Over the past ten years, infrastructure and equipment of many

vocational training establishments have been strengthened by

national targeted programs and ODA-funded projects4). Some key

occupations are equipped with modern technology relevant to

practical production machinery.

Owing to investment in training conditions, the quality and

occupational skills of graduates from vocational training centers have

been enhanced5). In occupations like welding; seamanship; hotel and

restaurant services; cooking; postal services and telecommunications;

oil and gas; and aviation, the occupational skills of Vietnamese labor

have reached international standards. Vietnam has attended five

ASEAN professional competitions, winning two first prizes and one

second prize. Vietnam also attended two world professional

competitions, awarded with one excellent occupational certificate in

2007, and five corresponding certificates in 2009, ranking the 30th

among 46 countries participating in the competition. The trained

3) To date, 108 sets of frame curriculum have been issued at vocational secondary and vocational college levels.

4) National targeted programs and ODA projects have invested in 100 vocational schools and 290 vocational training centers

5) According to the evaluation of enterprises, 80-85 percent of trained labor is used at proper training level; 30 percent of them gained a good or higher skill level (Survey of General Department of Vocational Train in 2006).

VIETNAM 595

labor force has undertaken many job positions which require high

occupational skills that used to be performed by foreign workers.

In implementing government guidelines on demand-driven

vocational training, many localities, ministries, and industries have

provided successful leadership of certain goals. Vocational training

establishments have adjusted training activities towards demand-

driven training, matching the needs of enterprises; creating domestic

jobs; and preparing for labor export. About 70 percent of trainees

find jobs, or are self-employed right after graduation. In some

occupations, this proportion reaches more that 90 percent. Though

at the beginning stage, vocational training for farmers, especially for

workers in intensive farming areas, has gained manifest

achievements. Thanks to vocational training, farmers gain new

knowledge and improve occupational skills, leading to increases in

labor productivity and contributing to poverty reduction in rural area

s6). Vocational training has not only contributed to domestic job

creation, but also improved human resource quality for labor export7);

this helps improve income and stabilize lives of workers and their

families.

In general, vocational training is taking steps to meet the demand

of technical workers of enterprises and the labor market. Vietnamese

workers are now almost able to take on key positions in the

6) In some intensive farming areas, people's labor productivity after completing vocational training increases by 1.5 - 2 times.

7) According to the Management Boards of Overseas Labor, the proportion of labor with occupational skills is about 25 percent of total workers dispatched to work abroad.


production line, even in high-tech industries, making contributions

to the improvement of productivity, as well as products’

competitiveness.

1.4 Weakness and causes

Weakness:

∙ The system of practical technical training with three levels has

been newly established. The vocational training scale of

establishments’ remains small, especially the training capacity

at high level, which has not met the demand for highly skilled

labor for spearhead and key industries and for labor export;

∙ The share of the trained labor force of Vietnam remains

relatively low, as compared to some countries in the region8).

In the context of international economic integration, this is the

weakness in competition, and it imposes the risk of importing

foreign labor,9) while domestic workers are still under-

employed;

∙ Training structure by level and occupations has been irrelevant,

not matched as required by the labor structure of industries and

labor market; and

∙ In general, Vietnamese labor is still weak in labor discipline,

8) Evaluation of the ADB sho that the rate of trained labor force of Thailand and Singapore reaches about 60 percent.

9) According to preliminary statistics, there are about 80,000 foreign laborers currently working in Vietnam.

VIETNAM 597

working style, health, creative capacity, and communication

skills.

Causes:

∙ Different government levels and sectors have not paid proper

attention to investment in vocational training development;

∙ Many vocational training establishments have not developed the

interrelation with enterprises in vocational training and not been

active in conducting demand-driven training;

∙ No synchronous investment has been made to establish key and

advanced occupations to train workers at high level, meeting the

labor demand of spearhead industrial zones, key economic regions,

to develop special occupations in regions and sub-region, and

to provide high-level skilled workers for labor export;

∙ The contingent of vocational trainers is insufficient in terms of

quantity and occupational skills (as regards to theoretical

teachers). Infrastructure and equipment of many vocational

training establishments are poor and outdated;

∙ The activities of vocational information, promotion, and career

guidance are not strong, and have not provided necessary

information for pupils and youth to select suitable learning path;

∙ Social resources have not been mobilized thoroughly. The

spending on vocational training out of total state budget for

education and training is still low;10) and

10) In 2001, spending on vocational training out of the state budget for education and training was 4.9 percent and it increased to 7.5 percent in 2008.


∙ The government administration apparatus over vocational

training at provincial and district levels is not corresponding to

the functions and tasked assigned. The capacity of vocational

managerial staff is limited, not professional, and unable to

satisfy job requirements.

2. Implementation of vocational capability development

2.1 Type of courses, number of courses for each type, number

of trainees, number of facilities, etc.

Many policies on expanding vocational training scale have been

issued, such as policies on formal vocational training; regular

vocational training; vocational training in enterprises and trade

villages; and the training for farmers, demobilized soldiers, ethnic

minority, the disabled, and the poor. As a result, the scale of

vocational training enrollment has been expanded rapidly, 2 times

higher than that in 200111), raising the proportion of the trained labor

force to 26 percent in 2008. This proportion is expected to go up

to 28 percent in 2009, and 30 percent in 2010. Thus, it will be two

years ahead of the target set-forth in Education Strategy, which is

26 percent.

