IMPROVING VOCATIONAL TRAINING FOR VIETNAMESE RURAL LABORS TO MEET THE REQUIREMENTS OF AGRICULTURE 4 0

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS IMPROVING VOCATIONAL TRAINING FOR VIETNAMESE RURAL LABORS TO MEET THE REQUIREMENTS OF AGRICULTURE 4.0 Major: International Economics PHAM THI HONG LINH Hanoi, 2020 MASTER THESIS IMPROVING VOCATIONAL TRAINING FOR VIETNAMESE RURAL LABORS TO MEET THE REQUIREMENTS OF AGRICULTURE 4.0 Major: International Economics Full name : Pham Thi Hong Linh Supervisor : Assoc.Prof.Dr Tu Thuy Anh Hanoi, 2020 iii COMMITMENT I hereby commit that the master thesis with the title “Improving vocational training for Vietnamese rural labors to meet the requirements of Agriculture 4.0” is my own scientific research The data indicated in the thesis is clear, accurate and collected from the confident sources of information Hanoi, 2020 The Author Pham Thi Hong Linh ACKNOWLEDGEMENTS First of all, my warm gratitude is for the lecturers and staff of Faculty of Graduate Studies, Foreign Trade University for their kindness and helpful support during my coursework and development of this study, specially, Assoc.Prof.Dr Tu Thuy Anh, whose thoughtful orientation and guidance was invaluable Secondly, I would like to embrace my profound thankfulness to my colleagues, friends, relevant organizations and individuals who supported me with a lot of useful information and data Last but not least, I would like to take this opportunity to express the appreciation for my beloved family who always motivate, encourage me and bring the best conditions to me so that I could completely stay focused on the study In spite of the great efforts of the author, inevitable shortcomings and limitation still exist in the thesis Therefore, I am looking forward to receiving precious sharings and comments for better improvement Sincerely, The Author Pham Thi Hong Linh TABLE OF CONTENTS COMMITMENT i ACKNOWLEDGEMENTS ii LIST OF FIGURES vii LIST OF TABLES viii ABSTRACT ix INTRODUCTION I Research rationale II Literature review III Research objects, objectives and scopes Objects Objectives Scopes IV Research methodology V.Research structure CHAPTER I: THEORETICAL AND PRACTICAL FRAMEWORK OF VOCATIONAL TRAINING FOR RURAL LABORS IN REQUIREMENTS OF AGRICULTURE 4.0 10 1.1 Definition of vocational training and vocational training for rural labors 10 1.1.1 Definition of vocational training 10 1.1.2 Definition of rural labors 13 1.1.3 Definition of vocational training for rural labors 14 1.2 Roles and importance of vocational training for rural labors 15 1.3 Components of vocational training for rural labors 17 1.3.1 Vocational trainees 17 1.3.2 Vocational training infrastructure 19 1.3.3 Vocational training management officials and trainers 20 1.3.4 Vocational training programs and materials 20 1.3.5 Training professions 21 1.4 Factors influencing vocational training for rural labors 21 1.4.1 Guidelines and policies on vocational training for rural labors .21 1.4.2 Information and communication on vocational training for rural labors 23 1.4.3 Linkages of various partners in vocational training for rural labors 24 1.4.4 Investment in vocational training for rural labors 25 1.5 Agriculture 4.0 and its requirements on vocational training for rural labors 26 1.5.1 Concepts of Agriculture 4.0 26 1.5.2 Characteristics and roles of Agriculture 4.0 in Vietnam 28 1.5.3 Requirements of Agriculture 4.0 on vocational training for rural labors 30 1.6 International and domestic experiences in the development of vocational training for rural labors in Agriculture 4.0 31 1.6.1 Experiences of Germany 31 1.6.2 Experiences of China 33 1.6.3 Experiences of Thailand 34 1.6.4 Experiences of Bac Kan province .26 1.6.5 Experiences of Lam Dong province 36 1.6.6 Lessons learned for Vietnam .38 CHAPTER II: CURRENT SITUATION OF VOCATIONAL TRAINING FOR VIETNAMESE RURAL LABORS IN REQUIREMENTS OF AGRICULTURE 4.0 40 2.1 Vietnamese rural labors 40 2.1.1 Vietnamese rural population and structure 40 2.1.2 Quality of Vietnamese rural labors 43 2.1.3 Jobs of Vietnamese rural labors 44 2.1.4 Unemployment in the rural areas 50 2.1.5 Underemployment of Vietnamese rural labors 52 2.1.6 Income of Vietnamese rural labors 53 2.2 Components of vocational training for Vietnamese rural labors 55 2.2.1 Vocational trainees in Vietnam 55 2.2.2 Vocational training systems and infrastructure in Vietnam .58 2.2.3 Vocational training management officials and trainers in Vietnam 60 2.2.4 Vocational training programs and materials for Vietnamese rural labors 60 2.2.5 Training professions for Vietnamese rural labors 61 2.3 Analysis of factors influencing vocational training for Vietnamese rural labors 63 2.3.1 The implementation of guidelines and policy of the Vietnamese Party and State on vocational training for rural labors 63 2.3.2 Information and communication on vocational training for Vietnamese rural labors 67 2.3.3 Linkages of various partners in vocational training for Vietnamese rural labors 68 2.3.4 Investment in vocational training for Vietnamese rural