Summary of dissertation for economics association of training and labor use in nghe an province

VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES TRAN THI THANH TAM ASSOCIATION OF TRAINING AND LABOR USE IN NGHE AN PROVINCE PHÁT TRIỂN HỢP TÁC XÃ VẬN TÀI THỦY-BỒNG BẰNG SÔNG CỬU LON Mayor: Economic Major code: 9.31.01.01 SUMMARY OF DISSERTATION FOR ECONOMICS HA NOI – 2020 This work is completely at: VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES Name of Supervisor: ASSOC PROF.DR NGUYEN BA NGOC ASSOC PROF.DR HOANG VAN HAI Reviewer 1: Reviewer 2: The thesis will be protected by the Academy-level Thesis Assessment Council, at: Academy of Social Sciences, 477 Nguyen Trai, Thanh Xuan, Hanoi Date: / / INTRODUCTION The necessity of the research With the instant development of science and technology, in the context of globalization and the fierce emulation nowadays, the training association and the widespread use of the workforce are becoming more and more indispensable This connection is the base of potential development and the strengths of both sides, for the purpose of creating valuable products with great efforts in response to the demand of the consumers In the labor market, unless the educated workforce satisfies these main elements: numbers, quality, specific majors and demand of production; the consequence would be old-fashioned technique and models, declined economic growth and restricted social enhancement Besides, there will be a higher rate of unemployment, causing waste of communal workforce and many complex monetary issues if the enterprise and the workers not enter the training process on directing the reasonable production as well as the usage of the labor resources The balance between the supply and demand can only be established when the need of workers is pleased and trained to be employed Which means: When the workforce is limited, the school should seize the opportunity on potentials and strengths of the company to take part in the training process for labor; moreover, the enterprise needs to exploit the advantages of the school to attract, recruit and use the employees effectively Vietnam has always been a nation thrived from agriculture, currently on the progress of industrialization as well as modernization, the trained labor force has an important role to the progression of the country For several years, facing the developmental demand of the nation under the pressure of economic policies, our education system including universities, colleges and vocational schools, has witnessed remarkably outstanding renovation, especially the instantaneous expansion of the scale and the diversity of education types On the other hand, many serious problems have arisen, including the quality of the trained workforce and the ability to adapt to the working environment of labor resources As a result, the emergent demand currently made is to ensure the competitiveness of the workforce, create the balance between the scale and the quality, between supply and demand In those first days of developing the education system, our nation had made policies on associating the education campus with each other to utilise the opportunity of exploiting as well as effectively employing the potential workers to enhance the quality of the system In contrast, the deployment of the connection between schools and enterprises is getting really slow, unrealistic, asynchronous and ineffective Nghe An province is located in the north central of Vietnam With the population among the top four largest ones in Vietnam, Nghe An has a high potential workforce with diversity which makes it advantageous for this place to effectuate the targets of globalization and modernization of the nation as well as enhancing the social economy in the locality Especially now in Nghe An there are several vocational education institutions which are providing training in large scale and diverse industry employments From 2014 to 2019, each year Nghe An performed vocational training for more than 75,000 employees, including college, high school, and secondary systems of about 14,000 people The number of laborers mainly worked in local industrial zones and economic zones with average income from 5-9 million VND/month Laborers who have completed primary and vocational training have also found jobs, changing jobs and labor export that achieved high results, contributing to the change of the economy of the province To achieve this result, part of the reason was the linkage between vocational training institutions and enterprises in the province in training and using labor However, training and employer association activities and usage of the workforce between school and business have been started, but it's still pictorial According to survey data of the Department of Labor, Invalids and Social Affairs in Nghe An province in 2019, the main form of association receiving and guiding enterprises interns accounted for 65.45%, while enterprises that sent workers to study at training institutions 17.4%; But only 24.8% of those enterprises have linked with vocational training institutions to train workers Thereby, the effects of the linkage between schools and enterprises were not high, not entirely linked, and also "seasonal" Therefore, one of the most important reasons was the lack of durable and effective linkage between training institutions and enterprises in vocational