11) On average, vocational training enrollment in 2001 - 2008 increased by 6.5 percent per year; 8.1 million people were trained, of which 1.45 million people received long-term vocational training (an increase of 15 percent per year) and 6.65 million people attended short-term vocational training (an increase of 6 percent per year).

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<Table 1-14> Vocational Training Enrollment Targets and Scale in 2001-2008

Target 2001 2002 2003 2004 2005 2006 2007 2008Total2001-2008

INew vocational training enrollments 887,300 1,005,000 1,074,100 1,153,000 1,207,000 1,340,000 1,436,500 1,538,000 9,640,900

Of which, non-public schools 170,858 174,630 227,953 291,171 362,271 445,000 514,443 - 2,186,326

1One-year or more vocational training 126,100 146,500 176,400 202,700 230,000 260,000

* 305.500 258,000 1,705,200

Of which, non-public schools 2,522 2,930 3,528 6,081 7,620 13,000 16,803 - 52,484

2Less than one-year vocational training 761,200 858,500 897,700 950,300 977,000 1,080,000 1,131,000 1,280,000 7,935,700


IIVocational Training Scale 995,800 1,131,100 1,220,600 1,329,400 1,409,700 1,570,000 1,696,500 - 9,353,100


1One-year or more vocational training 234,600 272,600 322,900 379,100 432,700 490,000 565,500 - 2,697,400

Of which, non-public schools 3,560 4,089 6,458 9,478 14,279 24,500 31,103 - 93,467

2Less than one-year vocational training 761,200 858,500 897,700 950,300 977,000 1,080,000 1,131,000 - 6,655,700


Source: General Department of Vocational Training, 2009

2.2 Vocational training agencies network

The vocational training agency network has been developed in

accordance with the renovation of the master plan, and it has covered

the whole country with diversification of ownership form and

training method. For the last 8 years, the number of vocational

training schools has increased 2 times; the number of vocational

training centers has increased more than 5 times.


<Table 1-15> Number of Vocational Training Schools, Vocational Training

Centers, and Others, as of 30 June 2009.

Regions

TotalVocational Training College

Vocational Secondary

Schools

Vocational Training Schools

Vocational Training Centre

Other types of Vocational Training

Units

Total

Of which public

schools

Total

Of which public

schools

Total

Of which public

schools

Total

Of which public

schools

Total

Of which public

schools

Total

Of which public

schools

Total 2.155 1.301 75 64 204 153 40 19 684 433 1.152 6291 North East 232 175 8 8 20 8 2 1 98 64 104 852 North West 38 32 1 1 5 4 2 2 14 12 16 13

3Red River Delta 610 383 34 29 81 53 25 8 157 101 313 198

4North Central Coast 238 169 7 6 23 23 6 5 82 58 120 77

5South Central Coast 213 146 6 5 20 17 3 2 63 49 121 73

6Central Highlands 60 37 2 2 4 4 2 1 25 14 27 16

7 South East 420 165 12 9 33 27 0 0 133 45 242 85

8Mekong River Delta 344 194 5 4 18 18 0 0 112 90 209 82


2.3 Vocational trainers:

From 200 to 2008, there have been 12,000 cycles of teacher

training, improving the status of professional qualifications, skills,

technology, and methodology. Updated technology and advanced

teaching methodologies, in particular, contributed to the health of

TVET.

The contingent of vocational trainers have increased in terms of

both quality and quantity; for the school year 2007-2008, there have

been 20,195 teachers working in all vocational schools and centers,

representing an increase of 2.4 times over the to 1997-1998 school

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year. In addition, there are thousands of teachers working in other

units that have been involved in vocational training.

About 95% of vocational trainers have met the professional

standards to qualify as trainer-- the proportion of trainers with

college or university level and above is 60% currently.

<Table 1-16> Number and Structure of Vocational Training Trainers by

Qualification in 2008

VT schoolsTotal of

VT trainers

QualificationDoctor Master University College Technician Others

Number % Num

ber % Number % Num

ber % Number % Num

ber %

A B 1 2 3 4 5 6 7 8 9 10 11 12 13

I VT schools and VT centre 20,195 83 0.41 927 4.59 9,707 48.07 3,663 18.14 3,339 16.53 2,476 12.26

1 Vocational Training College 4,678 23 0.49 363 7.76 2,856 61.05 633 13.53 506 10.82 297 6.35

2 Vocational Secondary Schools 9,583 55 0.57 388 4.05 4,748 49.55 1,820 18.99 1,319 13.76 1,253 13.08

3 Vocational Training Centre 5,934 5 0.08 176 2.97 2,103 35.44 1,210 20.39 1,514 25.51 926 15.60

IIOther types of

Vocational Training Units

15,767 105 0.67 2,667 16.92 6,767 42.92 2,264 14.36 2,005 12.72 1,959 12.42

Total 35,962 188 0.52 3,594 9.99 16,474 45.81 5,927 16.48 5,344 14.86 4,435 12.33

Source: General Department of Vocational Training, 2009Constraints: The contingent of vocational trainers is still limited in terms of quality

and quantity to fully respond to practical demands, especially for the vocational training centers in local areas and private agencies.

2.4 Vocational Training Managerial Cadre

The number of vocational managerial staff in vocational training

establishments, ministries, industries, and localities has increased, but

their management skills are still weak. There are short-term

supplementary training programs for this target group, but the


content is limited. A pilot supplementary training program for

vocational managerial staff of the UK has been implemented.

