Tvet Policy Review

TR 2010-6-2 Sec.
level General
TVET Policy Reviews of 8 Asian Countries

UNESCO Regional Center (2010)
Kim, Young-Saing Chung, Ji-Sun Lee, Sang-Don Lim, Young-Sub Ryu, Ki-Rak
Foreword
Urgency of cooperation in TVET in conjunction with globalization in economy and diplomacy such as FTA with EU, ASEAN and other countries has been intensified because human resources are the most valuable asset for economic and social development. The Korean government has emphasized the importance of cooperation between Korea and Asian countries and enlarged the Koreas role to play in TVET development in Asian countries. Asian countries have recognized the role of HRD to play for national development, poverty alleviation and community cohesion. Thus, they are searching for the role model of HRD which they would follow. The Korean model of HRD would be a prospective model of HRD for Asian developing countries because Korea went through extreme poverty, destruction of Korean War and had to overcome lack of natural resource and becomes a leading country in Asia. Many Asian countries want to share the model of HRD and the experiences from Korea and other countries because they have lots of similarities. However, only little information of Asian countries TVET has been available. Lack of information is the most critical barrier to improve the cooperation between Korea and the Asian developing countries. The TVET policy of government is the centerpiece of the TVET information. Korean government has played governing roles of TVET development in providing framework for HRD development.
In most Asian countries, the governments have most valuable human resources and notable abilities to make a difference. In this regard, it is most recommendable to share Asian countries TVET policies in order to learn from each other and to make a common ground of mutual understanding. CEDEFOP of the EU is the center of TVET policy coordination and information sharing among the EU countries. It dramatically increases effective cooperation among EU members. When we look forward the future of Asia which is the engine of global economic development, it is the time we need to figure out how to increase the mutual understanding and learn from each others experiences in TVET which increases HRD. In this regard, KRIVET and UNESCO decided to conduct the project which collect the TVET policy data and organize them with comparative perspectives. We developed the framework of TVET information sharing which would cover the general information and TVET policy issues. It should be compatible to make a comparison among Asian counties. The framework of UNESCOs TVET policy review was the reference of developing this framework. UNESCO has a plan to make the TVET policy database sooner or later. It was expected to make this paper a part of UNESCOs TVET database. This project was conducted as a UNESCO-KRIVET cooperative project. The project manager of this project is Dr. Kim, Young-Saing. Dr. Chung, Ji-Sun, Dr. Lee, Sang-Don, Dr. Ryu, Ki-Rak and Mr. Lim, Young-Sub contributed enormous efforts and ideas as researchers. Local reporters collected data and organized
them for this project. Three interns, Ms. Gong, Min-Young, Ms. Kim, Yong-Jeong and Ms. Kueppers, Paula organized the manuscripts which were not in a consistent format. Ms. Jennifer Govan edited the manuscripts language and checked the references. KRIVET would like to show special gratitude to the researchers, the reporters, the interns, the editor. This project paper is not an official view of KRIVET or UNESCO, but the researchers and local reporters opinions and the collection of data. December, 2010. KRIVET. President Kwon Dae-Bong
Index i
Index
BANGLADESH
TVET Policy, Experience, and Trends in Bangladesh3

Introduction3 Section 1. Context and Background4
1. Political and Socio-cultural Context4 2. Population and Demographics5 3. Population Change5 4. Demographics of Bangladesh6 5. Population Growth Rate11 6. Urban and Rural12 7. Gender ratio12 8. Migration13 9. Poverty Rate15 10. Economy (GDP): 2004-200915 11. Education17 12. Education Attainment of Population by Gender and Age, Literacy18 13. National Development Plan and Strategies in General19
Section 2. Employment and Labor Market21

1. Bangladeshs Export Sector21 2. Labor Market22 3. Demography and the Labor Market24 4. Migration and Overseas Employment24
ii Index
5. Employment and Labor Market Information Table26 6. Skill Supply and Demand (Overall Marketplace Requisite Skills)28 7. Country Wise Overseas Employment (19762009) : Top 10 countries29 8. New Demands: Industry and Government Policy30
TVET Systems by Target Group: Adults, Teachers, Trainers, and Enterprises33

Section 1. TVET Systems by Target Group33 Section 2. TVET for Students by Level of Education33
1. SSC (Secondary School Certificate) (Vocational)35 2. Area/Field36 3. Training Scheme for Non-schooling (Apprenticeship)37 4. Upper Secondary Level: Entrance Rate and Employment38 5. Area/Field39 6. Non-schooling Level: % of Non-schooled Adolescents, Training Scheme for Non-schooling (Apprenticeship)42
Section 3. TVET for Adults42 Section 4. TVET and Enterprises43

1. TVET and Enterprises43 2. Role of Enterprises44 3. TVET in SMEs (Small and Medium Enterprises)45
Section 5. TVET Infrastructure47

1. Certification Standard47 2. Certification for Instructor and Trainers: (Pre-job and In-job Training)47
Index iii
3. Course for Trainees (School going student/drop out students, jobless or unemployed)48 4. National Vocational Qualification (NVQ) System49
Governance of TVET system51

Section 1. Institutional Framework51
1. Governing Structure51 2. National Vision and Strategic Direction of TVET52
Section 2. National Development and TVET Policy53

1. Economic Development and TVET Policy53 2. Social Partnership and TVET55
Section 3. Assessment of TVET Policy56

1. Major Achievements in TVET Ensuring Accessibility56 2. Quality and Relevancy57
Financing of TVET59
Section 1. Financing Regime (Institute) for TVET59 Section 2. Financial Support System or Mechanism60 Section 3. Private Funding of Public TVET Institutions60 Section 4. Funding of Private Providers61 Section 5. Educational Financing63
Internationalization of TVET65
Section 1. Impact of TVET Policy65
iv Index
Section 2. International Cooperation66

1. Facility and Equipment67
New Agenda69
Section 1. Trends and Needs69
1. New Needs for New Skills69 2. Green Job and Occupations70
Section 2. Future plans74 References75
CAMBODIA
THE NATIONAL CONTEXT OF TVET: INTRODUCTION79

Section 1. Context and Background of Cambodia79 Section 2. Education System in Cambodia84 Section 3. Employment and Labor Market86
TVET SYSTEM BY TARGET GROUPS: ADULTS, TEACHERS AND TRAINERS, AND ENTERPRISES95
Section 1. TVET for Adults101 Section 2. Industrial Relations106
Index v
GOVERNANCE OF THE TVET SYSTEM107

Section 1. Governing Structure107
1. NAME OF INSTITUTION107 2. BRIEF DESCRIPTION OF INSITUTION108
Section 2. Organizational Structure of DTVETM110 Section 3. TVET System Overview111 Section 4. The Two Tracks of TVET Policy113 Section 5. Policy Development in TVET System115 Section 6. Vision and Strategic Direction128
FINANCING OF TVET131 INTERNATIONALIZATION OF TVET137 NEW AGENDA AND PLANS FOR THE FUTURE143
References148
INDONESIA
Technical Vocational Education and Training in Indonesia153

Section 1. Indonesia: context and background153
vi Index
Section 2. The Indonesian Employment and Labor Market161 Section 3. The Education System in Indonesia171 Section 4. TVET System in Indonesia180 Section 5. Vocational Senior Secondary School (SMK-Sekolah Menengah Kejuruan)181 Section 6. The Competency Certification as One of the Certification Models of SMKs' Graduates192 Section 7. Post-secondary and Adult TVET196 Section 8. Vocational Training in Enterprises and Small Businesses205
1. Funding of TVET206 2. Internationalization of TVET207 3. New Agenda and Plans for the Future of the Vocational Education and Training in Indonesia209
References212
LAO PDR
The National Context of TVET217

Section 1. Context and Background217
1. GOVERNMENT AND ADMINISTRATION217 2. GEOGRAPHY AND DEMOGRAPHY, POPULATION GROWTH218
Index vii
3. Economy222 4. EDUCATION223 5. NATIONAL DEVELOPMENT PLAN AND STRATEGIES231 6. STRATEGIC PLAN 2006-2010 AND MASTER PLAN 2008-2015 FOR TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING IN LAO P.D.R233
Section 2. EMPLOYMENT AND LABOR FORCE237

1. Employment and Age237 2. LAO LABOR MARKET INDICATOR241
TVET System by Target Groups259

<Executive Summary>259 Section 1. Issues to be Addressed261
1. Scope of the Technical and Vocational Education and Training261 2. Integration of Demand Side in Skills Development and Promotion of TVET262 3. National Qualification or Certification Framework264
Section 2. Curriculum Method and Content266

1. Competency Standards266 2. Student-Centered Learning267 3. Practical Experience and Knowledge268 4. Access and Equity268
Section 3. Teacher Development269 Section 4. Cross Cutting Issues270 Section 5. Labor Market Information271
viii Index
Governance of the TVET system273

Section 1. Link with Other Sectoral Developments273 Section 2. The present Situation of Supply and Demand275
1. The Rapidly Changing Lao Socio-economic Context275 2. An Urgent Need for Skills276
Section 3. General Situation of the TVET Providers279 Section 4. Specific Situation of the TVET Schools under the MOE282
Financing of TVET285
Section 1. The Budget for TVET Reform and Development285
1. The Regular Government TVET Budget287 2. The Consequence of Economic Development on the Financial Capacities of Companies287 3. The Legal Framework to Promote Training in Companies288 4. The Support Coming through Cooperation with Other Ministries289
Section 2. Loans for TVET Development289

1. Possible Foreign and International Assistance for TVET290 2. Present Situation of Some Donors Concerning TVET290
Internationalization of TVET295
Section 1. Lessons Learnt and Recommendations from the International Experience for TVET Master Plans and Strategies295
Index ix
New Agenda and Plans for the Future301

Section 1. Direction of the Master Plan302
1. Equitable Access Program302 2. Improvement of Quality304 3. Continuing Improvement of the Management and Administration305
Section 2. Conditions to Succeed or How to Limit the Risks306
MONGOLIA
Policy, Experience, and Trends of Technical and Vocational Education and Training in Mongolia311
Section 1. THE NATIONAL CONTEXT OF TVET: INTRODUCTION311
1. CONTEXT AND BACKGROUND311
Section 2. EMPLOYMENT AND LABOR MARKET323

1. Employment323 2. Skill Supply and Demand325 3. Mismatch326 4. Data Monitoring328 5. New Demands: Industry and Government Policy329
Section 3. Governance of the TVET System333

1. Institutional Framework333
Section 4. TVET System by Target Groups339
x Index
Section 5. TVET INFRASTRUCTURE342

1. Teachers and Instructors342 2. Facility and Equipment343 3. National Qualification Framework344 4. Current Status of NQF and TVET345 5. Imperatives in Developing the National Qualification Framework348 6. Strategy351
Section 6. National Vision and Strategic Direction of TVET353 Section 7. Legal Frame for TVET Adults and Lifelong Learning358 Section 8. NATIONAL DEVELOPMENT AND TVET POLICY361
1. TVET Policy History and Priority361 2. Economic Development and TVET: National Development Plan and TVET Policy362 3. Social Partnership and TVET364
Section 9. CURRENT STATU from S OF SOCIAL PARTHNERSHIP369 Section 10. ISSUES AND INNOVATIVE PRACTICES373 Section 11. FUTURE PLANS FOR SOCIAL PARTHERSHIP374 Section 12. TECHNOLOGY: ICT, E-LEARNING380
1. Current Status of ICT in Education380 2. Best Practices in Teaching and Learning through ICT381 3. Issues and Challenges in ICT Education382 4. Future Plans383
Index xi
Section 13. International Cooperation: Bilateral, Multilateral and International Organizations385

1. Donors Activity in TVET385 2. Sustainability389
Section 14. Future Trends and Objectives of TVETs389 Section 15. TVET Objectives & Strategies (2006 to 2015)390
PHILIPPINES
TVET POLICY, EXPERIENCE, AND TRENDS IN THE PHILIPPINES397

Section 1. The National Context of TVET397
1 Context and Background397 2. Employment and Labor Market420
Section 2. The Philippine TVET System431

1. TVET Support System433 2. TVET Delivery436 3. TVET in Secondary Education439 4. TVET Quality Assurance440
Section 3. GOVERNANCE OF THE TVET SYSTEM444

1. Institutional Framework444 2. National Development and TVET Policy454 3. Assessment of TVET Policy458
Section 4. Financing TVET461
xii Index
Section 5. Internationalization of TVET464

1. Impact on TVET Policy464 2. International Cooperation: Bilateral, Multilateral, and International Organization466 3. Internationalization of TVET467
Section 6. NEW AGENDA AND PLANS FOR THE FUTURE468

1. Expanding Access and Equity to TVET Opportunities468 2. Ensuring Sustainable and Adequate Financing for TVET and Funding the TESDA Development Fund469 3. Strengthening Industry-TVET Linkage, including Enterprise- based Training470 4. Institutionalizing the Philippine National Qualifications Framework and a System of Skills/Qualification Progression/ Career Shifts and Lifelong Learning472 5. Improving Labor Market Information and Addressing the Labor Supply and Demand Gaps and Matching Problems474 6. Continuing Quality Improvement in TVET Provision475 7. TVET Trainers Development476 8. TVET for Sustainable Development476 9. Preparing the Workers for the Knowledge Society477
References479
SRI LANKA
TVET Policies and Implementation Process of Sri Lanka483

Section 1. Political and Socio-Cultural context483
Index xiii
1. Government and political party system in Sri Lanka.483 2. Legislative485 3. Summery of the 2010 Sri Lankan Parliamentary Election485 4. Civil Service Structure487 5. Local Government System Provincial council structure487 6. The Instruments of Devolution488 7. Functions of Provincial Councils490
Section 2. Population and Demographics491

1. Demography491 2. National Accounts492
Section 3. Governance of the TVET system493

1. Institutional Framework493 2. Government Bodies Responsible for TVET494 3. Regional Level501 4. Relationship between Government Bodies502 5. National Vision and Strategic Direction of TVET.505
Section 4. Government Policy508

1. Evolution of TVET Policies508 2. Assessment of TVET Policies515 3. Effectiveness516 4. Efficiency519 5. Impact520
Section 5. Legal Framework of TVET for Students and Adolescents522 Section 6. Qualifications524
1. National Culture of Skill and the Skilled524 2. National Vocational Qualification (NVQ) System526
xiv Index
3. Private Qualification System526 4. Role of Qualification in Labor Market528
Section 7. National Development and TVET Policy529

1. Economic Development and TVET531 2. Social Development and TVET532
Section 8. TVET System by Target Groups534

1. TVET for Students by Level of Education under the Secondary Level Compulsory Education534 2. Government Schools535 3. Private School536 4. Secondary Level, Upper Secondary Level, and Non- schooling Level; Vocational and Academic Rate; and Apprenticeship Enrollment Rate537 5. Training Scheme for Non-schooling539 6. TVET and Enterprises539 7. Self Employment Promotion Initiative (SEPI)541 8. TVET Infrastructure542 9. Staff Development & Teacher Training544
Section 9. Employment and the Labor Market546

1. Skills supply and demand551 2. Skills Mismatch, Skill Shortage, and unemployment.551 3. New Demands553
Section 10. International Corporation: Bilateral, Multilateral and International Organization555 Section 11. New Needs for New Skills559
Index xv
Section 12. Future Challenges and Opportunities562 References565
VIETNAM
TVET POLICY, EXPERIENCE, AND TRENDS569

Section 1. Context and Background569
1. Population569 2. The Vietnamese Economy570 3. Education System of Vietnam575
Section 2. Employment and Labor Market581

1. Employment581 2. Unemployment583 3. The number of workers related to jobs584 4. Employment by industry585 5. Employment by position-based587 6. Employment by ownership sector588 7. Employment by job performed589
Section 3. The TVET System in Vietnam590

1. In General590 2. Implementation of vocational capability development598 3. Public Vocational Training Development Institution603 4. Support for Vocational Training by Private Firms604
xvi Index
Section 4. Governance of the TVET system605

1. Institutional Framework605 2. Organizations Involved and Total System (including Functions and Responsibilities of Both Central and Local Governments)610 3. Financing TVET617 4. Internationalization of TVET622 5. New Agenda and Plans for the Future628
Section 5. Conclusion632
Table Index xvii
<Table Index>
BANGLADESH
<Table 1-1> Government System of the Country5 <Table 1-2> Climatic Variations7 <Table 1-3> Population Change/Year (By Age and Gender) Population8 <Table 1-4> Population Change/Birth Rate Change:10 <Table 1-5> Female Migration from Bangladesh13 <Table 1-6> The migration rate by gender and direction of migration for 200714 <Table 1-7> Incidence of Poverty by Locality Over Time (CBN Method)15 <Table 1-8> Literacy rate (%) of population 7 years and over by gender and age 1995-200718 <Table 1-9> Adult Literacy of Population of 15 Years and Over by Gender, 1991-200818 <Table 1-10> Adult (15-45 yr old) Literacy Rates19 <Table 1-11> MILLENIUM DEVELOPMENT GOALS : BANGLADESH PROGRESS AT A GLANCE19 <Table 1-12> Employment in RMG sector22 <Table 1-13> Year Wise Overseas Employment (19762010 Aug)25 <Table 1-14> Labour force aged 15 years and over by sex and locality, 1995-200627 <Table 1-15> CIVILIAN LABOR FORCE27 <Table 1-16> SECTOR WISE EMPLOYMENT (Age : 15+)27 <Table 1-17> GROWTH RATE OF LABOR FORCE BY LOCALITY (YEAR 2002-03).28 <Table 2-1> GROSS ENROLLMENT RATE FOR PRIMARY SCHOOL BY SEX AND LOCALITY34 <Table 2-2> Passing rates and growth rates of the SSC35
xviii Table Index
<Table 2-3> Number of Institutes35 <Table 2-4> Dhakil (Vocational)36 <Table 2-5> Certificate in Vocational Education36 <Table 2-6> Computer Training Program37 <Table 2-7> Basic Trade Course (360 Hours)37 <Table 2-8> Comparison of General & Vocational Education at Secondary Level:37 <Table 2-9> Diploma in Technical Education (Course Duration 1 Year)39 <Table 2-10> Diploma in Vocational Education (Course Duration 1 Year)39 <Table 2-11> Diploma in Engineering (Course Duration 4 Years)39 <Table 2-12> Diploma in Textile Engineering (Course duration 4 Years)40 <Table 2-13> Diploma in Forestry40 <Table 2-14> Diploma in Animal Health and Production40 <Table 2-15> Diploma in Health Technology and Certificate in Health Technology41 <Table 2-16> HSC(Higher Secondary School Certificate) Business Management41 <Table 2-17> HSC (Higher Secondary School Certificate) Vocational41 <Tabel 2-18> The TVET Scenario of Bangladesh at a Glance:42 <Table 2-19> The list of the public and private institutions43 <Table 2-20> Number and Share of TVET Institutions by Program (2009; source: BTEB):45 <Tabel 2-21> Bangladesh Vocational Qualification Framework(present):49 <Table 4-1> Budget Allocation (Revenue & Development) for DTE (Directorate of Technical Education)63 <Table 6-1> Fields Green-job Under Studies74
CAMBODIA
<Table 1-1> Employment, by Sector, Age and sex88
Table Index xix
<Table 1-2> Employment Structure88 <Table 1-3> Unemployment and Participation Rate By Sex and Region (Aged 15+)90 <Table 1-4> Share of Employed Persons by Educational Level in Each Sector91 <Table 1-5> Level of Education93 <Table 2-1> Students in technical and vocational education and training96 <Table 2-2> The Number of Graduated Students in TVET Institutions 2003 200898 <Table 2-3> Number of Graduates by Subject in MOLVT Formal Training Institutes, Academic Year 2007/200898 <Table 2-4> The Number of Teachers in TVET Institutions: Fiscal Year 20072008100 <Table 2-5> Unemployment Rate105 <Table 4-1> Number of Graduates from the Prime Ministers Special Fund (2008-2009)136 <Table 4-2> Number of Graduates from Program Budgeting (2008-2009)136 <Table 5-1> External Assistance139
INDONESIA
<Table 1-1> Indonesia General Statistics154 <Table 1-2> Major Country Destination of Indonesia Migrant Workers157 <Table 1-3> School Participation Rate, 2009158 <Table 1-4> Unemployment Rates by Gender, BPS (Statistics Indonesia), and the Ministry of Manpower164 <Table 1-5> GDP Contributor by Industry, 2008-2009168 <Table 1-6> Certificate Level I-VI175 <Table 1-7> Certificate Level VII-IX176
xx Table Index
<Table 1-8> Student Enrollment by Education Level177 <Table 1-9> Numbers and Percentage of Drop Outs Including Those Who Do Not Pursue Higher Education178 <Table 1-10> Central Government Budget, 2010179 <Table 1-11> Number of Vocational Students, Schools, and Teachers by Province, 2009182 <Table 1-12> Challenges Faced by Vocational Senior Secondary Schools (SMKs) in Indonesia186 <Table 1-13> Number of SKKNI in Each Sector201 <Table 1-14> Various Types of BLK202 <Table 1-15> Number of Courses and Instructors by Province203 <Table 1-16> Major TVET Funding206
LAO PDR
<Table 1-1> Fertility Rates by Location220 <Table 1-2> Population and TVET and Upper Secondary Technical Enrolments to 2020221 <Table 1-3> Annual Percent Growth Rate of GDP222 <Table 1-4> General Education224 <Table 1-5> Vocational Education and Higher Education225 <Table 1-6> Educational Attainment of Population 6+ Years by Sex, Lao PDR (Percentages)226 <Table 1-7> Children out of school227 <Table 1-8> Public Education Expenditure227 <Table 1-9> Literacy (Definition: Age 15 and Over Can Read and Write)227 <Table 1-10> School Enrollment228 <Table 1-11> Ratio of Female to Male228 <Table 1-12> Primary Education228
Table Index xxi
<Table 1-13> Secondary Education229 <Table 1-14> Population Aged 10 and Above, by Economic Activity239 <Table 1-15> Number & Percent of Children and Youth Employed, by Age & Location240 <Table 1-16> Children and Youth Employed, by Age, Gender, and Location240 <Table 1-17> Employed and unemployed population aged 15+ years, Lao PDR, 2001-2003242 <Table 1-18> Labor Force Aged 15+ Years, Lao PDR, 2001-2003242 <Table 1-19> Employment-to-Population Ratios, Labor Force Participation Rates, Unemployment Rates and Inactivity Rates for Lao PDR, 2001-2003243 <Table 1-20> Age-Specific Labor Force Participation Rates by Urban and Rural, Lao PDR, 1995244 <Table 1-21> Unemployment rates by region and sex, 2001-2003246 <Table 1-22> Unemployed Population by Educational Attainment, Lao PDR, 2001-2003247 <Table 1-23> Employment by Sector, Lao PDR, 2001-2003248 <Table 1-24> Employed Population by Status in Employment, Lao PDR
250
<Table 1-25> Hours of Work Per Week, Lao PDR251 <Table 1-26> Comparative Labor Market Indicators, Southeast Asia252 <Table 1-27> Lao Labor Market Indicators253 <Table 4-1> Budget Item286
MONGOLIA
<Table 1-1> Primary School Enrollment, Pupils in Grades 1-5, Literacy Rate318 <Table 1-2> TVET Enrollment318
xxii Table Index
<Table 1-3> Types of Vocational Education/Training and Graduation Documents337 <Table 1-4> Summary of TVET institutions340 <Table 1-5> TVET Subject 341 <Table 1-6> Training Subject341 <Table 1-7> Connection between the Training Types of Vocational Education and Qualifications for the Beginning and Intermediate Levels346 <Table 1-8> Public Expenditure on Education, 1991, 2002 and 2007377 <Table 1-9> Current donor commitments for education sector by level379
PHILIPPINES
<Table 1-1> Philippine Population by Census Year399 <Table 1-2> Population by Age Group, by Sex and 2000 by Region: 2000400 <Table 1-3> Birth Rate, 2001-2005; 2015/2020401 <Table 1-4> Household Population 5 Years Old and Over by Highest Educational Attainment 1990, 1995, 2000402 <Table 1-5> Functional Literacy Rate of Population 10-64 Years Old by Highest Educational Attainment and Sex: Philippines 2008403 <Table 1-6> Incidence of Poverty, Philippines: 2003 and 2006404 <Table 1-7> Overseas Filipino Workers: 1991-2009405 <Table 1-8> Number and Percentage Distribution of Overseas Filipino Workers by Selected Characteristics, Philippines: 2008 and 2009406 <Table 1-9> OFWs by Major Occupation and by Place of Work: 2008 -2009407 <Table 1-10> Gross Domestic Product Growth Rate 1994-2009409 <Table 1-11> Gross National Product and Gross Domestic Product By
Table Index xxiii
Industrial Origin: Annual 2008 and 2009 at Current and Constant 1985 prices, in Million Pesos410 <Table 1-12> Gross National Product and Gross Domestic Product by Industrial Origin: 2nd Quarter 2009 and 2nd Quarter 2010, in Million Pesos411 <Table 1-13> Key Performance Indicators in Basic Education Basic Education Performance Indicators, 2004-2009414 <Table 1-14> Elementary and Secondary Enrollment: SY 2000-01 to SY 2008-09415 <Table 1-15> TVET Enrolled and Graduates: 2001 to 2009416 <Table 1-16> Higher Education Enrollment: SY 2000-01 to SY 2005-06416 <Table 1-17> Household Population 15 and Over by Employment Status: 1995-2010420 <Table 1-18> Employment Rate by Sex, By Age Group: 2000-2010421 <Table 1-19> Employed Persons by Industry, Occupation, Class of Worker and Hours Worked, Philippines: July 2009 and July 2010 (in Percent)423 <Table 1-20> Unemployed Person by Age Group, Sex, and Highest Grade Completed, Philippines: July 2009 and 2010424 <Table 1-21> Persons Assessed and Certified by Priority Sector: 2005-2009425 <Table 1-22> Enrolment and Graduates of Degree Program by Discipline: 2007-2009426 <Table 1-23> Hard-to-Fill and In-Demand Occupations428 <Table 1-24> TESDA Foreign Assisted Projects (000 pesos): 2005-2009462
SRI LANKA
<Table 1-1> Summery of the 2010 Sri Lankan Parliamentary Election485 <Table 1-2> Population491
xxiv Table Index
<Table 1-3> Demography491 <Table 1-4> National Accounts492 <Table 1-5> The system awards qualifications of seven levels as given below.526 <Table 1-6> Enrollment rate (2006-2009)536 <Table 1-7> Student enrollment and output statistics538 <Table 1-8> Particulars of teaching and training staff in major organizations functioning under the Ministry of Vocational and Technical Training at the end of 2009544 <Table 1-9> Statistics for 2009547 <Table 1-10> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and OverBoth Sexes547 <Table 1-11> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and OverMale.549 <Table 1-12> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and OverFemale.550
VIETNAM
<Table 1-1> Population in 2000-2008570 <Table 1-2> Gross Domestic Product at Current Prices by Economic Sector571 <Table 1-3> Gross Domestic Product at Current Prices by Ownership and by Kind of Economic Activity573 <Table 1-4> Number of Schools and Classes of General Education as of 30 September576 <Table 1-5> Number of Teachers & Pupils of General Education (Dec)577 <Table 1-6> University & College Education579 <Table 1-7> Labor Force in 2000-2008583
Table Index xxv
<Table 1-8> Number of Employment 2000-2008585 <Table 1-9> Employment by Industry on 1/7/2008586 <Table 1-10> Employment by Kind of Job in 2000-2008587 <Table 1-11> Employment by Position-Based in 2000-2008588 <Table 1-12> Structure of Workers by Ownership in 2004-2008589 <Table 1-13> Employment by Occupation Performed in 2008590 <Table 1-14> Vocational Training Enrollment Targets and Scale in 2001-2008599 <Table 1-15> Number of Vocational Training Schools, Vocational Training Centers, and Others, as of 30 June 2009.600 <Table 1-16> Number and Structure of Vocational Training Trainers by Qualification in 2008601 <Table 1-17> Number and Qualification of Vocational Training Managerial Cadre in 2000-2008602 <Table 1-18> State Budget Spending on Vocational Training in 20012008618
xxvi Figure index
[Figure Index]
BANGLADESH
[Figure 1-1] Population change from 1960 to 20096 [Figure 1-2] Demographic evolution of the territory of Bangladesh (1900-2010)11 [Figure 1-3] Gross Domestic Product16 [Figure 1-4] Year wise overseas employment26 [Figure 1-5] Country-wise migration29 [Figure 2-1] Year Wise Enrollment in SSC (Voc)35 [Figure 4-1] Overview of the Funding Sources of Public and Private Institutions62
CAMBODIA
[Figure 1-1] The Annual Population Growth Rate80 [Figure 1-2] Cambodias Real GDP Growth Rate83 [Figure 1-3] Student Plan after higher school92 [Figure 1-4] How high school students make decision for higher education92 [Figure 1-5] Reasons for not continuing after high school93 [Figure 2-1] Population Age Pyramid 2008102 [Figure 2-2] Labor Force Participation Rate, for Workers Aged 15 and Older103 [Figure 2-3] Employment-to-Population Ratios for Workers Aged 15 and Older104 [Figure 3-1] MOLVT Organizational Structure109 [Figure 6-1] The Rectangular Strategy for Growth, Employment, Equity, and Efficiency in Cambodia145 [Figure 6-2] Proposed TVET System146
Figure index xxvii
[Figure 6-3] The TVET System 25 Year Development Plan in Cambodia 1996-2020147
INDONESIA
[Figure 1-1] Indonesia Population by Age Group and Gender, 2005155 [Figure 1-2] Indonesia Economic Growth 1997-2009159 [Figure 1-3] Informal Workers, Urban and Rural162 [Figure 1-4] Workers by Industry, 2009163 [Figure 1-5] Number of Unemployed Higher Education Graduates167 [Figure 1-6] The Future Trend of Manufacturing Industries169 [Figure 1-7] The Indonesian Education System173 [Figure 1-8] Indonesias National Qualification Framework174 [Figure 1-9] SMK Roadmap185 [Figure 1-10] Wage Ration SMK/SMU by Main Occupation188 [Figure 1-11] SMK Teaching Industry Scheme190 [Figure 1-12] SMK Student Enrollments by Study Program191 [Figure 1-13] Competency Certification Scheme in TEVT195 [Figure 1-14] Three in One Scheme197 [Figure 1-15] Lifelong Learning Scheme200
LAO PDR
[Figure 1-1] Population Pyramid, 2005220 [Figure 1-2] Population and TVET & Upper Secondary Technical Enrollments to 2020221 [Figure 1-3] Proportion of the Population Aged 15+ That Cannot Read or Write by Residence and Sex, 2002-2003230 {Figure 1-4] Labour force participation rates245 [Figure 1-5] Distribution of GDP and Employment, Lao PDR, 2003249 [Figure 1-6] Status in Employment, Lao PDR251
xxviii Figure index
MONGOLIA
[Figure 1-1] GDP Growth316 [Figure 1-2] Percentage of Enrollment in Post Secondary Education319 [Figure 1-3] Percentage distribution of education enrollment of 5-to 29-year-olds among levels of formal education320 [Figure 1-4] Educational Pyramid321 [Figure 1-5] Labor Market Demand Ratio by Education Level (prepared by the State Employment Agency)328 [Figure 1-6] Framework of the Mongolian Education System334 [Figure 1-7] Mongolias Education System335 [Figure 1-8] TVET System336 [Figure 1-9] TVET Professional Development Training System338 [Figure 1-10] TVET TEACHERS 2009-2010343 [Figure 1-11] Financing of TVET375 [Figure 1-12] 2006 revenue sources by sector (%)376 [Figure 1-13] Percentage of TVET budget in the Total budget for education378
PHILIPPINES
[Figure 1-1] Philippine Education System412 [Figure 1-2] The TVET Development Loop to Employability432 [Figure 1-3] Average Annual Education Budget, 2005-2009462
SRI LANKA
[Figure 1-1] The Education and Training System of Vietnam575 [Figure 1-2] Labor Force 2000-2008 (In Millions of Persons)581 [Figure 1-3] Structure of Workforce by Region and Sex582 [Figure 1-4] Unemployment Rate 2002 - 2009 (%)584
BANGLADESH
BANGLADESH 3
Chapter 1
TVET Policy, Experience, and Trends in Bangladesh
Introduction:
Bangladesh is one of the worlds most densely populated countries. More than 159 million people (2007) live in this country. 90% of Bangladeshis are Muslim, and the remainder is Hindu, Buddhist, and Christian. About 45 percent of the population is under the age of 15. Natural disasters, such as cyclones and severe flooding, occur with regular frequency, causing damage, disease, and loss of food crops. Yet during the last 12 years, Bangladesh has made important development gains. Both population growth and the incidence of poverty have steadily declined, and the Gross Domestic Product (GDP) has averaged a 6 percent growth rate per year. The proportion of the population living below the national poverty line has fallen to 40 percent in 2005, from 59 percent in 1991. Considerable progress has been made toward achieving the Millennium Development Goals (MDG), especially in the health and education sectors.
4 TVET Policy Reviews of 8 Asian Countries
Section 1. Context and Background

The territory constituting Bangladesh was under Hinduism before 1200 AD. From 1201 to 1751, over five and half centuries, Bangladesh was under Muslim (Mohammedan) rule. The British ruled the Indian sub-continent including this territory from 1757 to 1947 for nearly 190 years. In August 1947, with termination of British rule, the sub-continent was partitioned into the nations of India and Pakistan (based on religion). Bangladesh was a part of Pakistan and was known as East Pakistan. On December 16, 1971, after much bloodshed in the war of liberation, an independent Bangladesh and sovereign state, declared her presence on the world map.
1. Political and Socio-cultural Context

Bangladesh is democratic country. Multiparty democracy is practiced in Bangladesh. The socio-cultural context of Bangladesh may be characterized by the low status of women, and the low literacy rate. The constitution of Bangladesh states that there will be no discrimination on the basis of gender. The government has also signed the Universal Declaration of Human Rights and ratified the Convention on the Elimination of all forms of discrimination. The female economic activity rate is 36 percent in the country, as compared to the South Asian average of 43 percent (UNDP, 2004). The literacy rates for women are 31.8% and for men, 53.9%.
BANGLADESH 5
Education expenditures represented 2.7% of GDP in 2005.