labors 69 2.4 Assessment of vocational training for Vietnamese rural labors in requirements of Agriculture 4.0 71 2.4.1 Achievements 71 2.4.2 Effectiveness 73 2.4.3 Shortcomings 74 2.4.4 Reasons for shortcomings 76 CHAPTER III: SOLUTIONS AND RECOMMENDATIONS ON IMPROVING VOCATIONAL TRAINING FOR VIETNAMESE RURAL LABORS TO MEET THE REQUIREMENTS OF AGRICULTURE 4.0 78 3.1 Bases for proposing solutions 78 3.1.2 Main viewpoint of vocational training for rural labors in Agriculture 4.0 78 3.1.3 Orientations on improving vocational training for rural labors to meet the requirements of Agriculture 4.0 81 3.2 Solutions on improving vocational training for Vietnamese rural labors to meet the requirements of Agriculture 4.0 82 3.2.1 Renewing policies and state management on the development of rural labor forces 82 3.2.2 Innovating vocational training activities towards modernization associated with the reality and needs of local, society and enterprises 84 3.2.3 Developing vocational training systems and diversifying vocational training activities for rural labors 84 3.2.4 Capacity building for vocational training management officials and trainers 85 3.2.5 Strengthening linkages between enterprises, school, rural youth and supporting start-up for labors 86 3.2.6 Upgrading traditional and informal apprenticeship systems 88 3.3 Recommendations 88 3.3.1 For the government 88 3.3.2 For ministries and agencies 89 3.3.3 For training units and organizations 90 3.3.4 For enterprises 90 3.3.5 For learners 90 CONCLUSION 91 REFERENCES 93 LIST OF FIGURES Figure 1.1: Types of VET benefits 15 Figure 2.1: Population structure by rural - urban area and gender in 2010 – 2018 (%) 41 Figure 2.2: Population structure by age group in rural - urban area, 2010 - 2018 41 Figure 2.3: Rural - urban labor force in 2010 – 2018 (%) 42 Figure 2.4: Rural-urban employment restructuring, 2010-2018 (million people) 45 Figure 2.5: Jobs by rural - urban sector, 2010 - 2018 (million people) 45 Figure 2.6: Rural - urban agricultural job structure in 2010 - 2018 (%) 46 Figure 2.7: The total of labors working (million people) .49 Figure 2.8: Average monthly income of labors in the rural and urban area, 2010 – 2018 (thousand VND) 53 Figure 2.9: Average monthly income of labors by job types in 2010 – 2018 (thousand VND) .54 Figure 2.10: Average monthly income of labors by technical profession in the rural – urban area, 2010 – 2018 (thousand VND) 54 Figure 2.11: Number of rural labors receiving vocational training by types of jobs (million people) 57 Figure 2.12: Number of rural labors receiving vocational training by types of rural labors (thousand people) 57 Figure 2.13: Number of households receiving vocational training who escape from poverty and got jobs with higher income .58 LIST OF TABLES Table 2.1: Labor force participation rate in rural - urban areas 43 in 2010 and 2018 (%) .43 Table 2.2: Employment structure by age group in the rural – urban area, 2010 – 2018 (%) 47 Table 2.3: Labor structure by industry in the rural – urban area, 2010 - 2018 48 Table 2.4: Amount and structure of unemployed rural labors in 2010 - 2018 50 Table 2.5: Unemployment rate of rural - urban labors in 2010 - 2018 52 Table 2.6: Average income difference between the rural and urban area in 2010 2018 (%) 55 Table 2.7: The number of rural labors receiving vocational training by periods in 2010 – 2019 (million people) 56 and policies In particular, strategic objectives must be set to prioritize on overcoming conflicts between the development in quantity, quality and structure; determine the scale, number and structure of each type of manpower accordingly It also develops a reasonable, predictable implementation roadmap, completes specific mechanisms and policies to develop high quality human resources in a comprehensive manner It should be also clearly determined that it is the central political task of the entire political system, in which, it is necessary to unify the awareness among socio-political organizations, the core force directly operating in researching and planning strategies, policies, impacts of opportunities and challenges to our country from Agriculture 4.0 The system of guidelines and policies plays a key role, directly or indirectly, creating motivations or hindrances to inhibit the development of the economysociety in general and develop quality human resources To continue developing high-quality and effective human resources, particularly rural labors, it is necessary to regularly adjust, supplement and perfect the system of mechanisms, guidelines and policies to create a legal corridor and facilitate the development of high-qualityhuman resources, rural labor forces under the impact of Industry 4.0 in general and Agriculture 4.0 in particular The renovation and improvement of mechanisms and policies to motivate the development of high-quality human resources must be carried out synchronously in many aspects such as education - training, science - technology and working environment, employment policies, income, social security, insurance, social