<Table 1-17> Number and Qualification of Vocational Training Managerial

Cadre in 2000-2008

Vocational Training Managerial Cadre 2000 2005 2008

Total 148 173 233Qualification- Doctor 0 0 0- Master 1 5 9- University 106 136 199- College 27 20 15- others 13 13 10


2.5 Training Program, Curricular :

A number of training programs have been reformed in accordance

with the requirements of practical production. By 2009, 108 new

vocational training curriculum frameworks were developed for the

vocational training college level and high level.

Constraint: Although training programs and curriculum have been

revised and updated, they have not responded to the requirements

of the market.

2.6 Vocational Training Infrastructure and Equipment

Over the past ten years, infrastructure and equipment of many

vocational training establishments have been strengthened by

national targeted programs and ODA-funded projects. National

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targeted programs and ODA projects have invested in 100 vocational

schools and 290 vocational training centers.

Constraint: There is poor training and learning equipment of

newly established vocational training schools and centers in some

provinces. Only 20%-25% of total vocational training agencies have

invested in relevant level of equipment. The rest are installed with

equipment for fundamental practices.

3. Public Vocational Training Development Institution

3.1 Training Capacity

By the end of 2008, nationwide there are a total of 1,268 public

vocational training institutions, of which: 70 are vocational training

colleges; 171 are public vocational training high schools; 434 are

vocational training centers; and about 590 are other institutions that

provide vocational training.

Most of the public vocational training schools have small training

capacities:

∙ Only 6% of total public vocational training schools have

designated intake capacities of over 1500 students /school year;

∙ About 15% of total public vocational training schools have

intake capacities under 300 students /school year; and

∙ Up to 50% of total public vocational training schools have

intake capacities between 300 and 500 students /school year.


The actual intake capacities of the public vocational training

schools are 17% higher than its designated capacities.

3.2 Equipment and Facilities

In recent years, a number of public vocational training schools

have been equipped by some international and national projects, but

in general, equipment and facilities for skill practice and practical

section are short in quantity and backward in quality. Only 35% of

total facilities and equipment at current vocational schools are

considered relatively adequate for today’s production processes and

technologies. Meanwhile, over 9% are too old and under-developed.

4. Support for Vocational Training by Private Firms

The guideline on diversification of resources for vocational

training has been translated into initial achievement. Many

organizations, enterprises, and individuals have invested in setting

up vocational training agencies; as a result, the share of financial

investment from the non-state sector was increased to 40% in 2008.

The number of private agencies accounts for 34.1% in 2008, of

which the vocational training schools and centers amount to 24.5%.

There has been strong participation of socio-political organizations,

with respect to the encouragement and facilitation of their

membership to attend vocational training courses.

During the several recent years, the state has provided support to

private vocational training units, in term of provision of training

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curriculum; critical equipment; and training of vocational teachers.

Consequently, the vocational training capacity of such units has been

much improved.

Enterprises or big companies have provided support for vocational

training, such as receiving apprentices; funding vocational training

equipment; and providing scholarships for students. Enterprises have

also collaborated with vocational training schools to develop the list

of trades and vocations; designing training curriculum; and sending

experienced experts to provide practical guidance for students.

However, in general, there is still weak cooperation between

enterprises, including private enterprises and vocational training

agencies. Enterprises have not adequately grasped their responsibility

in vocational training, and there are no regulatory provisions

governing their duties.

Section 4. Governance of the TVET system


1.1 National context and the preparation for vocational training

development in the next period

In the context of globalization and international economic

integration, cooperation is always accompanied by increasingly fierce

competition. In this setting, quality of human resources will be the

“key” to creating competitive advantage.


Globalization and international economic integration create capital

flows from developed countries to developing ones, as well as labor

movement among countries. As a result, resources will be

internationalized, resulting in new international labor divisions.

Workers in developing countries, including Vietnam, on one hand,

will have chance to take part in the international labor market; on

the other hand, they will cope with increasing competition, even in

the domestic labor market. Therefore, human resource quality has

increasingly become a core issue and determinant of an individual

country’s competitiveness.

International economic integration facilitates the flows of training

services from developed countries into the developing ones, which

become increasingly more popular. This is not only a challenge, but

also an opportunity for developing countries to access an advanced

education and training to early integrate into the world’s knowledge

economy.

The emerging knowledge economy and vigorously developing

science and technology of the world, especially with the development

of information technology, have removed distance and created

linkage among economies. Thanks to IT, less developed countries

stand greater chances of quickly acquiring scientific and technology

achievements, reducing the development gap with first world

countries.

Successfully applied in developed countries, demand-driven

training has become an effective training approach. ILO’s Global

Work Program has recommended that countries arrange flexible

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vocational training in response to the labor market demand of

creating decent work.

With rapid global growth in science and technology, enhanced by

the usage of advanced technical technology, many new careers and

occupations will be developed. Along this line, vocational training

needs to be regularly updated and improved with more sophisticated,

or even new, training curriculum to prepare a contingent of savvy,

qualified technical staff, versed in new and modern technology.

National context and the preparation for vocational training

development have set the context for the next period. According to

strategic orientation, by 2020, Vietnam will basically become an

industrialized and modern country with robust changes in economic

and labor structure12). A modern industry requires a highly skilled

labor force, and labor in agriculture also needs to be modernized.

As a result, vocational training should be expanded and improved

in terms of the structure of technical levels; the structure of training

occupations; and vocational training, structured by region and area.