<Table 1-1> Government System of the Country Government System Parliamentary Democracy Head of State President Head of Government Prime Minister (PM)
2. Population and Demographics

The countrys population is almost evenly distributed throughout its 64 districts, except for the three Hill Tracts districts which are rather sparsely inhabited. Regionally, the eastern districts have a slightly higher density than the western ones. On average, a district has a population of about 1.8 million; an upazila/thana, 230,000; a union, 25,000; and a village, 2,000. There are 490 upazila/thana; 4,451 unions; and 59,990 villages. There are 4 metropolitan cities and 119 municipalities in the country. The level of urbanization is low at 20%. This leaves 80% of the countrys total population of about 120 million to live in the rural areas which primarily depend on a poorly developed agricultural system for livelihood. The capital city of Dhaka has an estimated population of 8.58 million.
3. Population Change
The population of Bangladesh is 162,220,762, i.e. approximately 162 million. (Source: World Bank, 2009). The population change is shown in the following graph.
[Figure 1-1] Population change from 1960 to 2009

200M
100M
0 1960 2009
4. Demographics of Bangladesh
1. Official Name: The Peoples Republic of Bangladesh 2. State Religion: Islam, other religions practiced in peace and harmony. 3. State Language: Bangla (Bengali) 4. National Anthem: The first line of national anthem is Amar Sonar Bangla . 5. National Flag: Red colored circle at the center of a green rectangle. The length to width ratio of the rectangle is 10:6, and the circle has a radius of one fifth of the length of rectangle. 6. National Emblem: The national flower Shapla (nympheanouchali) resting on water and having on each side pair of paddy ships surmounted by three connected Jute leaves that are adorned with two stars on each side. 7. Capital: Dhaka
BANGLADESH 7
8. Nationality: Bangladeshi 9. Name of Currency: Taka (TK.), Notes: Taka 1000, 500, 100, 50, 20, 10, 5, 2 & 1 Coins: Taka 5, 2, 1 and Paisa 50, 25, 10, 5, 2 &1
o o 10. Geographical Location: Between 20 34' and 26 38' north
latitude and between 88o01' and 92o41' east longitude. 11. Boundary: North: India West: India South: Bay of Bengal East: India and Myanmar 12. Area: 56977 sq. miles or 1,47,570 sq. km. 13. Territorial Water: 12 nautical miles. 14. Main Seasons: Summer (March-May), Rainy Season (JuneSeptember) and winter (December-February) 15. Climatic Variations (Average):
<Table 1-2> Climatic Variations Temperature Season maximum minimum Pre Monsoon 32.6 22.4 Monsoon 31.5 25.5 Post Monsoon 30.5 21.4 Winter 26.5 13.9 Annual 30.4 21.2
Rainfall 453 1733 210 44 203
Relative Humidity 74% 86% 80% 73% 78%
16. Standard Time: GMT+6 hours 17. Main rivers: The Padma, Meghna, Jamuna, Brahmaputra, Teesta, Surma and Karnaphuli (Total 230 rivers)
18. Main Seasonal Crops and Fruits: Paddy, Jute, Wheat, Tobacco, Pulses, Oil seeds, Tea, Spices, Vegetables, Jack-fruit, Banana, Mango, Coconut. In Bangladesh population size has been increasing continuously, although there is decline in the annual growth rate of the population. There are fewer women then men, creating a gender gap that has persisted over the decade. The distribution of population from 1990-2010 is shown in the table below.
<Table 1-3> Population Change/Year (By Age and Gender) Population (in Millions):
Year Age group (years) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 All Age group All Age group All Age group All Age group All Age group All Age group All Age group All Age group All Age group All Age group All Age group <15 2001 15-49 50+ Total Women 63.0000 24.2794 32.0790 06.5415 62.9000 Men 66.3000 26.9071 32.2751 07.9178 67.1000 130.0000 Total (millions) 109.8200 107.9921 112.8320 116.7020 117.7870 121.1010 123.0630 123.6330 125.6290 127.6690 129.3000 Source Populstat website SVRS Bangladesh Bureau of Statistics
BANGLADESH 9
Year Age group (years) <15 2002 15-49 50+ Total <15 15-49 50+ Total <15 15-49 50+ Total <15 15-49 50+ Total <15 15-49 50+ Total <15 15-49 50+ Total <15 15-49 50+ Total <15 15-64 65+ Total <15 15-64 65+ Total
Women 24.6507 33.1264 06.9229 64.7000 24.8346 33.7698 07.0956 65.7000 24.9750 34.3656 07.2594 66.6000 25.2014 34.8051 08.1053 68.1118 24.7646 35.6720 08.1634 68.600 23.8385 3690.45 08.7570 69.5000 70.5000 23.5339 45.9176 02.3614 71.8129 -
Men 26.3252 33.3498 08.2550 68.2000 26.5344 33.8590 08.7066 69.1000 26.7782 34.4191 08.9027 70.1000 27.1015 35.3033 08.9149 71.3197 26.6400 36.0000 09.3600 72.000 26.0236 37.2079 09.8685 73.1000 74.0000 24.9580 47.8628 02.7316 75.5524 -
Total (millions)
Source
Bangladesh Bureau of 132.9000 Statistics and SVRS 134.8000 Bangladesh Bureau of Statistics and SVRS Bangladesh Bureau of Statistics and SVRS Bangladesh Bureau of Statistics and SVRS Bangladesh Bureau of Statistics and SVRS Bangladesh Bureau of Statistics and SVRS SVRS
2003
2004
136.7000
2005
139.4315
2006
140.6000
2007
142.6000
2008
144.5000
2009
147.3653
From Wikipedia
2010
153.4370
Populstat website
The following table lists various recent estimates of the population. The baseline for population studies on Bangladesh is the official census which is conducted every 10 years, the last being in 2001.
<Table 1-4> Population Change / Birth Rate Change: Year Locality 2000 2001 2002 National 19 18.9 20.1 Rural 20.8 20.7 21 Urban 13.7 13.6 16.6
2003 20.9 21.7 17.9
2004 20.8 21.6 17.8
Year 1991-Base year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008-Current Year
Both Sex 56.1 56.3 57.9 58.0 58.7 58.9 60.1 61.5 62.7 63.6 64.2 64.9 64.9 65.1 65.2 66.5 66.6 66.8
Life at Birth(ex) by Gender Male Female Male-Female 56.5 55.7 (+) 0.8 56.8 55.9 58.2 57.7 58.2 57.9 58.4 58.1 59.1 58.6 60.3 59.7 61.7 61.2 63.0 62.4 63.7 63.5 64.0 64.5 64.5 65.4 64.3 65.4 64.4 65.7 64.4 65.8 65.4 67.8 65.5 67.9 65.6 68.0 (-) 2.4
BANGLADESH 11
Source National Census National Census UN Population Fund UN Dept Economic and Social Affairs US State Dept Population Reference Bureau CIA World FactBook UN Population Fund CIA World FactBook UN World Bank CIA World FactBook World Population Reference
Year 1991 2001 2003 2005 2005 2005 2006 2006 2007 2007 2008 2010 2010
Population (millions) 112 129 150 142 144 144 147 144 150 159 160 156 164
5. Population Growth Rate

Bangladesh had one of the highest rates of population growth in the world in the 1960s and 1970s. Since then, however, it has seen a marked reduction in its total fertility rate. Over a period of three decades it dropped from 6.2 to 3.2%, according to UNDP figures from 2003.
[Figure 1-2] Demographic evolution of the territory of Bangladesh (1900-2010)
Pop. growth rate:1.292% (2009 est.) country comparison to the world: 104 Birth rate:24.68 births/1,000 population (2009 est.) country comparison to the world: 71 Death rate:8 deaths/1,000 population (2009 est.) country comparison to the world: 82 Net migration rate:-2.53 migrant(s)/1,000 population (2009 est.) country comparison to the world: 145 Total fertility rate:2.74 children born/woman (2009 est.) country comparison to the world: 82
6. Urban and Rural

The sprawling mega-city of Dhaka has a huge population, but the majority of the people nonetheless still live in villages in rural areas. Urban population: 27% of total population (2009 est.) Rate of urbanization: 3.5% annual rate of change (2005-2010 est.)
7. Gender ratio
At birth: 1.04 male(s)/female Under 15 years: 1.01 male(s)/female 1564 years: 0.9 male(s)/female 65 years and over: 0.94 male(s)/female
BANGLADESH 13
8. Migration
Migration Scenario of Bangladesh: Overseas Employment officially started in 1976. Now migration extends to 132 countries. Womens migration is 5%; skilled and semi-skilled migration is 47%. Remittance was US $ 10.72 b in 2009. It is 13% of GDP & 5 times of ODA.
<Table 1-5> Female Migration from Bangladesh Year Number Year 1991 2189 2001 1992 1907 2002 1993 1793 2003 1994 1995 2004 1995 1612 2005 1996 1994 2006 1997 1762 2007 1998 939 2008 1999 366 2009 2000 554
Source: BMET
Number 659 1216 2353 11259 13570 18045 19094 20827 22224
The migration rate by gender and direction of migration for 2007 is presented in the table below. The reasons for migration by gender are included.
<Table 1-6> The migration rate by gender and direction of migration for 2007
Figures in Percentages
Year Direction 2007 Rural In-migration
Rural to Rural
Urban to Rural
Urban In-migration
Urban-Urban
Rural-Urban
Reason Total Marriage Education Looking for job Getting job Others Total Marriage Education Looking for job Getting job Others Total Marriage Education Looking for job Getting job Others Total Marriage Education Looking for job Getting job Others Total Marriage Education Looking for job Getting job Others Total Marriage Education Looking for job Getting job Others
Women 100.0 33.8 2.0 7.9 1.1 55.3 100.0 33.8 2.0 7.9 1.1 55.3 100.0 18.7 3.1 12.1 1.5 64.6 100.0 6.9 2.1 8.3 1.4 81.3 100.0 12.8 0.9 5.2 0.6 80.5 100.0 5.7 2.3 8.8 1.6 81.4
Men 100.0 1.3 3.8 24.1 3.5 67.3 100.0 1.3 3.8 24.1 3.5 67.3 100.0 1.0 4.7 30.7 4.8 58.8 100.0 0.7 2.3 21.2 4.0 71.8 100.0 1.6 0.8 12.4 1.9 83.3 100.0 0.5 2.6 23.0 4.4 69.5
source: SVRS, 2007, BBS (Bangladesh Bureau of Statistics)
BANGLADESH 15
9. Poverty Rate
With regard to financial means and options, it should also be taken into account that poverty is still persistent, since 40% of the population lives below the poverty line (MoF, PPP-paper, 2009) and many more citizens, just above. There is a growing East-West difference in poverty; while poverty rates are declining in eastern and southern Bangladesh, they are persistent in western and northern areas. Poverty is particularly declining in the Dhaka division, followed by Chittagong and Sylhet (World Bank 2008, p.13). Although polytechnic education has a relatively high share of the TVET students in these divisions, particularly in the latter two, TVET probably does not contribute a lot to this development, due to modest numbers.
<Table 1-7> Incidence of Poverty by Locality Over Poverty 1991-92 1995-96 2000 Level/Locality Upper Poverty line: Rural 58.7 54.5 52.3 Urban 42.7 27.8 35.2 Lower Poverty Line: Rural 43.7 39.4 37.9 Urban 23.6 13.7 20.0
Data source: SIES, BBS (Bangladesh bureau of statistic)
Time (CBN Method)

2005 43.8 28.4 20.5 28.6 14.6 Target-2015 28.3
10. Economy (GDP): 2004-2009

Bangladeshs GDP is expected to grow by 5.7% in 2010, following 5.9% growth in 2009. The global economic downturn has
reduced demand for Bangladesh exports. Merchandise exports decreased 7.7% year on year as of November 2009. In April 2009, the government announced a $500 million stimulus package to spur economic growth and placed emphasis on public-private partnerships. The United States and Bangladesh have had discussions over the possibility of a Trade and Investment Framework Agreement (TIFA), or a U.S.-Bangladesh Economic and Trade Cooperation Forum (UBETCF). Bangladesh would like to increase market access for its products in the United States. There are an estimated 6 million Bangladeshis working abroad. They are estimated to have sent $9.7 billion to Bangladesh in 2008-2009, making Bangladesh one of the worlds largest sources of overseas workers. This represents an increase of 22.4% year to year. Remittances are a significant source of revenue and are expected to decline in 2009-2010, due to the global economic downturn.
[Figure 1-3] Gross Domestic Product
BANGLADESH 17
11. Education
Literacy Definition: age 15 and over can read and write Total population: 43.1% Male: 53.9% Female: 31.8% (2003 est.) Education expenditures 2.7% of GDP (2005) country comparison to the world: 151 Education is the priority sector, for which the Bangladesh government plays a significant role. Essential for the nations development, education has been considered one of the most important and effective strategies for human resource development, poverty alleviation, and socioeconomic health. It is critical at this time to transform the huge population into a productive human resource through human communication and coordination, with education and training linked to new and emerging technologies. The government, with this goal in mind, has sustained development endeavors through educational expansion and quality improvement in different sub-sectors of education.
12. Education Attainment of Population by Gender and Age, Literacy

<Table 1-8> Literacy rate (%) of population 7 years and over by gender and age 1995-2007 National Rural Urban Years Women Men Women Men Women Men 1995 28.5 50.4 26.4 40.8 54.9 69.6 1997 37.5 53.6 35.3 44.5 60.6 70.2 1999 39.0 53.7 36.1 46.2 62.4 70.3 2000 40.7 53.9 37.9 48.0 62.5 71.3 2001 40.8 49.6 36.7 44.4 54.8 64.9 2002 44.5 52.8 41.0 49.3 58.8 67.3 2003 44.9 53.1 41.4 49.7 58.8 67.3 2004 46.2 53.7 42.9 50.2 60.2 68.1 2005 48.8 55.4 45.0 51.6 60.0 67.0 2006 49.1 55.8 45.3 51.9 60.5 67.5 2007 52.7 59.4 48.7 55.5 64.5 71.1
Adult literacy rates are given as follows:

<Table 1-9> Adult Literacy of Population of 15 Years and Over by Gender, 1991-2008 Adult Literacy of Population of 15 Years and Over by Gender Year Both sexes Female Male 1991 37.2 43.3 25.8 1995 45.3 55.6 38.1 1997 51.2 59.4 42.2 1998 52.6 59.4 42.5 1999 52.7 60.7 42.8 2000 52.8 61.0 43.2 2001 47.5 53.9 40.8 2002 49.6 55.5 43.4 2003 50.3 56.3 44.2 2004 51.6 57.2 45.8 2005 53.5 58.3 48.6 2006 53.7 58.5 48.8 2007 58.3 63.1 53.5 2008 59.1 63.4 54.7 Target-2015 100 100 100
Data Source: SVRS, BBS
BANGLADESH 19
It is estimated that there are around 40 million illiterate adults in the 11-45 age range in the country. As shown in the following table, only half the population is considered literate.
<Table 1-10> Adult (15-45 yr old) Literacy Rates Rural Urban Sex (%) (%) Male 46.1 56.7 Female 46.7 57.1 Total 46.4 56.9
* Source: NFE Mapping Report-2009
Total (%) 48.6 49.1 48.8
The implication is that a huge expansion of NFE (Non-formal Education), offering both literacy and skills development, is required to address the challenge of facilitating improvements in the livelihoods of this huge group of citizens.
13. National Development Plan and Strategies in General

<Table 1-11> MILLENIUM DEVELOPMENT GOALS : BANGLADESH PROGRESS AT A GLANCE Goals, Targets and Indicators (revised) Base year Current Target 1990/1991 Status by 2015 Goal 1: Eradicate Extreme Poverty & Hunger Target 1.A: Halve, Between 1990 & 2015, the Proportion of People Below the Poverty Line 1.1 : Proportion of population below national 56.6 40.0 29.0 upper poverty line (2122 k.cal.), percent (2005) 1.2 Poverty Gap Ratio, percent 17.0 9.0 8.0 (2005) 1.3 Share of poorest quintile in national 6.5 5.3 Na consumption, percent (2005)
Target 1.B: Achieve Full & Productive Employment & Decent Work for All, Including Women & Young People 1.1 Employment to population ratio, Percent 58.5 for all (2005) Target 1.C : Halve, between 1990 and 2015, the Proportion of People Who Suffer from Hunger 1.2 Prevalence of underweight children under five years 1.3 Proportion of population below minimum level of dietary energy consumption, percent Goal 2: Achieve Universal Primary Education 66.0 28.0 47.8 (2005) # 19.5 (2005) 33.0 14.0 48.5
Target 2.A : Ensure That, by 2015, Children Everywhere, Boys & Girls Alike, Will Be Able to Complete a Full Course of Primary Schooling 2.1 Net enrollment in primary education, percent 2.2 Proportion of pupils starting grade 1 who reach grade 5, percent 2.3 Adult literacy rate of 15+ years old population (proxy), percent 60.5 40.7 37.2 91.1 (2007) 79.8 (2009) 59.1 (2008) 72.0 (2009) 100 100 -
Adult literacy rate of 15-24 years old population (Female), percent Goal 3: Promote Gender Equality & Empower Women
Target 3.A : Eliminate Gender Disparity in Primary & Secondary Education, Preferably by 2005, & in All Levels of Education No Later than 2015 3.1a Ratio of girls to boys in primary education (Gender Parity Index=Girls/Boys) 3.1b : Ratio of girls to boys in secondary education (Gender Parity Index=Girls/Boys) 3.1c : Ratio of girls to boys in tertiary education (Gender Parity Index=Girls/Boys) 3.2 Share of women in wage employment in the non-agricultural sector, percent 3.3 Proportion of seats held by women in national parliament, percent
(Bangladesh Bureau of Statistics)
0.83 0.52 0.37 19.1 12.7
1.03 (2009) 1.17 (2009) 0.61 (2006) 14.6 (2005) 19.0 (2009)
1.0 1.0 1.0 50 33
BANGLADESH 21
Section 2. Employment and Labor Market

Employment provides the key link between economic growth and poverty, making it the major tool for poverty reduction in Bangladesh. Bangladesh experienced a steady rise in GDP growth during the last five years (2003-2007), when it grew at an average annual rate of more than 6 percent, compared with 5 percent over the previous five years.
1. Bangladeshs Export Sector

Recent studies indicate that women in Bangladesh constitute the majority of the incremental labor absorption in the countrys exportoriented manufacturing enterprises. It is also generally believed that cheap and readily employable female labor underpins the competitive advantage of Bangladeshs export sector. To understand the nature of womens employment in Bangladesh, we need to examine the factors that contributed to the feminization of manufacturing employment. Is it the gender gap in the effective wage structure that underpins the growth of female labor in Bangladesh? Are they paid less than men for similar jobs, even when productivity differentials are accounted for? Why do entrepreneurs prefer employing young, single, literate women? Does this preference stem from supposedly lower wages of women, or other non-wage factors, such as their social docility and amenability to repetitive
processes? Available information suggests that conventional measures of gender bias, such as wage gaps, access to employment, and lack of job security, are relatively less conspicuous in more organized segments of Bangladeshs manufacturing sector. Let us test the above context though a case study. New Age Group is a leading exporter of RMG (ready made garments) from Bangladesh that employ over 4000 people, 70% of whom are women. The table below outlines employment in their three production facilities, broken down into varying skill groups. The last column of the table shows the discrimination index of average wages of the various groups of employees, as compared with their male counterparts.
<Table 1-12> Employment in RMG sector Employment Gender Group Male Female Supervisors 183 10 Sewing Dept 308 1370 Finishing Dept 241 205 Cutting Dept 174 23 QC Dept 174 53 Helpers 152 1087
Discrimination index Male Female 100 79 100 97 100 88 100 89 100 95 100 100
2. Labor Market
The Bangladesh Bureau of Statistics (BBS 2008) has recently published the Labour Force Survey (LFS) 2005-06, which provides insight into several relevant issues. In relative terms, employment is shifting from agriculture to industry and, particularly, to services
BANGLADESH 23
sector jobs, though employment in the agricultural sector is still growing at a rate of 0.7%. Yet, job growth rates in the industry and services sectors are higher, with 3.9 and 5.4% respectively. In the industry sector, construction, in particular, is the job driver (+7.5%), while growth in manufacturing (+2.8%) is lower. Actually, the share of agricultural jobs is 46%, while that of the services sector is largely unchanged (23%). Service sector employment increased to 31%. The LFS 2005-06 (p. 53) clearly indicates that the share of the labor force engaged in the primary sector (agriculture, forestry, and fishing) is almost unchanged, though slightly diminishing. Of some interest is the gender difference; women get more involved, and men, less. Most industry areas, such as manufacturing (average growth rate: +6.4%), wholesale, retail, and vehicle repair (+5.2%) show higher labor force numbers, as well as shares and are, therefore, growing, while construction (-0.4%), electricity, gas, and water supply (-8.1%) are decreasing. Almost all service areas, except public administration and defense (-3.7%) and health and social work (-10.4%), are of increasing importance. Hotels, restaurants (+8.1%), logistics (9.7%), real estate (7.2%) and, particularly, financial intermediation (+31.5%) are growing labor market segments. Yet, it should be noted that the size of these segments is different. For example, while 23 million people are employed in agriculture, hunting and forestry, financial intermediation accounts for 220,000 jobs. Finally, it should be noted that Bangladesh is a big exporter of labor force. Remittances from overseas employment are currently higher than the export income of any one industrial sector.
3. Demography and the Labor Market

One of the biggest challenges for the labor market is the increasing number of young people. Due to demography, the size of the labor force will increase strongly over the next years. Between 2005 and 2015, the working age population will grow by about 22 million people (p. 20f). Thus, to cope with this growth of unskilled, semi-skilled and (highly)-skilled labor, the job market will have to increase at a substantial rate. This demographic growth will surely affect all areas of education, though at different levels and times. Given the different qualification levels required in the economy, this pattern suggests a well-structured strategy covering the whole range of skills, from basic vocational, to highly-skilled vocational and technical. As far as it can be established, the delivery of basic vocational and technical skills is far more prevalent in other ministries than education.
4. Migration and Overseas Employment

Although migration is considered an option for coping with the demographic challenge, this is only one side of the coin. At the moment, the number of Bangladeshis working abroad seems to be relatively modest, with less than 560,000 estimated to be working overseas in April 2009 (Byron 2009). Prior to the economic crisis which began in early 2008, the number was 875,000 (BMET). On the other side of the coin is the potential risk that, in the long run, particularly the better educated will leave the country to work abroad.
BANGLADESH 25
With regard to the ambitious goal of achieving growth rates of 10% and more within 10 years, an increasingly skilled labor force is required. In fact, the strategy of increasing skill levels should not be to look at the formal education sector only, but also at the non-formal, as well as the informal sector of education, including technical and vocational education and training. Bangladesh is a small country of around 1,47,570 sq. km., with 76 per cent of total population living in rural areas. Despite the significant effort undertaken by the GOB to reduce poverty, around half of the rural population is still poor. To make the country economically sustainable, manpower export is very essential. Year wise overseas employment (1976 2010 Aug) is shown below.
<Table 1-13> Year Wise Overseas Employment (1976 2010 Aug) Year Number Year Number Year Number 1976 6087 1988 68121 2000 222686 1977 15725 1989 101724 2001 188965 1978 22809 1990 103814 2002 225256 1979 24495 1991 147173 2003 254190 1980 30073 1992 188124 2004 272958 1981 55787 1993 244508 2005 252702 1982 62762 1994 186326 2006 381516 1983 59220 1995 187543 2007 832609 1984 56714 1996 211714 2008 875055 1985 77694 1997 231077 2009 475278 1986 68658 1998 267667 1987 74017 1999 268182
Source: BMET Up to August 2010: 2,62,000
[Figure 1-4] Year wise overseas employment
1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
5. Employment and Labor Market Information Table
According to the Labor Force Survey (LFS) by Bangladesh Bureau of Statistics, the labor force aged 15 years and over by sex and locality 1995-2006 is shown in the following table (numbers in millions).
Series1
BANGLADESH 27
<Table 1-14> Labour force aged 15 years and over by sex and locality, 1995-2006
(in Million)
Period & Source 1995-96 LPS 1999-2000 LPS 2002-03 LPS 2005-06 LPS
National Women Men 5.4 30.6 8.6 32.2 10.3 35.0 12.1 37.3
Rural Women Men 3.8 23.9 6.4 25.1 7.7 27.3 9.3 28.4
Urban Women Men 1.6 6.7 2.2 7.1 2.7 8.6 2.8 8.9
Source: Labour Force Survey, 2002-2003 and 2005-2006, BBS
<Table 1-15> CIVILIAN LABOR FORCE Employment 1999-2000 Status Total 45043 Employed 42818 Unemployed 2225
Year 2002-2003 46324 44322 2002
Source: Labor Force Survey, BBS. (Bangladesh Bureau of Statistics)
<Table 1-16> SECTOR WISE EMPLOYMENT (Age : 15+)

Major Industry Total Agriculture, Forestry. Fisheries Mining & Quarrying Electricity, Gas, Water Construction Trade, Hotel, Restaurant Transport, Storage and Communication Bank, Insurance & Finance Manufacturing Community Personal Service, Household Sector & Others Real Estate, Rent, Business Activities Public Administration Education Service Health & Social Work Total Urban 47324 10722 21887 2777 1044 108 82 8 98 49 1541 558 9671 2449 3015 1000 223 155 4343 1505 2549 194 988 1185 504 827 106 529 434 217
(Million)
Rural 33599 19109 936 73 49 983 4222 2015 68 2838 1722 87 459 751 287
Source : Labour Force Survey 2002-03, BBS. (Bangladesh Bureau of Statistics)
<Table 1-17> GROWTH RATE OF LABOR FORCE BY LOCALITY (YEAR 2002-03). Locality Both Sex Male Female Bangladesh 4.4 3.8 6.5
Urban Rural 6.9 3.6 6.7 2.9 7.6 6.2
Source : Labour Force Survey 2002-03, BBS. (Bangladesh Bureau of Statistics)
6. Skill Supply and Demand (Overall Marketplace Requisite Skills)

In the globalization era, it is necessary for us all to survive in an international environment. Therefore, Bangladeshi Human Resources seeks to constantly improve current skills and acquire new ones. Twenty-first century skills require the acquisition and evaluation of data; the organization and maintenance of files; and the interpretation, communication, and use of computerized information. An understanding of social, organizational, and technological systems; monitoring and correcting performance; and designing or improving systems are the skills that vitalize an evolving workforce. Technology has become unavoidable, so much so that selecting equipment and tools; applying technology to specific tasks; and maintaining and troubleshooting technological devices are necessary skills for an average employee. These significant skills are discussed under the following categories. 1. Technical skills 2. Analytical skills
BANGLADESH 29
3. Communication skills 4. Multi-disciplinary and inter-disciplinary skills
7. Country Wise Overseas Employment (1976 2009) : Top 10 countries

[Figure 1-5] Country-wise migration
Skill Mismatch / Skill Shortage: Bangladesh is struggling to respond to the skills needs of their workforce. The skill mismatch and skill shortage are caused by numerous factors, outlined below: 1. Increasing globalization; 2. New technology/changing technology; 3. Changing patterns of work; 4. Mismatch between training and skills required;
5. Mismatch between demand and supply; 6. Lack of adequate industry participation; 7. Recognition of qualification; 8. Inadequate number of trainers; 9. Inadequate vocational training infrastructure; 10. Low employment outcome of graduates; 11. Resources (who will fund and maintain); 12. Upgrading of tools and equipment; 13. Poor relationship with industry/employer and institutions; and 14. Lack of tripartite (government, employer and worker) approach.
8. New Demands: Industry and Government Policy