protection, health care, labor market development policies, housing conditions, living, settling, etc The State needs to continue to renovate institutions and perfect the legal corridor from the central to local levels in order to create an enabling environment for human resources development and encourage the development of high quality human resources markets The market and science-technology products in the direction of integration, creating a legal environment for the development of new business lines in Vietnam start to arise from Industry 4.0 Appropriate policies are needed to create resources and effectively exploit new resources, especially in the key national technological sectors; improve the operation quality of technology nurseries and hi-tech enterprises; adopt policies to support the formation and development of innovative start-up nurseries in technology training institutions; promote international cooperation in technology research, development and transfer At the same time, effective cooperation between the State, enterprises, vocational training institutions and learners should be strengthened 3.2.2 Innovating vocational training activities towards modernization associated with the reality and needs of local, society and enterprises Thanks to the vocational training for rural labors, the productivity of enterprises, and promotes economic growth and poverty reduction has been improved as well The training within the enterprises is seen to be marketresponsive and allows for continuous studying and adaptation to new technologies On-the-job training can be a means to expand the access to skill training with its advantages that it can be delivered in less time than school-based training Enterprise training varies considerably across regions and countries (ADB, 2014) It is necessary to improve the quality of training on the basis of strengthening conditions to ensure its quality towards output standards, which is consistent with the needs of labor using in agriculture Furthermore, training methods should be innovated to meet the demand of learners and developing each field of agriculture, forestry and fishery at different levels In addition, it is necessary to link production training institutions in agriculture and rural areas in order to improve occupational skills for post-training learners Standardizing training staff in higher education institutions and colleges to improve the quality of vocational training for rural labors is also another important issue 3.2.3 Developing vocational training systems and diversifying vocational training activities for rural labors Combining vocational training and general training, for example, by incorporating business knowledge and skills in formal secondary and tertiary education, or through community-based training programs is useful (ILO, 2014) The rural labors after receiving vocational training can capture the technical knowledge and skills to look for jobs in businesses, cooperatives, etc In addition, labors are confident in their ability and qualifications and they can form production groups and start their own businesses with their trained trades Starting-up creates motivation, promotes the self-confidence of rural labors in agricultural development and owns the household economy Start-up training for rural labors on basic knowledge about developing business and production plans, business models, production organizations to help rural labors after technical proficiency and form business ideas Currently, many rural development programs not aim to improve the quality of labors and life, therefore, the investment should be given more adequately in opportunities for agricultural and rural development to take advantages of scientific and technical advances in Agriculture 4.0 The group of young workers in the rural areas is in decline, lacks of orientation, start-up support and exploration to develop available agricultural sector Also, the high concentration of non-technical and low-skilled labors in the rural and agricultural areas has led to the limited investment opportunities in the rural and agricultural areas The current training programs for rural labors only target "the shifts in rural labor structure" without specific orientations and forecasts of demand for labor based on skills in industry groups Therefore, in the upcoming time, it is necessary to fund projects for the rural labors, especially young people who start-up in the countryside and support rural migrant labors to return for their works and contribution in the rural areas 3.2.4 Capacity building for vocational training management officials and trainers Vocational training management officials and trainers have been identified as a determining factor for the current innovation in training With that in mind, the Prime Minister's Decision No 899/QD-TTg on approving the Occupational Education - Employment and Occupational Safety Target Program for the period 2016 - 2020 set the goals of training, fostering and standardizing the vocational training management officials