Efforts are afoot to remedy the lack of skilled workers that continue to weigh down Vietnam’s logistics industry.

Deputy Prime Minister Bui Thanh Son signed Decision No. 2229/QD-TTg in October,
approving the Strategy for the Development of Vietnam’s Logistics Services for 2025-2035
and Orientation towards 2050. It positions import-export activities, with logistics
at their core, as a central pillar in the country’s push for sustained double-digit
economic growth.

Talent crunch

Under the strategy, logistics services are expected to contribute 5-7 per cent
of GDP by 2035, while the annual growth rate of Vietnam’s industry sector should
average 12-15 per cent. It also aims for 70-80 per cent of enterprises outsourcing
logistics services, and seeks to bring logistics costs down to 12-15 per cent of
GDP. Achieving these goals will not be easy, however, as one of the most pressing
challenges lies in securing a workforce that is both large enough and sufficiently
skilled to match the rapid expansion of the logistics industry.

In Hai Phong, the import-export powerhouse of Vietnam’s northern region, businesses
are increasingly struggling to recruit the workers they need. Mr. Nguyen Huy Truong
Giang, General Director of the Minh Giang Import-Export International Co., Ltd.,
said that while demand is rising across the board, companies are finding it especially
difficult to hire mid-level staff or vocationally-trained workers capable of operating
specialized machinery such as forklifts and cranes.

Such workers are critical in keeping logistics and import-export operations
running smoothly. Mr. Giang noted that even with attractive starting salaries, ranging
from VND20-25 million ($770-$960) a month, the sheer demand in Hai Phong results
in many companies being unable to secure the qualified staff they require. Companies
must also often retrain new hires during their initial months on the job.

Mr. Nguyen Minh Duc, Vice Chairman of the Hai Phong Logistics Association,
echoed this concern. He said logistics is an industry defined by high levels of
internationalization and integration, yet local logistics, transport, and port operators
find it increasingly challenging to recruit workers who possess modern skillsets,
from navigating digital environments to ensuring cybersecurity and supporting the
economy’s sustainability requirements.

Aus4Skills program

As Vietnam’s logistics industry grapples with a widening shortage of skilled
workers, Australia has been working behind the scenes to help bridge the gap. Since
2016, the Australian Government has rolled out the A$86 million ($56 million) Aus4Skills
program, designed to build a workforce capable of supporting Vietnam’s socio-economic
development.

A key pillar of the program is the Promoting Industry Linkages with Vocational
Education and Training Project (Aus4Skills VET), which aims to strengthen vocational
training policy through an industry-driven skills development model that is high
quality, sustainable, and scalable.

Logistics has been one of the initiative’s priority sectors. Aus4Skills has
focused on helping Vietnam build a training ecosystem that matches the realities
of logistics operations and business needs. Over the past several years, the program
has partnered with 16 vocational institutions to update curricula and modernize
teaching methods in line with industry expectations. One of these institutions is
the Maritime – Inland Waterways College No. 1 (MIC1).

MIC1 became one of the first three colleges in Vietnam to pilot the Competency-Based
Training and Assessment (CBTA) model, in 2018. The approach, widely applied in Australia,
brings logistics companies directly into the training process, from curriculum design
to student assessment.

Since adopting the model, MIC1 has updated 436 modules and 29 training programs
to Australian standards and built a core teaching team trained in CBTA. The college
has also expanded its influence by supporting technical transfer, establishing industry
advisory councils, and working with seven non-project schools. More than 15,000
students and teachers have benefited from Aus4Skills-supported training sessions,
workshops, and site visits.

According to Mr. Do Hong Hai, Vice Principal of MIC1, the shift to CBTA has
transformed the college from a newcomer in logistics training into a model vocational
institution. The number of logistics companies signing MoUs with MIC1 has climbed
from 12 in 2019 to 21 in 2025. Logistics enrollments have surged, rising 285 per
cent compared with the project’s first year, while graduate employment rates in
recent years have hovered near 100 per cent.

Ms. Tran Thi Phuong Anh, Director of the Greenport Co., Ltd., said the college
benefits from this rapid knowledge transfer from industry. Working regularly with
major global partners gives her company access to new insights, which it passes
on to MIC1. “Students are trained based on what businesses actually need, not just
what appears in the school’s curriculum,” she explained. “When we need to hire urgently,
they can start working immediately.”

Mr. Quach Minh Dung, Head of Supply Chain Management at the Bee Logistics Corporation,
said the program works because it focuses squarely on real business needs rather
than traditional classroom content. “Graduates meet more than 80 per cent of job
requirements,” he added. “It used to take three to six months to train a new employee,
but for students in this program it takes just over a month. That saves money, but
more importantly, it ensures companies can mobilize workers quickly and seize business
opportunities.”

The impact of Aus4Skills is especially critical, he continued, as Hai Phong
faces an acute shortage of qualified logistics workers, estimated at more than 30,000.
Looking ahead, the industry will continue to evolve, and two major trends – digitization
and green transition – must be integrated into training programs to maintain competitiveness.

Lingering gaps

After nearly five years of working with MIC1 to train students for the logistics
industry, Mr. Tran Minh Duc, Deputy Director of the GoldenLink JSC, said the partnership
is delivering clear results. The company has taken on more than 300 MIC1 students
as interns in recent years and has hired eight standout graduates, including two
now holding key roles in documentation and warehouse management. It is, he noted,
a strong example of how effective school-industry cooperation can be.

Still, even with support from international programs and local businesses,
institutions like MIC1 face significant challenges in delivering training that fully
reflects real-world logistics operations. Mr. Cao Van Duong, Project Management
Team Leader and Deputy Head of Administration at MIC1, said it is extremely difficult
for colleges to finance simulated warehouses and specialized equipment on their
own.

“Public investment is tightening, making it even harder to secure funding for
logistics equipment that keeps pace with industry trends,” he said, adding that
not all logistics schools receive the same level of equipment support as MIC1. For
that reason, State authorities should expand the list of logistics-related equipment
eligible for public investment, to better meet the needs of a modern transport sector
and help training institutions justify procurement requests and access government
funding more easily.

VET-Viet An