The demand for workers from Bangladesh in the coming years will depend on many factors, among them: the prospect of economic growth of the labor receiving countries, especially in the gulf region, the principal destination of short term Bangladesh workers; availability of cheap labor in Bangladesh; the skill development program of the government; and, of course, government initiatives to introduce discipline and transparency in the migration process. Bangladesh is one of the most densely populated countries in the world. The agricultural sector employs approximately 63% of the workforce and accounts for 19.9% of GDP, while industry employs 11% and contributes 20.6% of GDP. Services account for 26% of the labor force and 59.5% of GDP. The major crop is rice, in which Bangladesh is nearly self-sufficient. Industry is centered mainly on
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cotton textiles, jute manufacturing, and food processing. Ready-made garments and knitwear are important exports for Bangladesh. Foreign exchange earnings from remittances by Bangladeshis working abroad are another key source of income for Bangladesh.
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Chapter 2
TVET Systems by Target Group: Adults, Teachers, Trainers, and Enterprises
Section 1. TVET Systems by Target Group

Access to education, training, and lifelong learning will be promoted for people with nationally identified special needs, such as youth, low-skilled people, people with disabilities (PWD), migrants, and internally displaced people, older workers, indigenous people, ethnic minority groups, the socially excluded; and/or workers in small and medium-sized enterprises, the informal economy, rural sector, and self-employment.
Section 2. TVET for Students by Level of Education

Levels of education in Bangladesh are categorized as follows:
(a) Primary level (b) Secondary level (c) Higher Secondary level (d) Higher level Primary education in Bangladesh ensures the children acquire the four basic skills of reading, writing, listening, and speaking. But the reality is that 9 out of 100 children never enroll in any primary schools. 45% of the enrolled children do not complete primary cycle. Learning achievements are very poor.
<Table 2-1> GROSS ENROLLMENT RATE FOR PRIMARY SCHOOL BY SEX AND LOCALITY Locality GER (Gross Enrolment Rate) 2004 2003 Boys Girls Boys Girls National 104.8 102.30 106.90 104.80 Rural 106.2 103.10 107.90 105.60 Urban 99.3 98.70 101.20 100.60
Source : SVRS 2004, BBS.
In the existing education system there is scope for vocational education for the primary level student.
Secondary Level: Vocational and Academic School Rate, Apprenticeship, Enrollment Rate Enrollments and Passing Rates of the SSC Vocational Examination are given below:
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<Table 2-2> Passing rates and growth rates of the SSC No of No of Student appearing Pass rate Year Institute SSC (Voc) (%) 2000 427 14560 61.85 2001 535 20055 57.16 2002 680 25590 43.45 2003 687 31627 38,92 2004 870 31452 51.16 2005 950 35779 51.44 2006 1227 48309 61.37 2007 1338 64637 51.08 2008 1463 82375 62.88
Growth rate (%) 37.74 27.60 23.59 -0.55 13.76 35.02 33.80 27.77
[Figure 2-1] Year Wise Enrollment in SSC (Voc)
1. SSC (Secondary School Certificate) (Vocational):

<Table 2-3> Number of Institutes
Number of Institutes Public 129 Private 1597 Total 1726 Intake Capacity 125,000
2. Area/Field:
Audio Video System(Electronics), Agro Based Food, Automotive, Building Maintenance, Civil Construction, Computer, Drafting (Civil), Drafting (Mechanical), Dress Making & Tailoring, Farm Machinery, Fish Culture & Breeding, Fruit & Vegetable Cultivation, Food Processing & Preservation, General Mechanics, General Electrical Works, Livestock Rearing & farming, Poultry Rearing & Farming, Refrigeration & Air Conditioning, Welding Works, Electrical Maintenance Works, Dying Printing & Fishing, Glass, Wood Working, Ceramic, Machine Tools Operation, Knitting, Plumbing & Pipe Fitting, Weaving, Welding & Fabrications, Architectural Drafting With AutoCAD, Electrical Machine Maintenance, Industrial Electronics, Nursing & Mid-wifery, Hotel Management & Catering, Foundry Works, Shrimp Culture & Breeding.
<Table 2-4> Dhakil (Vocational)
Number of Institutes Public Private 100 Total 100 Intake Capacity 6,000
<Table 2-5> Certificate in Vocational Education

Number of Institutes Public 01 Private Total 01 Intake Capacity 120
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<Table 2-6> Computer Training Program

<Table 2-7> Basic Trade Course (360 Hours)

<Table 2-8> Comparison of General & Vocational Education at Secondary Level:

Year 2003 2004 2005 2006 2007 2008 2009 SSC Examinee Total 1084241 964507 944015 995123 1024537 1006569 1058674 Vocational 31627 31452 35779 48309 64637 82375 75057 % of Vocational Education 2.92 3.26 3.76 4.86 6.31 8.18 7.08
3. Training Scheme for Non-schooling (Apprenticeship)

The TVET system covers formal, non-formal, and informal education programs, though the general education covers particularly the formal and, to some extent, the non-formal TVET system, including apprenticeships in the informal economy. Mainly apprenticeships or on- the- job training are provided by employers.
Apprenticeships can take place in the formal economy, as well as in the informal economy. It is appropriate to also include the informal economy; otherwise 80% or even 90% of the economy would be excluded. The extent of apprenticeships in the Bangladesh training system is considerable. As far as formal apprenticeships are concerned, the number is obviously very small. However, in the informal sector it is clear that there is a well established system that provides opportunities for thousands of young Bangladeshis (ILO, 2009). Aiming at an extension of this kind of skills development, and having a (more) formalized system of skills assessment in place, (for major parts of non formalized apprenticeships), an apprenticeship voucher can be introduced, equipping apprentices with a certain amount of money, e.g. to cover some of the employers costs and, possibly, also some of the apprentices costs of living (either directly to the apprentice or indirectly via the employers paying a small salary to the apprentice). The voucher also can flexibly cover the duration of training with, for example, a fixed amount of money, say Tk 1,000 per month.
4. Upper Secondary Level: Entrance Rate and Employment

For diploma level institutes, including polytechnics and similar type institutes, the following criteria are described:
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These types of institutes conduct a 4 years diploma course in Engineering, Survey, Glass, Ceramic, Graphic Arts and Printing. The pre-requisite qualification is: SSC, SSC (voc) and equivalent.
<Table 2-9> Diploma in Technical Education (Course Duration 1 Year)
<Table 2-10> Diploma in Vocational Education (Course Duration 1 Year)

<Table 2-11> Diploma in Engineering (Course Duration 4 Years)

5. Area/Field:
Architecture, Automobile, Chemical, Civil, Civil (Wood), Computer, Electrical, Electronic, Food, Mechanical, Power, Refrigeration and Air-Condition, Offset Printing, Graphic Reproduction Printing, Ceramic, Glass, Marine, Shipbuilding, Aircraft Maintenance (Aerospace), Aircraft Maintenance (Avionics), Computer Science, Data Telecommunication and Networking, Surveying, Architecture and Interior Design, Construction, Electro medical, Environmental, Garments Design and
Pattern Making, Instrumentation and Process Control, Mechatronics, Mining and Mine Survey, Telecommunication.
<Table 2-12> Diploma in Textile Engineering (Course duration 4 Years)
Area/Field: Yarn Manufacturing, Fabric Manufacturing,

Wet Processing, Garments & Clothing.
<Table 2-13> Diploma in Forestry
<Table 2-14> Diploma in Animal Health and Production

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<Table 2-15> Diploma in Health Technology and Certificate in Health Technology

No of Institution a. M/O Health b. M/O Education a. b. Intake Capacity Public 5 0 Public a. b. 0 Private 29 52 Private 67 Total 34 52 Total 67 2180 4100 1920 Total Intake Capacity
Certificate in Health Technology
<Table 2-16> HSC(Higher Secondary School Certificate) Business Management

Number of Institutes Public Private 1327 Total 1327 Intake Capacity 119,250
Area/Field: Computer Operation, Secretarial Science, Accounting,

Banking, entrepreneurship.
<Table 2-17> HSC (Higher Secondary School Certificate) Vocational
Number of Institutes Public 64 Private Total 64 Intake Capacity 16,740
6. Non-schooling Level: % of Non-schooled Adolescents, Training Scheme for Non-schooling (Apprenticeship)

Non-schooled adolescents: For non-schooled adolescents there is limited access to formal skills training, as their education level is not equivalent to Grade VIII / Junior Secondary (e.g. UCEP graduates are allowed to appear for SSC vocational and can therefore access formal education options).
<Tabel 2-18> The TVET Scenario of Bangladesh at a Glance:
Total Enrollment in Technical Total Enrollment Enrollment in TVE as and Vocational Education Secondary Education % of Total Secondary (TVE) Enrollment 124,000 10,691,000 1.2
Section 3. TVET for Adults

There is no access to formal skills training, as the education level is not equivalent to Grade VIII/Junior Secondary level. There is no access to formal education/opportunity for advancing education level beyond Post Literacy. In Bangladesh there are public (government) training institutes and private (non-government) training institutes. Very poor linkage is seen between public and private training institutes.
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Section 4. TVET and Enterprises

To improve linkages between TVET and enterprises, the government will take such initiatives as: Ensuring that employers and workers representatives participate in the national VET Policy Development Committee; Ensuring that employers representatives are appointed to Skills Standards Drafting committees and Qualifications Development committees
1. TVET and Enterprises:

Both private and public enterprises exist in Bangladesh. The list of the public and private institutions is given as follows:
<Table 2-19> The list of the public and private institutions
Public (Government) 1. Technical Training Center (TTC), under the Ministry of Labor 2. Technical School & College (TSC) & Polytechnic Institute, under the Ministry of Education 3. Youth Training Center, under the Ministry of Youth & Sports Private (Non Government) 1. UCEP (under the Privileged Children Education Program) 2. MATWS (Mirpur Agricultural 3. Bangladesh Technical Education Board (BTEB) affiliated Vocational & Technical School/Training Institute. 4. Private Polytechnic Institute
2. Role of Enterprises
2.1 Role of Government in educational development The government has the following duties: Establish new educational institutes on regular basis from a central fund; Prepare syllabi through its agencies; Conduct examinations; Prepare education policy; Contribute full funding for state educational institutes and 90% of salaries for non-governmental educational institutes; and Assist international organizations in improving the quality of Technical and Vocational Education. 2.2 Role of Community Participation in Education Here the role of the community is described: Industry people are involved in preparing syllabi to make the curriculum market oriented; Industry linkage is being maintained with educational institutes, and students are granted opportunities for industrial attachment program in the industries; At present some non-government organizations are conducting Technical and Vocational Education programs; and Some private organizations are conducting diploma and degree courses in TVET.
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Absolute Numbers/ Share of TVET Institutions by Program:

<Table 2-20> Number and Share of TVET Institutions by Program (2009; source: BTEB): Absolute Numbers Share TVET Institutions by Program Private Public Total Private Public Total Computer only 261 261 8.2% 8.2% Short courses only 33 33 1.% 1.% Computer & Short courses 18 18 0.6% 0.6% SSC only 1,359 54 1,413 42.7% 1.7% 44.4% HSC only 1,067 2 1,069 33.5% 0.1% 33.6% SSC & HSC 145 63 208 4.6% 2.0% 6.5% Diploma only 83 44 127 2.6% 1.4% 4.0% Computer & SSC 4 4 0.1% 0.1% Computer & HSC 20 20 0.6% 0.6% Computer & Diploma 4 1 5 0.1% 0.0% 0.2% Short courses & SSC 2 2 0.1% 0.1% Short courses & HSC 2 2 0.1% 0.1% Short courses & Diploma 3 2 5 0.1% 0.1% 0.2% Computer & Short courses & 2 2 0.1% 0.1% Diploma SSC & HSC & Diploma 2 2 0.1% 0.1% HSC & Diploma 10 10 0.3% 0.3% Total 3,013 168 3,181 94.7% 5.3% 100.0%
3. TVET in SMEs (Small and Medium Enterprises)

3.1 SME Policy The SMEs are recognized worldwide as engines of economic growth. The SMEs are relatively more predominant in the developing countries, like Bangladesh. Because of the various socio-economic backgrounds, SMEs enhance employment and create opportunities
for poverty alleviation. Important to SME development, the government has also adopted an SME policy. The PRSP (National Strategy for Accelerated Poverty Reduction) provides a policy framework for reducing poverty and pursuing equitable development. It synthesizes a wide range of law and policy initiatives and aims to reduce poverty through four strategic channels: (1) economic growth initiatives, including private sector investment, employment generation, and trade; (2) pro-poor sector initiatives, including agriculture and rural development, SME development, infrastructure development, and development of information and communication technologies (ICT); (3) strengthening of social safety net programs; and (4) human development programs related to Technical and Vocational Education Training (TVET), health care and food safety, and water and sanitation. To ensure that these initiatives produce equitable and sustainable results, the PRSP also includes several supporting strategies, such as womens rights and advancement. Key elements of the SME Policy include: (1) surveying SMEs to identify industries with growth potential; (2) strengthening the role of public agencies, such as BSCIC, to provide more effective support to SMEs; (3) providing tax incentives to SMEs; (4) simplifying relevant laws and regulations; (5) fostering subcontracting and other linkages between SMEs and larger enterprises; (6) promoting e-commerce to support SME production and marketing; and (7) establishing an
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information bank to improve marketing and trade opportunities. External agencies such as ADB, the World Bank, USAID, and DFID are supporting elements of the new policy through various projects and programs. For example, ADB and the World Bank have provided loans to the government for SMEs through the Small Enterprise Fund. The SME Sector Development Program supported by ADB also includes a gender action plan, which provides for (a) representation of women entrepreneurs in the preparation and implementation of the SME policy; (b) inclusion of sex disaggregated data in the SME information bank; (c) earmarking of at least 10% of the Small Enterprise Fund for women borrowers; and (d) targeted training programs designed to meet the specific needs of women entrepreneurs.
Section 5. TVET Infrastructure:

1. Certification Standard:
Certificates are issued by BTEB, Ministry of Labor, Dhaka University, and Islamic University of Technology (IUT).
2. Certification for Instructor and Trainers: (Pre-job and In-job Training):

The following credentials are granted by BTEB and the Ministry of Labor:
1. Certificate in Vocational Education and Training (CVET) 2. Diploma in Vocational Education (DVE) 3. Diploma in Technical Education (DTE) 4. Diploma in engineering 5. B. Sc. in Technical Education (B.Sc. TE ) 6. Post graduate Diploma in Technical Education (PGDTE) 7. M. Sc. in Technical Education (M. Sc. TE)
3. Course for Trainees (School going student/drop out students, jobless or unemployed):
1. Basic Skill, 360 Hours (Certificate is issued by BTEB) 2. National Skill Standard 3, (NSS-III), 1 Year (Certificate is issued by BTEB) 3. National Skill Standard 2, (NSS-II), 2 Years (Certificate is issued by BTEB) 4. National Skill Standard 1, (NSS-I), 4 Years (Certificate is issued by BTEB) 5. Self Employment Training Program (3 Weeks to 1 Year) (Certificate is issued by Ministry of Labor) 6. Apprenticeship Training (Certificate is issued by Ministry of Labor/related organization/enterprises) 7. In-Service Training (Certificate is issued by related organization/ enterprises) 8. On-the-Job Training (Certificate is issued by related organization/ enterprises)
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4. National Vocational Qualification (NVQ) System:

<Tabel 2-21> Bangladesh Vocational Qualification Framework (present):
NSS Basic NSS III NSS II NSS I NSS Master Basic Skill Semi-skilled Skilled Highly skilled Master Craftsman 360 hours Basic trade course SSC (Voc) Class IX SSC (Voc) Class X HSC (Voc) Class XI & XII Industry Assessed
** NSS National Skill Standard
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Chapter 3
Governance of TVET system:
Section 1. Institutional Framework

1. Governing Structure
In principle, the TVET system covers formal, non-formal and informal education programs, though general education covers particularly the formal and, to some extent, the non-formal TVET system, including apprenticeships in the informal economy. This report caters mainly to the formal institution-based stream of TVET, whose programs are accredited by BTEB and where institutions are operating under the Ministry of Education and the Bureau of Manpower Employment and Training (BMET). Yet, it should be understood that several other ministries are also engaged in non-formal TVET, and they are not covered by this report. The focus on financial support and programs of the Directorate of Technical Education (DTE); the Ministry of Education (MoE); and/or the
Bureau of Manpower Employment and Training (BMET) meets general education requirements, as all the figures mentioned in other studies pertain to state financing for state institutions, i.e. polytechnics, Technical Schools and Colleges (TSC), and Technical Training Centers (TTC) which are funded either through the Directorate of Technical Education (Ministry of Education) or the Bureau of Manpower Employment and Training (BMET).
2. National Vision and Strategic Direction of TVET

The vision or TVET shared by the government, industry, workers and civil society is expressed as follows: TVET in Bangladesh will recognized and supported by government and industry as a coordinated and well planned strategy or national and enterprise development. The TVET system will empower all individuals to access decent employment and ensure Bangladeshs competitiveness in the global market through improved skills, knowledge, and qualifications that are recognized for quality across the globe. TVET will: (a) Enhance individuals employability (wage/self employment) and ability to adapt to changing technologies and labor markets; (b) Improve the productivity and profitability of enterprises; and (c) Strengthen national competitiveness and reduce poverty.
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Section 2. National Development and TVET Policy

1. Economic Development and TVET Policy
1.1 TVET and Economic Development and Future Priorities The government has a clear vision of achieving GDP growth rates of about 10% over the next 8 to 10 years (MoF 2009). Even in recent years, growth rates are quite substantial and much higher than international (world-wide) levels at 6.2 and 6.4% in 2008/09 and 2007/08, respectively. This is slightly less than the growth rates of China, but well ahead of India, whose economic development is greater than that of Bangladesh. The drivers of economic development in Bangladesh are the industry and services sectors whose growth rates are well above the agricultural sector. However, even the growth rates of the agricultural sector were above 4%, mostly. 1.2 Social Development Social development is government-targeted to meet the demand of market-driven skills. In the same vein, there is no social dialogue in skills development for a greener economy. Two major arguments are responsible for strong public intervention and financing. The most important issue is that education and training is linked to (large) social benefits, which cause an externality and are linked to under-investment, if decisions on education and TVET are made by individuals and companies only. The second need is to ensure social equity for those who cannot afford to bear the costs education or
TVET on their own. Since public spending reduces the individual costs, it is suitable to support special training opportunities for socially disadvantaged groups. Vocational education institutes, in particular, provide training courses that have been initiated as mediums for deep social responsibility. The overall vision should be an integrated national skills development system which promotes economic and employment growth and social development through a focus on education, training, and employment services. 1.3 Social Status of TVET: 1. The value and status of TVET need to be upgraded; 2. A new partnership between government, employers, workers, and the social partners under the PPP is required in Bangladesh; and 3. Representatives of government, employers and worker organizations must jointly promote the development of TVET. 1.4 TVET Policy Priority: Review and strengthen TVET policies, systems, and legislation at the central and decentralized levels; Enhance flexibility, quality, and relevance of TVET; Strengthen TVET institutions through improved knowledge and skills of managers and teachers; and Develop the National Technical and Vocational Qualification Framework (NTVQF)
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2. Social Partnership and TVET

Firstly, the public allocations for private institutions shall be taken into account. Private educational institutions can receive public funding through so-called MPOs (Monthly Payment Orders), covering 100% of the teacher salaries. In total, 1,100 out of 15,500 private MPO-funded institutions deliver TVET program, i.e. a share of 7.1%. According to statistical figures, only 1.9% of all MPO allocations are for private TVET-courses. The most important ministries as far as formal TVET is concerned are the Ministry of Education (MoE) and the Ministry of Expatriates, Welfare & Overseas Employment (MoEW&OE). Both ministries have special units which are responsible for the operation of TVET, i.e. the Directorate of Technical Education (MoE) and Bureau of Manpower Employment and Training (BMET). However, several other ministries are also engaged in technical and vocational education. A third reason is that non-formal programs do not need to be accredited through BTEB.
Sustainability of achievements:
Priorities to sustain achievements include: 1. Keeping pace with new technologies; 2. Increasing womens participation in TVET; 3. Continuing to update syllabi as per market demand; 4. Linking to industries for the enhancement of practical skills;
5. Increasing training facilities for teachers and trainers; and 6. Internationally linking and cooperating in the share and exchange of technical knowledge
Section 3. Assessment of TVET Policy

The skills development system must be responsive to present and future industry needs and will move to implement a competencybased training and assessment (CBT&A) system to achieve that end.
1. Major Achievements in TVET Ensuring Accessibility:

New institutes are established to enhance enrollment. With 18,320 students registered, capacity increased over the last three years. Special quota facilities are provided for tribal (2/4 each institutes); dependant freedom fighters (2 each group of each department); women (10%); and students with vocational back ground (15%). Four separate polytechnic institutes for women are established, with an intake capacity of 680 (enrollment= 680*; 4 years course =2,720). Dual shift program are launched with the existing infrastructure; 30% of basic salaries are paid, so that capacity doubles those institutes where dual shift programs are in place; in so doing, the increased intake capacity number escalates to 14,630.
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2. Quality and Relevancy:

To ensure quality and relevancy of programs, Syllabi are updated according to market needs and demands; Monitoring tools are designed, and monitoring is done effectively; Industrial linkage enhances practical experience; New equipment is supplied for the updating of skills; Training facilities are arranged for teachers and staff, both home and overseas; and Linkage is maintained with international agencies for exchanging technical knowledge.
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Chapter 4
Financing of TVET
Section 1. Financing Regime (Institute) for TVET

Skills development brings returns to individuals, enterprises, and society as a whole. Therefore all stakeholders, including government, public and private enterprises, and individuals, as direct beneficiaries, should contribute to the national investment in education and skills training. The financial institutes supporting TVET at present are as follows: 1. Government of the Peoples Republic of Bangladesh (GOB) 2. World Bank 3. ILO 4. UNESCO 5. UNICIEF 6. ADB
7. KOICA 8. JICA
Section 2. Financial Support System or Mechanism

The financing of TVET institutions covers two issues: at the micro-level, it concerns the sources and mechanisms of institutional funding; at the macro-level it deals with overall funding levels and their distribution between public and private sources. In Bangladesh, several financiers support both the public and the private providers. The public and private sources and the level of funding received from them differ for public and private TVET-institutions. The public TVET providers are mostly funded from the GoBs (Government of Bangladesh) budget allocation via a corresponding ministry.
Section 3. Private Funding of Public TVET Institutions

Although students who are enrolled in formal programs of public TVET-institutions pay a nominal fee of about TK 20 per semester, these funds flow into the public revenue. In addition, public providers can also run the so-called self-supporting short courses, conducted usually in the afternoon or evening. Students and sometimes employers finance these courses through fees. The funds
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will have to be spent mainly for teacher salaries and for those items required to run the courses, i.e. teaching and raw materials.
Section 4. Funding of Private Providers

Private institutions can be divided into three segments. The first group receives its basic funding in the form of so-called MPO (Monthly Payment Order) from the government. This MPO covers 100% of the teachers salaries. Other recurrent expenditures are financed mainly through student fees. Donations from public or private sources may also cover part of the expenditures. The second group of private training centers/schools does not receive any public support and is dependent on the fees collected from students or donations, etc. It should be noted that MPO-funding is related to certain programs, so private schools can run MPO as well as non-MPO programs, sometimes in general education, as well as in TVET. It appears that some cross-subsidization occurs between MPO and non-MPO funded classes, possibly resulting in misuse of public funds. Finally, a third group of public and private TVET-providers can be identified; they receive endowments from national or international donor agencies, and some of them also collect student fees. The public institutions in this group receive their recurrent budgets from the GoB (Govt. of Bangladesh). For example, UCEP or MAWTS are private institutions, while Bangladesh-German TTC (BGTTC) and Bangladesh
Korean TTC (BKTTC) are public institutions. The figure below provides an overview of the funding sources of public and private institutions.
[Figure 4-1] Overview of the Funding Sources of Public and Private Institutions
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Section 5. Educational Financing

<Table 4-1> Budget Allocation (Revenue & Development) for DTE (Directorate of Technical Education)
(Amount in taka and in millions)
Fiscal 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Total Budget for Ministry of Education (MOE) 48899.1 50113.7 69150.6 82390.0 85861.9 90530.5
Budget allocation for DTE 1522.0 2113.2 2023.4 1775.4 2651.3 2200.9
Percent(%) share by DTE out of total MOE 3.11 4.22 2.93 2.15 3.09 2.43
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Chapter 5
Internationalization of TVET
The entire world is now a global village. Globalization of national economies, as well as globalization of knowledge, technology, and skills requires the worker to be aware of international standards. This is not only the case with respect to the design, production, marketing, and distribution of goods and services. For the promotion of workforce development, it is equally important to be aware of internationally agreed-upon standards for technical and vocational education and training. Such standards serve, inter alia, to ensure a proper balance between the economic dimension of education and training on the one hand, and personal, social, and human development on the other.
Section 1. Impact of TVET Policy

Skills, knowledge, and innovation are important driving forces of economic growth and social development in any country, and those
countries with higher levels of education and skills adjust more effectively to challenges and opportunities in the global economy. ICT in Bangladesh: Information Communication Technology (ICT) is a subject of widespread interest in Bangladesh. There are around 100 software houses; 35 data entry centers; thousands of formal and informal IT training centers; and numerous computer shops. The government has declared IT as a thrust sector. Summarized here is the current state of ICT in Bangladesh: . Only 0.1% homes of Bangladesh has Internet; . There are 250,000 registered dial-up users accounts; . There are 15,000 Broadband accounts; . There are 1.8 million mobile phones operated by four private companies; . There is a total ISP of 62; . Internet users represent 2 million people; and . 90% of ISPs use OSS.
Section 2. International Cooperation

The government of Bangladesh is taking some initiatives for internationalizing TVET. Examples include:
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1. Linkage is being maintained for technical knowledge with international agencies; 2. Contributions are made to international organization for improving the quality of Technical Vocational Education; and 3. International Linkage and cooperation is in place for sharing and exchanging technical knowledge and skills.
1. Facility and Equipment

Lack of facility and equipment is a serious problem that hampers the provision of international skills levels through TVET, since most of the instruments and equipment are not suitable for modern work. To boost TVET in Bangladesh to an international standard, infrastructure, tools, and equipment must be upgraded. Teacher training for new technology is also essential. Bangladesh is struggling to respond to the skill needs of its workforce. Pressures arise due to increasing globalization; new and emerging technology; changing patterns of work; mismatch between training and required skills; mismatch between supply and demand; lack of adequate industry participation; inadequate numbers of trainers; an inadequate vocational training infrastructure; low employment outcomes of graduates; uncertain resources (who will fund and maintain?), poor gradation of tools and equipment; poor relationships with industry and institutions; and lack of tripartite (government, employer, and worker) approach. Most of the migrant
workers have no proper technical skills. They are often forced to return home, having no language skills. Necessary facilities are lacking that allow people to engage in meaningful, successful TVET programs.
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Chapter 6
New Agenda
The government has a clear vision of achieving GDP growth rates of about 10% over the next 8 to 10 years. Even in recent years, growth rates are quite substantial and much higher than international (world-wide) levels, at 6.2 and 6.4% in 2008/09 and 2007/08, respectively. This is slightly less than the growth rates of China, but well ahead of India, whose economic development is well ahead of Bangladesh.
Section 1. Trends and Needs

1. New Needs for New Skills
A careful balance must be orchestrated to maximize economic growth without compromising environmental protection and safety. Bangladesh needs a strategic policy and program for climate-resilient
sustainable development. These environmental issues drive the green policy response in Bangladesh and affect the economy, employment, and the labor market. The main occupations in building construction include: architect, engineer, mason, assistant, and site manager. But for greening buildings, the architect has a central role to play because he is responsible for the building design. New skills, therefore, include training for green architects, green town planners, green civil engineers, green supervisors, and green masons. The Bangladesh Labor Law 2006 accords special importance to occupational safety and the health of the workers in the workplace buildings. In various sectors, such as energy production and consumption, there remains the need to develop green jobs and occupations.
2. Green Job and Occupations

Main greening shifts in the economy and the labor market of Bangladesh have taken place greatly in energy, but rather weakly in materials management, telecommunication, and transport. But these greening shifts remain ineffectual, primarily because of inadequate policy and institutional support. With the right policies, institutional framework, commitment, and immediate reinvestment, it is possible to bring about the changes needed for greening the economy.
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The structural transformation that is taking place in Bangladesh is derived not merely from economic growth, but also from spontaneous green structural change. However, current and future employment shifts and trends are likely to take place, due to anticipated green structural change notably in renewable energy and telecommunication. The green employment shift to renewable energy has huge potential for growth and is gaining momentum. Certain change is anticipated by green structural innovation, especially in energy, manufacturing, waste management, construction, transport, telecommunication, and trade. Eight case studies illustrate anticipated change and provision of skills in different occupations. Skills for green jobs are instrumental in bringing about the desired change for sustainable development. But the policy response and institutional support to overcome existing skill gaps in different occupations remain very weak. At the policy making level, there is inadequate appreciation of the need for a policy targeting the identification and development of skills for green jobs. Although Bangladesh has embarked on several policies and programs for adaptation to climate change and mitigation of its adverse impact, it has no policy for the formation and development of skills for greening the economy. In this regard, isolated and sporadic efforts are taking place with very little impact on greening the economy.
In the absence of any strategic policy agenda and support, the delivery mechanisms of the existing institutions for developing skills for green jobs remain inadequate. Shortage of skills and poor institutional framework largely explain the weak delivery mechanisms of these institutions. A coherent policy for the formation and development of skills for green jobs should be formulated and put in place within the overall framework for HRD. For greening the economy, the policy should target the implementation of the programs for meeting existing skills needs for green jobs in various sectors, as identified by the present study, and incorporate them into the occupational profiles, curriculum design, and education and training provision for greening existing occupations and for developing emerging and new green occupations. The policy should embody strategic interventions and adequate guidelines for overcoming critical skill gaps for green jobs. Existing education and training policies have inadequate provisions for environmental education at all levels. At the primary level, it should be made mandatory. Synergy among the existing policies and institutions (both public and private) for greening the economy is virtually non-existent. The existing TVET system has virtually no environment-driven curriculum and courses targeted towards establishing and improving the skill base for green jobs. Curriculum for greening the economy should be incorporated in the existing education and training programs down from the primary level.
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The National Skills Development Council (NSDC), in collaboration with the Bureau of Manpower, Employment and Training (BMET); Department of Technical Education (DTE); Bangladesh Technical Education Board (BTEB); Ministry of Labor and Employment (MoLE); Department of Environment (DoE); Department of Forest (DoF); Ministry of Environment and Forests (MEF); Ministry of Education; IDCOL (Infrastructure Development Company Limited); non-governmental organizations (NGOs), employers and workers associations, should play the central role in the formation and development of skills for green jobs in Bangladesh. The proposed SEDA, as a focal point for development and promotion of sustainable energy, should be put in place to steer the country towards a cleaner environment through developing skills for green jobs. Bangladesh should develop an information and technological knowledge base and conduct research on GHG emission to combat the impacts of climate change and search for suitable strategies to cope with the changing environment. In order to improve upon the ongoing policies and programs relating to greening HRD, further research and regular data collection should be undertaken, with a view to updating the knowledge and progress in greening the economy.
<Table 6-1> Fields Green-job Under Studies Criteria Selected case studies (i) Retraining needs deriving from 1: Refuse/Waste Collectors and identification of skills and occupations Dumpers that become obsolete as a result of structural changes on the labor market and major employment shifts within 2: Agricultural Workers and Inspectors and across sectors due to climate in Organic Farming change and demands for greening the economy. (ii) New green collar occupations 3: Carbon Trading which emerge in the context of 4: Solar Energy Engineers/Technicians adaptation to climate change and mitigation of negative impacts in the 5: Mechanical Engineers and CNG country. Conversion Technicians
(iii) New types of skills, competences 6: Architects, Civil Engineers, Designers and skill gaps which need to be and Masons in Greening Buildings incorporated into existing occupational 7: Supervisors and Machine Operators profiles (greening existing occupations). in Tannery 8: Brickfield Managers in Brick Manufacturing
Section 2. Future plans