Vietnam has become an official member of WTO. In addition to

increasing cooperation, competition has also become increasingly

fierce. It is necessary to train a labor force with high vocational

skills, including “hard skills” (i.e. professional skills) and “soft

skills” (i.e. creativeness, adaptability to changes, communication

capacity, and culture) to continue contributing to the economy’s

competitiveness.

12) According to the World Bank, in order to become an industrial country, the share of agriculture in GDP needs to be less than 10 percent.


This is a big challenge because, at present, Vietnam’s human

resource quality and competitiveness are still low. In general,

Vietnam is still a less developed, agricultural, and poor country13),

and its human resource quality is still limited. According to the

World Bank’s evaluation, the quality of Vietnam’s human resources

received 3.79 points in 10-point scale, ranking 11th out of 12 Asian

countries. This is one of the main reasons for Vietnam’s low

competitiveness. In 2006, Vietnam was ranked 77th out of 125

countries and economies.14) Therefore, it is necessary to boost the

improvement of education, training, and vocational training,

especially high-level vocational training.

In 2008, Vietnam’s population was about 85.7 million people,

ranking 3rd in ASEAN and 13th in the world. The young population

and labor force are not only advantages, but also challenges to

Vietnam in the fields of vocational training, job creation, and poverty

reduction.

The plan for developing industries until 2020, which addresses the

need for human resources at various technical levels, requires that

the Vocational Training Strategy should be developed appropriately.

13) According to the UN’s Human Development Report (2008) and the World Bank’s report (2009) it may take Vietnam 51 years to catch up with Indonesia; 95 years to keep pace with Thailand; and even 158 years to catch up with Singapore in terms of income per capita.

14) According to the World Economic Forum (WEF) (2006), in 2005 Vietnam was ranked 79th among 120countries.

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1.2 Opportunities and Challenges

The international and national contexts both create great

opportunities and significant challenges to vocational training in

Vietnam.

Opportunities for vocational training:

∙ The government, from central to local levels, industries,

enterprises, and society, have been paying attention to and

investing in vocational training;

∙ Vietnam has maintained high economic growth over years,

creating many jobs which have attracted skilled labor; and

∙ Greater international economic integration is a good opportunity

for Vietnam’s vocational training to quickly access the

experience and achievements in vocational training of countries

in the region and in the world.

Challenges to vocational training:

∙ Opening the labor market in the process of international

integration creates severe competition between Vietnam’s direct

technical workers and other countries’ technical workers, not

only in the international labor market, but also in the domestic

one. There has been a phenomenon that some enterprises have

to import direct technical workers at high level from other

countries. Therefore, the risk is emerging that Vietnam’s direct

technical workers cannot compete with their foreign

counterparts working in Vietnam;


∙ In order to expand the scale of vocational training and improve

its quality, especially the high-level skilled labor force, huge

resources are needed to upgrade infrastructure and equipment,

as well as enhance the quality of vocational teachers and

managers. Meanwhile, investment in vocational training is still

limited.

∙ Vietnam’s economy is transitioning to a socialism-oriented

market economy, thus requiring structural and vocational

training reforms relevant to the new situation.

The international and national context requires Vietnam to uphold

its advantages; grip opportunities to renew and develop vocational

training towards modernization; and provide high quality human

resources for industrialization and modernization. These factors will

facilitate labor export and, international economic integration;

contribute to job creation; and improve workers’ living standards.

Reforming and developing vocational training is an objective,

pressing, and long-term requirement.

2. Organizations Involved and Total System (including

Functions and Responsibilities of Both Central and

Local Governments)

2.1 Development of vocational training establishment network

∙ The network of vocational training establishments will be

planned by training occupations and training levels on the basis

of socio-economic development strategy and the master plan of

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the whole country, industries, regions, sub-regions, and localities.

∙ The network of vocational training establishments will be built,

as follows:

◦ Develop vocational colleges and vocational secondary

schools, which are capable of training some national

standard occupations; develop vocational colleges and

professional secondary schools capable of training regional

and international standard occupations to meet the demand

for high-quality labor in spearhead industries, economic

zones, and labor export; realize the tasks of training and

supplementary training in occupational skills to grant

occupational skill certificates for vocational trainers. It is

expected that each province will be able to train at least two

national standard occupations for the demand of local labor

market;

◦ Prioritize the development of vocational colleges and

vocational secondary schools in the South West, Central

Highland, the North West regions, provinces challenged by

the task of poverty reduction, and reduce the gap in

socio-economic development among regions and localities;

◦ Develop vocational training centers to facilitate vocational

universalization; occupational shift; job creation; and income

improvement, raising living standards for workers,

especially rural and ethnic minority areas. This issue has

been addressed in the master plan on Vocational Training

for Rural Labor by 2020.


∙ Concentrate state budget on public vocational colleges and

public vocational secondary schools so they can train some key

occupations at national, regional, and international levels. The

indicators and process of selecting targeted occupations,

colleges, and schools need to ensure openness, transparency, and

democracy. Domestic and foreign organizations and individuals

are encouraged to establish non-public vocational training

schools.

2.2 Developing the contingent of vocational trainers

Developing the contingent of trainers in vocational colleges and

vocational secondary schools who are able to teach national standard

occupations requires:

∙ Issuing national standards on qualified vocational teachers,

including standards on professional level, pedagogical profession,

and occupational skill level;

∙ Standardizing vocational trainers; the vocational pedagogical

profession in all vocational pedagogical faculties of vocational

colleges and technical pedagogical schools; and occupational

skills in public and non-public vocational colleges which train

people for occupations at national, regional and international

levels;

∙ Quickly increasing the number of qualified vocational trainers

following their orientations to training programs:

∙ Standardizing the technical pedagogical profession and occupational

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skills for university graduates with occupational skills so they

become vocational teachers at vocational secondary and college

levels;

∙ Annually upgrading and updating methods, technology, techniques,

and practices for and by vocational trainers in production,

business, and service establishments - domestic and overseas.