and trainers in order to form a professional and effective team In order to enhance the roles and promote the effectiveness of vocational training for rural labors, a number of specific solutions are put in place to develop a high - quality official and trainer team to meet the requirements of Agriculture 4.0 as follows: Firstly, the quantity and quality of management officials and trainers at vocational training institutions are proactively reviewed; training and retraining are strengthened to supplement and recruit people to ensure sufficient quantity, quality, structure of vocational training officials and trainers Secondly, professional training on vocational training for management officials; pedagogy skills, technology transfer, access ability to international qualifications, specialized English training, application of information technology in management and training, improving soft skills are enhanced to meet the requirements of the international working environment, etc Thirdly, the forms of training are diversified such as long-term, short-term, regular training, self-fostering, seminars and scientific research for each officials and trainers Fourthly, the supporting policies, training and retraining for management officials and trainers are formulated and well implemented Last but not least, there should be a mechanism to attract and encourage good production and business farmers to participate in the vocational training activities, particularly farmer-to-farmer training model 3.2.5 Strengthening linkages between enterprises, schools, rural youth and supporting start-up for the labors It can be affirmed again that in order for the vocational training for rural labors to be effective, the coordination and close linkages among partners are essential, a decisive factor for success Learners must identify apprenticeship as a great opportunity to improve their job skills, labor productivity and income Therefore, before participating in vocational training, they must determine their actual learning needs and understand if the career suits their abilities and interests The enterprises need to consider vocational training for labors as a human resource strategy to meet production requirements and improve product quality They can support farmers in developing material areas, which also demonstrates their corporate social responsibility Moreover, linkages should be strengthened between employers and training institutions to better meet new professions and apply advanced technologies In order to create employment opportunities for the rural labors, vocational training institutions need to actively collaborate with enterprises, production and business establishments to find out their personnel needs, thereby, determine career orientation for employees when participating in the training The institutions need to combine with the enterprises that provide vocational training for rural labors in their raw material areas and in combination with the value chain linking the products of students and enterprises After the course, the enterprises will have a contract to purchase the products of rural labor Priority should be given to facilitate the investment for start-up enterprises and cooperatives, especially enterprises with high-tech application projects In addition, the attention should be paid to vulnerable groups, especially young people, women, poor and non-technical workers in the rural areas It is necessary to increase the access to vocational training for women and young people, in combination with job search supporting services; formulating a job program or a temporary job for unemployed or labors who lost jobs The rural labors after joining vocational training that get technical knowledge and skills of vocational training can look for jobs in enterprises Those who are confident with their skills and qualifications can associate to form production groups, start up with the same trained profession Entrepreneurship creates motivation, promotes the rising self-confidence of rural workers in development and ownership of the family economy Start-up training for rural labors on the basic knowledge of building a business project, business model, organization of production so that labors can generate business ideas from the fields they have learned Training, start-up support programs can be integrated into training at vocational training institutions or short-term training courses for rural labors starting from the strengths of the training industry 3.2.6 Upgrading traditional and informal apprenticeship systems The training process should be closely linked with using high quality human resources The Vietnamese Party affirmed that “Building human resources development strategy for the country, for each industry, each field, with cosolutions is necessary” This raises high requirements for the high quality human resources Therefore, training institutions must always attach importance to the good management of “output” quality through forms of assessing students' practical competencies in the