Financing TVET
Financing technical and vocational education and training (TVET) has become an increasingly important issue among TVET policy and decision-makers in Vietnam. The Government of Vietnam (GoV) has realised the urgent need to mobilise additional resources to appropriately and sustainably fund the planned TVET expansion and quality improvement. The Ministry of Labour, War Invalids and Social Affairs (MoLISA) envisages that up to 2010, TVET activities will increase by 10% annually and by 7% per annum between 2011-2015. This quantitative increase is expected to be accompanied by quality improvement, which will require new occupational standards and curricula, modern training equipment, more and updated training materials, more and competent teachers/instructors, etc. All this requires more resources to be mobilised for TVET. In this context, the GDVT has started conceptualizing and implementing new financing instruments and mechanisms.
GTZ is committed to support the GoV in the development of a sustainable financing system for TVET. In 2007, we carried out a fact finding study on TVET Financing in Vietnam to assess the current state of financing TVET and to recommend further activities to be undertaken to work towards a sustainable TVET funding system. Problems and challenges which should be addressed in the future development of a comprehensive TVET financing framework in Vietnam were identified such as the lack of systematic data and information on financing topics, the limited information on costs involved, actual current expenditures and returns to training (benefit), etc.
It is expected that the project-supported studies help not only to bring in international expertise and experiences, but also to facilitate active and dynamic dialogues among TVET stakeholders at both central and local-government levels. As a result, ideas and proposals will be generated to effectively and sustainably finance the TVET in Vietnam.