Developing the contingent of trainers in vocational colleges and

vocational secondary schools who are able to teach regional and

international standard occupations requires:

∙ Applying standards to vocational trainers of developed

countries;

∙ Recruiting national qualified teachers; distinguished graduates;

post-graduate holders; and experienced experts in production,

business, and services (targeted individuals will be trained,

upgraded, and certified in their technical pedagogical profession

and occupational skills, in accordance with accredited training

programs of developed countries);

∙ Standardizing English for vocational trainers; and

∙ A, vocational trainers will be upgraded and updated with

training methods, new technology, and techniques and practices

at production, business, and services establishments in

developed countries in the region and in the world.

Developing the cadre of trainers at vocational elementary and

under three-month vocational training levels has been addressed in

the master plan, Vocational Training for Rural Labor by 2020.


2.3 Developing the contingent of vocational managerial personnel

Developing the contingent of vocational managerial personnel

requires:

∙ Renovating training programs on vocational management for

vocational managerial personnel at all levels and managers of

vocational training establishments; applying vocational

management training programs of developed countries;

∙ Establishing three vocational management training centers under

three technical pedagogical universities in three regions; and

∙ Conducting periodical training and supplementary training for

vocational managerial officers, domestically and overseas.

2.4 Developing vocational training programs, curricular and

syllabuses and training methods

Developing vocational training programs, curriculum, syllabuses,

and training methods require:

∙ Speeding development of the curriculum frame for vocational

colleges and professional vocational schools to design their own

curriculum and syllabi in 2010;

∙ Increasing the proportion of selectable content in the curriculum

frame to 40%, to enhance the autonomy of schools in developing

curriculum. (Teachers are entitled to develop training content

based on training curriculum produced by the schools. The

government will only administer the vocational training

framework from 2015);

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∙ Renovating the structure of training; instead of separating theory

and practice, modules will combine theory, practical skills, and

working attitudes;

∙ Vocational training programs will be developed on the basis of

occupational skill standards or performance capacity, in

accordance with DACUM development methods in which

enterprises participate and apprenticeship periods are

lengthened;

∙ Renovating training and learning methods to uphold pro-

activeness, independence, group work, and longer periods of

self-learning and practice during the process of learning,

practicing, and apprenticeship;

∙ Intensifying the application of IT in vocational training and

online training;

∙ Conducting training of the trainers in developing vocational

training curriculum and syllabi;

∙ Developing transferable vocational training among levels: from

vocational secondary level, to college and university, and from

university and vocational college, to technical university (Some

vocational training programs can be transferred into

corresponding vocational training programs of foreign countries);

∙ Developing syllabi for popular training occupations which will

be recommended for application in all schools nationwide; and

∙ Establishing pilot vocational training programs for the practiced

engineer, which will be applied in some vocational colleges that

qualify to meet national, regional, and international standards.


For vocational college training programs at regional and

international levels, individuals may:

◦ Select to apply for training programs of developed countries

which are suitable with Vietnam; and

◦ Synchronously transfer curriculum frame, occupational skill

standards, curricular, syllabuses and teaching methods;

training and supplementary training for teachers to deliver

new training programs.

2.5 Standardizing and modernizing infrastructure and equipment

for vocational training

Standardizing infrastructure and equipment for vocational training

necessitates:

∙ Issuing standards for building vocational colleges and vocational

secondary schools to ensure appropriate conditions for teaching

and practicing; working environment; and labor safety relevant

to module-based vocational training programs;

∙ Issuing an official list of standard vocational training equipment

for individual training occupation and level, including

fundamental equipment; simulation equipment; and other

modern equipment and facilities suitable for practical

production;

∙ Training the cadre of managerial and maintenance staff;

∙ Investing in infrastructure and equipment for vocational training

which are standard and modern, and match technology and

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techniques in production and business establishments; and

∙ Developing workshops within the schools for pupils and

students to practice.

3. Financing TVET

3.1 Total budget amount of national dedicated to vocational

training:

Despite many difficulties, the government of Vietnam still spends

a significant budget on education and training. In 2001, spending on

education and training accounted for 15.5 percent of the state budget,

and it increased to 20 percent in 2008.

Of the total budget for education and training, the share for

vocational training is still modest — about 5 percent in 2001,

increasing to 7.5 percent in 2008.


<Table 1-18> State Budget Spending on Vocational Training in 2001-2008Item 2001 2002 2003 2004 2005 2006 2007 2008

I GDP 481 295 535 762 613 443 715 307 839 211 973 791 1 129 598 1 338 000

II Total Sate budget spending

127 675 143 764 181 183 209 024 239 470 297232 356 678 398 980

IIITotal State spending on education and training

19 747 22 541 28 835 34 872 42 943 54798 71 336 79 796

% of total state budget spending

15.5% 15.7% 15.9% 16.7% 17.9% 18.4% 20.0% 20.0%

IV Spending on vocational training

968 1 240 1 644 2 162 2 791 3671 4 993 5 985

% of total state spending on education and training

4.9% 5.5% 5.7% 6.2% 6.5% 6.7% 7.0% 7.5%

1 Regular spending 569 661 796 915 1 335 1 735 2 200 2 944

2 Spending on national targeted programs

104.7 139.6 168 265 425 630 1 050 1 100

3 Spending on Capital Construction

294 439 679 982 1 031 1 306 1 743 1 941

Source: General Department of Vocational Training, 2009.