education This led to the low quality of human resources in the province, low labor productivity, an imbalance in supply and demand for training in terms of size and structure, and caused great waste to the society and economy Specifically, in 2019, the province still had 77.4% of the workforce with no technical expertise and no qualifications; the percentage of employees with university degrees or higher but working as a technical professional at intermediate level accounted for below 22.45% (source: Nghe An Department of Labor, Invalids and Social Affairs) Therefore, the supply-demand gap in human resources tended to expand with the paradox of " insufficient and redundant" at all levels, especially vocational training In addition, the local human resources not meet the requirements of businesses in the area, but must recruit other local employees Facing this fact, this problem requires well-understood research on the status of joint training and employment in the province of Nghe An, which contributes to proposing solutions on the purpose of strengthening the cooperation between the two sides Although there have been many researches discussed about this problem around this nation as well as Nghe An So far, however, there are very few systematic, updated and comprehensive studies on training association and employment of vocational training institutions and enterprises in Nghe An Therefore, the thesis "Link training and employers in Nghe An province" is very crucial, which has scientific and real significance to meet the training requirements and use of human resources for socio-economic development in Nghe An in a new stage of development The research objectives of the topic The topic has the following main objectives: - Clarify the rationale for the link between training and use of employers; content, form and level of the linkage; roles and interests of the subjects when joining that linking process; Influencing factors and hitting criterias - Examine experiences of some countries and some local areas on the link between training and use of employers, in order to draw lessons for Nghe An province - Evaluate the current status of linkage between training and use of labor in Nghe An province recently, and also achievements, limitations in relation link between training and human resources, while clearly analyzing the causes leading to such limitations - On the basis of researching the new development context, viewpoints and goals to strengthen the link between training and labor resources in Vietnam in general and Nghe An in particular in the near future, proposing solutions and recommendations to strengthen the link between training and human resources Nghe An till 2025 Object and scope of the research topic 3.1 Research subjects Link between education and trained employers and between vocational education and business 3.2 Research scope Scope of content: Regarding the current situation, the thesis only focuses on related issues to the linkage between training and employers of Vocational Training Institutions which are schools (excluding vocational centers and universities) have graduates work at enterprises in the province - as training parties and enterprises (excluding agencies, organizations or cooperatives, household economy) in Nghe An province that employ trained labor at provincial vocational training institutions - with status of using Labor Although the movement of trained labor is currently not confined within a province, intra-provincial movements of labor as well as the proportion of trained labor at the vocational training institutions and those works for businesses of the province still account for the majority Thus, this research scope still analyzes the problems posed and performs research tasks to achieve set goals There are several models for the linkage between training and employers (cooperation model between school and enterprise, corporate school model belonged to enterprise, business model in school, cooperation model between enterprises, ), the thesis focuses on research on the current popular model of the association between a school (independent entity) and an enterprise (another independent entity) - the two sides actively and voluntarily associate for benefits according to the objective law of the market economy Scope of bound: The dissertation only studies the link between training and employers in Nghe An province Time range: Research period focuses on the period from 2014 to 2019 Research Methodology 4.1 Data collection method The thesis uses secondary and primary data sources to support the research process: - Secondary data: Documents collected from the Settlement Department employment of the Department of Labor - Invalids and Social Affairs of Nghe An, Department of Statistics Millet Nghe An, Nghe An Department of Planning and Investment, information sources published in books, magazines, on websites, statistics of the General Statistics Office, domestic and foreign documents, especially research works, secondary documents, comparing research problems among selected research subjects - Primary data: through group discussion to collect information to design questionnaires to directly interview the investigated people From June to September 2019, the author conducted an investigation and conducted in-depth interviews with representatives of enterprises and vocational training institutions