A future plan represents a key commitment to the strengthening and further growth of TVET in Bangladesh. The government has already made commitments in PRSP, so that by 2020: 1. TVET students shall comprise 20% of all secondary students (currently 3%); 2. Enrollment in TVET will increase by 50%; and 3. Womens enrollment will increase by 60%.
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References
Bangladesh Technical Education Board (BTEB), www.bteb.gov.bd Bureau of Manpower Employment and Training (BMET), www.bmet.org.bdv Bangladesh Bureau of Statistics and SVRS Labor Force Survey (LFS), Bangladesh Drat Bangladesh Skill Development Policy December 2009 Bureau of Non-Formal Education (BNFE), Bangladesh Role of Vocational Training towards Human Resource Development in Bangladesh, ILO, Dhaka. TVET Reform Project Update, 20 June 2010 Bangladesh Study on NTVQF Bangladesh, 20 June 2010 International Organization of Migration (IOM), www.iom.int International Standards in TVET , Hans Kronner, 2005 SME Development and Regional Economic Integration, Bangladesh, 2008 Asian Development Bank, www.adb.org Bangladesh Bureau of Educational Information and Statistics (2007). Bangladesh Bureau of Statistics (BBS) (2005). Statistical Yearbook 2005. Document available at: www.bbs.gov.bd. Cited on 13.09.2006. FAO (Food and Agriculture Organization) (1997). Strategic Plan and Policy Change of World Food Programme. Document. available at:(http://www.fao.org/es/ESA/sofa.htm). Cited on 19.03.2006. Paper 4486. National Bureau of Economic Research (NBER).
Cambridge, Mass. United Nations Population Division (1999). World Population Report. Alam GM (2008a). The Role of Technical and Vocational Education in the National Development of Bangladesh. Asia Pac. J. Coop. Educ. 9(1), 25-44. Alam GM, Khalifa MTB, Shahjamal MM (2009). Return from the Education System in Bangladesh: An Investigation on Comparative Flashback Scenario. Afr. J. Bus. Manage. 3 (10) 567-575 Haggblade S, Hazell P, Brown J (1989). Farm-non Farm Linkages in Rural Sub-Saharan Africa. World Dev. 17 (8): 11731202. Jamaluddin H, Alias AN (1997). Quality in Student Support. A Learners Perspective. Proc. AAOU 11th Ann. Conf. Exhib. Lewin, KM (1993). Education and Development, The Issues and the Evidence: Research for International Development. No. 6, DFID, Lond. The World Bank (2002). World Development Report. Document available at: www.worldbank.org. Cited on: 15.11.2003. Alam GM, Khalifa MTB, Shahjamal MM (2009). Return from Education System in Bangladesh: An Investigation on Comparative Flashback Scenario. Afr. J. Bus. Manage. 3 (10) 567-575.
CAMBODIA
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Chapter 1
THE NATIONAL CONTEXT OF TVET: INTRODUCTION
Section 1. Context and Background of Cambodia

CAMBODIA is located in South East Asia and shares its borders with Vietnam, Thailand, the Gulf of Thailand, and Laos; it is a country with a rather shifting history. It experienced a zenith in the Angkorian Period or the Khmer Empire (9-13 century). It was colonized by the French for almost a century (1863-1954), and has experienced many regime changes. Cambodia transitioned from the Khmer Republic, to Democratic Kampuchea (known as Pol Pot regime), the Peoples Republic of Kampuchea, the State of Cambodia, and finally the Kingdom of Cambodia. According to the 2008 population census, Cambodias population reached 13,395,682. A large portion of the population, 80.5 percent,
resides in rural areas, and relies on farming as the main source of employment. The annual population growth rate is 1.54 percent.
[Figure 1-1] The Annual Population Growth Rate
(World Bank 2009)
As the graph shows, for nearly one decade, the early 1970s to the 1980s, the population growth rate plunged to below 0 due to the countrys upheavals. The worst period in its history is from 1975 to 1979 (3 years, 8 months and 20 days, a time etched in the memory of every Cambodian) when the Khmer Rouge, also known as Pol Pot, took power and committed large-scale genocide, causing the death of nearly 2 million Cambodians. During this period, all social, political and economic infrastructures were completely destroyed. This period is also know as YEAR ZERO for Cambodia. After the fall of the Pol Pots regime due to intervention by the Vietnamese troops, Cambodia started to rehabilitate its country from the ground up. With assistance from the Soviet and Eastern Block, Cambodia managed to stand straight and walk slowly,
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with one hand rebuilding the country and, the other, fighting the Khmer Rouges gorilla war (civil war) which lasted until 1997. Thanks to the UN role in Cambodia in 1993 and the governments win-win policy in 1998, there was an end to the civil war and complete peace and development was brought to all sectors. Cambodia is a multi-party democracy under a Constitutional Monarchy with the King as the head of state, and Prime Minister as the head of government. The Royal Government of Cambodia is led by two main parties: Cambodias People Party and National United Front for an Independent, Neutral, Peaceful, and Cooperative Cambodia, known as FUNCINPEC in French. There is a promising path for the future of Cambodia. The royal government of Cambodia has set out Rectangular Strategies for Growth, Development, Efficiency and Effectiveness in its reform efforts, focusing on 4 main areas: (1) Fighting corruption; (2) legal and judicial reform; (3) public administration reform, including decentralization and deconcentration; and (4) reform of the Royal Cambodian armed forces. In line with this master plan, various strategic action plans at the national level have been put in place within all the ministries. Because there is a short history of development, starting after the restoration of complete peace in 1998, a great deal of effort is needed to catch up with fast-developing world. Tasks would be most difficult without assistance from the international community, donor countries, international organizations,
non-governmental organizations, individuals, and other stakeholders local, regional and international. Simultaneously, Cambodia has become a member of different international organizations worldwide, from WTO, to UN-led peacekeeping organizations. It joined the International Labour Organization (ILO) in 1969, the year when the organization was awarded the Nobel Peace Prize for its outstanding activities, and the Association of South East Asian Nations (ASEAN), in 1999. In the international arena, Cambodia is now recognized as a peaceful and serene destination for tourism, with more than one thousand ancient temples, some of which have been recognized in UNESCOs Top World Heritage. Cambodia has a comparatively small, open, and dollarized economy. Thus, its development has relied on the global economic climate and foreign capital. At present, Cambodia has been working to establish a stock market as a source for mobilizing capital to finance economic development, but the process is slower than expected. However, the Cambodian government has plans to diversify its growth pillars and upgrade its industry. Cambodia had experienced a leap-frogging, two-digit economic growth in the early and late 2000s and, like other countries in the world, has been hit by the economic downturn in 2008, with its economy currently being recovered with 0.1 of GDP growth in 2009,
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and around 5.0 in 20101. The main engine of economic development is agriculture, constructions, garments, and tourism. The garment sector has been established and developed for more than 10 years, but its prospects remain uncertain. Therefore, the government pays particular attention to the agricultural sector, since it is more stable and appropriate, given the countrys geographical setting and the world market demand for agricultural goods.
[Figure 1-2] Cambodias Real GDP Growth Rate
(Ministry of Economy and Finance 2010)
However, the agricultural sector alone may not solve the poverty issue, or drive the countrys economy in this globalized and knowledge-based world. Since Cambodia joins competition, it has to be on similar footing with other countries in the region. Thus, Cambodia has resorted to other measures; among which are high-level skills and human resource development among its workforces, from the rural commune, through to the central urban environment.
Section 2. Education System in Cambodia

Cambodias education system is greatly influenced by the French in almost all aspects. The schooling system has been changed over time to match the countrys environment and development. Before 1975, it was 7 + 3 + 3 = 13 years, 1979 (4 + 3 + 3 = 10 years), 1986 (5 + 3 + 3 = 11 years) and 1996 (6 + 3 + 3 = 12 years). There are three main streams in the system: academic, technical and vocational, and non-formal and informal. The formal academic stream has had a longer history and, thus, it has received comparatively greater attention than the others. The development of technical and vocational education started in 1960s, whereas non-formal education came into being only quite recently. Although higher education gained some good ground in the 1960s, less attention was paid until quite recently when the World Bank invested a few million dollar grants and then expanded its funding to over 30 million dollars in grants and loans for TVET. Like other countries, Cambodia has invested a great deal of its resources in education. The national budget for education has been increased to over 20%, focusing mainly on primary and secondary education in order to respond to the countrys Millennium Development Goals (MDG-2015) and Education for All (EFA). Nine-year basic (compulsory) education has been set. To realize this goal, the Ministry of Education, Youth, and Sport (MOEYS) has set out two main policy documents: the Education Strategic Plan (ESP) and the
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Education Sector Support Program (ESSP), outlining clear action plans and strategies. The ESSP is further implemented by the Annual Operational Plan (AOP), which nicely integrates and coordinates not only the activities of all Ministrys departments, international organizations, and NGOs, but also their funding support and governments budgets. Despite the effort, many adults, especially those living in the rural areas, have no education, and there are serious ruralurban and gender disparities in access to education. According to the World Bank, nearly 60% of women and 40% of men in the provinces of Mondolkiri and Rattanakiri have no education, compared with fewer than 15% of women and 5% of men in Phnom Penh. In the province of Svay Rieng, girls are almost three times less likely to attend school than boys. This reflects gender and ruralurban disparities in access to education in Cambodia. In 2007, fully 61% of the literate population in Cambodia 25 years of age and over had not completed primary school, while only 23% had completed primary level. Those who had completed the lower secondary level of education comprised only 9% of the age cohort, while those who had a secondary level qualification constituted 3%. Fewer than 1% had qualifications higher than secondary level. (ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009).

Poverty in Cambodia is characterized by, as described by the World Bank, low income and consumption; poor nutritional status; low educational attainment; poor access to public services, including school and health services; poor access to economic opportunities; and vulnerability to external shocks. Poor access to quality education has led to a low adult literacy rate of 69.4% (80.5% for males and 58.2% for females). The highest poverty rates are found among farmers and those households whose heads have little or no formal education. The poorest households are asset-less. Agricultural productivity is low and food insecurity is still a serious problem for people who are poor. Agriculture remains the backbone of the Cambodian economy, with 68% of the labor force earning their livelihood from farming. Cambodian women play an active role in the countrys economy and civil society. They represent 53% of the active labor force, compared with 32% for economically active men, and are usually classified as unpaid family labor, primarily in agriculture. Apart from agriculture, women work in the informal sector, particular commercial activities. The garment industry provides the principal source of formal sector employment for women, but young women are employed there only as semi-skilled workers with almost no opportunities to move into supervisory or management positions. Women outnumber men in the labor force from age 15 to 54, with the exception of the 25 to 29 age group. The shortage of skilled labor and the lack of adequate investment in formal vocational skill
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formation represent key development constraints for Cambodia and have been a persistent theme in recent assessments by the ADB and the World Bank. (ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009) As over 80% of Cambodian people live in rural areas, the employment structure is made up of 72.3% agriculture (mostly self-employed and unpaid), 8.5% industry (mainly garment production and construction), and 19.2% services (tourism, trade, transport, communication, education1). However, service sector contributes the most (39%) to the GDP, followed by agriculture (30%), industry (25%) and others (6%)2). The country total work force is around 8 million with approximately 300,000 new entrants every year. During the healthy economic growth, mainly 2004-2007, only up to 50,000 jobs were created annually.
1) General Population Census of Cambodia 2008 Final Census Results Figures at a Glanc 2) Cambodias Labor Market and Employment Economic Institute of Cambodia December 200
<Table 1-1> Employment, by Sector, Sex, sector 1998 15+ 15-24 and age Both sexes 4,773,488 1,114,189 77.0 79.1 Primary Sector 4.2 6.5 Secondary sector 18.3 13.7 Tertiary sector 0.4 0.7 Not reported Total 100.0 100.0 Male 2,330,301 502,134 71.1 75.7 Primary Sector 5.0 6.2 Secondary sector 23.4 17.2 Tertiary sector 0.5 0.8 Not reported Total 100.0 100.0 Female 2,443,187 612,055 82.7 81.9 Primary Sector 3.5 6.8 Secondary sector 13.5 10.8 Tertiary sector 0.4 0.8 Not reported Total 100.0 100.0
Age and sex

2008 25+ 15+ 15-24 25+ 3,659,299 6,841,272 1,736,962 5,104,310 76.4 72.1 68.6 73.3 3.5 8.6 15.5 6.2 19.7 19.3 15.9 20.5 0.4 0.0 0.0 0.0 100.0 100.0 100.0 100.0 1,828,167 3,345,926 828,975 2,516,951 69.8 69.2 70.6 68.7 4.7 8.1 11.9 6.9 25.1 22.7 17.5 24.4 0.4 0.0 0.0 0.0 100.0 100.0 100.0 100.0 1,831,132 3,495,346 907,987 2,587,359 82.9 75.0 66.9 77.8 2.4 9.0 18.7 5.6 14.3 16.0 14.4 16.6 0.4 0.0 0.0 0.0 100.0 100.0 100.0 100.0
Source: NIS/MOP. General population census of Cambodia 1998. NIS/MOP. General population census of Cambodia 2008.
<Table 1-2> Employment Structure Classification Percentage of workforce 66. Agriculture, hunting, forestry 4.2 Fishing 0.2 Mining and Quarrying 8.7 Manufacturing 0.1 Electricity, gas, water Construction 1.5 10.3 Wholesale, retail, repair Hotels and restaurants 0.2 2.7 Transport, storage and communications Financial 0.1 0.3 Real estate, renting Public Admin and Defence 2.4 Education 1.4 1.3 Health, Social Work, community services Household staff 0.4 0.2 Foreign NGOs and Agencies Total 100
Source: NTDP, 2008 7,051,764 (Census 2008)
Total Numbers 4,123,888 261,062 13,525 544,832 3,795 94,077 644,307 10,412 169,307 6,119 16,374 149,382 88,446 80,241 28,019 6,800 6,243,329
around 8 million (2010)
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The unemployment issue in Cambodia is contradictory. On the supply side, it is reported that the job market is so tight, but on the demand side, there is not enough workforce to meet the demand. There is clearly a mismatch which has existed for many years between supply and demand in the job market. The mismatch between demand and supply in employment is reduced in the TVET sector when the government works closely with ADB and ILO (with the establishment of National Employment Agency, job centres, industry advisory groups, among others). To deal with rural-urban employment disparity, the government, in its National TVET Development Plan, has allocated 60% of its resources for rural development through the provision of new skills to farmers. However, it will be a big challenge for the higher education sector to deal with this issue; the number of graduates with bachelor degrees is projected to be 220,000 with only around 86,000 jobs available in 20143). Recent intervention by the World Bank will focus on quality improvement and capacity building of higher education institutions, but not much on narrowing the market mismatch between supply and demand. As jobs accumulate only in urban areas, especially in Phnom Penh, the unemployment rate in those areas is relatively high. It is reported that, on average,
3) Higher Education and Skills for the Labor Market in Cambodia (p60)
graduates with degrees spent at least 9 months seeking employment. The overall unemployment rate in Cambodia is 1.68 (General Population Census 2008).
<Table 1-3> Unemployment and Participation Rate By Sex and Region (Aged 15+)
Cambodia 2004 Total Unemployment Male Rate Female Participation Rate Total Male 2007 Phnom Penh 2004 2007 Other Urban 2004 1.48% 1.31% 1.66% 2007 Other Rural 2004 2007
ILO Definition: Without Work, Available for Work, and Seeking Work 1.05% 0.90% 3.60% 2.32% 1.01% 0.91% 3.05% 2.60% 1.09% 0.88% 4.20% 2.03% 2.60% 0.64% 0.53% 2.13% 0.68% 0.55% 3.17% 0.60% 0.51%
79.93% 81.06% 67.71% 67.39% 77.18% 75.34% 82.38% 83.80% 85.43% 88.35% 73.93% 75.74% 81.77% 82.56% 88.01% 91.00%
Female 75.00% 74.61% 62.04% 60.15% 72.84% 68.09% 77.41% 77.53% Broad Definition: Without work and Available for Work 5.85% 3.06% 11.17% 5.37% 4.10% 1.89% 9.62% 3.85% 7.58% 4.26% 12.80% 6.96% 6.12% 3.93% 8.34% 5.73% 5.10% 2.47% 4.38% 3.37% 1.33% 7.33% 6.78% 3.61%
Total Unemployment Male Rate Female Participation Rate Total Male
83.94% 82.88% 73.47% 69.56% 80.96% 77.91% 86.16% 85.48% 88.15% 89.27% 79.31% 76.72% 83.97% 84.51% 90.41% 91.77%
Female 80.17% 77.24% 68.16% 63.34% 78.12% 71.27% 82.41% 80.00%
Source: Cambodias Labor Market and Employment Economic Institute of Cambodia December 2008
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<Table 1-4> Share of Employed Persons by Educational Level in Each Sector

Level of Education Never/Some Education Primary Lower Secondary Upper Secondary Technical/Vocational Training Post-Secondary Other Total Agriculture 2004 0.7% 71.0% 22.8% 4.5% 0.2% 0.1% 0.8% 100% 2007 0.7% 69.5% 24.3% 5.0% 0.0% 0.1% 0.3% 100% Industry 2004 0.3% 60.1% 30.7% 7.5% 0.3% 0.5% 0.6% 100% 2007 0.0% 58.4% 32.1% 8.7% 0.1% 0.6% 0.1% 100% Service 2004 0.5% 2007 0.2%
43.1% 39.2% 32.2% 31.2% 17.9% 19.5% 2.8% 3.0% 0.7% 100% 3.1% 6.6% 0.2% 100%
Source: Cambodias Labor Market and Employment Economic Institute of Cambodia December 2008
This issue will remain a problem if the current trend continues. Students perception of employment and their selected fields of study, as well as the lack of market information, curriculum, and course materials, are part of the problem. According to a study by CAMFEBA and MOEYS statistics, around 80% of high school leavers proceed to higher education, resulting in only a small proportion entering the TVET sector where over 60% of new jobs are created. Many of the high school graduates do not have enough information about the demands of the job market when choosing their specializations. Alternatively, some choose courses based on fancy names, like management and leadership, business administration, and so on, without much attention to their employability. On top of that, when they are in the degree programs, they are usually taught
with outdated curriculum and teaching materials, whose content lacks relevance to the required skills of the job market.
[Figure 1-3] Student Plan after higher school
[Figure 1-4] How high school students make decision for higher education
Source: Youth and Employment: Bridging the GapA Study about Youth and Employer Perspectives on Education, Skills, Opportunities and Future.
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<Table 1-5> Level of Education

Level of Education Never/Some Education Primary Lower Secondary Upper Secondary Technical/Vocational Trainings Post-Secondary Education Other Total Paid Employee 2004 2007 Employer 2004 0.0% 2007 0.0% Own Account Unpaid Family Worker Workervice 2004 2007 2004 2007 0.7% 0.8% 0.6% 0.3%
0.4% 0.1%
46.3% 47.2% 52.8% 31.8% 65.5% 64.8% 65.6% 61.1% 30.1% 27.7% 16.5% 1.2% 26.0% 26.6% 25.5% 28.7% 6.2% 6.9% 0.3% 0.2% 0.2% 0.3% 1.2% 0.4% 7.3% 8.9% 0.4% 0.0% 0.2% 0.9% 0.5% 0.1% 16.1% 15.3% 30.7% 53.7% 3.0% 3.2% 3.5% 6.4% 0.6% 0.1% 0.0% 0.0% 0.0% 6.8% 6.5% 0.0%
100% 100% 100% 100% 100% 100% 100% 100%
Source: Data compiled from CSES 2004 and CSES 2007 Source: Cambodias Labor Market and Employment Economic Institute of Cambodia December 2008
[Figure 1-5] Reasons for not continuing after high school
Source: Youth and Employment: Bridging the GapA Study about Youth and Employer Perspectives on Education, Skills, Opportunities and Future.
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Chapter 2
TVET SYSTEM BY TARGET GROUPS: ADULTS, TEACHERS AND TRAINERS, AND ENTERPRISES
There are many types of TVET providers: TVET institutions under MOLVT and other ministries; those provided by small and large enterprises; and NGOs. Currently, there are 59 public TVET institutions, 38 of which are under the management of MOLVT; 76 associations/NGOs; and 181 private training institutions. Among public TVET institutions, 11 are polytechnics and institutes offering formal courses from certificate to Master degrees. There are 25 provincial training centers offering non-formal programs whose main aims are to provide people in rural areas with supplement farming skills and other related skills in those provinces. Textiles and garments, crafts, agricultural techniques, computing, English, driving, auto repair and electrical maintenance are the most common skills provided by NGOs and private businesses. The
duration of training lasts from one week, to one or two months, and is mostly available in Phnom Penh. Since 1991Don Bosco, one of the main NGOs, has played the most important role in providing this kind of training.
<Table 2-1> Students in technical and vocational education and training Level 2004 2005 2006 2007 2008 2009 Both sexes, No. 24,587 27,894 47,986 88,367 113,648 168,630 Post-graduate and graduate 0.0 3.7 2.3 1.3 1.2 0.79 Public technical diploma/technician 7.0 4.4 4.6 2.5 2.8 1.75 Public primary long-term training 8.1 2.1 1.0 1.8 1.3 0.72 Public primary short-term training 24.4 38.3 36.9 73.5 59.1 69.52 Private/NGO, international org. 60.5 51.4 55.1 20.9 35.5 27.21 Total 100.0 100.0 100.0 100.0 100.0 100.0 Male, No. 12,777 15,574 27,999 56,494 59,745 80,743 Post-graduate and graduate 0.0 5.3 2.9 1.5 1.9 1.33 Public technical diploma/technician 9.1 5.3 5.4 2.6 3.7 2.37 Public primary long-term training 13.7 3.5 1.7 2.2 2.1 1.01 Public primary short-term training 26.8 36.0 31.0 68.1 54.4 61.73 Private/NGO, international org. 50.4 49.9 59.0 25.5 37.9 33.56 Total 100.0 100.0 100.0 100.0 100.0 100.0 Female, No. 11,810 12,320 19,987 31,873 53,903 87,887 Post-graduate and graduate 0.0 1.7 1.5 1.0 0.5 0.29 Public technical diploma/technician 4.8 3.4 3.5 2.2 1.7 1.19 Public primary long-term training 2.1 0.4 0.1 1.0 0.5 0.45 Public primary short-term training 21.8 41.2 45.3 83.1 64.3 76.68 Private/NGO, international org. 71.4 53.2 49.6 12.8 32.9 21.38 Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Department of Technical Vocational Education and Training Management, MOLVT
Compared with the academic stream, admission to technical and vocational training is more lenient, accepting students from as low as grade 5, to a non-formal basic course; grade 9, to a certificate or diploma course; and grade 12, to a diploma or degree course.
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However, for a basic short course, such as farming method, the admission is open for all. Unfortunately, trainees receive no certificate for their training. In the formal sector, graduates can receive certificates (less than one year), diploma (one to two years), bachelor (4 years) and Master (4+2 years). At present, there is no National Qualification Framework within education in Cambodia, but the pathway within and between each stream is flexible and case-based. For example, after completion of their basic education (grade 9), students can take formal TVET courses (three levels: Level one (one year), Level two (2 years) and Level three (3 years), which is equivalent to grade 12. So, if they wish, they can continue to TVET undergraduate degrees for 2 years (Associate Degree); 4 years (Bachelor Degrees); or 6 years (Master Degree). Students can also enter the academic stream after finishing Level 3 of the TVET stream, Although TVET plays an important role in economic growth and offers more than 60% of job availability in this sector, it has failed to attract high school leavers. In the last few years, especially after the establishment of MOLVT, however, there have been some changes to the trend. In the 2008-2009 academic year, there were 168,630 (87,887 female) graduates from both non-formal (majority) and formal, public, and private TVET institutions. To some extent, though, the provision of formal training at TVET institutions are supply-driven and in comparatively low quality.
<Table 2-2> The Number of Graduated Students in TVET Institutions 20032008

No. 1 2 3 4 Bachelor/Master Degree Diploma Certificate (I,II&III) (Long Course) 2003 - 2004 Total Fem. 1,724 1,999 565 245 2004 - 2005 Total 1,041 1,237 594 Fem. 212 416 51 2005 - 2006 Total Fem. 1,126 2,201 503 306 701 21 2006 - 2007 1,158 2,172 1,562 313 692 307 2007 - 2008 Fem. 277 938 255 1,408 3,151 1,524 Fem. Fem. Total
Certificate 5,998 2,570 1,0692 5,081 3,426 1,923 18,586 595 67,178 34,679 (Public Short Course) Grand Total 9,721 3,380 13,564 5,760 7,256 2,651 23,478 1,907 73,261 36,149
(MOLVT 2009)
<Table 2-3> Number of Graduates by Subject in MOLVT Formal Training Institutes, Academic Year 2007/2008 Percentage Subject Certificate Diploma Bachelor's Master's Total of Total A. Technical Mechanical 75 46 121 Electrical 159 302 629 159 9 Electronics 72 61 188 55 Air Conditioning 60 32 92 Construction 66 195 426 154 11 Subtotal (A) 432 636 368 20 1,456 66.8 Percentage of Total B. Computing Information Technology 29 30 59 CADCAM 12 12 Subtotal (B) 41 30 71 3.3 Percentage of Total C. Business Management 21 212 109 342 Business Administration 16 16 Accounting 22 105 127 Marketing 23 49 72 Subtotal (C) 82 366 109 557 25.6 Percentage of Total
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Subject D. Other Tourism English Graphic Design Subtotal (D) Percentage of Total Total Percentage of Total
Certificate Diploma Bachelor's Master's 5 31 59 59 491 22.5 36 795 36.5 764 35.1 129 6
Total 5 31 59 95
Percentage of Total
4.4 2,179 100.1 100.1
Source: ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009, page 33
Pedagogical training for teachers/instructors of TVET is conducted at the National Technical Training Institute (NTTI). Up to 80% of the teachers at TVET institutes are trained at NTTI for one year before their services at various polytechnics, institutes, and provincial technical centers. One third of them hold Master degrees. However, their salary is limited; they lack industry experience; and their curriculum and teaching materials are not up to date, In turn, the effectiveness and efficiency of program delivery at TVET is generally low and fails still to respond to market demand.
<Table 2-4> The Number of Teachers in TVET Institutions: Fiscal Year 2007 2008 Number of Number of Under Number of Type of Training Number of Teachers Graduated Students Graduated Students No. Level Institution Total Female Total Female Total Female 1 Bachelor/Master Degree 09 376 73 5,472 1,124 1,408 277 2 Diploma 19 705 168 5,448 1,280 3,151 938 Certificate (I,II&III) 3 12 279 81 1,414 404 1,524 255 (Long Course) Certificate 4 37 555 253 60,315 32,594 67,178 34,679 (Public Short Course) Grand Total 77 1,915 573 72,649 35,942 73,225 36,149
(MOLVT 2009)
The Voucher Skills Training Program (VSTP), however, has proved a greater success. VSTP is a piloted model for delivering large-scale non-formal programs to communes and villages in skills that they identified and requested, with over 46,000 participants in 2008 alone. Most of this training was delivered in the communities. The VSTP also encompasses short, more structured courses delivered in the PTCs (e.g., motorcycle repair, small engine maintenance, weaving, and hairdressing), as well as enterprise-based training, under which enterprises are contracted to provide on-the-job training to individual trainees for about 4 months. Under the pilot VSTP, 60% of training was community-based, 10% was delivered as short courses in PTCs, and 40% was enterprise- based. (ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009, page 33)
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Section 1. TVET for Adults

According to the United Nations definition, youth refers to persons aged 1524, and adults are persons aged 25 or older. The youth population has increased, from 2.1 million (18.3 percent) in 1998, to 2.99 million (22.3 percent) in 2008; of them, males increased from 1.02 million (18.5 percent), to 1.5 million (23.1 percent), while the females increased from 1.07 million (18.1 percent), to 1.48 million (21.6 percent). The adult population also increased in absolute numbers, from 4.45 million (38.9 percent) in 1998, to 5.9 million (44 percent) in 2008; among them, males increased from 1.99 million (36.2 percent), to 2.7 million (41.4 percent), whereas females increased from 2.46 million (41.5 percent), to 3.2 million (46.5 percent). The increase of both the youth and adult populations means an expansion of the countrys labor supply engaged in or available for economic activity.
[Figure 2-1] Population Age Pyramid 2008
Source: NIS/MOP. General population census of Cambodia 2008.
Among the total labor force, youth represented more than a quarter, at 25.8 percent. The youth labor force participation rate decreased slightly, from 60.7 percent in 1998, to 60.1 percent in 2008. This possibly indicates a positive trend of youth staying longer in the education system. In general, female youth seem to enter and exit the labor force at an earlier age than males. The female economic activity rate continued to be a little higher than that of males during the decade. The adult labor force participation rate increased from 84.7 percent (nearly 3.8 million) in 1998, to 87.5 percent (5.2 million) in 2008. The adult labor force participation rate was considerably higher among males, and that rate remained constant throughout the decade. Compared with 1998, the absolute number of adult males increased
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by almost 668,000 in 2008. The number of female adults increased by 722,000, or 4.8 percentage points. Thus, the gender gap in the adult labor force participation rate shrunk over the decade (from a 16.8 percentage point difference in 1998, to a 12.1 percentage point difference in 2008).
[Figure 2-2] Labor Force Participation Rate, for Workers Aged 15 and Older
(%)
By 2008, the youth employment-to-population ratio had increased by 4.8 percentage point, to 58.1 percent. When compared with the 1998 data, the absolute number in 2008 had increased by nearly 623,000 people. In general, the female youth employment-to- population ratio was larger than the male ratio in both years. This may be due to the large proportion of young women engaged in unpaid household work. It seems that females enter the labor force sooner than many males, who are encouraged to stay in school longer.
The adult employment-to-population rate also increased, from 3.7 million (82.2 percent) in 1998, to 5.1 million (86.6 percent) in 2008. The adult employment ratio in 2008 was considerably higher among males than females. But in terms of growth, the adult male ratio increased marginally, by 1.5 percentage points; the female adult ratio increased much more, at 6.5 percentage points.
[Figure 2-3] Employment-to-Population Ratios for Workers Aged 15 and Older
(%)
In looking at the age-specific unemployment rates, the largest proportion is found among the youth. The youth unemployment rate is 3.3 percent, compared to the adult unemployment rate of 1.1 percent. However, over the decade, the unemployment rate for both sexes among the youth declined significantly, from 12.3 percent, to 3.4 per cent among males, and 12 percent to 3.3 percent among the females. There is a similar pattern among the adult population trend, although the decline is marginal.
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Among the unemployed people aged 15 or older in 2008, 80.7 percent were considered literate. Of them, 3.7 percent had no educational qualifications; 28.5 per cent had not completed the primary level of school; 25.2 percent had completed it; and 19.4 percent had finished through the lower secondary level. Only 3.9 percent of the unemployed had gone beyond the lower secondary level. The proportion of unemployed youth and adults considered illiterate, or who had not completed the primary level, declined for both males and females over the decade. But there was a considerable increase in the unemployed literate males and females who had completed the primary level, lower secondary level, or beyond.
<Table 2-5> Unemployment Rate Age group 1998 Both sexes 15+ 5.3 15-24 12.2 25-64 2.9 65+ 2.9 Male 15+ 4.6 15-24 12.3 25-64 2.3 65+ 2.0 Female 15+ 5.8 15-24 12.0 25-64 3.6 65+ 3.9
Source: NIS/MOP. General population census of Cambodia 1998. NIS/MOP. General population census of Cambodia 2008.
2008 1.6 3.3 1.1 1.0 1.5 3.4 0.8 0.8 1.8 3.3 1.3 1.3
Section 2. Industrial Relations

