Logistics industry faces labour shortage

Logistics, considered an industry with huge contributions to the development of the economy, has not lived up to its potentials due to human resources shortage.
Logistics industry faces labour shortage ảnh 1Current labour force only meets about 40 percent of the demand of the logistics industry, according to the Vietnam Supply Chain Association (Photo: VNA)
Hanoi (VNA) - Logistics, considered an industry with hugecontributions to the development of the economy, has not lived up to itspotentials due to human resources shortage.

There are about 300,000 enterprises involved the logistics sector, with aworkforce of around 1.5 million, according to the Vietnam Supply ChainAssociation.

However, this labour force only meets about 40 percent of the demand ofthe industry.

At a recent international seminar in Hanoi on training and developinglogistics human resources in Vietnam, experts expressed concerns that logisticspersonnel is still in short supply, not to mention their low qualifications anda lack of professionalism.

Associate Professor Trinh Thi Thu Huong, from the Foreign TradeUniversity, said Vietnam is considered a country with advantageous naturalconditions and a convenient geographic location to develop logistics services.However, this industry has not really developed and contributed insignificantlyto the national GDP as it should have.

"One of the causes of the situation is human resources which are notonly in low quantity but also have limited professionalism," she wasquoted as saying by Thoi Bao Kinh Te (Economic Times).

A survey by the HCM City Research and Development Institute on the quality oflogistics human resources revealed that 53.3 percent of enterprises lackqualified staff who possess good knowledge of logistics, 30 percent of firmshave to train their employees and only 6.7 percent of businesses are satisfiedwith the expertise of their staff.

The survey also revealed 80.26 percent took part in training courses, 6.9percent were being trained by foreigners and only 3.9 percent were trainedabroad.

According to Associate Professor Ta Van Loi, from School of Trade andInternational Economics, there are several reasons for the shortage ofqualified workforce in logistics.

“Enterprises lack initiatives to access the labour market, and do not havelong term recruitment plans. They only recruit when they need to and jobrequirements are unclear.”

“The logistics companies have not offered suitable levels of salaries, bonusesand other preferential conditions, which failed to motivate labourers tocultivate their skills,” Loi said.

On the part of employees, they lack information on orientation and careerdevelopment, failing to upgrade their skills after graduated.

In order to have high quality labourers, companies need to have periodictraining programmes and improve the quality of training by strengtheningcooperation among businesses, universities and associations, Huong suggested.

Businesses also need to consider setting up human resources developmentfunds as well as cooperation with other companies in training and recruitment becausemost of the Vietnamese firms are still financially weak.

More attention should be paid to improving the quality of the workingenvironment and more incentives should be offered to employees to encouragethem to take more responsibilities in their work, Huong said.

Dr Nguyen Duc Diep, deputy general director of KOSY Group, emphasised theneed to develop logistics training programmes quickly, putting logistics staffinto compulsory undergraduate courses.

There are three forms of logistics training: university, vocationalschools, associations and businesses. Statistics show Vietnam has 15 logisticstraining establishments. However, the number of teachers is insufficient.

During the 2017-20 period, the country needs roughly 20,000 high-qualityworkers meeting professional requirements, including adequate command ofEnglish language, and the number is expected to surge to 200,000 by 2030.-VNA
VNA

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