on joint training activities and using trained labor Survey method is used for evaluating linkages in aspects that are difficult to measure and difficult to quantify such as numerical indicators 4.2 Data processing method To process the collected data, the thesis uses these following methods: - Descriptive statistical method: including data collection and arranging the data according to the timeline, calculating the basic statistical indicators such as growth rate, ratio relationship to consider and evaluate the trends and fluctuation of the data - Analysis and synthesis method: This method is used in all the research sections of the thesis helps to clarify the subject research As a result, the synthesis can help evaluating the training activities and use of employers in Nghe An - Method of comparison: During the research, the thesis quantifies the analyzed contents according to specific criteria, in order to compare with the evaluation criteria to draw conclusions - Expertise method: consult experts who are professional policy makers, scientists, leaders of Vocational Education institutions, business managers in asserting the nature of the research problem to optimize the selection of research problems like theoretical basis, proposed research model and research hypotheses, building scales - Questionnaire investigation: purpose is to survey, assess the results as well as the status of the link between training and employers in Nghe An - Quantitative analysis method: First, the author uses factor discovery analysis by using SPSS 22 software to explore the structure of research concepts in each factor (barrier, motivation, forms) from experimental data The research concept structure discovered from factor analysis continues to be assessed for reliability by Cronbach's Alpha coefficient and the total variable correlation coefficient Afterwards, the author proposes a specific research model based on experimental data from the results of factor discovery analysis In order to evaluate the relationship between factors in the research model, the author proposed to use correlation analysis and regression analysis to evaluate causal relationships and test hypotheses, to evaluate the difference along with phases using Paired test used and to compare the difference between the vocational training facilities with analysis of variance (ANOVA) The contributions of the topic This is a systematic study involving the link between Training and using employees in Nghe An, the thesis has made new contributions in terms of theory and practice such as: - The thesis has systemized the theoretical issues about the association between training and employers both within the country and abroad, clarifying the implicit meaning between training and employers, analyzing the factors that affect the training linkage and employers, and also analyse the criteria for evaluating the linkage between training and employers The thesis has summarized lessons from countries and localities in the country to draw experiences on the link between training and employers in Nghe An - The thesis has built a model of factors affecting the link between training and employers in the locality - Evaluate the current status of linkage between training and employers in Nghe An, building scales of motivation and linkage barriers, thereby assessing the status of association and pointing out the advantages and limits, specify the reasons for such limitations - The thesis has given views on the link between training and employers in localities in general and Nghe An province in particular, in order to propose solutions and recommendations to strengthen linkages in training and employers in Nghe An province The structure of the thesis In addition to the introduction, conclusion, list of research works, appendices, dissertation content are presented in chapters: Chapter 1: Overview of research Chapter 2: Scientific basis of training association and employers Chapter 3: The status of joint training and employers in Nghe An Chapter 4: Solutions to strengthen linkages in training and employers in Nghe An Chapter II SCIENTIFIC BASIS ABOUT TRAINING ASSOCIATION AND USE OF LABORS 2.1 Some basic concepts 2.1.1 Training and employment Vocational training is considered as a training level from elementary, intermediate, college, and other forms of the education system to provide learners in a systematic way, knowledge and skills, career attitude and ability to adapt to the working environment, to meet the needs of human resources in production and business Labor use is the use of human resources as an input factor in the production of goods and services In business, the employer completes the assigned tasks, performs executive arrangement, assessment and payment of labor wages and other activities according to their production and business needs in order to create the order in labor resources to increase productivity, quality and efficiency 2.1.2 Associate training and employers The link between training and employers is considered as: an official or unofficial voluntary relationship or interaction between the school and business in activities that benefit both sides (supply - demand in the labor market), at the same time, contribute to achieving the socio-economic development goals of the locality and the country 2.2 Some theories and models linking training and employers - Human capital