Vietnam needs to develop specialized technical and vocational education programs to facilitate the transition to the 4.0 Industrial Revolution, increasing worker productivity and national competitiveness, according to a new Asian Development Bank (ADB) study is published today (January 20).

ADB study entitled Reaping the Benefits of Industrial Revolution 4.0 through Skills Development in Vietnam examines the logistic and agro-processing industries in Vietnam; both are important to growth, employment, international competitiveness, and Industrial Revolution 4.0. The report finds that the technologies of the Industrial Revolution 4.0 will eliminate about a quarter to one third of the jobs in the above industries, but these cuts will be more compensated by labor demand. This could lead to a positive employment benefit in both industries.

ADB Country Director in Vietnam, Mr. Andrew Jeffries, shared: “While the application of the technologies of the Industrial Revolution 4.0 will help Vietnam move upwards in the value chain of production and services. Viet Nam needs to consider new approaches to ensure inclusive benefits and social protection for low-skilled workers, especially those are at risk of replacement and those need skills improvement. Proper and timely investment in skills development can help Vietnam not only exploit the potential of the Industrial Revolution 4.0 to improve productivity, but also ensure that the Industrial Revolution 4.0 will bring benefits to general workers."

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members, including 49 members in the region.