training process, reviewing training results, graduation results, etc instead of the current management of “input” products Besides, training institutions need to equip students and postgraduate with needed skills such as communication, foreign material researches, usage of information technology, creativity, adaptability, capturing social development trend, etc to ensure the close association between training and using The selection of sources for training and retraining must not only be on top of the cognitive criteria but must also pay great attention to issues of foreign languages, information technology, professional ethics and leadership capacity of director and manager In particular, training institutions need to be democratic, publicize the criteria, the direction to learn and employ staff to increase the activeness and initiative for both learners and units to use In the use of human resources, it is not too dependent on the issue of qualifications but attaches great importance to work efficiency To achieve that, it is necessary to regularly foster and train the team in practical activities, then arrange and use it according to the capacity and qualifications in order to promote their roles and strengths by specialization training and overcoming wastefulness or "brain drain" bleeding in some places currently 3.3 Recommendations 3.3.1 For the government The Government should have adequate policies and investment programs for training high-quality human resources, with a focus on vocational training for rural workers, especially policy groups for high-tech agricultural production labors, rural agricultural labors with high technical and professional qualifications, training to transfer labor structure to industry and services In addition, the government should pay attention to the development of overall rural agriculture programs focusing on the coordination of urban and rural development space; improving the labor quality of rural labors; strengthening young talent support and rejuvenating the rural labor force and the knowledgeable labor source Specific programs of the government should be integrated into training, capacity building, enhancing start-up knowledge, application of science and technology into the system of vocational training schools for rural labor, promoting agricultural startups in combination with new rural construction 3.3.2 For ministries and agencies Ministries and agencies, socio-political organizations at the central and local level and relevant stakeholders should work closely together to well implement the components of vocational training for rural labors as follows: MOLISA comprehensively assesses the results of vocational training for the rural labors in the past period as a basis for developing a program for the period of 2021-2030, which is suitable to the new context and submit to the government for approval, in which, promoting the decentralization in vocational training such as decentralizing for MARD is to actively organize training and develop programs and textbooks for the local professions MARD develops strategies and investments for the training of high quality rural labor force, creating conditions for linking the operation of vocational training institutions with agricultural and rural development practices and programs chaired by the Ministry such as the agricultural restructuring program, farmers training program, new rural construction, etc Other agencies and socio-political organizations such as VWU, VNFU, YU, VCA coordinating to identify needs, organizing vocational training for the subjects they are in charge The local authorities strengthen the training establishments in the areas, formulate plans for training rural human resources to actively provide labors for implementation of local rural development programs, actively coordinate with enterprises and cooperatives having material areas in the locality to identify the needs and train for laborers in the enterprises 3.3.3 For training units and organizations Training institutions need to make innovation on the training contents, programs and methods according to the output standards to meet the requirements of Agriculture 4.0 in terms of knowledge, skills and professional attitudes The investment models should be promoted on education, vocational training, supplying of high quality human resources in coordination with the components of the production and business chains such as horticulture innovation centers, food innovation centers, big data centers to create rural human resources to meet the needs of smart agriculture, climate change, sustainable agriculture, rural development, entrepreneurship… Innovating training methods from imparting knowledge to capacity building for learners, especially creative ability, adapting to working environment that always moves, etc Therefore, the institutions need to cooperate closely with hightech enterprises and new rural construction programs to create conditions for learners to experience and practice In addition, it is necessary to foster learners