theory - Model Triple Helix of the relationship between school, business and government - Labor market theory and the school of institutional economics - Model of assessment of factors affecting association of training and employment 2.3 Content of linking training and employers 2.3.1 Content and form of training association and employers a Training activities - Link innovation of teaching methods, practice and internship - Link innovation of testing and evaluation methods - Associate career counseling for students b Use of trained employment Most of the forms of enrollment among schools and businesses are:  School trains students according to orders from enterprises  The school trains trainees sent by businesses  The university cooperates with enterprises to carry out the enrollment campaign, creating potential human resources, ready to fill out the lack in the development strategy of the business c Research technology transfer Based on a combined process based on funding activities or transferring facilities and technology from business to school during the business cooperation process d Information exchange Based on activities related to introduction, exchange of information, and communication of scientific information such as publishing or participating in science and technology nurseries; implementing memorandum of understanding or partnership contract; assigning responsibilities and evaluating linked activities 2.3.2 Degree of association training and employers  Discrete Links (Level 1)  Limited Links (Level 2)  Comprehensive Links (Level 3) 2.3.3 The role of key factors in linking training and employers - Training institution: training campuses that provide education and training services for people wishing to participate (students graduating from middle and high schools, untrained workers, workers want to improve their skills or change their jobs) on the basis of making training programs according to prescribed criteria and standards - Enterprises: play an important role in contributing comments and making training programs derived from the need of labor in the near future; receiving interns and graduates; coordinating with the school in assessing the career skills of teachers and students - State agencies: laws and policies on training and employment, and effective support programs for the cooperation between vocational education institutions and enterprises in training and employing trained workers creating and developing the labor market information system, investing in labor market infrastructure 2.4 The main factors affecting the linkage of training and employers 2.4.1 The motivating factor benefits - Financial incentives: motives stemming from the expectation of financial benefits obtained through cohesion activities, related to the following issues: State budget, tuition fees and revenues, other supports - Motivations for knowledge development and application: motives related to the expectation aspects of benefits from the transfer of results or the realization of research and knowledge development through cohesion activities - Teaching quality improvement drivers: aspects that promote the expectation of implementing the association to improve the training activities of the school and the employers of enterprises 2.4.2 Affiliate barrier factors - Barrier caused by the gap in responsiveness between the two sides: barriers in terms of capacity and ability of the university such as collaborative experience, faculty readiness, cooperative culture for interactivities of school and business - Awareness barrier related to association activities: obstacles when lecturers, researchers, and laboratories are aware of the barriers due to inadequate awareness of the link activity they have, which they can make more effort to actively implement existing linkages - Internal barrier: the association policy, the apparatus structure does not encourage the association activities, the assignment of powers to units and individuals hinders the association process 2.4.3 The nature for the link - Legal framework - To forecast and provide information on the labor market - To organize job placement service 2.5 Research model of factors affecting training linkages and employers in Nghe An from the university side  The linkage motive has a positive effect (+) on the level of implementation of forms of association between schools and businesses  The linkage barrier has a negative effect (-) on the level of implementation of the association between schools and businesses Linkage motives Forms, degree of the linkage Linkage barrier 2.6 International and domestic experiences and lessons for Nghe An 2.6.1 International experiences - Association model in Germany - Association model in Korea 2.6.2 Domestic experiences - Model of Quality Advisory Board in cooperation between Dong Nai High Technology Vocational College and enterprises - Participation model of professional associations in cooperation between Ho Chi Minh City Vocational and Industrial Technology College and water supply and drainage enterprises - Model of "module training" in the cooperation between Hai Phong Vocational College of Technology and enterprises 2.6.3 Lessons for Nghe An - Enterprises and schools must have the same awareness, especially about the immediate and long-term benefits - Trainees can learn with experts and technical staff from enterprises participating in the