Vietnam’s rapidly growing economy benefits from a young and abundant labour force, yet a significant skills gap limits the country’s potential for sustained growth and social mobility. With only 21% of workers having undergone formal training, and evolving demographic and economic demands, urgent action is needed to prepare the workforce for the future.
The 2019 Global Leaders Programme, partnered with REACH, a Hanoi-based nonprofit focused on vocational training for disadvantaged youth in Vietnam. The goal is to develop an innovative model that broadens both skill development and funding sources.
REACH currently trains over 1,000 students annually in diverse fields such as hospitality, IT, graphic design, and food services, and supports employment for 80% of its graduates. To enhance financial sustainability and expand reach, the report recommends restructuring REACH into two entities:
REACH Holdings, a private limited company managing commercial social enterprises, and
REACH Academy, a fee-based vocational training provider targeting middle-income youth.
REACH Holdings will centralise business operations and scale promising ventures like the IT services firm Revina, while supporting REACH’s core training mission.
The proposed model also includes:
- Establishing an endowment fund to secure long-term funding.
- Partnering with industry to align training with labor market needs.
- Launching innovative tools such as the Tương Lai Card, an electronic CV for students, and an IMPACT Platform to connect training with job opportunities.
- Introducing a Vocational Tuition Aid scheme to facilitate student financing through microfinance and employer partnerships.
These initiatives aim to future-proof Vietnam’s workforce, provide equitable access to skills training, and strengthen the country’s position as a competitive and inclusive manufacturing hub.