of their career love, passion for creativity and dedication to agriculture and rural development 3.3.4 For enterprises The enterprises actively coordinate with the local authorities and relevant agencies to determine labor demand in material areas, then provide vocational training for rural workers based on actual demand Besides, agricultural value chain linkages should be developed so that labors can be assured to participate in production and trained labors are committed to be employed after training 3.3.5 For learners It is fundamental to identify that the investment in learning is the investment in the future to have more motivation on learning Learners need to be proactive in learning and practicing so that after the training, they will be able to research on their own, master modern technology, improve their skills and adapt to the rapid changes of the working environment in the context of Agriculture 4.0, which both contributes to bringing economic benefits and ensuring sustainable development for rural communities CONCLUSION The vocational training for rural labors is one of the important strategies, contributing to the poverty reduction and social security, improving rural labor quality to meet the requirements of international integration, especially in the era of Agriculture 4.0 today with increasing requirements for the development of human resources in terms of skills, qualifications, adaption to the new environment, science and technology innovation etc Agriculture 4.0 will completely change the way we live, work and produce, especially in the field of labors when machines gradually replace people In the master thesis, the theoretical basis of vocational training for rural labors on the concept, roles, meaningfulness, components, influencing factors as a basis for the analysis of the structure, quality of the rural labor force in the condition of reality of vocational training for rural labors in terms of trainees, training infrastructure, training management officials and trainers, programs, materials and training professions, the implementation of policies, information and communication, engagement of various partners and investment in the activity Through that, the achievements and limitations of the current vocational training situation are assessed in comparison with the requirements of Agriculture 4.0 In fact, vocational training for Vietnamese rural labors so far has been increasingly focused with the efforts of all sectors at all level and the collaboration of relevant stakeholders, leading to the encouraging results in both quantity and quality The vocational training has helped to create jobs for a lot of rural labors, more importantly, providing them with new knowledge about economic integration, startups, using technology, raising awareness of environmental protection for the sake of sustainable development Besides, vocational training institutions not only provide training but also give advice and guidance to people on how to organize production and business, ensure output trading or receiving labors after apprenticeship, then helping rural laborers to have jobs, stable incomes, improve their lives and gradually escape sustainable poverty However, in order to meet the requirements of Agriculture 4.0, it is necessary to continue the focus on renovating the state management on developing rural agricultural labor forces; effective coordination between vocational training for rural labors and implementation of socio-economic development plans in the region; developing a modern system of facilities; capacity building for management officials and trainers; strengthening linkage between schools, enterprises, learners and other stakeholders in vocational training; attracting young people, outstanding farmers to participate in vocational training activities; improving traditional and informal apprenticeship system, etc These are the mentioned solutions to improve the quality of vocational training for Vietnamese rural labors to meet the requirements of Agriculture 4.0 In addition, the thesis makes recommendations to the government, ministries and agencies, training units and organizations, enterprises and learners as main partners for their joint efforts in the implementation of the above solutions REFERENCES ADB (2012) Making makets work better for the poor phase Anh, N.P (2018) Cach mang cong nghiep 4.0 va yeu cau doi voi he thong giao duc Viet Nam Retrieved 12/1/2020, from 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Secondly, what are the requirements of Agriculture 4.0 on Vietnamese rural labors and if the vocational training for Vietnamese rural labors. .. training for rural labors in Agriculture 4.0 78 3.1.3 Orientations on improving vocational training for rural labors to meet the requirements of Agriculture 4.0 81 3.2 Solutions on improving vocational. .. assess the situation of Vietnamese rural labors, the vocational training for the subjects and how it meets the requirements of Agriculture 4.0 Thirdly, to propose solutions to improve vocational training