association with vocational education institutions to overcome barriers of lack of practical knowledge from schools - Students learn in a way that combines theoretical and practical training at a certain rate, that is, students can learn experience about the subject in the work environment - Government needs to participate and intervene to direct, guide and support through practical cooperation policies and mechanisms - The training occupations suitable to the business needs are researched and updated by vocational training institutions with the support of specialized agencies to develop new and quality vocational training programs CHAPTER REAL SITUATION OF TRAINING ASSOCIATION AND LABOR USE IN NGHE AN 3.1 Characteristics and supply and demand situation of trained labor in Nghe An province Characteristics of population and labor force of Nghe An: As of April 1, 2019, Nghe An province has a population of 3,327,791 people (of which 1,672,901 are male, 1,654,890 are female), ranking 4th in the country in terms of population (following Ho Chi Minh City with 8,993,682 people, Hanoi with 8,053,663 and Thanh Hoa with 3,640,128 people) Compared to the survey 10 years ago (2009), Nghe An's population increased by 415,930 people, equivalent to an average population growth rate of 1.33% Large labor scale with abundant human resource potential is a great advantage in the process of implementing the goals of national industrialization and modernization as well as socio-economic development in the area Supply of trained labor in Nghe An: Over the past years, the scale of vocational training in the province has increased significantly Within years (2014 - 2019) the number of trainees with vocational training is up to 454,008 people, mainly focusing on primary training or training for less than months With many efforts in enrollment and training, the quality of vocational training in recent years has significant growth Demand for trained labor in Nghe An: Demand for trained labor in Nghe An tends to increase sharply due to the growth of enterprises in the area As of October 31, 2019, the province of Nghe An has more than 15,000 enterprises, production and business establishments operating 3.2 Real situation of training association and labor use in nghe an 3.2.1 The need for association between businesses and vocational education institutions in Nghe An province In 2019, according to a survey by the Department of Labor and Employment under the Department of Labor, War Invalids and Social Affairs of Nghe An province about the need to use employees in enterprises with a survey scale of 800, of which most are businesses operating in the service industry (accounting for 47.8%) and enterprises in industry and construction (accounting for 38.3%) According to the survey results: + Enterprises operating in industry have the highest rate of cooperation with vocational training institutions, accounting for over 50% + The cooperative relationship between enterprises and vocational training institutions is mainly concentrated in large enterprises, accounting for about 22.5% + Cooperation between enterprises and vocational training institutions in State-owned enterprises and FDI enterprises is more freque1`nt than with non-state enterprises 3.2.2 Content and form of training association and employers in Nghe An province 3.2.2.1 Real situation of content and form of training association and employers in general in the province According to a survey by the Nghe An Department of Labor, War Invalids and Social Affairs in 2019, the main form of cooperation between enterprises and vocational training institutions is to receive and guide interns in enterprises (accounting for 65.45% of the total number of enterprises industry participating in cooperation); followed by enterprises recruiting students after graduation (accounting for 53.39%) According to the survey results of the Department of Job Solving - Department of Labor, Invalids and Social Affairs of Nghe An in 2019, out of the total number of enterprises participating in the survey, 42.70% of enterprises have training for employees Among the enterprises that provided training for workers, 24.8% of firms cooperated with vocational training institutions and 75.2% did not cooperate with vocational training institutions 3.2.2.2 Real situation of content and form of association training and employers through analysis, investigation and research of the author in Nghe An province Through in-depth interviews with experts from the university, the author has summarized the evaluation results as follows: 14 indicators on the form of association, 15 indicators for promoting linkages and 16 indicators of link barriers At the same time, through in-depth interviews with experts from enterprises, the author has summarized the evaluation results as follows: 12 indicators on the form of association, 10 indicators for promoting linkages, 14 indicators of link barriers - Evaluation of officials, teachers and employees of vocational education institutions - Evaluation of leaders and managers of businesses - Assessment of trained employees at vocational training institutions working in the enterprise - Assessment of final year students at the training institution 3.2.3 Level and effectiveness of training association and labor use in Nghe An province 3.2.3.1 The situation of the linkage efficiency and level in general in the