Industrial relations, and in particular the garment industry, are characterized by a high level of disputes, which may be considered normal in any young system. Unions and employers typically do not have the knowledge or the tools to engage in dialogue and dispute prevention measures, including collective bargaining. Employers have noted that multiple and competing unions in the workplace and strikes that do not follow procedures create challenges for good industrial relations in the garment sector. Unions complain about low or unpaid wages, anti-union discrimination, and abuse of short-term contracts. This has gradually changed over time as workers and employers have increasingly resorted to working together to improve industrial relations. As noted in section 3.2.9, several initiatives have provided a solid institutional basis for improved industrial relations. However, it is still a major challenge.
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Chapter 3
GOVERNANCE OF THE TVET SYSTEM
Technical and Vocational Education and Training (TVET) in Cambodia is managed by the Ministry of Labor and Vocational Training (MOLVT) (see the organizational chart below), which is steered by the National Training Board, comprising the Deputy Prime Minister as president; senior government officials from various ministries; and representatives from international organizations, donors, industries and other stakeholders as members. At the regional level, there is the Provincial Department of Labor and Vocational Training, directed by the Provincial Training Board, with representatives from different areas. The same structure applies at the district level.
Section 1. Governing Structure

1. NAME OF INSTITUTION
Department of Technical Vocational Education and Training
Management (DTVETM) Ministry of Labor and Vocational Training (MOLTV)
2. BRIEF DESCRIPTION OF INSITUTION

2.1 Vision To participate in poverty reduction through the Rectangular Strategy, as recommended by the Royal Government of Cambodia, for the labor and Technical Vocational Education and Training sectors in Cambodia. 2.2 Mission To achieve the above vision, the Ministry of Labor and Vocational Training states its mission to improve the growing workforce, promote equity, and raise the living standards of the people. Duties and responsibilities of the Ministry of Labor and Vocational Training - Establishment and Development of Employment Policy - Establishment and Development of National Policy on Technical Vocational Education and Training - Monitor the TVET institutions and classes; - Coordinate with all relevant ministries to develop TVET; - Establish and Develop of a standard testing and accreditation
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system; and - Monitor the implementation of apprenticeship training duty and the apprenticeship training fund as determined by labor law.
[Figure 3-1] MOLVT Organizational Structure
Section 2. Organizational Structure of DTVETM

Services in the Department of Technical Vocational Education and Training Management are divided into 6 offices, and they are outlined below: The Management Institution office is responsible for: - Formal Technical Vocational Education and Training sectors; - Non-formal Technical Vocational Education and Training sectors; and - Preparing a system for monitoring quality evaluation. The Planning and Statistics office is responsible for: - Cooperation; - Staff development; - Monitoring, Evaluation and Management Information System; and - Clearing. The Relations office is responsible for: - Personnel; - Financial; - Building material maintenance and supply material; - Administration; and - Building Security. The National Training Fund office is responsible for: - Review and evaluation;
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- Grants and Loans; and - Accounting. Self-Employment Generation Fund Office Special Needs and Gender Office
Section 3. TVET System Overview

The National Training Board (NTB) is the APEX body of TVET. It approves policy; sets program objectives; and establishes measurable targets. The NTB has a coordinating function and a leadership role in linking the national training program to the needs of the economy, as defined in the National Strategic Development Plan 2006-2010. The 32 members of NTB have representatives from the ministries, as well as from the private sector, employees, training providers, IO, and NGOs. The Directorate of TVET (DG.TVET) within the Ministry of Labor and Vocational Training (MLVT) is responsibile for supporting the NTB in policy development and in implementing its policies once approved. With 138 staff members, DG.TVET has three operating departments. It is responsible for developing national competency standards for all skills and a labor market information system, as well as supporting, expanding, and assuring the quality of public and private provision of TVET.
Mission of DG.TVET Under the policy direction of the NTB, DG.TVETs mission is to: (i) develop and sustain a quality assured, demand driven TVET system that meets the needs of Cambodia for economic and social development, as expressed in the Rectangular National Development Strategy; (ii) provide Enterprise with a skilled and adaptable workforce; and (iii) respond to the life long needs of individuals for decent jobs or self-employment by supporting appropriate training. The key player within the MOLVT is the General Directorate of Technical and Vocational Education and Training, whose obligations are defined in Chapter 2, Article 3b-TVET, by the Royal Government of Cambodia Sub-Decree No. 52: To study and develop a national policy on occupations to review the needs of the employment market; To prepare and develop an occupational policy based on the national policy for TVET; To prepare and develop a National Policy for TVET; To prepare a policy and manage the TVET system; To screen proposal for the establishment of institutions, centers, and schools providing TVET services;
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To control, monitor, and evaluate public and private TVET institutions; To coordinate communication with ministries, institutions, and organizations in the region and in the world to promote TVET in cooperation with the MFA and international organizations; To cooperate with enterprises and institutions to strengthen and promote TVET; To prepare and develop occupation or work standards that meet national and international market needs; To prepare and manage testing or examinations that assess levels of competence in all occupations and award or remove licenses or certificates acknowledging the level of competence based on the results; and To manage the training of apprentices and the financial aspects of apprenticeship training.
Section 4. The Two Tracks of TVET Policy

As noted in the first National TVET Development Plan, TVET has two major and often competing directions. First, TVET needs to respond to social equity issues by assisting the poor to master
skills which will enhance family income through better farm productivity or basic self-employment. Secondly, TVET must meet the needs of enterprise for a skilled and adaptable workforce as those needs arise. Both tracks are demand-driven one by the villagers and micro enterprise at the district and provincial level, and the second, by large enterprise at the national level. The first track is primarily linked to social policy, the second, largely to economic policy. The first tract has an immediate urgency; the second track can be developed over a number of years, so that when Enterprise expresses a need for labor force development assistance, TVET is ready to respond. The second track can be largely addressed using either public or private partnerships, with government providing the coordination; standards enforcement; and assured access for the poor.
Policy Implications for TVET This second National TVET Development Plan continues to place maximum emphasis on rural poverty alleviation (TVET Track 1), while continuing to prepare for the gradual growth in demand for a much higher level of work force skills. It adds to the policies of the previous year the new concept of a bridging program to help school leavers without basic entry credentials to master the academic requirements in math, science, and language to allow them to enter the TVET stream.
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Section 5. Policy Development in TVET System

A first National TVET Development Plan (NTDP) was approved by the NTB in February 2006. That document outlined a twenty-five year development plan. (see Appendix 1. Fourteen policies were approved to form the foundation for the planning of programs and activities for TVET, and a general commitment to demand-driven TVET was made. This present document reports on achievements in implementing the NTB policies over the past year. It updates the NTDP for the year 2007 with new targets. It begins the process of adjusting the policies set out in the previous year using the lessons learned and achievements of the past 12 months. With newly available labor market data, it strengthens targeting skills investment in areas of economic growth. It builds on success and gives clear program direction as the basis of the new program- based budget process for 2008, which replaces previous budgetary processes by connecting finances to a clear policy-driven program plan. As will be seen, substantial progress has been made in implementing the Two Tracks TVET Development Policy which was adopted in 2006. Track 1 activities strengthened the focus on both poverty reduction and decentralization of decision-making over the course of the year,
by targeting both Government Priority Action Program (PAP) funds and Asian Development Bank- ESDP II resources. Track 2 is the longer-term plan linking our skills development programs to the needs of employers. The development of the capacity to manage this demand-driven system was a continuing activity of DG.TVET over this past year, and progress has been made in our competency-based training system. Cambodian institutions, too, are learning to respond to the market for training by expanding their fee-based activities, when that is possible and desirable. However, much remains to be done, and more ambitious targets will be outlined in this document for the year ahead. For the near future, it remains clear that the greatest and quickest gains in poverty alleviation and growth will be possible in rural areas where most of the poor live. The National Strategic Development Plan (NSDP) will therefore direct 60% of resources to rural areas with increased attention to productive activities, like agriculture, rural development, and to health and education, to increases and enhance human capital and better contribute to overall development. The following guideline for the Policy Framework Development for TVET focuses on six core elements: quality, better citizenship, research, flexibility, sustainability, and lifelong learning. The Ministry of Labor and Vocational Training will continue to implement the
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following policy guidelines: Policy 1: Target Poverty Reduction through TVET Implement Voucher Program Pilot Project Targeted National Training Fund Policy: Target TVET programs at poverty reduction by developing a program for the poorest communes that will provide basic income generating skills based on local needs and opportunities. Strategy: Select the 210 poorest Communes in 7 representative provinces. Train PTC staff in participative community development. PTC staff will assist each commune in writing a 3 year training plan to bring skills that will help it be more economically successful. Provide funding for the training, and find trainers who can give most of the training in the commune. Use the 7 provinces and their PTCs as training for the remaining 17 provinces. Status: The program was implemented in 7 provinces and is functioning well. An impact study is underway; funding is required to extend to the program to all provinces as a regular TVET program.
Policy 2: Decentralization of Decision Making to Improve the Fit between Training and Demand for Training by Involved Partners Build Provincial Teams Under National Training Board /DGTVET to identify and respond to demand for training from local communes and Enterprise. Policy: Selecting the required TVET training is best done in communes where the training will take place and where local markets and village skills are understood. It is the governments policy to move decision making as close as possible to those most affected. Strategy: The skills, knowledge, and abilities in the Directorate General of TVET, among the PTC directors, deputy directors and community development specialists, will be expanded through training to strengthen decentralization. NTTI will be strengthened to provide and sustain this training. Status: Seven provincial training boards are established. PTB involvement in PTC planning is in place in these provinces for the VSDP and should be expanded to NTF courses, as well. Policy 3: Expanding Post Secondary TVET (Diploma and Degree) Development of Regional Polytechnics or Regional TVET Centers;
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Expansion of the capacity of the Phnom Penh based TVET post secondary institutions to provide demand driven diploma and degree programs. Strengthen National Technical Training Institute to improve the quality of trainers and curriculum prepared for the system. Policy: Support for short term training is determined by the communes; delivered in the communes using existing facilities; and provided by NGOs with experience or existing involvement in the communes. Strategy: Provide funding for communes and enterprise-based training to be assisted by PTC staff. PTCs will receive 10% of the value of this training in return for assisting with the development and recruitment of trainers who implement the program. Ensure that NTF funds are allocated to support training that is demand-driven and community/enterprise-responsive. Status: Commune-based training is well established in 7 provinces under PTC cooperation. Over 50,000 commune residents have been trained in skills that they identified as giving them new income opportunities. Enterprise-based training is slowly expanding, as more PTC staff learn how to work with small enterprises.
Policy 4: Commune and Enterprise-based training Voucher System and targeted National Training Fund Policy 5: Out of School Youth Target voucher and National Training Fund training Policy: In the poorest communes, target TVET at reducing the number of unemployed, out of school youth. Develop from the 7 pilots a national program to assist youth in gaining basic employment and self employment skills applicable to a rural setting. Develop a bridging program to help this group gain access to training that leads to further education in TVT institutions up through the degree level. Strategy: Target commune-based training at unemployed youth and, in so doing, ensure a gender balance. Use family-based and informal apprenticeship and very brief training inputs to expand the number of trainees. It is best to identify skills that improve productivity in farming or lead to self or local employment. Status: An analysis of commune/enterprise training participants is now underway. A bridging program has been recommended to DG. TVET to bring more school leavers up to a standard where they can qualify for NTQF level 3 and 4 training.
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Policy 6: Self Employment as Part of All Training in TVET Policy: Commune-based skills training will include training in micro enterprise management. Strategy: A list of self employment ideas will be taken to the communes. An assessment of local market opportunities will be made. Communes will be advised to use enhanced farm productivity, self employment, and family-based employment in achieving their planned outcomes. Status: The recommendation to train PTC staff so that they can include small business development and management in all training will be implemented when resources are available. Policy 7: Micro Credit Link micro credit providers to all trainings Policy: Communes and individuals require information on micro credit providers and costs during any given training. Access to micro credit should be included in most training at the commune level. Strategy: PTCs will assist each PTB to develop a provincial association of micro credit providers who commit to a statement of ethical behaviour and offer a simplified process to assist
clients with a range of interest rates. PTCs will give a list to the commune councils during the training plan design process and invite member micro credit providers to present information to training participants on voucher-based training. PTCs will ensure that all NTF supported trainees receive training in micro credit access and management. Status: The recommendation to train PTC staff so that they can include small business development and management in all training will be implemented when resources are available. Micro credit access will be part of this training. Policy 8: Small Enterprises Assist SMEs to identify training needs for growth and provide Vouchers/National Training Fund to support training. Policy: TVET will develop a program to assist small, rural enterprises to expand training through informal apprenticeship programs. The program will assist in introducing appropriate technology where it can expand the opportunities for small enterprises. Vouchers and micro credit may be a part of this program. Strategy: Community development specialists in each PTC will be trained to assist small enterprises in developing informal apprenticeship programs and in developing training plans that
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accept applications for vouchers. A proportion of the voucher VSTP budget will be allocated to this activity (current estimate, 30%). Status: In the 7 VSTP provinces, progress has been made with 753 trainees in small businesses. When NTTI trains more PTC staff in enterprise-based training, this will improve. Policy 9: Public-Private Partnerships and the Financing of TVET Introduce basic benefit/contribute model of finance. Revenue base programs in Provincial Training Centers and Entrepreneurial institutions Policy: TVET will be funded by beneficiaries. These include government, trainees, enterprises, and communities. Strategy: Develop an employer-based levy on payroll or payroll taxes to enable support by enterprises for TVET and develop TVET centers that are co-managed by enterprises. Status: Communes provide training site and food for trainers, trainees are not paid in VSTP. Small enterprises are absorbing some training costs in enterprise-based training in VSTP. A levy grant proposal has been made and is under review by the government.
Policy 10: Public-Private Partnerships, Enterprise Involvement in TVET NTB-Enterprise Involvement, sector councils, enterprise management of higher skills and technician levels Policy: Increase the participation of enterprises in the design, decision making, and provision of TVET. Strategy: Involve enterprises in TVET through their membership in the National Training Board; the establishment of an advisory enterprise council; and the inclusion of enterprises in provincial training boards. Status: The employment sector council concept was tested with the garment industry. The industry is formulating its own standards which will become national standards over time. Policy 11: Public-Private Partnerships Expanding the provision of TVET National Training Fund /Voucher as incentives for private sector trainers. Policy: Expand the provision of TVET by private sector training providers. Concentrate in overall provision of TVET, not on government provision.
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Strategy: Training will be purchased from qualified private sector training providers by the NTF and by the commune/ enterprise voucher system. Each PTC will develop a list of private sector and NGO training providers in the province. They will be asked to register with their provincial branch of national training in the voucher program. The list of training providers; the training they will provide; and course length and course cost will be given to the commune councils to assist in their planning. Status: The number of private sector training providers is increasing, as needed, but there is no quality assurance or regulatory framework. The need continues for a national TVET qualifications framework (NTQF) and for industry-driven competency standards as the basis for quality assurance. Policy 12: Quality Assurance of TVET Provision National Association of TVET Providers (NATP). Meet standards to be eligible for NTF/Vouchers Policy: DGTVET has the central responsibility for ensuring the quality of TVET provision. Training providers must meet and continue to meet an agreed standard to be eligible for access to any state training funds.
Strategy: The establishment of a National TVET Trainers Network (NTTN), built on provincial branches, with agreed financial and ethical standards, is an early step. Development of training standards in core skills area which are audited by government is another important step. NTTI will assure continuity and sustainability of the quality assurance process. Training vouchers can only be used at approved training providers who are members of the NTTN provincial office. Only NTTN members are eligible for NTF support of training. Status: No action has been taken on this policy. Policy 13: Quality of TVET Leadership, Management, and Coordination NTTI as a staff college for TVET, capacity building on training needs analysis. Policy: Improve the quality and consistency of TVET leadership, management, and administration in the public and private sector. Strategy: Ensure transfer of capacity building training by consultants and others to NTTI, so that new inputs from each project are not lost when the consultants from that project leave, but are supported by a continuing staff development plan for all DG TVET staff by a professional body of trainers at NTTI.
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Status: No action has been taken on this policy. Policy 14: Labor Market Information Provincial/PTB basic data system and enterprise surveys Policy: NTB is mandated to oversee the national labor market in the TVET area. Balancing the market for skills requires information on both the supply and demand of skills. The further development of a labor market information system is a priority. Strategy: Involve PTCs and PTBs in gathering basic labor market information in each province. Involve enterprise councils in providing labor market demand information. Gather available information from other ministries. Include market opportunity information when possible. Status: A LMIS Department has been established, and a proposal has been developed for a national employment agency as a mechanism to gather data. Policy 15: Competency Standards Adopt regional standards with ILO/ASEAN support. Implement the National Quantity System
Policy: National skills standards will be established and a national competency assessment system set in place. Strategy: Use existing competency standards and, where needed; acquire international competency standards from other Asian countries; and validate them with enterprise councils. Work closely with ILO and ASEAN in this task and in the development of a regional national qualification framework. Status: Substantial capacity building continues with Korean assistance. The garment industry is writing its own standards. The development of standards will be a priority again as institution-enterprise training begins to grow. (MOLVT, 2009)
Section 6. Vision and Strategic Direction

TVET has gained strong support from the highest level down to the local authority. In the governments two main documents, the Rectangular Strategy for Growth, Employment, Equity, and Efficiency and the National Strategic Development Plan (2006-2010), technical and vocational training is recognized as one of the instruments for economic development. Therefore, a concrete agenda has been set. First, there is the development of TVET programs that respond to the labor market demands, while they also strengthen the management and provision of job-seeking services. Second, a TVET
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system with flexible entry and exit points will be put in place. Third, the National Training Board (NTB) with a sub-technical committee of accreditation; standards development; testing and certification; and labor market information will be established. Fourth, an advisory Industrial Technical Committee (AITC), National Employment Agency, and job centers will be created. As evidenced, the government has established the steering committee (National Training Board chaired by the Deputy Prime Minister), together with funding support. National TVET Development Plan (NTDP) has 15 main policies, 3 of which are at a macro level; 5 at a supporting level; and 7 at a sustainable and demand-driving level. The plan was adopted by the NTB in 2006. It has two tracts first, aiming at alleviating poverty through provision of basic skills to rural households (more at provincial and district level), so that more productive farming can be cultivated and extra income can be generated via basic self-employment; second, offering high-level skills (mostly conducted at national level in urban areas) responsive to industry and service need. The national socioeconomic planning framework for Cambodia is the Rectangular Strategy for Growth, Phase II, which was launched in September 2008. Its strategies include improvements to productivity and diversification of agriculture, private sector development, employment generation, and human resource development. The National Strategic Development Plan (NSDP), 20062010, based on
the Rectangular Strategy, reiterates the importance of capacity building and human resource development. Stated strategies include (i) promotion of vocational and skills training; (ii) creation of jobs in both formal and informal sectors; (iii) an increase in agricultural productivity to increase rural employment; and (iv) the establishment of TVET and training networks to assist both men and women, especially the poor, disabled and vulnerable, to respond to labor market needs. The NSDP is implemented through detailed plans from each ministry. The Strategic Plan of the MOLVT, 20062010 identifies ways to strengthen the economy and reduce poverty, including the development of technical and vocational skills. The MOLVT plan aims to (i) establish TVET links with enterprises; (ii) establish mechanisms for labor market information; (iii) service both formal and informal sectors; (iv) upgrade TVET through a NVQF, competency standards and testing, training of trainers, and accreditation of TVET programs and institutions; (v) modernize training facilities and equipment; (vi) strengthen local planning for local training needs; (vii) establish new centers in unserved provinces; (viii) expand TVET provision through the NTF to reduce poverty more widely; (ix) encourage certificate-based TVET programs in all provinces and municipalities; and (x) encourage TVET institutions to generate their own income (ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009).
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Chapter 4
FINANCING OF TVET
In the second phrase of its Rectangular Strategy, the government puts more emphasis on employment generation. This strategy allows stronger support from government budgets, as well as international organizations, donors, and other stakeholders. The government has increased its funding annually up to 2.55 million USD in recent years to MOVLT through the National Training Fund, the most wellknown one, which was envisaged as a medium and long-term mechanism for the financing of training from both government and non-government funds. Initially, the NTF served as a means for providing project-financed support for demand-oriented training, such as training programs relevant to employment needs, and in accordance with the training policy and strategy of the National Training Board (NTB). In the longer term, the NTF was expected to evolve into the main mechanism for funding of employmentrelated training, including enterprise-based training. It aimed at
becoming an instrument for providing incentives to training institutions, enterprises, and the private sector to upgrade and extend their provision of training. The NTF was established in December 1997. All of 1998 was spent identifying and designing the programs; developing systems and procedures; and training staff. The NTB eventually developed and approved three financing facilities: (i) The Training Grant Fund (TGF), a grant facility for training providers contracted to do training for certain group of trainees in certain skill areas; (ii) The Innovative Skills Investment Assistance Fund (ISIAF), a loan facility for private training providers offering innovative training to their own target clientele for a fee; and (iii) The Self-employment Generation Fund (SEGF), a micro-credit loan facility for small entrepreneurs in both urban and rural areas (Richard Johanson, 2009). The Training Grant Fund trained a total of 13,100 beneficiaries from 24 provinces/cities in 53 skill areas at a cost of $1.9 million, or an average of $147 per trainee. The TGF beneficiaries comprised the poorest people (38.1%), school leavers (25.2%), orphans (15.1%), widows (9.9%), crippled demobilized soldiers (6.3%), and handicapped (5.5%). Half of the beneficiaries were women. Based
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on a tracer study on training outcomes, the average employment rate among graduates was 66 percent, including 75 percent for women and just 59 percent for men. Categorized by type of beneficiary, the employment rate ranged from a low of 55 percent among school leavers, to full employment among demobilized soldiers. An estimated 80 percent of those who found employment did so in the informal sector. The average income of those who found employment ranged from $32-$73 per month. This may not seem like much, but when benchmarked against the $25 per month average salary of public servants, the impact of TGF was significant on the income of beneficiaries. The TGF had no cost recovery. Training fees could not be charged because the beneficiaries were very poor and had to be provided assistance in transportation and food during the training period. But, in terms of employment generation, the TGF was efficient, requiring only an average investment of $222 per employed beneficiary. The Self-employment Generation Fund (SEGF) was a micro-credit program patterned after the Grameen Bank of Bangladesh. Loan amounts generally ranged from $200$3,000. By December 2002 the SEGF, through the provincial training centers, had disbursed $1.4 million (including re-lending) to 5,650 members in 1,750 groups in 15 provinces; 65% were women. The SEGF beneficiaries engaged in a wide variety of micro-enterprises such as algae and seaweed growing, bamboo basket making, animal raising, food processing, hairdressing, motorbike repair, onion growing, television and radio
service and repair, silk weaving, masonry, stone carving, worm raising. Selection of eligible businesses was preceded by a training and employment needs assessment (TENA) conducted by the provincial training centers, and by rudimentary feasibility studies. The high collection rates (around 92 percent) indicated that the SEGF businesses were doing well. The average income from such businesses ranged from $400 to $900 per annum, a significant amount, especially in the countryside. The experience of the two NTF programs, the TGF and SEGF, was encouraging. Their impacts on the poor were direct, concrete, and substantial, and with relatively small investments. The TGF proved to be an efficient way to empower the poor by providing employable skills, either for wage or self-employment. The SEGF provided concrete opportunities for TGF graduates to apply acquired skills for self-employment. However, the operations of both programs would need to be scaled up to reach more target beneficiaries. The National Training Fund continued to operate using government funds (program budget) after closure of the project. The procedures for the competitive award of contracts, and use of unit costs for pricing the training are still in use. Thus, the institutional development gains from the project appear to be sustained. There were several limitations, however. The use of low unit costs in the competition for contracts effectively excluded private training providers. Only government institutions and NGOs that have already
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sunk costs in teacher salaries could afford to compete. Some adjustments need to be made to provide incentives for private providers to compete. Red tape makes it difficult to spend fully the government program budget allocated to the NTF. As a result, some of the intended programs could not be financed (Richard Johanson, 2009). ADB, a major funding agency in the sector, began assisting Cambodia in 1992 from the Basic Skills Project, to the first and second Education Sector Development Program (ESDP) and currently the Strengthening Technical and Vocational Education and Training Project (See full list of donors of TVET in Section 5). Other funding schemes include Samdech Decho, the Prime Ministers Special Fund, and the National Social Security Fund. The Directorate General of TVET, within the Ministry of Labor and Vocational Training, has a self employment generation fund to help graduates start their own business.
<Table 4-1> Number of Graduates from the Prime Ministers Special Fund (2008-2009)
No Description Training Provider were Accepted Skills/course Total Training Graduates Total Service 271 Agriculture 524 Female
Support Training 32 training providers Institutions (public)
21,140 19,000 40,140
12,222 10,364 22,586
64 training providers National Training Service 200 2 (public 35, association Fund Agriculture 500 15, & NGO 14) Total
(MOLVT 2009)
<Table 4-2> Number of Graduates from Program Budgeting (2008-2009)

No Description Training Provider were Skills/course Accepted Total Training Graduates Total Female
1 2
Support Training Institutions National Training Fund
32 training providers (public)
Service 180 Agriculture 5
3,750 12,540 16,290
1,687 5,121 6,808
64 training providers Service 54 (public 34, association Agriculture 392 15, & NGO 14) Total
(MOLVT 2009)
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Chapter 5
INTERNATIONALIZATION OF TVET
There has been continuous support from international organizations, funding agencies, NGOs, and other stakeholders in the development of TVET in Cambodia: The World Bank has outlined all major contributors in this sector. Other external organizations support ADBs initial assistance to TVET, building on support from the United Nations Development Program and ILO that began in the early 1990s and initially focused on basic employment training for returnees, the displaced, demobilized soldiers, and female heads of household. Subsequent initiatives supported the development of skills for training needs assessment, curriculum and program development, and instructor training. Assistance to MOEYS was provided by German development assistance through GTZ to develop recommendations for a national training framework and staff training, and to plan an integrated national TVET system. ADBs broad support for general education
and TVET over the following decade has been further enhanced by specific support from other donors. This included (i) Japan International Cooperation Agency support (19902000) for an automotive training and auto repair center, and ongoing provision of specialist volunteers across several of the MOLVT training institutions; (ii) Republic of Korea development assistance (20052009) for skills standards and the establishment of the National Polytechnic Institute of Cambodia; and (iii) grant assistance for the support of the CambodiaIndia Entrepreneurship Development Center from the India Technical and Economic Cooperation, 20042007. A National Garment Training Institute, proposed for funding by the Garment Manufacturers' Association of Cambodia and Agence Francaise de Developpement, may provide a model for future publicprivate TVET initiatives in key sectors (ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009).
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<Table 5-1> External Assistance

