Report on Cost and Benefit Analysis of TVET Internship Programmes in Enterprises
The TVET system in Viet Nam is currently in a reform process to improve its quality and better meet the requirements of the labour market. The improvement of the cooperation with enterprises and the diversification of funding sources for TVET are crucial challenges of this reform. The objective of this analysis is to gain evidence on the costs and benefits when enterprises invest in TVET.
Presently, few types of cooperation between enterprises and TVET institutions exist, such as (limited) exchange of human resources, joint development of occupational standards, TVET institutions owned and run by enterprises. However, the most common type of cooperation is internship programmes conducted by enterprises. Therefore, this cost-benefit analysis focuses on internship programmes.
‘Socialisation’ of TVET funding intends to mobilise more available resources in the society for TVET, in particular to stimulate private investment in vocational training activities. Currently, TVET institutions in Viet Nam are mainly funded by the government and/or private households by paying fees. Current strategies and legal regulations being developed (especially the TVET Law and the related directives and implementation guidelines) aim at stimulating employers’ involvement in TVET. The development of these strategies should be based on evidences.
In 2014, National Institute for Vocational Training (NIVT), jointly with GIZ’s “Programme Reform of TVET in Viet Nam”, the German Federal Institute for Vocational Education and Training (BIBB), and integrated experts developed and implemented a pilot Cost-Benefit Analysis of TVET internship programmes to contribute relevant information to this strategy development process.