According to statistics, in Vietnam, individuals aged 15 – 60 years old currently constitute 56% of the population, with approximately 1 million people entering the labor market each year.
The proportion of the labor force with formal education, holding degrees or certificates accounts for about 27.3% of the workforce. Most of the labor force (around >72%) without formally recognized skills still participates in the labor market, contributing to labor productivity and economic growth. This figure highlights a significant challenge in advancing the specialized technical skills of the workforce.
The workforce in Vietnam is evaluated to need more skills, and the productivity is lower compared to the ASEAN region. There is a need to enhance basic skills and foundational competencies to adapt to the context of integration and technological changes brought about by the Fourth Industrial Revolution.
Workers who undergo initial training often fail to meet enterprise requirements due to a lack of practical skills demanded in the business environment. Economic sectors and high-tech applications face challenges due to a need for more skilled labor.
Therefore, in recent years, there has been a growing focus on enterprise training issues in Vietnam, emphasizing core aspects such as skill enhancement, fostering a working culture, and increasing work efficiency to address the challenges businesses encounter in their operations. Workers are also taking a more proactive approach to reskilling and upskilling to adapt to the continuous market dynamics with updated knowledge and ongoing changes, thereby avoiding the strong wave of layoffs worldwide.
Copyright by HBR Business School
In the current landscape of Vietnam, companies specializing in corporate training and workforce development hold the third position in terms of prevalence, following K12 education and language training. This sector has emerged as a dynamic market, particularly attractive for Edtech startups. Edtech enterprises in the workforce training niche can be broadly categorized into three groups based on their offerings: Content, Learning Management Systems (LMS), and Tools/Platforms.
Among these, the Content category stands out with the highest number of Edtech players. This group predominantly focuses on creating online training modules and curating educational materials tailored to diverse training programs. The content of these courses is intricately linked to the prevailing trends in the job market. For example, recent years have seen a surge in interest in courses covering data analysis, programming, and leadership skills, aligning with the recruitment needs of the market seeking a skilled workforce. Additionally, there are courses designed to foster employee engagement, enhance retention, and more.
Noteworthy Edtech entities renowned for their content-centric training include Educa, Edumall, MVV, Linkpower, APEC, Vinatrain, EduViet, MindX, Gihito, and others. It’s possible to delineate the training content into a directional map, reflecting the diverse educational offerings in the market as follows.
(Source: Vietnam EdTech White Paper 2023)
Learning Management Systems (LMS) tailored for workforce training exhibit distinct features compared to those designed for schools. These systems provide a platform for enterprises to deploy courses directly on their server systems or purchase accounts from providers. Larger companies and corporations often opt for on-premise solutions, installing them on their server systems. In contrast, smaller ones tend to lease or purchase accounts based on estimating the number of learner accounts to ensure cost-effectiveness. Notable LMS platforms widely used in the market include CLS, Edubit, OneTouch, Elearning-Pro, VietEd, and others.
In the category of tools and platforms for working professionals, the focus is primarily on online quiz software for civil service exam preparation and certification exams. Many major enterprises such as FPT, Mobiphone, Vietnam Airlines, and several banks have integrated learning systems with exams and updated learning evidence for convenient tracking of learning progress, exams, and result storage.
Despite several Edtech startups in this segment, the training market for working professionals still holds significant potential due to its large size and the increasing demand for career transitions or skill enhancement. According to May Wah Chan, Regional Director of Michael Page Vietnam, 95% of the workforce in Vietnam is ready to explore new opportunities. Even those satisfied with their current jobs may discover new career prospects, indicating a new normal in multi-dimensional career development thinking, where the majority of workers frequently switch jobs in their career journey.
Vietnam is actively promoting digital transformation with the goal of becoming a digital nation by 2030. In this journey, the digital workforce plays a core role in determining the success of the digital transformation. Therefore, there is a substantial demand for training and retraining the digital workforce in society. With a labor force of 52.3 million people aged 15 and above, the training market for businesses and working professionals is undoubtedly a potential market for Edtech companies to consider.
Conducted by Edtech Agency
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