whole province Regarding the level of association, the survey results on the Relationship between enterprises and training institutions of school administrators also show that the number of enterprises that vocational schools in Nghe An have cooperated within Over the past years, at the level of comprehensive cooperation, there is no business; at the level of limited cooperation accounts for 13.64%; at the level of discrete cooperation accounting for 86.36% Thereby, the level of linkage between schools and businesses is still at a low level (discrete cooperation accounts for the majority) 3.2.3.2 Current status of the level and effectiveness of the association through the author's investigation and survey analysis in Nghe An province - Evaluate the differences between schools on the degree of implementation of the forms of association: Vocational colleges have a larger training scale than vocational secondary schools Therefore, the vocational college has a long training period, requires highly skilled trainees, requires technology closer to reality and the goal is more responsive to the business Therefore, vocational colleges will have more diversified forms of association and closer cooperation with businesses than Vocational College - Some results obtained through the survey from the employees' assessment of internship effectiveness in the enterprise - Survey of trainees who are studying in their final year at training institutions about the effectiveness of their internships at enterprises 3.3 The main factor influencing training association and labor use in Nghe An 3.3.1 Adjusted analytical model and research hypotheses from the education institution 3.3.1.1 Research sample description Participants in the survey of factors affecting the association of training and employers from the school included: 325 administrators, teachers at vocational education institutions in Nghe An 3.3.1.2 The results of factor analysis and assessment of the reliability of the factors Table 3.8 Assess the reliability of the scale No Factor Scale Cronbach's Alpha TC TC1, TC2, TC3 0,723 KT KT1, KT2, KT3 0,880 CLGD1, CLGD2, CLGD3, CLGD4, CLGD5, CLGD 0,940 CLGD6, CLGD7 NB NB1, NB2, NB3 0,792 KC KC1, KC2, KC3, KC4, KC5, KC6, KC7 0,960 NT NT1, NT2, NT3, NT4, NT5 0,897 LKĐT1, LKĐT2, LKĐT3, LKĐT4, LKĐT5, LKĐT 0,910 LKĐT6 LKTĐ LKTĐ1, LKTĐ2 0,902 LKNC LKNC1, LKNC2, LKNC3, LKNC4 0,932 10 LKSD LKSD1, LKSD2 0,909 Source: Statistical results from the thesis survey The research results show that using the analysis to discover the form factor of training association and labor use is consistent with the research data The KMO coefficient is greater than 0.5 (0.834), and factors with Eigenvalues (the amount of variation explained by the factor) greater than are extracted from the original 14 items; and Cumulative value of 80.719% tells us that these factors account for 80.719% of the variation of the data The observed variables form four main factors, or in other words, the school-business linkage can be classified into four main groups: training association, use association, technology transfer association, information exchange association The research results show that it is appropriate to analyze and discover the impact factors, KMO = 0.692; factors with Eigenvalues (the amount of variation explained by the factor) greater than is extracted from the original 28 items; and Cumulative value of 75.094% tells us that these factors explain 75.094% of the variability of the data Thus, based on the rotation matrix from EFA analysis, we have factors created: Financial motivation, teaching quality improvement motivation, knowledge development motivation, cognitive barrier, internal barrier, barrier due to response distance 3.3.1.3 Adjusted model and research hypothesis Financial motivation Training association Cognitive barrier Internal barrier Teaching quality improvement motivation Use association Knowledge development motivation Technology transfer association Motivation Information exchange association Barrier due to response distance Barrier 3.3.2 Motivations and barriers to association from the education institution 3.3.2.1 Motivation of association benefit from the school side 3.3.2.2 Barrier of association from the school side 3.3.2.3 The results of the regression analysis to evaluate the effects of the motivation and barriers to training association and labor use from the eduction institution Table 3.9 Regression model results Dependent variable Model Model Model Model LKĐT LKTĐ LKNC LKSD Β β (Constant) 0,854*** TC 0,026 0,028 KT 0,346*** 0,352*** CLGD 0,398*** 0,395*** NB 0,241*** 0,289*** KC 0,195*** 0,215*** NT 0,381*** 0,354*** R2 0,587 adjusted 77,764 F 0,000b Sig Β β 2,604*** 0,031 0,266*** 0,31*** 0,339*** 0,511*** 0,371*** 0,024 0,199*** 0,227*** -0,3*** 0,415*** 0,254*** 0,478 50,370 0,000b Β 0,407 0,306*** 0,539*** 0,331*** 0,319*** 0,39*** β Β β 0,271*** 0,467*** 0,347*** 0,307*** 0,316*** 3,525*** -0,046 0,139*** 0,163*** 0,223*** 0,336*** 0,414*** -0,046 0,133*** 0,152*** 0,251*** 0,347*** 0,36*** 0,663 0,415 107,269 39,383 0,000b 0,000b Source: Statistical results from the thesis survey The results of the analysis of models: it shows that the financial motivation does not affect the choice of the association form (p-value> 0.05), the remaining factors in the model all affect the selection of the model link training formula and employers (p-value