3.2 Renovating financial mechanisms in vocational training

∙ The Ministry of Labor, Invalids and Social Affairs, in

conjunction with the Ministry of Finance; Ministry of Planning

and Investment; and local labor, invalids, and social affairs body

(in cooperation with their local finance and planning

counterparts), are responsible for allocating and monitoring the

disbursement of annual estimated state budgets for vocational

training of ministries and sectors and localities, respectively.

∙ The state budget holds the key position in vocational training

investment. The growth rate of the annual budget for vocational

training development, within the annual total spending on

education and training, will reach 12 percent by 2020.

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∙ The mechanism in which the state budget is granted and

managed by vocational training establishments will be gradually

transformed; vocational training establishments will deliver

training services on the basis of vocational training service

contracts; bids for training targets; or assigned training targets.

Priorities will be given to special occupations; trainees who are

policy beneficiaries; national devotes; poor and ethnic

minorities, and accredited vocational training establishments

(both public and private).

∙ Regular spending will be planned and allocated, depending on

the training level costs for individuals or occupational groups

and the price frame for vocational training services.

∙ The central government budget will be used to: concentrate

investment in establishing the system of high-quality vocational

college and vocational secondary schools; facilitate the

investment in public vocational colleges and vocational

secondary schools in provinces with difficulties, in which

priorities will be given to schools in revolutionary bases and

ethnic minority areas; invest in vocational training

establishments to train occupations which are highly demanded

by the labor market, but hard to be socialized; develop frame

curriculum, including syllabi for popular occupations; apply

qualified vocational training programs, curriculum, syllabi, and

materials of foreign countries into regional and international

qualified occupations; provide training and supplementary

training for vocational teachers, vocational managerial staff, and


the cadre of inspectors; develop standards for the list of

vocational training equipment; implement vocational training

order for high-tech occupations, spearhead occupations,

hazardous and toxic occupations, and other occupations which

find it hard to enroll students; provide school fee compensation

for establishments which enroll beneficiaries of school fee

exemption and reduction; support vocational trainees in

localities which have not arranged their own budget; conduct

vocational training accreditation; support the development of

public vocational training accreditation centers; develop

standards and produce occupational skill exam questions;

support the costs for the occupational skill evaluation of

workers; and support the construction of national occupational

skill evaluation centers.

∙ Localities which can plan their own budget need to ensure

sufficient local funding to implement support policies for

vocational trainees and the master plan for vocational training

development of the provinces.

3.3 Developing a relevant mechanism to foster the mobilization

of resources for socialization-oriented investment in

vocational training

∙ The government promulgates incentive policies (including those

for preferential credit; taxation; and the support of training to

maximize participation by enterprises and trade villages). These

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policies will allow persons to participate in training in

enterprises, or invest in vocational training establishments.

Students will be provided with occupational practice in real

production settings, inclusive of advanced training for

vocational trainers. The government also has policies on

mobilizing enterprises to contribute vocational training costs by

recruiting trained workers;

∙ The production, business, services, association and joint venture

of vocational training establishments will be expanded to yield

revenue to support training costs;

∙ The government's decree on foreign investment and cooperation

with foreign partners in education, training, and vocational

training will be amended and supplemented with more

convenient procedures and investment conditions to intensify

foreign investment in vocational training. Priorities will be given

to foreign loan projects that invest in vocational training,

especially technical assistance projects, infrastructure, and

equipment for vocational training. Also of precedence is the

development of training curriculum and syllabi, and

supplementary training of managerial staff and teachers;

∙ Vocational training establishments which deliver high-quality

training programs will be allowed to collect equivalent training

fees to compensate for training costs.


3.4 Promoting financial monitoring in vocational training

Promoting financial monitoring in vocational training entails:

∙ Studying and developing indicators and procedures for

evaluating the effectiveness of state budget spending on

vocational training;

∙ Announcements by vocational training establishments on

standards of graduation, training, and financial capacity;

institutions will report on finances to their superior body, in

accordance with the government's regulations, and ensure that

their budgets are realized openly, transparently, correctly and

legally; and

∙ Social monitoring of the disbursement of budget/revenue in

vocational training establishments, in accordance with their

internal spending regulations.


4.1 International Context and Educational Trend of the World

In the context of globalization and international economic

integration, cooperation is always accompanied by increasingly fierce

competition. In this setting, quality of human resources will be the

“key” to create competitive advantage.

Globalization and international economic integration create capital

flows from developed countries to developing ones, as well as labor

movement among countries. As a result, resources will be

internationalized, resulting in new international labor divisions.

VIETNAM 623

Workers in developing countries, including Vietnam, on one hand,

will have chance to take part in the international labor market; on

the other hand, they will cope with increasing competition, even in

the domestic labor market. Therefore, human resource quality has

increasingly become a core issue and determinant of an individual

country’s competitiveness.

International economic integration facilitates the flows of training

services from developed countries into the developing ones, which

become increasingly more popular. This is not only a challenge, but

also an opportunity for developing countries to access an advanced

education and training to early integrate into the world’s knowledge

economy.

