The Current Labor Shortage in Logistics
Decision No. 200/QĐ-TTg of February 14, 2017, issued by the Prime Minister, sets a target for Vietnam’s logistics service growth rate of 15–20 percent by 2025. According to the General Statistics Office, the sector is already worth around USD 40 billion and is forecast to continue expanding at a rate of 14–16 percent per year.
Yet this rapid expansion comes with a serious challenge: a severe shortage of personnel—especially drivers, warehouse operators, supply chain coordinators, and port operations staff.
The World Bank’s 2023 Logistics Performance Index ranks Vietnam 43rd worldwide and among ASEAN’s top five (after Singapore, Malaysia and Thailand). Outsourced logistics services now account for 60–70 percent of total market activity and contribute roughly 4–5 percent of GDP. Nevertheless, the labor supply has not kept pace with demand. Training programs lag behind industry growth, leaving graduates weak in practical skills. Tighter labor rules—most notably Decree 168/2024/NĐ-CP on administrative penalties and driver penalty-point recovery—cap drivers’ working hours, forcing firms to hire more staff to maintain operations. At the same time, wages and benefits remain insufficiently attractive, prompting many logistics workers to switch to better-conditioned industries.
In response, numerous vocational colleges and logistics companies have launched joint training schemes, enabling students to gain hands-on experience while businesses secure a workforce tailored to market needs.
Enterprise–School Cooperation: A Practical Bridge between Theory and Reality
To address the mismatch between classroom training and real-world demand, many Vietnamese logistics schools have forged close partnerships with businesses. Students now intern at leading firms such as Saigon Newport, Gemadept and Transimex, where they learn warehousing management, transport optimization and cargo-handling equipment operations. Beyond internships, company professionals teach courses on supply-chain management, green logistics and advanced transport technologies, helping students absorb not only theory but also industry practice and adapt quickly when they enter full-time work.
Dual-training programs, combining classroom study with on-the-job experience, are spreading rapidly. Several large companies even commit to hiring students immediately after their internships, eliminating the need for retraining and directly easing the labor crunch.
A Success Story: Maritime College No. 1 and Transimex
One standout collaboration links Maritime College No. 1 with Transimex. Under the scheme, final-year students spend six months interning in Transimex’s warehouse network, where they manage inventory, operate equipment, and streamline transport processes. Company specialists train them in smart warehouse operations and logistics management software, equipping students with real-world skills before they graduate.
The results are precise: 80 percent of participating students receive full-time job offers upon completing their internship. Speaking at the 25th meeting of the Logistics Industry Reference Council (LIRC), several firms noted, “We don’t just recruit graduates—we engage in their training from day one so they have the practical skills we need. Which cuts retraining costs and provides us with high-quality talent exactly when required.”
A former intern added: “Before my placement, I only knew the theory. After working in the warehouse, I gained a deeper understanding of how the logistics system operates, how to utilize cargo-management software, and how to optimize warehouse operations. That gave me far more confidence when job-hunting after graduation.”
Long-Term Measures to Raise Logistics Workforce Quality
Although school-enterprise partnerships have proven effective, scaling and optimizing these models calls for strategic action:
- Broaden cooperation with a broader range of logistics companies to give students more real-world exposure and job prospects.
- Continuously update curricula to include topics such as green logistics, artificial intelligence in supply chains, and warehouse automation, ensuring graduates keep pace with industry trends.
- Offer financial support to interns so they can afford to pursue logistics careers.
- Hold regular linkage forums where schools and businesses align training with actual industry needs, providing clearer career pathways for students.
Enterprise–School Cooperation: A Cornerstone of Sustainable Logistics Development
Logistics will remain pivotal to Vietnam’s economy, yet the human resources issue is a significant hurdle. Strengthening enterprise–school collaboration not only produces well-trained graduates but also helps companies alleviate labor shortages, reduce retraining costs, and enhance the quality of incoming talent.
Within the broader bilateral cooperation between Vietnam and Australia, the Aus4Skills Vocational Education Training component has applied the Competency-Based Training and Assessment (CBTA) strategy to logistics since 2017. Upcoming activities include an advanced CBTA course and an Australia Awards Short Course (AASC) for logistics lecturers and VET administrators—both designed to deepen training capacity and extend the enterprise-led model.
With close coordination among training institutions, businesses, and regulators, Vietnam’s logistics sector can overcome its labor challenges, boost competitiveness, and grow sustainably. Enterprise–school cooperation is not a temporary fix but a decisive long-term strategy for development amid today’s rapid digital transformation and global integration.
Logistics Industry Reference Council (LIRC)
LIRC is a pilot model under the Australian Government’s Aus4Skills program, connecting the “three houses” of government, academia, and industry to strengthen employer engagement in vocational education and training (VET) and advise on current and future workforce needs.