Project Name ILO Employment Generation Program Vocational Training for Employment Generation(VTEG) UNDP/ILO Grant Value and Years $18 million Phase 1 (1992-1997) Phase 2 (1997-1998) Focus of Assistance Promoted and provided direct employment skills for rural and urban poor (including returnees, displaced persons, demobilized soldiers, disabled and female heads of households) through short vocational training programs for identified employment opportunities. Developed skills for training needs assessment, curriculum and program development and instructor training. Further development of systems and support mechanisms for skills training and implementation through development of a national training framework and training of officers from the MOEYS. Assistance to MOEYS for planning an integrated national TVET system. Assessment of existing TVET system; involvement of other ministries and stakeholders; identification of training needs for employment, self-employment and income generation; training technologies; system structures Established (initial) National Training Board (NTB); National Training Fund (NTF) and the National Vocational Training Center (now National Technical Training Institute, NTTI). Assistance to provincial training centers and womens training centers, and support for system training and development) For TVET: established and continued upgrading to PTCs. Technical assistance for TVET staff upgrading and development of skills standards.
ILO Employment Generation Program Vocational Training for Poverty Alleviation (VTAP) UNDP/ILO Grant National Strategy Plan for TVET UNDP/ILO/ GTZ
$12 million 1994-1998
1994-1996
Basic Skills Project ADB loan
$20 million 1996-2002
Education Sector Development Program ADB loans and linked advisory assistance, 2004
$20 program loan and $18 million project loan 2002-2004
Project Name
Value and Years
Focus of Assistance For TVET: development and support of the Voucher Skills Training Program (VSTP) as a community-based basic-skills demand-driven training scheme in trial provinces. Equipment and technical assistance for staff and system development through provincial training center upgrading, staff training and management support for implementation of VSTP. Assistance for the establishment and continuing operation of an automotive training and commercial auto repair center, including senior staffing, equipment, programs and in-Japan staff training. (Initially under Ministry of Public Works and Transport, now MOLVT). Assistance through volunteers for training and development in air conditioning, automotive, dressmaking, computer graphics, engineering, systems engineering in DGTVET institutions, plus supporting training equipment and supplies. Assistance for the establishment of a national qualifications framework and testing centers.
Second Education Sector $20 program loan Development Program and $25 million ADB loan project loan and TA (0.5 million) 2005-2008
Japanese Vocational Center Workshop and Technical School JICA grant assistance
1990-2000
Japanese Overseas Cooperation Volunteers Program JICA
ongoing
Korean Development Assistance(Korean Research Institute for Vocational Training) Grant Technical Assistance for the Support of the Cambodia-India Entrepreneurship Development Center, (CIEDC) ITEC grant
$1.2 million 2005-2009
2004-2007
Provision of technical advisor, fellowships, and in-country staff development, for management and program development in entrepreneurship, SME development, accounting and business.
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Project Name Piloting the PostHarvest Technology and Skills Bridging Program ADB grant National Garment Training Institute AFD, GMAC, MOLVT
Value and Years JFPR Grant $2 million 2009
Focus of Assistance TVET skills bridging for out-of-school rural poor youth for income-earning activities in market-linked post-harvest employment, including basic education upgrading initiatives which will impact directly on the proposed Strengthening TVET project.
3.8 million loan Establishment of an independent to GMAC. (public-private partnership) garment industry Not yet finalized training and development center for: (i) skills training for access to employment; (ii) professional development; and (iii) advice and technical assistance.
AFD = Agence Franaise de Dvelopment; GMAC = Garment Manufacturers Association in Cambodia; GTZ = German Agency for Technical Cooperation; ILO = International Labor Organization; ITEC = Indian Technical and Economic Cooperation; JICA = Japan International Cooperation Agency; MOEYS = Ministry of Education, Youth and Sport; MOLVT = Ministry of Labor and Vocational Training; PTC = Provincial Training Center, TVET = Technical and Vocational Education and Training; UNDP = United Nations Development Programme. Source: Asian Development Bank.
(ADB, Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project, October 2009, page 37 & 38)
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Chapter 6
NEW AGENDA AND PLANS FOR THE FUTURE
Emerging from a period of social unrest in its recent history (since early 1970s), Cambodia has encountered many challenges, but has simultaneously moved many steps forward. If compared to other countries in the region, there is much that Cambodia must commit to catch up. In its future course, Cambodia will experience both challenges and opportunities challenges: there are so many things that Cambodia has to do, and do fast; opportunity: there are plentiful of lessons from other countries that Cambodia can learn from, which is sometimes a shortcut (to success). Since its adoption of free market economy in the 1990s, Cambodia has undertaken numerous reforms. Besides agriculture, the Royal Government of Cambodia recognizes the important roles of industry and services in economic growth. Thus, from its 4th mandate, the government has invested a great deal in technical and vocational education and training. MOLVT is prioritized and assisted by
international organizations, development partners, funding agencies, private partners, and other stakeholders in implementing its future plan. The 15 policies set by MOLVT will be further translated by ADBs major project Strengthening Technical and Vocational Education and Training. This project outlines a concrete blueprint for the future path of TVET in Cambodia, which includes 1) upgrading technical and vocational education and training teacher training, skills standards, testing and assessment; curriculum and training materials; and institutional management and upgrading; 2) expanding the Voucher Skills Training Program (VSTP) to all 24 provinces; and 3) developing and implementing skills standards. Another direction, which stated by the Minister of TOLVT, is to make market information more accessible to he public so that right decision for jobs needed by the industry can be made.
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[Figure 6-1] The Rectangular Strategy for Growth, Employment, Equity, and Efficiency in Cambodia
[Figure 6-2] Proposed TVET System
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[Figure 6-3] The TVET System 25 Year Development Plan in Cambodia 1996-2020
References
Asian Development Bank. 2009. Proposed Asian Development Fund Grant Kingdom of Cambodia: Strengthening Technical and Vocational Education and Training Project. October 2009. Phnom Penh, Cambodia. BDLINK Cambodia Co., Ltd. 2008. Youth Employment and Social Dialogue Project YEP ProjectCAMFEBA. Youth and Employment: Bridging the Gap. June 2008, Phnom Penh, Cambodia. Economic Institute of Cambodia. 2008. Cambodias Labor Market and Employment. Background paper prepared for the World Bank. December 2008. Ministry of Planning. 2010. General Population Census of Cambodia 2008: Final Census Results. Phnom Penh, Cambodia. Ministry of Labor and Vocational Training (MoLVT). 2010. Annual Report on Achievements (2009) and Implementation Goals (2010) (in Khmer). Phnom Penh, Cambodia Ministry of Labor and Vocational Training (MoLVT). 2008. National TVET Development Plan 2008. Phnom Penh, Cambodia Ministry of Education, Youth and Sport. 2010. Education Strategic Plan (2009-2013). Phnom Penh. Ministry of Economy and Finance. 2010. Recent Macro-economic Performance: Cambodias real GDP Growth Rate. http://www.mef.gov.kh/ [accessed 02 November 2010]. Ministry of Planning. 2010. National Institute of Statistics. Labour and Social Trend in Cambodia 2010. September 2010. Phnom
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Penh, Cambodia. Richard Johanson. 2009. A Review of National Training Funds. Social Project and Labour. The World Bank. November 2009. Royal Government of Cambodia. National Strategic Development Plan (2006-2010). Phnom Penh, Cambodia. Sandra Daminco. 2010. Higher Education and Skills for the Labor Market in Cambodia, Jan 2010. UNESCO. 2010. Good Practices in TVET Reform. February 2010. UNESCO. 2010. National Education Support Strategy. May 2010.
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Chapter 1
Technical Vocational Education and Training in Indonesia
Section 1. Indonesia: context and background

Previously occupied by the Dutch, the Republic of Indonesia proclaimed its independence in 1945 with the end of Japanese occupation. Sukarno remained the first president of Indonesia until 1967, when Suharto took power and named his cabinet the New Order. With the style of dictatorship, the New Order ruled Indonesia for more than three decades, before President Suharto gave up his position in 1997. There was mass desire for reformation due to social instability driven by the severe economic crisis in Asian countries. Indonesia was among the countries which had been most strongly affected, revealing the fragility of her economic and social foundations. Habibie as the Vice President remained in office for approximately two years; since then, Indonesia has experienced significant changes
in its political climate, retreating from the umbrella of a few political parties in 1999 (three political parties where the Government party always won the general election), into a multi-party system (more than 20 political parties competed in the general elections in 1999, 2004, and 2009). Since 2004, the President has been elected directly by the people, indicating a strong demand from the people for better democratization.
<Table 1-1> Indonesia General Statistics General Statistics Population (2009) Area (square kilometres) Employment by sector (%) (2009) Agriculture Industry Services GDP per capita (2009) Literacy rate (%) Unemployment (%) Year 2008 Year 2009
230 million 1.9 million 43 13 44 $ 2,200 93 9.7 9.0
Indonesia is among the most densely populated countries in the world. With more than 230 million, Indonesia ranks fourth from the top in terms of the worlds population. The growth rate of the population was 1.1 in 2010, showing continuous decline over previous years. From 1970-1980, the growth rate was 2.31; from 1980-1990, it was 1.98; and from 1999-2000, it was 1.49. The age structure of the population reveals that youth dominate the population, creating both opportunities and challenges for the
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country. Many people are in school and of productive age. While youth offer abundant labor opportunities for the local and global labor market, they face significant challenges in receiving good education and skills, and in creating jobs.
[Figure 1-1] Indonesia Population by Age Group and Gender, 2005
12,000,000 10,000,000
Number of population
8,000,000 6,000,000 4,000,000 2,000,000 0
0 -4
5-9
10 -14
15-19
2 0 -2 4 2 5-2 9 3 0 -3 4 3 5-3 9 4 0 -4 4 4 5-4 9 50 -54 55-59
6 0 -6 4 6 5-6 9 70 -74
75+
Male
Female
Age
There is no comprehensive data on the migration pattern of the population. The available data from the Indonesian Bureau of Statistics (BPS) only reveals the estimated migration of population age 5 years and over and, thus, there is no specific data on the migration of the labor force. The BPS classifies migration into three categories, which include: 1. Lifetime migration, in which migrants live in provinces different from their birthplace;
2. Recent migration, in which migrants have moved to a new province within the last five years; and 3. Total migration, in which migrants never lived in different provinces before data was taken. The most recent data available on the migration is from the 2000 Population Census which may be compared with the 1995 SUPAS data. There is an increasing trend towards the interprovincial migration of persons age 5 years and over, recorded at 2.4% from 1990-1995, to 3.1% from 1995-2000. Eight provinces have become the most popular destinations: Jakarya, Yogyakarta, East Kalimantan, Banten, Central Kalimantan, Jambi, Riau, and South Sulawesi. The data on international migrants is limited to those who are officially registered. The lack of data implies that the actual number of Indonesian international migrants is far higher than that recorded by the government. The Ministry of Manpower and Transmigration revealed that, in 2009, the number of Indonesian migrant workers abroad totaled nearly 2.8 million, spread in 42 countries around the globe, with the majority of persons working in Malaysia, followed by Saudi Arabia. See the table below:
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<Table 1-2> Major Country Destination of Indonesia Migrant Workers Number of Indonesian No Destination Country Migrant Workers 1 Malaysia 1,200,000 2 Saudi Arabia 927,500 3 Taiwan 130,000 4 Hong Kong 120,000 5 Singapore 80,150 6 Kuwait 61,000 7 UEA 51,350 8 Brunei Darussalam 40,450 9 Jordan 35,000 10 Qatar 24,586 11 Bahrain 6,500 Total 2,676,536
Source: Ministry of Manpower, 2010 as cited in Iqbal (2010).
The majority of international migrants are women, who comprise around 75%, and they mainly work as housemaids. While the most popular destinations for the male international migrants are East Asia and Southeast Asia, most female international migrants select Middle Eastern countries. Poverty and lack of hope in getting jobs domestically have been the main reasons for international migration. Thus, many Indonesians working abroad are low-skilled, low-educated workers. The administration of the international labor migrants is currently being criticized by the NGOs and the people as a weakness in administration, resulting in the existence of illegal migrants and negligent migrant workers agencies which send people abroad without protection and sufficient monitoring. It as also believed that there should be an agency (government agent, trade union, or NGO) that can help migrant workers secure rights and protection during
their time abroad. The literacy rate in Indonesia is already quite high, around 93 percent in 2009 for age group 15+. However, when explored further, the highest formal education enrollment rate is at the primary and junior secondary school levels which are obligatory for the Indonesian people. Most public schools within these levels are free. The participation rate in the senior secondary school and university degree is lower, due to access and cost.
<Table 1-3> School Participation Rate, 2009 Number Enrolled Participation % of % of Age/Education Level of Pupils in School Rate Males Females 0-6 / Pre-school 28,426,505 6,594,086 23.20 49.91 50.09 7-12 / Primary School 26,304,320 26,015,842 98.90 51.55 48.45 13-15 / Junior Secondary School 12,890,334 11,019,242 85.48 50.57 49.43 16-18 / Senior Secondary School 12,897,898 7,325,188 56.79 51.62 48.38 19-24 / College or University 25,077,900 4,325,354 17.25 47.74 52.26
Indonesia experienced the achievement of strong economic growth during the New Order era, with an average annual growth of 7 percent in 1968-1996; this growth initially was fed by the oil boom in 1970, and then by rapid expansion of the export-oriented manufacturing, construction, and service sectors. However, when the Asian financial crisis occurred in 1997, the Indonesian economy collapsed, demonstrating the fragility of Indonesias economic and social foundations. This resulted in a mass desire for social reformation and, hence, the downfall of Suharto. The crisis has resulted in a slow economic growth rate of average
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4 per cent; a significant increase of inflation from under 7 percent in 1997, to over 58 percent in 1998; a higher unemployment rate; and an increased share of the informal sector in absorbing employment, suggesting a lower share of the formal sector in providing employment for the people.
[Figure 1-2] Indonesia Economic Growth 1997-2009
7 6 5 4 3 2 1 0 -1 -2 -3 5.6 4.5 5.5 6.3 6.1 4.5
-2.9 1997- 2000- 2005 1999 2004
2006 Ye a r
2007 2008
2009
As unemployment has become a major problem in the reformation era, so has the government developed a plan by making employment creation its first priority. The government heavily relies on investment (particularly foreign direct investment) to overcome this problem, though effectiveness remains questionable. The emphasis is on partially improving the investment climate though regulations (including the Manpower Law), and there is lack of attention towards educational achievement and skills formation which match the needs of industry.
The government under the current President Susilo Bambang Yudhoyono has established a priority agenda which focuses on employment creation and unemployment reduction to improve the peoples welfare. Following this agenda, the Bappenas (National Planning and Development Agency) announced the Government Medium-Term Development Plan (MTDP) for 2004-2009, which presents an optimistic scenario. The scenario includes: Increasing GDP growth from 4.5% to 7.6%; Reducing unemployment from9.5% to 5.1%; and Cutting poverty levels from 17.4% to 8.2%. However, policy documents seem to contradict these objectives. First, the priorities of improving investment climate and upgrading technology seem to have become more important than the task of reducing unemployment. Furthermore, shifting priorities are also found in the documents produced by the Coordinating Minister of Economic Affairs which state that the unemployment target for 2009 is 6.7% (compared with 5.1% as promised), and the economic growth is targeted for 7.2%, compared to 7.6 % in the MTDP (Sugiyarto et al, 2008: 305). Furthermore, there is no clear employment-generation program introduced and implemented by the government to reduce unemployment and underemployment. Unemployment in 2009 reached 9%, while economic growth was 4.5%, showing that reality is worse that the target previously set. Regarding the unemployment rate, the Ministry of Manpower and Transmigration stated that the reasons are: (1) there are not enough employment opportunities in the labor market; (2) there is a
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mismatch between job requirements and qualifications held by jobseekers; and (3) global recession led to company closure and layoffs. The economic growth of 4% was considered an achievement, although it was lower than the target and the previous year (6.4% in 2008), because the global crisis created a pessimistic prediction of economic growth. Thus, 4% was believed sufficient, due to conditions at that time.
Section 2. The Indonesian Employment and Labor Market

Prior to the 1997 Asian financial crisis, Indonesia had displayed a growing formal sector, with an increase in female labor and a decline in the informal sector; as epitomized by a decline in the agricultural share of work; the main sector of the informal economy, particularly during the New Order Era (De Ruyter and Warnecke 2008). This period is also characterized by the repression of labor which involved military force to control workers. There was only one government-controlled trade union which ensured that labor unrest would not lead to strikes or demonstrations. However, the Indonesian economy has since displayed a belated recovery from the 1997 crisis, with economic growth rates in the order of 4-6% p.a. over the last ten years; this has only translated into a modest decline in the informal sector, as formal sector firms in industries, such as manufacturing, cannot provide enough employment for the abundant Indonesian workers. The situation has
been further worsened by the governments unclear program to reduce unemployment, as stated previously. Thus, in 2005, the Indonesian workforce comprised over 155 million workers, of which 60% were estimated to be working in the informal sector defined as the self employed and unpaid family workers (Sugiyarto et al, 2006: 302), particularly in the agricultural and trade sectors. Furthermore, the number of informal workers is higher in rural, than in urban areas.
[Figure 1-3] Informal Workers, Urban and Rural
20.00 18.00 16.00 14.00 12.00 10.41 10.00 9.27 8.00 6.00 4.00 2.00 0.00 4.63 1.63 1.28 1 2 3 4 18.25 16.54 14.08 9.69 5.18 0.83 5 2.57 2.13 6 3.51 Rural Urban
1 = Self Employed 2 = Self Employed with Temporary Workers 3 = Self Employed with Permanent Workers 4 = Paid Workers 5 = Independent Workers in Agriculture 6 = Independent Workers in Non-agriculture 7 = Unpaid Workers
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The presence of an informal sector that can absorb displaced formal sector workers is believed to have provided Indonesia with a flexible labor market and an alternative for workers who cannot find jobs in formal sectors (Manning, 2000: 122). The agriculture sector, among others, still remains the largest pool for absorbing workers.
[Figure 1-4] Workers by Industry, 2009
Finance, Insurance, and other Services 1.50% T ransportation 0.60%
Who le s a le , S to ring a nd C o m m unic a tio n 22.03%
Public Service 13.73%
Agriculture, Forestry, and Fishery 43.41%
Construction 4.65%
Electricity, Gas and Water 0.21%
Mining 1.15% Manufacturing 12.73%
Source: counted from employment statistics, BPS (http://www.bps.go.id/sector/employ/table2.shtml)
This flexibility has resulted in a relatively stable unemployment rate, despite the 1990s crisis which hit Indonesia badly. The official unemployment rate in Indonesia during the initial years of the 1997 Asian crisis did not show the extreme decline one might have expected (as presented in the table below). Unemployment growth
in Indonesia was considered slight in comparison to other countries affected by the regional crisis; in South Korea, for example, the unemployment rate increased from 2.2% in 1997, to nearly 8% in 1998, whilst in Hong Kong, Malaysia, and Thailand unemployment nearly doubled (Manning, 2000: 121).
<Table 1-4> Unemployment Rates by Gender, BPS (Statistics Indonesia), and the Ministry of Manpower 1994-1997 1998-2000 2004 2006 2008 Male 4.6 6.0 Female 4.1 5.6 Total 5.6 6.6 9.9 10.3 8.4
Source: National Labour Force Survey (Sakernas) as cited in Dhanani, S, 2004: 10 and BPS (http://www.bps.go.id/sector/employ/table1.shtml)
In 2001 the BPS changed its definition of unemployment, adding discouraged workers (i.e. those who do not seek jobs because they believe there are no jobs available) into the unemployment measure (Sugiyarto et al, 2006: 333). Many criticized that the exclusion of the discouraged workers would hinder the actual number of unemployment persons (for example, Ahmed and Dhanani, 1999). As a result, official unemployment rate doubled and climbed higher: 8 percent in 2001; 9.1 percent in 2002; 9.9 per cent in 2004; and 8.4 per cent in 2008. The other type of worker which has recently become more popular is the contract worker (i.e., fixed-term contracts), particularly within the textile and garment sectors-labor-intensive sectors which do not
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require highly skilled workers. The use of contract workers has been steadily increasing since the government introduced Employment Law 13 (2003), in which the use of contract workers was legalized. The government argues that a fixed-term work contract is meant to give workers more chance to obtain work, rather than create job insecurity among the workers. However, many employers have actually breached the law by using fixed-term work contracts for core duties in their main business and thus, the term contract workers has become more common. Hence, it can be argued that the government has not taken sufficient action to enforce Law 13 and remove/reduce the practice of ongoing contract workers by the employers. With characteristics typical of informal, part-time, and contract workers (i.e., shorter hours of work; less than minimum-wage income; uncertainty of income; and job continuation), it can be argued that the welfare of these workers is highly questionable. This condition, in turn, is worsened by the absence of a social security net for workers. Although the Act that regulates social security for workers covers all types of worker, its implementation and the actual practices of employers show a contrasting phenomenon. Thus, enhancing the quality of Indonesian workers (by helping them obtain better skills and education) is expected to lower the number of informal-low paid workers and prepare them to work within the high-skilled formal sector. Furthermore, the problem of
the workers welfare may well be overcome, if people are given good education and skills that pave the way for high employability and productivity. Despite the huge quantities of labor supply available in Indonesia for both the local and international labor markets, the task of improving the quality of labor is still greatly challenging. Data revealed by SAKERNAS (National Labour Force Survey) shows that in 2003, the majority of Indonesian workers graduated from primary school level (35 million). Those who obtained less than primary schooling comprised 17 million. Those who graduated from junior secondary school represented 18 million. There were 17 million graduates from senior secondary schools, and only four million who completed tertiary level (higher education) (Sugiyarto et al, 2006: 332). However, those who experienced higher education did not automatically find jobs. There has been an increasing number of university and college graduates who cannot find work, from an estimated 600,000 in 2004, to more that one million in 2009.1)
1) See:http://www.bps.go.id/tab_sub/view.php?tabel=1&daftar=1&id_subyek= 06&notab= (retrieved 5 November 2010)
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[Figure 1-5] Number of Unemployed Higher Education Graduates
number of graduates
1500000 1000000 500000 g 0 2004 2005 2006 2007 2008 year
University Graduates Diploma Graduates

Source: Media Indonesia, August 2009
There are two possible reasons why those who earned higher education degrees still can not find jobs. The difficulty of obtaining jobs was caused by limited employment opportunities and the mismatch between job requirements and job qualifications. It is paramount to know the direction of industrialization in Indonesia to determine the types of industries which will be developed in the future under guidance by the Ministry of National Education; Ministry of Manpower; and the education or training providers; they must match skill formation during the period of study/training with the needs of future industrialization. The main contributor of the GDP in 2009 was the processing/ manufacturing industry, which includes food and beverages, textiles, and chemical products. The next major contributors are the agricultural, mining, service, and transportation industries. Thus, it can be seen that the manufacturing industry, which is labor-intensive and
involves low level to medium level of technology, dominates the economy.

<Table 1-5> GDP Contributor by Industry, 2008-2009 Industry 2008 Agriculture, Forestry and Fishery 14.5 Mining 10.9 Processing / Manufacturing 27.9 Oil and Gas 4.9 Non Oil and Gas 23.0 Electricity, Gas and Water 0.8 Construction 8.5 Trade, Hotel and Restaurant 14.0 Transportation and Communication 6.3 Finance, Real Estate and Enterprise Services 7.4 Other Services 9.7
2009 15.3 10.5 26.4 3.8 22.6 0.8 9.9 13.4 6.3 7.2 10.2
On the other hand, the Ministry of Industry has predicted the future trends of manufacturing and service industries. The industries, which are based on local materials and high technology and are community-driven, will be strengthened to enable technological development and job creation.
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[Figure 1-6] The Future Trend of Manufacturing Industries
The Ministry of Industry has identified current strengths and established a plan for the future that will be embraced by the year 2025. The future manufacturing industry will emphasize the use of local materials; skilled workers, high technology; and renewable natural resources. The pillars of the future industry are described below: 1. The agro-industry includes not only planting and harvesting, but also processing farm or forestry products, such as coffee, cocoa, woods, and coconut. The development of the agro-industry is considered necessary, as there are only around 42 million workers in this industry out of the total 105 million workers. Thus, developing this industry will generate increases in income for the
majority of people. 2. Transportation includes production of ships, trains, automotive, and air transportation. Indonesia has served as one of the worlds leading automotive production centers. However, high dependency on foreign companies (multinationals) and their materials and components, as well as the absence of effective local research and development, pose significant challenges which will need to be overcome if this industry becomes the main pillar of Indonesias future manufacturing industry. Furthermore, while the production of ship and trains is thwarted by obsolete technology and equipment, the air transportation industry needs policy restructuring to ensure its development. 3. Information technology includes production of devices and development of networks. This industry is expected to become the main player in the national economic development. Information technology will improve connectivity nationally, regionally and globally. Thus its development will focus on both the hardware production, and the network service provider improvement. Furthermore, the current basic industries which have been the prime movers of national economics and industrial development in Indonesia, such as components, clothing, apparel, and steel, will be continuously maintained; the focus in these basic industries will be on improving technology and labor skills to enhance global competitiveness. The strategic plan also clearly mentions the important role played by small and micro business. Small businesses are expected to
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participate in providing goods and services that meet the demands of their respective markets. An industry cluster will involve the core, supporting, and related industry, whereas the small business will likely become part of the supporting and related industry. The government clearly states the inclusion of small business within the industry development, to the extent that: (1) small businesses will be involved in every step and chain of production in every cluster, so that their role will be as important as the big companies, and they will become the foundation of strong economic development; and (2) small businesses are expected to support and cooperate with big companies within a mutually beneficial environment. Involving small businesses within an integral network will require a comprehensive program to develop qualified and skilled labor, including access to updated technology to ensure the high and standardized quality of the products manufactured.
Section 3. The Education System in Indonesia

The education system in Indonesia involves three government agencies: the Ministry of National Education; Ministry of Religious Affairs; and Ministry of Manpower and Transmigration. Private sectors also play a major role in providing education, both formal and informal. With permission from the government, the private sector offers greatest representation among the senior secondary schools, by providing 70% of the institutions. However, 90% of the
primary schools and 50% of the first secondary schools are public (Sugiyarto et al, 2006: 328). As depicted in the figure below, the government has introduced a multi-entry, multi-exit education system for the people, offering both a choice and flexibility for general and vocational education. After completing the nine-year compulsory education (which includes six years of primary education and three years of junior secondary education), one can choose to continue to study at a general or vocational senior secondary school. After this degree, one can pursue higher education based on ones career interest and choice. In tertiary education, moving across education streams is possible. The figure below shows that those who choose to follow general senior secondary high school (SMU) and, thus, remain within the academic educational stream, are projected to obtain university degrees of S1 (Bachelor); S2 (Master degree); and S3 (Doctoral degree), although, at some point, they can also move to more vocational/technical education. On the other hand, those who choose to pursue vocational senior secondary schooling are expected to obtain further technical/professional education and training, moving away from diploma degrees towards more specialized ones; these students can still shift towards an academic stream if they choose.
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[Figure 1-7] The Indonesian Education System
The government has also developed a National Qualification Framework which outlines the expected abilities, skills, knowledge, and responsibilities for each level of qualification. The National Qualification Framework consists of nine certification levels, where the lowest starts at the senior secondary level, and the highest ends at the Doctoral Degree or Specialization level.
[Figure 1-8] Indonesias National Qualification Framework
The abilities, skills, knowledge, and responsibilities for each level of certification are shown in the table below:
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<Table 1-6> Certificate Level I-VI

ACTIVITY Carrying activity: CERTIFICATE 1. Limited scope 2. Repeating and ordinary 3. Limited context Carrying activity: CERTIFICATE 1. More aspects 2. Established and common 3. With limited option of some routine response KNOWLEDGE RESPONSIBILITY 4. Re express 7. Based on the direction 5. Using limted knowledge 8. Under direct supervision 6. Need no new idea 9. No responsibility for another persons job 4. Using basic operational 8. Carrying activity based knowledge on the direction 5. Utilize available 9. Undirect monitoring and information quality control 6. Implementing common 10. Limited responsibility problem solving for quantity and 7. Requires some new quality ideas 11. To be able to direct the other people Carrying activity: 4. Using a relevant 1. To the activity based on CERTIFICATE 1. In large scope and theoritical knowledge the direction with required common skills. 5. Interpreting available limited authorithy 2. With more options of information 2. Under undirect procedures 6. Using calculation and monitoring and quality 3. Within a common consideration control context 7. Implementing common 3. Moderate responsibility problem solving to the quantity and the quality of the result. 4. To be able to take responsibility for another persons job performance. Doing activity: Using large basic To self- planned CERTIFICATE Within large scope and knowledge linked to some activity/Under supervision and general evaluation. requires logical technic theoritical concepts. skill. Forming analitical Fully responsible of With options of several interpretation to available quantity and quality of the procedures data. work. Within a few common and Decision making based on Able to carry responsibility for the quantity and quality special context. the rules. Implement innovative of another persons job problem solving to a real and unusual cases. Carrying activity: Implement broad basic Carrying out : CERTIFICATE Within larger scope and knowledge with the Activity self direction and requires special logical specialization in limited occasionally giving technic skills area. direction to others. (specialization) Analitical interpretation of With a manual or common LEVEL
ACTIVITY With more options to standard and non-standard procedures Requires some more option of procedure and non procedural standard Within routine and non-routine context Carrying activity: CERTIFICATE Within extensive scope and requires special logical technical skills. With extensive options for a several standard and non-standard procedures and combination of non-standard procedures. Within routine and non-routine context with fluctation changing
LEVEL
KNOWLEDGE avalaible data which has large scope. Deciding appropriate methodes and procedures to solve real problems containing theoritical elements.
RESPONSIBILITY function. Activity requires full responsibility for nature, quantity, or quality of the work performance. Able to be responsible for achievements of team performance. Using deepen special Carrying out: knowledge in several sector Management activity/ Analysing, reformat and processing activity evaluation of wide scope With extensive parameter of informations certain activities Formulate appropriate steps And accountability activities of problem solving, either to achieve results for self or concretes or abstracts team problem Responsible for achieving results in the organizations work
The certificate levels VII-IX, which are more advanced,j are expected to fulfill the targets below:
<Table 1-7> Certificate Level VII-IX LEVEL SKILL , KNOWLEDGE, RESPONSIBILITY CERTIFICATE Including skill, knowlede and responsibility that enables one to : Explain systematically and coherently the main principles of a sector and, Self assess, research, and engage in intellectual activities in a sector, Shows intellectual understanding, incisive analysis, and good communication CERTIFICATE Including skill, knowledge and responsibilities that enable one to : Show expertise in a sector and, Design and elaborat of a research project with original intellectual activity according to international standards CERTIFICATE Including skill, knowledge and responsibilities that enable one to : Share original knowledge through research and intellectual activity valued by independent experts and based on international standard
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Despite the governments effort to improve the quality of the people (through the policy of nine-year compulsory formal education; flexibility at the higher level, and establishment of the national qualification framework), the implementation of these plans has been hindered by the 1990s crisis. The school participation rate in Indonesia in 2008 was around 64 percent (of the population age 0-24 years old), owing to the high number of students enrolled in primary level. The lower the number of students enrolled in the schools, the higher the degree. Table 1.1 below shows that students enrolled in the senior secondary schools account for only around half of the age population, while students enrolled at universities hardly reach 20 percent, proving that higher education in Indonesia is still premium for most of the people.
<Table 1-8> Student Enrollment by Education Level
2003/2004 2004/2005 2005/2006 2006/2007 Numbers 29,100,438 29,149,746 28,982,708 29,769,705 Primary School Percentage 94.56 94.99 94.2 94.48 Numbers 9,604,894 9,681,802 10,286,521 11,503,387 Junior Secondary School Percentage 56.14 60.15 62.06 68.81 Numbers 6,126,440 6,311,385 6,511,288 7,213,542 Senior Secondary School Percentage 39.00 40.35 42.64 52.6 Numbers 3,739,959 3,534,289 3,612,435 3,705,187 University Percentage Source: The Indonesian Ministry of National Education 2007/2008 29,498,206 94.9 10,961,492 71.6 7,353,408 50.19 4,325,408 17.25
This figure is also worsened by the fact that some students also drop out from school, and many of them do not continue to purse studies for a higher degree, particularly after completing senior secondary school. The main problems faced by the people are access,
particularly for those living in rural and remote areas; costs of higher degrees; and lack of understanding of the importance of education.
<Table 1-9> Numbers and Percentage of Drop Outs Including Those Who Do Not Pursue Higher Education No Drop Out Primary Level Junior Secondary Level Senior Secondary Level 1 Numbers 486,426 255,210 167,838 2 Percentage 1.63 2.22 2.33 Do not continue Primary Level Junior Secondary Level Senior Secondary Level to higher level 1 Numbers 431,937 412,135 678,010 2 Percentage 10.54 13.66 35.65
This condition has of course impacted the employability of the people and the characteristics of the Indonesian labor market, as previously explained, where low employability of the people has led to unhealthy reliance on low-paid informal sectors, particularly agriculture and small retail, rather than new jobs in the formal sector. Therefore, the Ministry of National Education has set the strategic plan for year 2009-2014 which cascades into six strategies: 1. Expansion and greater access to excellent and gender-equal early childhood education; 2. Expansion and greater access to excellent and gender-equal primary education; 3. Expansion and greater access to excellent, gender-equal, and relevant secondary education which addresses community needs; 4. Expansion and greater access to excellent, internationally competitive, gender-equal, and relevant higher education which
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addresses national needs; 5. Expansion and greater access to gender-equal and relevant continuous adult education for the community; and 6. A strong management control and internal monitoring system. In achieving these targets, the government has allocated a significant budget for education by dispersing around 20% of the total 2010 central government budget, which is around 340 trillion Rupiah, the second biggest allocation after the one for general services, as shown in the table below:
<Table 1-10> Central Government Budget, 2010 Expenditure by Function Rp trillion General Services 110.2 National Defence 20.9 Public Order and Safety 14.9 Economy 57.4 Environment 7.9 Housing and Public Facilities 20.9 Health 18.0 Tourism and Culture 1.4 Religion 0.9 Education 84.1 Social Security 3.5 Total 340.1
% 32.4 6.1 4.4 16.9 2.3 6.1 5.3 0.4 0.3 24.7 1.0 100.0
To summarize, the government, through the Ministry of National Education, aims to promote access, quality, and gender equality in every level of education. Furthermore, the government introduced a new strategy to enhance skills and employability of the people, by
placing greater emphasis on the development of the vocational secondary schools. It reversed the ratio between the general secondary schools and the vocational ones where the percentage of vocational schools is expected to be higher than that of the general secondary school by 2014.
Section 4. TVET System in Indonesia