The emerging knowledge economy and vigorously developing

science and technology of the world, especially with the development

of information technology, have removed distance and created

linkage among economies. Thanks to IT, less developed countries

stand greater chances of quickly acquiring scientific and technology

achievements, reducing the development gap with first world

countries.

Successfully applied in developed countries, demand-driven

training has become an effective training approach. ILO’s Global

Work Program has recommended that countries arrange flexible

vocational training in response to the labor market demand of

creating decent work.

With rapid global growth in science and technology, enhanced by

the usage of advanced technical technology, many new careers and


occupations will be developed. Along this line, vocational training

needs to be regularly updated and improved with more sophisticated,

or even new, training curriculum to prepare a contingent of savvy,

qualified technical staff, versed in new and modern technology.

In the context of globalization, Vietnam needs more support from

other countries and the international community to increase the

country’s competitiveness and respond to the demands of vocational

training.

4.2 Orientation for International Cooperation Activities:

Orientation for international cooperation activities will include:

∙ Active participation in the vocational training activities held by

international organizations, such as APEC, ILO, ASEAN, the

world skills contest, ASEAN skills contest, to enhance the

learning process and vocational training experience exchange

with other countries;

∙ Enacting the agreement with other countries in the region and

the world on the equivalency of certificates and diplomas;

enhancing training cooperation with other advanced training

institutions in the region and in the world; attracting more

foreign investment to Vietnam in the area of vocational training;

encouraging foreign trainers to work and provide training

services in Vietnam; promoting the experience exchanges

between trainers of vocational training agencies with other

countries;

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∙ Encouraging vocational training agencies to select and provide

training services with the curriculum of advanced countries;

carrying out the training in English for the trade of high

demands in the international labor market;

∙ Creating mechanisms and enabling conditions for investors, the

prestige vocational training institutions in the world, to open

schools in Vietnam and promote join ventures with other

international institution in vocational training in Vietnam; and

∙ Promoting research on vocational training, in particular studies

on the application of modern and advanced technology relevant

to Vietnam.

4.3 Specific supported project and activities on vocational

training for Vietnam by foreign countries and international

organizations:

Beside mobilization of domestic resource for TVET, the Vietnam

government is mobilizing ODA loans or grants from international

organizations and other countries. There are many big projects

funded by the Asian Development Bank, Nordic Development Fund,

AFD, JICA, and the governments of Germany, Korea, Australia, and

other countries. These resources are making a great contribution in

the TVET development progress.

4.4 ADB project (1998-2008):

The Asian Development Bank (ADB) approved a loan of $54


million on December 1998 for the Vocational and Technical

Education Project. The project is co-financed on a parallel basis by

AFD, JICA, and NDF. The project has three components: (i)

improving the market orientation; (ii) developing 15 key schools

(KSs), and (iii) introducing policy reforms.

Phase I of this project finished at the end of 2008. Phase II is

being prepared with the total budget of US$ 1.5 million. The targeted

group of Phase II is poor households in rural areas.

4.5 Civil Works financed by ADB, AFD funds in KSs were

completed with total $ 10.3 millions. (2002-2007)

Training Equipment: Preparation for the procurement of training

equipment started in January 2002. The procurement plan included

12 packages, comprising 7 packages under the ADB financing for

$ 12.4 million, and 5 packages under the NFD for $7.0 million.

Installation of training equipment is in KSs, and was anticipated to

be completed by January 2007.

4.6 Project on improving capacity for vocational training center,

with grant support from the Swiss government

(SWITCONTAC) with 4 phases and total fund is USD 7

million dollars. This project aimed to invest in equipment and

formulation of training curriculums for 30 vocational training

centers in three regions: northern, southern and central

Vietnam. The project terminated in 2008.

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4.7 Project on upgrading 11 key schools, with financial support

of the German government (via KWB) (2007-2010) with

total fund of 11 millions euro. These schools shall benefit

from advanced equipment and capacity improvement for their

trainers.

4.8 Project on capacity building for 5 key-vocational training

schools funded by the government of South Korea

(2007-2010), with a total budget of US$ 64 million.

This project aimed to invest in teaching equipment;

formulation of training curriculums; and capacity building for

vocational training teachers.

4.9 Project on technical assistant for vocational training in

Vietnam (2008 - 2010) funded by the government of

Germany, with a total budget of 1.5 million EUR. This project

focused on: (i) consultation of vocational training; (ii)

developing training materials; (iii) developing training

curriculums; and (iv) training needs assessment.

4.10 The EU Project on evaluating workers’ occupational skills

with technical assistant of the ILO, with a total budget of

10 million EUR. This project focus on: (i) training for

evaluators; (ii) developing evaluating documents, such as

guidelines, and criteria; and (iii) pilot assessment of some


trades in different occupational skill levels.

4.11 The Project on development vocational training funded by

the government of Japan through ADB with a non-refundable

support of 1.5 million USD. This project provided support

for five provinces in Cuu Long River’s Delta (2008 - 2010).

It focused on: (i) capacity building for some vocational

training schools; and (ii) connecting vocational training with

job creation.

5. New Agenda and Plans for the Future

5.1 The Vocational Training Strategy for the period of 2011 to

2020 Overall objectives are set forth, as follows:

∙ To develop a modern, rationale, flexible and effective vocational

training system, which is accessible, equal and sustainable;

∙ To contribute to enhance the competitiveness of the human

resources; to create qualified jobs, especially for the rural labor

force, improving workers’ living standards; and

∙ To serve Vietnam’s socio-economic development to become an

industrialized and modern country by 2020.

5.2 Specific objectives

Specific objective 1: Create and strengthen a relevant vocational

training system in response to development requirements of the labor

VIETNAM 629

market and society, to fulfill the needs of an industrialized and

modern country and approach a knowledge economy.

The needs of employers and vocational trainees become the most

important basis for designing vocational training programs and

courses, with an aim to matching the quality and utilization structure

of the labor force in an industrialized country.

Specific objective 2: Ensure that a modern and qualified vocational

training system operates effectively.

On the basis of logically mobilizing and allocating resources,

vocational training will be developed towards standardization,

modernization, and integration, capable of providing some

occupations at the regional and international levels. This objective

serves to create a breakthrough in quality; upgrade occupational

skills; enhance creativeness, and strengthen the health and working

style of workers. After the training, vocational trainees will be

ensured with necessary occupational skills and jobs in a highly

competitive labor market.

Specific objective 3: Arrange vocational training towards flexibility,

accessibility, equity, and fulfilling the needs for life-long learning

of all people.

To ensure demand-driven vocational training in a quickly growing

technology context, vocational training needs to be designed as a

flexible system involving all social partners. At the same time,

vocational training needs to satisfy the demands of all people and


all social groups, especially the vulnerable in society, and in the

labor market, while meeting the demand for domestic and foreign

employment.

Specific objective 4: A sustainably developed vocational training

system

A suitable mechanism will be established to mobilize resources

for developing and finalizing a capable vocational training system

that is relevant to the economy’s on-going development needs in an

international competitive market.

5.3 Specific objectives

a) Period from 2009 to 2020:

∙ 24.58 million people will enroll in vocational training, of which

5.815 million people will be trained at vocational secondary,

vocational college, and practiced engineer levels, covering 115

thousand students trained in accordance with occupational skill

standards found in developed countries of ASEAN and in the

world; and

∙ 40,000 people will be trained with vocational pedagogic and

occupational skills to become vocational trainers.

b) Up to 2020:

∙ There will be 230 vocational colleges (including 40 private

vocational colleges) and 310 vocational secondary schools

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(consisting of 70 private schools). Within there will be 15

vocational colleges (including 10 public ones), with three to five

international standard occupations per institution; 25 vocational

colleges (including 20 public ones), with three to five regional

standard occupations; 140 vocational colleges (including 120

public ones), with two to three national standard occupations per

institution. This objective aims at developing a vocational

training system capable of training persons in 86 national

standard occupations, 30 regional standard occupations, and 20

international standard occupations. It is expected that each

district will have at least one vocational training center or

vocational secondary school;

∙ 100 percent of vocational trainers will provide combined

theoretical and practical training; 40 percent of trainers in

vocational colleges will hold post-graduate degrees; the

converted teacher-student/pupil will be 1:15 in vocational

colleges and vocational secondary schools. 100 percent of

vocational managerial staff will be involved in vocational

training management;

∙ Vocational training curriculum shall be developed for all trades

at the vocational college and vocational secondary levels;

training programs of developed countries shall be applied for

30 regional standard occupations and 20 international standard

occupations; 130 training programs and syllabi will be

developed for common trades; and 40 training programs and

syllabi for the practiced engineer level;


∙ A standard list of vocational training equipment will be

developed for all training occupations at the vocational college

and vocational secondary levels;

∙ 90 percent of vocational colleges and professional secondary

schools; 70 percent of vocational training centers; and 70

percent of training programs in vocational colleges and

professional secondary schools will controlled with vocational

training accreditation; and

∙ There will be 400 sets of national occupational skill standards;

question banks for national occupational skill evaluation will be

applied for 400 trades; and 6 million workers will be evaluated

in terms of occupational skills.

Section 5. Conclusion

From 2001 - 2009, vocational training has developed and been

renovated, reaching the goals and objectives of vocational training,

as set forth in Vietnam’s education development strategy. The

country met pressing demands for a technical labor force, with

significant socio-economic development in this period. However,

vocational training will face national and international challenges in

the future. From 2011-2020, and in response to industrialization and

modernization -- resulting from international economic integration --

it is necessary to concentrate all resources on creating a breakthrough

in quality of the whole vocational training system. Vietnam must

VIETNAM 633

develop a rationale training structure, not only for highly competitive

modern occupations, but also more traditional types of work. On a

national level, Vietnam should focus vocational training on the

agricultural sector and rural areas, facilitating labor restructuring and

improvement of labor quality to strengthen education, economy, and

the well-being of her citizens.

▣ Profile

․Kim, Young-Saing

- Korea Research Institute for Vocational Educationand Training Research Fellow

․Chung, Ji-Sun

- Korea Research Institute for Vocational Educationand Training Senior Research Fellow

․Lee, Sang-Don


․Lim, Young-Sub


․Ryu, Ki-Rak

- Korea Research Institute for Vocational Educationand Training Associate Research Fellow

TVET Policy Reviews of 8 Asian Countries②아시아 중점협력 대상국가의 직업교육훈련 정책자료 구축

UNESCO Regional Center 사업(2010)

․Date of Publication

․Published by

․Printed by

․Date of Registration

․Registration Number

December 2010

Dae-Bong Kwon

Korea Research Institute for Vocational

Education and Training (KRIVET)

46, Samseong-ro 147gil,

Gangnam-gu, Seoul 135-949 Republic of Korea

Tel. 82-2-3485-5000, 5100

Fax. 82-2-3485-5200

Bumsin Co., Ltd. (02)720-9786

11 June 1998

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