The TVET system in Indonesia involves more one government agency. The Ministry of Education plans, implements, and monitors vocational education in secondary schools and colleges. Within there are two separate directorate generals: the Directorate General of Primary and Secondary Education (Dikdasmen) and the Directorate General of Higher Education (Dikti). The Ministry of Manpower and Transmigration is also responsible for provide certified training, particularly for the unemployed, helping them obtain specific skills which are expected to assist them in finding jobs. There are other ministries which are responsible for developing the skills and competencies needed within their specific work areas, such as the Ministry of General Construction, which develops and certifies the construction skills for construction workers, and the Ministry of Tourism, which develops the and certifies the skills of persons entering into tourism and hospitality.
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Section 5. Vocational Senior Secondary School (SMK-Sekolah Menengah Kejuruan)

Psacharopoulos (1997) argued that developing countries, which are trying to become industrialized, which require technology and people with sufficient technical skills. It means that vocational education and training become paramount for a nations skill formation. He further stated,Just as you can build a bridge to lower transportation costs between two sides of a river, so by providing vocational education a country can allegedly prosper economically and reap more easily the benefits of economic growth (p.385). The TVET system in Indonesia is a part of general education, which focuses on preparing students to enter the world of work. This function had been reinforced by the National Education System Law no. 20 year 2003, Article 61, in which TVET graduates may have two certificates: an academic certificate and a competency certificate. Academic certificates are given to graduates as recognition that they have achieved the requirements of qualification after finishing their schooling, while competency certificates are given to students after they have passed competency assessment conducted by a Professional Certification Body (PCB) or accredited TVET. Vocational education in Indonesia starts at the senior secondary level, as an alternative to the general senior secondary school. Vocational secondary schools are known as SMK (Sekolah Menengah Kejuruan) which are operated both by the government,
and the private sector. The 2008/2009 data shows that the private vocational schools account for 73.62 percent compared to the public ones, which account for only 26.38 percent across Indonesia. The number of students, schools, and teachers are shown in Table 11 below:
<Table 1-11> Number of Vocational Students, Schools, and Province, 2009 Student School No Province Male Female Total Public Private 1 DKI Jakarta 126,255 121,204 247,459 62 520 2 West Java 295,432 183,920 479,352 168 957 3 Banten 73,140 51,405 124,545 37 257 4 Central Java 296,398 198,269 494,667 171 829 5 DI Yogyakarta 43,369 30,563 73,932 46 142 6 East Java 312,874 215,699 528,573 224 813 7 Nanggroe Aceh D 23,990 14,060 38,050 66 36 8 North Sumatera 145,457 100,710 246,167 126 566 9 West Sumatera 44,358 28,718 73,076 70 94 10 Riau 30,781 21,790 52,571 55 92 11 Islands of Riau 9,491 6,028 15,519 16 31 12 Jambi 16,335 11,826 28,161 43 58 13 South Sumatera 32,945 26,766 59,711 43 124 14 Bangka Belitung 9,316 7,749 17,065 21 22 15 Bengkulu 13,982 7,531 21,513 40 26 16 Lampung 49,264 37,177 86,441 57 199 17 West Kalimantan 22,511 18,261 40,772 55 77 18 Central Kalimantan 10,556 5,773 16,329 34 34 19 South Kalimantan 17,445 11,297 28,742 41 28 20 East Kalimantan 30,585 21,801 52,386 57 96 21 North Sulawesi 16,242 15,691 31,933 43 56 22 Gorontalo 5,846 5,015 10,861 22 8 23 Central Sulawesi 13,323 11,102 24,425 41 49 24 South Sulawesi 55,541 32,453 87,994 91 174 25 West Sulawesi 6,578 5,157 11,735 26 31 Teachers by
No of Total Teachers 582 18,871 1,125 32,025 294 7,798 1,000 34,230 188 7,535 1,037 35,975 102 3,889 692 20,820 164 7,502 147 4,229 47 1,683 101 3,036 167 6,403 43 1,308 66 2,208 256 8,551 132 3,851 68 2,082 69 2,724 153 4,404 99 2,914 30 1,029 90 2,633 265 8,290 57 1,487
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No 26 27 28 29 30 31 32 33
Student School No of Male Female Total Public Private Total Teachers Southeast Sulawesi 11,003 7,424 18,427 52 22 74 2,199 Maluku 8,839 6,179 15,018 40 19 59 1,857 North Maluku 6,621 4,554 11,175 36 22 58 1,392 Bali 25,983 20,780 46,763 40 78 118 5,111 West Nusa Tenggara 21,598 11,085 32,683 62 38 100 3,629 East Nusa Tenggara 25,480 19,542 45,022 56 56 112 3,180 Papua 15,214 7,297 22,511 46 24 70 2,252 West Papua 7,605 4,521 12,126 16 11 27 921 Total 1,824,357 1,271,347 3,095,704 2,003 5,589 7,592 246,018 Province
The SMKs are expected to create specific human capital to answer the industry need for skills by giving the students specific skills that support the industry. The SMK students are given practical experience through on-the-job trainings within particular fields, such as electrical, mechanical, automotive, management, etc. Thus, when they graduate, the students are expected to be ready to work. The SMKs are also expected to create a multiplier effect, by providing education for the people, while also contributing to economic growth through employment-generating entrepreneurship. SMKs curiculum sructure is grouped in three categories, each of which has different objectives: 1. Normative knowledge, which includes Religion, Civic Education, Physical Education, and Indonesian Language, to give basic understanding of literacy and ethics; 2. Adaptive knowledge, which includes Mathematics, Physics, Chemistry, and English which aims to give understanding of the basic knowledge needed to achieve further specific skills; and
3. Productive knowledge and experience, which will depend on the study program, to give further understanding and experience in preparing graduates for the workforce and enterpreneurship. The normative and adaptive categories are developed by Ministry of National Education, while the productive components are developed by industries. In terms of the drop out rate of SMK students, the average figure in Indonesia varied across the years; it was 5.08 percent in 2006; 4.17 percent in 2007; 1.37 percent in 2008; and 3.43 in 2009. The drop out rate was mainly caused by poor economic conditions which forced many students to leave school and find jobs; most of the drop outs could only be absorbed by the low-wage, low- protection informal sector. Thus, in order to improve the performance and accessibility of vocational secondary schooling, the Directorate of Vocational Education of the Ministry of National Education has created a roadmap which aims to reverse the ration of SMU (general high school) and the SMK (vocational high school) and nearly double the number of SMK students and teachers.
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[Figure 1-9] SMK Roadmap

TARGET TARGET TARGET TARGET VSS:GSS 53:47 VSS 8,133 STUDENT 4,197,888 TEACHER 139,930 TARGET VSS:GSS 56:44 VSS 8,548 STUDENT 4,688,051 TEACHER 156,268 VSS:GSS 60:40 VSS 8,963 STUDENT 5,363,617 TEACHER 178,787 VSS:GSS 64:36 VSS 9,378 STUDENT 5,921,931 TEACHER 197,398 VSS:GSS 67:33 VSS 9,793 STUDENT 6,560,539 TEACHER 218,685
CONDITION VSS:GSS 50:50 VSS 7,719 STUDENT 3,678,652 TEACHER 122,622
2014 2013
2012 2010
INTERVENTION INTERVENTION *Image building *Scholarship *Mutual Program *Cheap Equipment Producing *Reengineering *Adding new classroom/school
INTERVENTION INTERVENTION INTERVENTION INTERVENTION
2009
*Image building *Scholarship *Mutual Program *Image building *Cheap Equipment *Scholarship *Image building INTERVENTION INTERVENTION Producing *Mutual Program *Scholarship *Reengineering *Image building *Mutual Program *Cheap Equipment *Adding new *Scholarship Producing *Cheap Equipment classroom/school *Mutual Program *Reengineering Producing *Cheap Equipment *Adding new *Reengineering Producing classroom/school *Adding new *Reengineering classroom/school *Adding new classroom/school INTERVENTION INTERVENTION
2011
The figure above shows that the government sets annual target to reverse the ratio of the general senior secondary schools (GSS/SMA) and the vocational senior secondary school (VSS/SMK) and increase the numbers of students and teachers. The ratio of SMK:SMA is expected to reach 67:33 by 2014. The current ratio of SMK-SMU students is still 49:51, although in several provinces, the number of SMK students is higher, particularly in the provinces of Central Java, South Sulawesi, D.I. Yogyakarta, D.K.I Jakarta, and West Java. The achievement of these targets will be supported by several government interventions, which include: 1. Image building; 2. Scholarship; 3. Design and Production of affordable equipment; and
4. Restructuring of governmental aid for new schools and new classroom development. However, the Government is also fully aware that there are challenges that need to be addressed properly to ensure the achievement of the targets set in the roadmap. The challenges include the negative image of SMK; the availability of tools and equipment; the capability of teachers and classrooms; limited job opportunity; and competition, both locally and globally.
<Table 1-12> Challenges Faced by Vocational Senior Secondary Schools (SMKs) in Indonesia
Challenges Good Iimage Status The perception that studying at SMKs is less prestigious than at general senior secondary school should be removed. This perception particularly stems from the belief that SMK graduates cannot pursue university degrees, leading to limited opportunities to obtain managerial positions. Educators and sociologists hence argue against vocational education (Chen, 2009). Research on SMK graduates should be publicized to alter the public image. Availability of The availability of affordable tools and equipment that represent those used in Tools and the industry for all SMKs is still very limited. Price and budget are the main Equipment constraints in obtaining the necessary tools and equipment. Provision of Trade Trade teachers, or teachers who can link the goods produced by the SMKs to Teacher the market, are still limited. Thus, it is necessary to enhance the capacity of teachers to be marketers of SMK's products by helping them understand markets needs and develop networks. Classroom With the number of students interested in attending SMKs, classroom Availability availability becomes an issue. One way to overcome this issue is to introduce double-shift in SMKs. Job Availability In order to enhance the image of SMKs, the government should guarantee widely open job availability for graduates. There should be a good match with industry needs and a wise projection of future development in Indonesia that anticipates labor market needs. Competitiveness The competition of SMK graduates not only comes from local graduates, but also from the global labor market. With globalization, it is important to address the issue of global competition for the SMK graduates within the skilled labor market. (Source: 2010 Program Guidelines)
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Furthermore, there are additional targets to be achieved by 2014 to improve the operation of the SMKs, as follows: 1. 90 percent of the SMKs are accredited, of which 30 percent obtain B (good) accreditation from the government; 2. All counties or cities have one SMK of international standard; 3. At least 10 percent of SMK graduates obtain international competency certification; 4. All SMKs should obtain the ISO 9001:2008 Certification; 5. 70 percent of the SMKs have implemented an e-learning system; 6. 70 percent of SMK graduates find a (decent) job in the year they graduate; 7. All SMKs provide the service of entrepreneurship learning and development.; and 8. 70 percent of SMKs becomes a teaching industry. Some of the efforts to improve the interest of potential students are spreading a good image of SMK. Scholarships are being granted and cheaper training facilities are utilized to facilitate more affordable tuition and training fees for the students. The government promotes a good image by publishing the earnings obtained by the SMK graduates, which are believed to be higher than the SMA graduates. From the SAKERNAS Surveys 2002-2007, it was found that the ratio of SMK graduates earnings for both professionalmanagerial jobs and non professional-managerial jobs was always higher than the SMA graduates, as shown in the figure 1 below:
[Figure 1-10] Wage Ration SMK/SMU by Main Occupation

Wage Ratio SMK/SMU by Main Occupation
2
Wage Ratio
1.5 1 0.5 0 2002 2003

Professional-Managerial Non Professional-Managerial
2004
Year
2006
2007
The government has also improved the skills spectrum offered by SMKs to align them with the industry needs and the National Development Guidelines. The skills spectrum introduced by the government includes: technology and engineering; information technology and communication; health; art and tourism; agribusiness and agro-technology; and business and management. Furthermore, the government, through the Directorate of Senior Vocational School (SMK) of MoNE, has identified two main strategies to improve the absorption of the SMK graduates into the labor market: 1. Strengthening the Adaptive Capability by: embracing the understanding on applied mathematics and science; improving entrepreneurship skills; mastering national and international languages; and obtaining basic competencies. 2. Developing networks to creating a teaching industry. In this
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strategy, the SMKs will build relationships with and among the industry, to create and innovate necessary goods, machines, and tools. Each of the SMKs will specialize in creating one part or several parts of the machines/goods. There will be a main SMK integrator where all the parts will be assembled, packed, and distributed. Thus, SMKs will provide a place and environment where the students can create, not only learn, as they generate income and simultaneously stimulate communitybased industry. The teaching industry has been a big agenda for the SMKs; it aims to strengthen cooperation among SMKs, and between SMKs and industry in creating products. Through their teaching industry, the SMKs are working together to make and sell goods: cars, laptops, and heavy machines are good examples. Each SMK involved is developing particular parts for which they are specialized. The parts are delivered to and assembled in a SMK integrator. Ideally, SMKs involved in producing one product are located in one province to facilitate the transfer of their parts.
[Figure 1-11] SMK Teaching Industry Scheme

PROD. TAIL STOCK, SMK 1 PROD. CHUCK SMK 8
PROD. SLIDE SMK 2
PROD. STEADY REST SMK 7
PROD. SPINDLE SMK 3

ASSEMBLE OF MACHINERY, SMK INTEGRATOR
PROD. FOLLOW REST SMK 6
PROD. SUPPORT MACHINERY SMK 4
PROD. TOOL POST, SMK 5
Implementation of these strategies, including the teaching factory scheme, will need monitoring and assessment, as well as support from the government, particularly in providing regulations and policy. While this scheme can effectively transfer high technology to students and develop community-based industry, there may be a challenge in overcoming boundaries set up by established enterprises and feelings of being threatened by this distinctive industry development. Another issue that should be addressed to ensure the effectiveness of the growth of vocational schools, including SMKs, highly depends on the clear direction of industry and economic development of a country to enable a good match between graduates and labor market needs. Agriculture has long been an important sector in this country,
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representing more than 40 percent of the labor workforce. The government must also pay attention to enhancing the skills of the people in agriculture, and introducing and developing SMKs is one way to improve productivity. Nevertheless, not many students enroll in this program, showing little interest, partly due to the lack of government involvement.
[Figure 1-12] SMK Student Enrollments by Study Program
33.45
40.42
3.95 7.71 1.83 12.64
Technology and Engineering ICT Health Art, Craft, Tourism Agri-business, Argo-industry Business and Management
The reason for the lack of student interest is the image of farming as a less prestigious occupation with low income. Others think that agriculture skills cannot be learned at school. By introducing new technology in this sector, and expanding farming activities to include processing, SMKs may well attract more students.
Section 6. The Competency Certification as One of the Certification Models of SMKs' Graduates
TVET focuses on preparing students to enter the world of work, a difficult task given the complexity of available labor markets. Labor markets becomes the challenge and, at once, the opportunity for senior technical and vocational schools. It is necessary to identify and examine the readiness of schools to confront the challenge and opportunities they pose. Competency certification at SMKs measures student achievement, and it is done in collaboration with the external institution or industry, using the relevant competency standard that is agreed upon nationally/internationally, or by a certain industry or society. Those who pass receive certification. There are two type of competency certification, namely one for industry, and another for a particular qualification or profession. Industry competency certification is a certification model which is developed in collaboration between school and industry/enterprise in order to certify students, whereas qualification or profession competency certification is competency certification which is done by PCB, or a particular certification institution under the regulations or conventions of a national or international level. The populations of SMKs are 5,335, including both public and private institutions. Based on the prior competency assessment that is done by industry and PCB, there are only 604 SMKs that are
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stated to have the potency of a national or international standard. The number is relatively small, if it is compared to the whole available SMKs, and this reflects the quality of available SMKs. One example of the result of industrial competency certification lies in the area of machinery; of the 1,013 students selected from various schools to take the competency assessment, only 286 passed. A preparatory program for competency/profession certification should be undertaken systemically and continually, and it is also should be included the schools strategic planning. There are some considerations in the preparatory program with regard to the implementation of this certification, namely, one must: 1. Determine the priority scale of the specialist program which will be included; 2. Identify activities which should be implemented to achieve the program; 3. Collect educational resources, both internally and externally, to optimize the achievement of objectives in the program; 4. Implement, evaluate, and continually develop the program; and 5. Implement the competency certification. Competency Standardization is a process to formulate, determine, implement, and revise the competency standard, which is done continuously and involves all relevant institutions. The competency standard, which is then known as work competency standard, is the formulation of work competencies concerning various aspects,
including knowledge, skill, and work attitudes which comply with regulations and industries. Knowledge, skill, and attitudes of TVET students need to be assessed to determine their competency according to set standards. Assessment should be guided by several principles: credibility, flexibility, fairness, and validity. Crediblity means that the methods and procedures of assessment should be done carefully, so that implementation of the competency standard is consistent; flexibility means that the assessment can be done in the workplace/industry, or classroom, which means offering choice in terms of how, where, and when the competency can be obtained; fairness means that there is no discrimination among the assessment participants; and validity is that the assessment materials should be accurate in assessing the competency. The main steps in the system of competency standardization and certification involve: 1) formulating the competency standard; 2) issuing certification of the competency; 3) implementing the competency standard; and 4) providing information regarding the competency standard.
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[Figure 1-13] Competency Certification Scheme in TEVT
Based on the above scheme, TVET schools may have two accreditation systems from NBSA and NACP. As TVET schooling falls under the national education system, it must be accredited by NBSA. If TVET schools wish, they also can apply for accreditation by the Professional Certification Body (PCB), as a part of the networked professional certification system. TVET schools that apply and pass the PCB accreditation will be awarded stats as competency testing centers (CTC). The accredited TVET by CTC has the right to conduct competency assessment under supervision of the PCB. The system would also provide clarification for SMKs and other relevant stakeholders concerning the main task and role of the systemic framework in order to produce a capable workforce through SMKs.
Section 7. Post-secondary and Adult TVET

Post-secondary TVET in Indonesia appears in many types of institution: academy, institute, and polytechnic. While academies and institutes may provide both academic and vocational tracks, the polytechnics focus on providing vocational education and curriculum for the students. The legal framework of the establishment and operation of polytechnics is regulated through the Law introduced in 1979 although the first polytechnic was established in 1976. The first phase of further polytechnic development was then handled by the Ministry of Education with funding assistance from the World Bank. Polytechnics at this phase mainly offered manufacturing and technical skills for the students. The second phase of polytechnic development started in 1986, and it focused on developing commerce curriculum, with help from the experts and the Australian government. A later phase of development entailed the building of public polytechnics across Indonesia that became models for the private ones. The curriculum in polytechnics combines the knowledge, skills and necessary experience to prepare the students to work within industry or become entrepreneurs. Based on the Ministry of National Education Decree no. 232/U/2000, the core curriculum of diploma degrees offered in polytechnics includes modules for Personality Development, Knowledge and Skills, Productive Behavior, and Social Skills. On the other hand, the training and productivity for adults is
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mainly the responsibility of the Ministry of Manpower and Transmigration (MoMT). Having been challenged by the lower rate of employment, MoMT introduced a new which is called Three in One. This scheme aims to enhance the employability of the people by giving them the right skills and competencies so they can find suitable jobs.
[Figure 1-14] Three in One Scheme
Ditjen Binalattas: Directorate General of Trainings and Productivity BNSP: National Body for Profession Certification Dirjen Binapenta: Directorate General of Labor Placement BNP2TKI: National Body of Education and Placement for Indonesian Migrant Workers BLK: Training Center LPKS: The Institute of Skill Development LSP: The Institute of Professional Certification
This scheme starts with identifying the supply and demand in the labor market. The information gathered is used to develop the standard of competencies which are called the Indonesia National Standard of Work Competencies (SKKNI). SKKNI comprises 148 competencies from nine sectors in 2009 which can be obtained through training provided by the training centers (BLK) located in all provinces in Indonesia. In order to achieve a certain level of competency, the government also encourages the people to become certified by taking tests at the institutes of professional certification (LSP). The government will then provide service for the certified job seeker in helping him/her find a job in a local or foreign business. The BNSP (National Profession Certification Body) plays a very important role in shaping and guiding the implementation of national competencies. BNSP is an independent body under the Office of the President, and its formation is an integral part of introducing the new paradigm for the qualified labor force. The new paradigm emphasizes two aspects: (1) demand-driven labor preparation; and (2) the use of Competency Based Training (CBT). The new paradigm started with the signing of the letter of agreement between the Ministry of Manpower and Transmigration; Ministry of National Education; and the Leader of the Chamber of Commerce in 2000. The BSNP constitutes one leader and twenty representatives from varying backgrounds. They are appointed by the President, based on the recommendations given by the Ministry of Manpower and Transmigration, and they hold their positions for five years, with the
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possibility of extending their terms for one year. The people appointed uphold the policy and programs of BNSP which are: Policy 1. Support the enhancement of industry competitiveness; 2. Support the enhancement of job opportunities and unemployment; 3. Support the enhancement of quality, productivity, and competitiveness of Indonesian labor; and 4. Support the enhancement of the protection and welfare of the labor force. Programs: 1. Socializing and promoting the competency certification; 2. Establishing and developing standards; 3. Monitoring and developing the professional certification institute (LSP); 4. Monitoring the certification implementation; 5. Developing networks; and 6. Developing a quality assurance system. BNSP also commits to the lifelong learning of Indonesian people. In striving for this objective, it aims to provide the development of a reliable certification system and quality assurance; enhance the qualification framework; broaden certification access for greater experiences in the labor force and self-learning; and monitor the competency of the certified workers.
The scheme of the lifelong learning can be seen in the figure below:
[Figure 1-15] Lifelong Learning Scheme
Furthermore, the government launched a revitalization program for training and productivity institutions to improve their ability to provide adequate education for job seekers by helping them meet industry needs; enhance their employability; and lower the unemployment rate. The program, up to the year 2009, includes developing new training centers (BLKs); acquiring new equipment and mobile training units (MTUs); providing training for instructors; and developing financial management systems for public service. Additionally, the government introduced the SKKNI as the module for competency-based training. The number of SKKNI by sector is listed below:
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<Table 1-13> Number of SKKNI in Each Sector No Sector 1 Agriculture, Fishery, and Forestry 2 Electrical, Mining, and Energy 3 Manufacturing 4 Transportation and Telecommunication 5 Culture, Tourism and Arts 6 Health 7 Finance and Banking 8 Construction 9 Service, Consultancy, and Trade Total SKKNI
No of SKKNI 16 28 17 7 12 3 11 30 24 148
Source: Buku Informasi Pelatihan dan Produktivitas 2009, MoMT
The training centers (BLKs) and training providers play a very important role in introducing people to the governments scheme. The first BLK was founded in 1947 in Solo, Central Java. Initially, BLKs were only established in Java island. The first BLK outside Java island was built in 1957 in West Sumatra. Other BLKs followed suit in other islands, supported by the introduction of the MTUs (mobile training units) to reach remote areas in Indonesia. Currently, there are 227 BLKs all over Indonesia, but only 11 BLKs are directly managed by and responsible to the MoMT. The other BLKs are managed under the local government at the province or district/city level. The BLKs can be classified into several types, each of which holds specific tasks and functions.
<Table 1-14> Various Types of BLK

Type of BLK The National Vocational Training Development Centre (BBPLKDN) The Overseas Vocational Training Development Centre (BBPLKLN) Tasks and Functions Implement and develop training, skills competency test, and certification. Carry out consultancy on instructor training, personnel, and employment development Carry out the training program preparation, training implementation, skill competency test; and organizational consultancy. Evaluate the implementation of vocational training oriented to the overseas labor market. Carry out the training, productivity improvement program, skill competency test, certification, consultation and cooperation, and training institute empowerment. Carry out vocational training program, pilot training program, skill competency test, and training institute empowerment in the industrial sector. Location Bandung (West Java)
Bekasi (West Java)
The Industrial Vocational Training Development Centre (BBLKI)
The Industrial Vocational Training Centre (BLKI)
Medan (South Sumatra), Serang (Banten), Surakarta (Central Java) Banda Aceh (NAD), Semarang (Central Java), Samarinda (West Kalimantan), Makassar (South Sulawesi), Sorong and Ternate.
In 2009, the BLKs had around 2,754 instructors, but there are no updated statistics on the number of enrolled participants. However, it can be argued that the number of instructors represents the number of participants. The province of Central Java has the biggest number of instructors, followed by the provinces of East Java and West Java. Overall, the instructors are concentrated in the Java islands, and there is a significant gap in the number of instructors on the other islands. Among the courses offered, mechanical technology has the most instructors, whereas agriculture has the least.
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<Table 1-15> Number of Courses and Instructors by Province

Province Nangroe Aceh D. North Sumatra West Sumatra Riau Islands of Riau Jambi South Sumatra Bengkulu Lampung Bangka Belitung Banten DKI Jakarta West Java Central Java East Java DI Yogyakarta West Kalimantan East Kalimantan Central Kalimantan South Kalimantan North Sulawesi Gorontalo Central Sulawesi South Sulawesi South-East Trades No. of Mechanical Business Various No. of Automotive Electrical Construction Agriculture BLK Tech Adm Trades* Instructors 8 14 10 3 1 5 10 4 5 1 3 7 17 27 18 5 7 4 9 7 4 4 7 13 4 6 15 19 13 1 10 19 7 17 1 9 11 44 83 61 20 6 11 5 16 4 0 5 15 4 10 27 36 11 1 10 27 10 18 2 19 23 72 90 78 25 11 17 7 10 8 1 12 28 3 12 36 23 15 3 9 25 6 18 2 40 13 67 108 80 31 11 13 4 21 10 1 11 30 8 6 13 13 8 0 7 5 7 11 1 1 2 24 47 49 15 7 6 6 15 2 2 8 11 6 6 10 9 2 0 7 4 6 9 0 3 12 41 33 31 14 4 5 4 11 4 1 3 12 4 3 7 11 2 1 4 3 4 8 0 5 3 15 41 37 31 11 4 2 10 3 0 3 12 5 0 9 6 3 0 3 6 4 8 1 5 0 33 63 58 11 3 1 0 5 2 1 1 5 3 43 117 117 54 6 50 89 44 89 7 82 64 296 465 394 147 53 57 28 88 33 6 43 113 33
Province Sulawesi West Sulawesi Bali West Nusa Tenggara East Nusa Tenggara Maluku North Maluku Papua West Papua Total
Trades No. of Mechanical Business Various No. of Agriculture Automotive Electrical Construction BLK Tech Adm Trades* Instructors 2 6 6 3 3 1 7 2 227 2 14 9 4 4 1 9 3 448 0 10 9 4 9 1 4 0 593 1 7 8 9 9 0 6 6 643 0 8 9 5 7 0 3 2 306 3 7 10 2 0 1 3 0 261 1 14 4 4 2 1 5 2 258 0 8 4 0 1 0 1 0 245 7 68 53 28 32 4 31 13 2,754
One challenge faced in managing BLKs is caused by the autonomy given to the local (provincial and district) government which does not always manage them effectively. The development of the BLKs really depends on human individuals and the budget of local governments. The government also establishes several bilateral co-operation programs to enhance the skill formation of the job seekers. Such programs include scholarships, apprenticeships, grants, training, facilities development/upgrade, and seminars/workshops with participating countries like Japan, New Zealand, Korea, Germany, Singapore, and France.
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Section 8. Vocational Training in Enterprises and Small Businesses

Enterprises have played an important role in providing training for both their workers and job seekers. While training for their workers is usually subsidized by the enterprises, training for job seekers takes place in fee-based academies or colleges. Many big, established multinational and local companies have provided training for their workers to simultaneously improve their skills at work and their employability. However, training is mainly provided by enterprises in the service industry or manufacturing enterprises, like automotive and mining, which utilize advanced technology. The condition is significantly different for the small enterprises. Although small enterprises have provided employment for many Indonesian people, training in these businesses has not yet developed systematically. Their training needs are paramount, as most of the workers are low-skilled and low-educated. This condition has resulted in the low productivity of small Indonesian businesses, despite the mushroomed numbers. Training that is provided under the leadership of NGOs mainly concerns entrepreneurship and technical skills, depending on their business (such as culinary, arts, assembly). However, other kinds of training are needed, such as leadership, book keeping, basic accounting, and financial planning. There are attempts, partially by local government, to improve training for small businesses. They provide training for the community
which is given as provincial or district program; some of the local governments also declared themselves as vocational districts or vocational provinces by focusing on their areas strengths; helping their communities gain relevant skills; and exploiting provincial or district advantages (usually in form of SMEs).
1. Funding of TVET
The funding of public TVET mainly comes from the governments central budget. As previously mentioned, the Ministry of Education has been allocated around 20% of the total budget, part of which is used to develop the SMKs. The Ministry of Manpower, on the other hand, has also been allocated part of the budget to develop TVET within its authority. The major TVET budget allocation for these two ministries is shown in the table below:
<Table 1-16> Major TVET Funding Post Ministry of Education Senior Secondary Vocational School (SMK) Courses and Internships Ministry of Manpower and Transmigration Competency-based Training Community-based Training Local and Foreign Internships Instructors Development National Competency Development Revitalization of BLKs to Become Competency-based Training Centers Recognition of National Competency Certification Total
Rp (billions) 339.3 159.5 60.0 61.2 39.2 24.3 17.5 237.2 22.9 961.1
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However, the funding obtained by the two ministries is actually much bigger, and there is still funding for TVET in smaller amounts which are not shown above; in the Ministry of Education budget, there are posts for SMK development which are mixed with the SMA (general senior secondary school development), such as facility and buildings development. In 2009, the Directorate of Vocational School was allocated 1.6 trillion Rupiah for SMK development: the buildings, facilities, teacher and curriculum development, and campaigning. This figure increased over previous years, from 900 million Rupiah in 2007, to 1.2 trillion Rupiah in 2008. The Budget of the Ministry of Manpower, on the other hand, also shows only part of total budget for adult TVET BLKs (training centers). Governance has been granted locally through decentralization, with but a small subsidy from the Ministry of Manpower. The budget allocated for the BLKs development mainly depends on the orientation of human development of each local government. The Ministry of Manpower barely has the authority to monitor and evaluate the effectiveness of the BLKs under the local government.
2. Internationalization of TVET
The implementation of the AFTA (ASEAN Free Trade Area) and AFLA (since 2003) and GATT, WTO, and APEC will impact economic and social interaction among countries. The labor market has become borderless, and it is easier to migrate from one member country to another. To avoid unfair treatment and unexpected barriers that may
be introduced by member countries, there should be available a consistent and recognized measurement tool to assess the skill levels of workers. Therefore, recognized regional or regional accreditation and certification of TVET institutions is an alternative answer. The Mutual Recognition Arrangement, which outlines employment skills levels, is necessary to avoid the aforementioned problems. The Mutual Recognition Arrangement (MRA) for the accreditation and certification of TVET institutions among countries should consider many important aspects, including the respective national qualification framework; national vocational qualification framework; and other related matters. In developing this plan, barriers and obstacles may occur which are caused by resistant attitudes to share and collaborate with member countries. The resistance is rooted from the gap that occurred in the different development phases of member countries. More advanced countries have already developed high quality accreditation and certification methods within their TVET system; on the other hand, less developed member countries are still building their systems based on available resources and potential. The existing gap among member countries must be addressed properly so that the gap can be gradually closed. The internationalization of TVET has become a significant challenge for Indonesia, although several attempts have been made. One of the major attempts is developing SMK with international standards. The 2010-2014 roadmap has stated that every district and city should have at least one international standard SMK. These
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international standard SMKs have been equipped with sophisticated buildings and facilities and the use English in their daily operation. Government interventions through directing and monitoring are needed to ensure that the competencies obtained by these SMK graduates align with the standards of the international framework.
3. New Agenda and Plans for the Future of the Vocational Education and Training in Indonesia.
There are challenges that the government should carefully examine and overcome in order to achieve effective vocational education and training for the Indonesian people. The first challenge is to boost the number of school enrollments and graduates, particularly at the primary and junior secondary levels (the mandatory levels), by providing better access to education in terms of location, facilities, and financial assistance. The increasing number of graduates in basic education and, thus, the decreasing rate of drop outs will support the increasing number of senior secondary schools, including vocational secondary schools and college/university enrollments. Other challenges include those faced by the vocational schools, which are: the image of vocational schools; affordable and up-to-date training equipment; provision of trade teachers; classroom and job availability; and competitiveness. The government is expected to provide clear direction of the economy, technology, and industry that Indonesia will embrace in the future to anticipate the skills needed
in the labor market. In term of training for job seekers, the challenge lies in the management of BLKs, in which autonomy is given locally, resulting in BLKs high dependence on the orientation and budget allocated to human development programs in each province/district. This autonomy should be supported by the clear target of overall Indonesia human development, utilizing precise tools and methods to evaluate the effectiveness of training programs in each province or district. The government has identified future core industries which are expected to serve as Indonesia competitive advantage and prove essential in determining the direction of skills formation within the TVET system. As previously mentioned, the government will also involve small businesses in developing the industries. Thus, providing training for small businesses is paramount. Future challenges and trends will also be addressed properly to create an effective TVET system. The challenges and trends include globalization, ICT revolution, the emerging knowledge society, and climate change. The government has proposed an integrative curriculum in the TVET system to answer these challenges, which include: Hard Skills or Technical Skills; Generic Soft Skills; Sustainable Development Knowledge;
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Mobility of Workforce & Transferable Qualifications across Borders; and Entrepreneurship & Informal Sector Skills. Government commitment to providing sufficient funding; tight monitoring and evaluation; and clear strategy will be needed to ensure the success of a well-implemented, effective TVET system.
References:
Abduh, M. (2010). Presentation: Responding to Global Challenges through TVET in the Asia Pacific Region. Manila, Philippines, 2010. Bangun Sektor Industri 2025 (Industry Development 2025). Buku Informasi Pelatihan dan Produktivitas 2009 (The Information Book on Training and Productivity 2009). Directorate General of Training and Productivity Developent. The Ministry of Manpower and Transmigration, Republic of Indonesia. Jakarta: 2009. De Ruyter, A. and Warnecke, T. (2008) Gender, Non-standard Work and Development Regimes: A Comparison of the USA and Indonesia Journal of Industrial Relations, 50 (5): 718-735. Dhanani, S. (2004). Unemployment and Underemployment in Indonesia, 1976-2000: Paradoxes and Issues. Geneva: International Labour Office. Garis-Garis Besar Program Pembinaan SMK Tahun 2010 (General Guidelines of Secondary Vocational School Governance Year 2010). The Directorate of SMK Governance, Ministry of National Education, Republic of Indonesia. Jakarta: 2010. Ikhtisar Data Pendidikan Nasional 2007/2008 (Summary on National Education Data 2007/2008). Ministry of National Education, Republic of Indonesia. Jakarta: 2008. Index SMK 2008/2009. Ministry of National Education, Republic of Indonesia.
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Iqbal, M. (2010) Hubungan dan pengaruh personality, strategi daya tindah dan penyesuaian sosio budaya keatas kualiti hidup Tenaga Kerja Indonesia (TKI) di Lembah Klang Malaysia. Unpublished PhD Thesis. Universiti Kebangsaan Malaysia. Mahfud, T. and Novi, A. (2010) Peran SMK sebagai specific Human Capital dalam membangun perekonomian Indonesia (SMK role as specific Human Capital in developing Indonesias economy). http://mahfudz30.wordpress.com/2010/06/22/peran-smk-sebagai-spec ific-human-capital-dalam-membangun-perekonomian-indonesia/. Retrieved 8 December 2010. Manning, C. (2000). Labour Market Adjustment to Indonesias Economic Crisis: Context, Trends, and Implications. Bulletin of Indonesian Economic Studies, 36 (1): 105-36. Profil Unit Pelaksana Teknis Pusat (Profile: The Technical Implementer Unit). Directorate General of Training and Productivity Developent. The Ministry of Manpower and Transmigration, Republic of Indonesia. Jakarta: 2008. Rencana Strategis Departemen Departemen Pendidikan Nasional 2010-2014 (Strategic Plan of the Minustry of National Education 2010-1014). Jakarta, 2010. Roadmap Pengembangan SMK 2010-2014 (The Roadmap of SMK Development 2010-2014). The Directorate of SMK Governance, Ministry of National Education, Republic of Indonesia. Jakarta: 2010. Sekilas tentang Politeknik (Overview on Polytechnics). http://www.polmed.ac.id/file/h_1173344851.pdf. Retrieved 9
December 2010. Siswandari, Murdewi (2005). Certification Model of TVET Graduates in Indonesia. Manila, Philippines: 2005. http://www.apacc4hrd.org/conf_workshop/apacc05/CR/ind2/. Retrieved 8 December 2010. Susilowati (2004). Accreditation and Certification in TVET in Indonesia. Asia Pacific Accreditation and Certification Commission (APACC): Country Reports. Seoul, Korea: 2004. http://www.apacc4hrd.org/conf_workshop/apacc04/CR/IS/. Retrieved 8 December 2010. Sugiyarto, G., M. Oey-Gardiner, and N. Triaswati. (2006). Labor Markets in Indonesia: Key Challenges and Policy Issues. In J. Felipe and R. Hasan (eds). Labor Markets in Asia: Issues and Perspectives. London: Palgrave Macmillan for the Asian Development Bank www.bps.go.id (statistics Indonesia). www.bnsp.go.id
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Chapter 1
The National Context of TVET

1. GOVERNMENT AND ADMINISTRATION
Lao PDR is a single party socialist republic. A gradual return to private enterprise and the liberalization of foreign investment laws began in 1986, and a national constitution was promulgated in August 1991. Lao PDR is currently divided into 17 administrative divisions comprising 16 provinces: Attapeu, Bokeo, Borikhamxay, Champasack, Huaphanh, Khammuane, Luangnamtha, Luangprabang, Oudomxay, Phongsaly, Saravane, Savannakhet, Vientiane, Xayabury, Sekong, Xiengkhuang, plus the Vientiane Capital. Provinces have financial and operational independence within overall state policy frameworks and planning. Provinces are further organized administratively through a total of 140 districts.
2. GEOGRAPHY AND DEMOGRAPHY, POPULATION GROWTH

2.1 Geography Lao PDR has land area of 236,800 square km, and the terrain is mostly rugged with mountains reaching to around 2,800 meters, and some plains and plateaus. Most of the country is mountainous and thickly forested, with alluvial plains and terraces of the Mekong and its tributaries covering only about 20% of the land area. The overall arable land is an estimated 45% of the countrys surface. The most densely populated areas lie in the Mekong river basin. Lao PDR has significant natural resources like forestry, minerals, and hydro-electric power. Despite the recent declining of its share in GDP, agriculture remains the major sector of Lao economy, contributing around 45 percent of GDP (2005) and employing nearly 80 percent of the labor force; industry accounts for a bit more than 29%, and services, for nearly 26%. Landlocked, Lao PDR is in the center of the Mekong region, bordered by Thailand, Vietnam, Southern China, Cambodia, and Myanmar, with the first three neighbors growing rapidly. Lao PDR has grown strongly for more than a decade. In the 1990s, real GDP grew by an annual average rate of 6.3 percent-despite the sharp fall-off in growth during the regional crisis of 1997-1999. Exports grew at around 15 percent a year; agriculture grew rapidly, as did industry and services.
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2.2 Demography The population of Laos census in 2005 was 5.62 million (estimated, 2008, 6.00 million), making it one of the least densely populated countries in Asia at 24 persons per km2. The geographic distribution of Laos has changed considerably in recent decades, with significant movements from rural to urban areas. Still, by 2005, some 27% of the population lived in urban areas; 51% in rural on-road areas; and 21% in rural off-road areas. These three categories of location represent significantly different social and economic conditions. 2.3 Population Growth The 2005 census showed a surprising decline in the national fertility rate, but at least as significant as the overall decline was the geographic distribution of the decline. In the urban areas, the fertility rate seems to have stabilized at just over 2.0, which is close to the fertility rates in Europe. In rural on-road areas, the fertility rate is still relatively high at 3.7. In rural off-road areas, the fertility rate is still quite high at 4.7, as shown in Table 1. The overall effect of the decline in fertility rates is the decline in the size of the new age cohorts, as shown in [Figure 1. The bulge in the 10-14 year old age cohort can be expected, of course, to be replicated around 20152020.
<Table 1-1>Fertility Rates by Location

Location National Population Urban Rural, on road Rural, off road
Source: 2005 National Census
Fertility Rate % 2.2 2.0 3.7 4.7
[Figure 1-1] Population Pyramid, 2005
As shown in Table 2 and Figure 2, the population cohorts corresponding to upper secondary schooling (15 - 17 years) can be expected to peak in 2010, then decline, then begin to rise gradually toward the end of the period 2010 2020. Also shown are the enrollment projections for technical and vocational education and training (TVET) and for upper secondary technical programs, prepared by the Ministry of Education (MOE) in connection with the Education Sector Development Framework (ESDF), which is intended to steer sector development over the period 2009 2015.
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<Table 1-2>Population and TVET and Upper Secondary Technical Enrolments to 2020 Enrolment Year Age 15-17 TVET Technical 2005 412,600 2006 428,600 2007 443,700 15,100 2008 456,300 19,500 2009 463,800 23,800 2010 464,900 28,200 6,500 2011 460,800 32,600 15,800 2012 455,000 36,900 25,600 2013 446,900 41,300 38,200 2014 441,200 45,600 53,400 2015 437,300 50,000 70,800 2016 429,400 79,800 2017 422,900 89,900 2018 417,300 99,900 2019 417,800 106,700 2020 418,500 110,000
[Figure 1-2]Population and TVET & Upper Secondary Technical Enrollments to 2020
3. Economy
In 2006, the economy of Lao PDR has continued to grow at a steady rate. The macroeconomic situation has remained relatively stable, but signs of monetary expansion in 2006, for the first time in recent years, created a risk of future inflation. The risks of potential negative impact of a growing resource sector on the real economy have also persisted. Exports grew substantially, by nearly half, driven by copper exports, while agriculture also contributed; however, exports of wood products, garment industry, and other non-resource sectors have been on a declining trend. Real GDP grew at 7.1 percent in 2005 and about 7.6 percent in 2006 and is expected to remain at above 7 percent in 2007. This growth was in large part due to foreign investment inflows in mining and hydro-power and growing mineral exports, while the share of non-mining contributions has increased only slightly this year, contributing about 4.8 of 7.6 percent to real GDP growth.
<Table 1-3> Annual Percent Growth Rate of GDP
Year 2005 2006 2007 2008 2009 (estimated) 2010 (projected) 2011-15 (mean projected) % 7.1 8.5 7.6 7.3 6.4 7.5 7.8
Source: World Bank. Lao PDR Economic Monitor. End-Year Update 2009.
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4. EDUCATION
Lao education continues the traditional European structure of a two semester education year, with the first semester from early September to late December, and the second semester, from early January to late June of the succeeding calendar year. From the commencement of school year 2009-10, a 12 year school system structure comprising five years of primary; four years of lower secondary; and three years of upper secondary schooling; replaced the earlier 11 year school system of five years of primary; three years of lower secondary; and three years of upper secondary schooling. The Lao PDR Education Law, 2007 affirms the right of all citizens to education, and it describes education as a first priority of national financial policy. Primary education (grades 1-5) is universal and compulsory. The national education system has four components: (i) Early Childhood Education: crches and kindergartens; (ii) General Education: teaching-learning of basic knowledge in primary education, lower and upper secondary; (iii) Vocational Education at three levels (first, middle and high level); and (iv) Higher Education, described as the level next to upper secondary and middle and high levels of vocational education, including five stages from undergraduate to doctoral level. Education can be attained through the formal school system or non-formally, each described as different approaches of similar content and equal value. Informal education is described as a sub-form of non-formal education that has no limits regarding time, content, or learning institution.
<Table 1-4> General Education

Items Number of Pupils Primary Lower secondary Upper secondary Number of Teachers Primary Secondary Number of Schools Primary Lower secondary Upper secondary Complete secondary unit Pers Pers Pers Pers Pers Pers Pers Places Places Places Places Places 35 160 27 356 5 205 2 599 36 447 28 389 5 306 2 752 2005 890 821 243 137 144 907 42 254 27 588 9 918 9 245 8 573 641 31 2006 891 881 243 131 147 510 42 939 27 776 10 068 9 634 8 654 642 28 2008 900 817 255 083 154 785 47 095 29 541 17 454 9 882 8 830 691 31 330 38 477 29 769 5 712 2 996 2009 908 880 264 579 157 320 46 610 29 060 17 550 9 996 8 871 722 35 368 39 298 30 107 6 003 3 188 1 278 865 1 282 522 1 310 685 1 330 779
Number of Classrooms Rooms Primary Lower Secondary Upper Secondary Rooms Rooms Rooms
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<Table 1-5> Vocational Education and Higher Education

Items Number of Universities Students Teachers Number of Institutes Students Teachers Number of Technical Secondary Schools Students Teachers Number of Technical First-schools Students Teachers Places Pers Pers 12 3 842 90 12 2 953 142 12 822 157 12 294 Places Pers Pers 35 23 845 1 118 47 26 337 1 540 50 20 166 1 914 51 16 074 1 326 unit Places Pers Pers Places Pers Pers 2005 3 23 575 1 096 25 26 207 1 035 2006 3 30 574 1 385 28 30 048 1 148 2008 4 37 795 1 271 91 54 433 1 952 2009 4 54 167 2 509 96 58 640 2 432
The formal education system in Lao PDR consists of primary (5 years); lower secondary (3 years); and upper secondary (3 years). There are also opportunities for post-secondary technical and vocational education and training, as well as academic studies at the tertiary level. The Lao Expenditure and Consumption Survey for 2002-2003 shows considerable improvement in educational attainments since the 1995 population census. The proportion of the population aged 6 years and above with no school declined from 43 percent, to 23 percent. Those who completed elementary school increased
from 11 percent, to 15 percent; lower secondary school from 4 percent, to 7 percent; and upper secondary school from 2 percent, to 6 percent.1) While enrollments increased for both sexes, the participation of girls continues to lag far behind that for boys. In 2002-2003 31 percent of girls 6 years and over had no schooling.
<Table 1-6> Educational Attainment of Population 6+ Years by Sex, Lao PDR (Percentages)
1995 Total None Completed primary school Completed lower secondary school Completed upper secondary school 43 11 4 2 Male Female Total 33 13 5 3 52 9 3 2 23 15 7 6 2002-2003 Male Female 15 17 9 4 31 14 6 2
Source: Committee for Planning and Cooperation, National Statistical Centre, the Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.
1) Committee for Planning and Cooperation, National Statistical Centre, the Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.
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<Table 1-7> Children out of school

2000 Male Number Female Total Male Rate (%) Female Total 2001 2002 2003 2004 2005 2006 2007 2008 68,912 74,396 73,464 69,824 78,287 83,073 83,406 75,816 65,200 91,384 95,623 95,283 91,536 95,214 98,039 98,842 89,474 76,419 160,296 170,019 168,747 161,360 173,501 181,112 182,248 165,290 141,619 18.07 24.79 21.37 19.08 25.39 22.18 18.44 24.76 21.54 17.15 23.28 20.16 18.89 23.78 21.29 19.82 24.22 21.98 19.85 24.36 22.07 18.19 22.24 20.18 15.90 19.33 17.58
Source: World Bank Database
<Table 1-8> Public Education Expenditure

2000 % of GDP % of total government expenditure % of Primary % of Secondary % of Tertiary Source: World Bank Database 1.50 7.38 2001 1.99 2002 2.71 2003 2004 2.28 2005 2.40 2006 2.87 2007 3.04 2008 2.32
8.85 10.63 8.03 9.02
10.76 11.71 14.05 15.78 12.21 9.89 5.05 27.38
70.61 112.08 83.40
<Table 1-9> Literacy (Definition: Age 15 and Over Can Read and Write)
2000 Literacy Rate (%) Total Male Female Total Male Female 69.58 81.36 58.46 2001 68.73 77.01 60.90 2002 2003 2004 2005 72.70 82.45 63.23 961,467 302,738 658,728 2006 2007 2008
Illiteracy Population
930,391 983,779 282,896 357,749 647,495 626,031
Source: Enesco Database
<Table 1-10> School Enrollment

2000 total Primary (%) male private total Second-ary male (%) female private Tertiary (%) total male female 2001 2002 2003 2004 2005 2006
(% gross) 2007 2008
110.87 108.06 108.87 109.37 108.56 108.10 107.99 108.87 111.84 119.51 116.05 116.69 116.85 115.41 114.79 114.40 114.75 117.27 99.78 100.78 101.63 101.46 101.17 101.36 102.77 106.22 2.06 36.45 42.40 30.32 0.83 3.13 3.92 2.31 2.02 39.36 45.45 33.08 0.85 4.17 5.31 3.00 2.02 42.33 48.52 35.95 0.84 4.93 6.27 3.56 2.07 44.39 50.57 38.04 1.11 5.72 7.03 4.38 2.36 45.00 51.04 38.78 1.57 7.77 9.06 6.45 2.62 44.13 49.54 38.55 1.36 8.99 10.70 7.26 2.78 43.99 49.10 38.73 1.55 11.53 13.37 9.66 3.00 43.86 48.49 39.08 1.92 13.37 15.03 11.67 2.03 34.49 40.42 28.38 0.87 2.71 3.54 1.86
female 101.93
<Table 1-11> Ratio of Female to Male

2000 Level of Primary Enroll- Secondary ment Tertiary (%) in Primary and Secondary Education (%) 85.29 70.22 52.61 81.31 2001 85.98 71.52 58.97 81.91 2002 86.37 72.78 56.62 82.34 2003 86.97 74.10 56.80 82.97 2004 87.91 75.22 62.31 83.81 2005 88.13 75.97 71.15 84.12 2006 88.60 77.81 67.83 85.05 2007 89.56 78.87 72.30 85.99 2008 90.57 80.60 77.65 87.22
<Table 1-12> Primary Education

2000 # of Pupils % of Female Pupils # of Teachers % of Female Teachers Pupil-Teacher Ratio (%) 45.18 43.40 30.14 2001 45.37 43.75 29.93 2002 45.48 44.19 29.88 2003 45.65 44.41 30.64 2004 45.92 44.69 31.43 2005 45.98 45.44 31.48 2006 46.11 46.45 31.03 2007 46.36 47.20 30.12 2008 46.62 48.87 30.49 831,521 828,113 852,857 875,300 884,629 890,821 891,881 891,807 900,817 27,592 27,665 28,545 28,571 28,150 28,299 28,741 29,604 29,541
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2000 2001 2002 2003 2004 2005 2006 2007 2008 Survival Rate to Last Grade of Primary (%) total male female Primary Completion Rate (%) total male female Repetition Rate in Primary Grade 1 (%) total male female Trained Teachers in Primary Education (%) total male female 53.22 62.27 64.12 62.57 63.03 62.00 61.45 66.78 52.63 61.87 63.60 62.08 63.64 62.28 61.72 65.97 53.89 62.72 64.72 63.12 62.32 61.66 61.13 67.68 69.29 69.60 70.08 69.50 69.53 70.88 72.88 73.70 74.70 75.08 74.49 74.13 73.46 73.60 74.87 77.78 77.93 78.28 63.31 64.56 65.91 65.41 65.33 66.75 67.81 69.32 70.99 34.31 35.72 34.73 34.77 34.08 32.87 30.62 31.97 34.99 36.42 35.17 35.27 34.76 33.68 31.30 32.72 33.49 34.88 34.20 34.19 33.28 31.94 29.85 31.13 76.69 76.24 76.15 77.52 79.35 83.38 85.76 89.67 96.89 69.58 68.93 68.89 70.54 72.79 78.34 81.46 87.12 97.15 85.96 85.64 85.32 86.26 87.47 89.44 90.72 92.52 96.61
<Table 1-13> Secondary Education

2000 # of Pupils % of Female Pupils # of Teachers % of Female Teachers # of Vocational Pupils % of Vocational Female Pupils Pupil-Teacher Ratio (%) All Programs General Programs 40.54 40.12 3,789 35.55 21.33 2001 40.99 40.51 4,019 32.87 22.73 2002 41.41 42.06 4,542 34.24 24.09 2003 41.85 41.90 5,053 39.58 25.66 2004 42.23 42.22 5,159 34.74 26.62 2005 42.47 42.14 5,812 37.04 24.78 2006 43.05 43.07 4,741 34.51 24.73 2007 43.36 42.78 3,741 35.47 23.60 2008 43.87 44.46 2,507 40.05 22.76 264,586 288,389 320,275 353,362 379,579 393,856 395,382 403,833 412,375 12,402 12,686 13,296 13,771 14,257 15,891 15,987 17,110 18,117
total 264,586 288,389 320,275 353,362 379,579 393,856 395,382 403,833 412,375 female 107,271 118,197 132,632 147,898 160,279 167,266 170,193 175,091 180,890 total 260,797 284,370 315,733 348,309 374,420 388,044 390,641 400,092 409,868 female 105,924 116,876 131,077 145,898 158,487 165,113 168,557 173,764 179,886 4,019 1,321 4,542 1,555 5,053 2,000 5,159 1,792 5,812 2,153 4,741 1,636 3,741 1,327 2,507 1,004
Technical/Vocational total 3,789 Programs female 1,347
Source: World Bank and Unesco databases
According to UNESCO data, the gross enrollment rate for secondary school was 61 percent for Asia, compared to 44 percent for Lao PDR during 2002-2003.2) Illiteracy remains high, with almost one-fourth (24 percent) of the population unable to read and write according to LECS III (14 percent of men and 34 percent of women).3) Furthermore, there is considerable diversity across groups, as indicated in Figure 2. The highest proportions of the population aged 15+ that cannot read and write are found in rural areas without roads (45 per cent) and in the north of the country (32 per cent). The rates for females are especially high in these areas, with 60 percent and 40 percent, respectively, without basic literacy.
[Figure 1-3] Proportion of the Population Aged 15+ That Cannot Read or Write by Residence and Sex, 2002-2003
70 60 60
50
45
44 35 32 29 28 24 20 19 10 11
Percentage
40 34 30 24 20 14 10 9 4 0 Lao PDR Urban area 14 13 25
35
Rural with road Rural without road
North
Central
South
Total
Male
Female
2) Web site at http://stats.uis.unesco.org/TableViewer/tableView.aspx?ReportId=52. 3) Committee for Planning and Cooperation, National Statistical Centre, the Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.
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Source: Committee for Planning and Cooperation, National Statistical Centre, the Household of Lao PDR: Social and Economic Indicators, Lao Expenditure and Consumption Survey 2002/03 (LECS 3), March 2004.
5. NATIONAL DEVELOPMENT PLAN AND STRATEGIES

The National Growth and Poverty Eradication Strategy (NGPES), approved by the Lao PDR National Assembly in 2003, provides the broad framework for ongoing national socio-economic planning and implementation. It, thus, gives the basis for the forthcoming 7
th
National Socio-Economic Development Plan 2011-15 (NSEDP) which will build on the identified achievements of the 6th NSEDP, 2006-10. The Lao PDR is currently implementing the ten-year socio-economic development vision 2001-2010 approved by the Seventh Party Congress in 2001 and subsequently reaffirmed by the directions set by the Eighth Party Congress in 2006. The Round Table Implementation Meeting, 3 November 2009, Background Document, November 2009, provided an overview of key developments, challenges, and future directions for the 7 plan period. The Background Document notes that identified challenges remain to (i) speed up implementation of reforms, projects, and programs; (ii) further strengthen macroeconomic stability following the global economic downturn, and (iii) promote sustainable and pro-poor development. The Background Document stresses that a number of key challenges remain in order to ensure achievement, as planned, of all the
th
Millennium Development Goals (MDGs) by 2015, and the proposed graduation of the Lao PDR from Least Developed Country (LDC) status by 2020. These challenges reflect the need for broad-based and inclusive growth, while ensuring quality investment; improving resource management capacity; and enhancing the development of some social sector areas. Key specific proposals identify the need for (i) continuing the broadening of the production and growth base; (ii) enhancing of labor force productivity and improving of competitiveness; and (iii) greater regional and global integration.
th Major proposed objectives of the 7 Plan include:
Develop fundamental materials and technology, and provide necessary conditions to improve the living standards and livelihoods of the people; reduce poverty and strive to achieve the MDGs by 2015; and lead the country out of LDC status by 2020; Ensure economic stability, sustainability, and growth aligned with industrialization and modernization; Ensure that development is aligned, harmonized, and sustained - economic development must be closely linked with social development and environmental protection; Enhance efficiency, effectiveness, and transparency of public management and social protection; and Continue to expand the cooperation and develop necessary capacity for regional and global integration.
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6. STRATEGIC PLAN 2006-2010 AND MASTER PLAN 2008-2015 FOR TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING IN LAO P.D.R
6.1 The goal of the strategic and master plan While the education sector has been expanded, TVET also has been developed and extended throughout the country in terms of quality and quantity. In the academic year 2007-2008, every province has at least 1 vocational school. Actually, there are 22 technical-vocational schools, centers, and technical colleges under the Ministry of Education (MoE). Furthermore, there are some technical schools under other line ministry. According to the Resolution of the VIIIth Congress of the Party and the Socio-Economic Development Plan of the Lao Government, and with reference to the Education Development Plan 2000-2020, as well as the 4 priority projects of the education sector, and in line with the strategies for the reform of the National Education System, MoE has developed the Strategic Plan for the Development of TVET and the TVET-Master Plan 2008-2015 to make the TVET relevant for the socio-economic development of the country. These documents also will be used within other sectors concerned at local and central level as reference for the training of the workforce to meet the demand of the labor market. The Strategic Plan for the Development of TVET 2006-2020 identifies the vision and goals, and 7 development strategies which include objectives and different projects according to the three
programs for the development of the National Education System, namely equitable access to education; improvement of education quality and relevance; and improvement of management and administration. The TVET-Master Plan identifies targets and objectives of different projects, and it estimates training needs, as well as potential for training on the supply side, including the budget and implementing measures in each period. The new Strategy for the Development of TVET is in accordance with the reform and development plan of the education sector up to 2020, and suitable for the extension and further development of TVET, whereby gradual, sustainable, systematic development and the needs of the labor market will be taken into consideration. At the same time, TVET will contribute to national socio-economic development to achieve development goals formulated for the nation, e.g., the implementation of strategy for economic growth and national poverty eradication, and it finally focuses on the industrialization and modernization of the country. The new Strategic Plan is based on three main principles: development of TVET as for lifelong learning; participation of society; and continuous development of learning contents and processes which will be applied within formal, non-formal, and informal education. For the provision of TVET, different approaches will be applied, such as integrated vocational education and training; cooperative training; and the offering of special courses, short-term courses, e-learning, open learning, distance learning, etc., according to the environment, conditions, and specialties of TVET providers
LAO PDR 235
and the position of training institutions. Detailed approaches and methodologies of TVET development will be provided by the Ministry of Education in cooperation with relevant bodies responsible for TVET in order to issue detailed and complete regulations and strategic plans. This has to align with the three programs within the Education Sector Development Framework, (ESDF) namely increasing equitable access to education programs; improving the quality and relevance of program and education administration; and management program aiming at the complete and qualitative development of TVET in Lao PDR. 6.2 Current status of vocational and technical education and training TVET is an integral and crucial part of the National Education System. It is a means for preparing the workforce, including technicians at various levels for employment through training so that they are equipped with necessary knowledge, abilities, skills, and attitudes. Objectives include: - Strengthening the individuals in the workforce to be a good citizens who possess necessary knowledge and occupational skills and are able to start up business as entrepreneurs who are creative and enthusiastic towards the development of the nation and themselves; who have good health and ethics in order to fulfil the development requirements of our nation; - Developing the workforce in line with potentials of regions and
linked to the real way of life of the people, in accordance with the economic framework of the country to meet the demands of the national and international labor market, as well as the requirements for integration into the region and the world; and - Developing training occupations in line with potentials of economic development and regions focusing on agriculture and forestry; industrial processing; electricity, especially hydro-power; economic exchange; and tourism and mining to create economic framework based on agriculture and forestry and in connection with industry and service. Both the TVET-Strategy and the Master Plan are based on three key concepts which are used as guidelines for the development of the Education Sector Development Framework: Equitable Access; Quality and Relevance; and Management and Administration. Within these key issues, seven strategic projects have been identified: 1. The construction, upgrading, and expansion of the TVET institutions; 2. The expansion of the TVET offer and approaches; 3. The qualifications, training, and professional development of TVET teachers and other staff; 4. The quality assurance of TVET; 5. The development of TVET information resources;
LAO PDR 237
6. The improvement of the organizational structure of The TVET sector; and 7. The formulation of policy and tools at the macro-level for the development of TVET. 6.3 Recent developments Strategic Project 1: Construction, Renovation, and Expansion of TVET; Strategic Project 2: Expand TVET Offer and Approaches; Strategic Project 3: Develop and Improve the TVET Teachers and Staff; Strategic Project 4: Set up the Quality Assurance System of the TVET; Strategic Project 5: Develop the Information System of TVET; Strategic Project 6: Improve the Organizational Structure of TVET; and Strategic Project 7: Formulate the Policy and Tools at the Macro Level for the Development of TVET.
Section 2. EMPLOYMENT AND LABOR FORCE

1. Employment and Age
The labor force comprises all persons 10 years old and older who are either employed or unemployed. The activity status of the Lao
population is measured by the the usually active population approach, which means the main activity during the past 12 months. This is used instead of the currently active population approach, which typically refers to the past week. The usually active population gives a more stable estimate and is better suited to the Lao labor market because of the seasonal and informal nature of employment for large proportions of the labor force, especially in the large informal labor market. The category unemployed implies actually looking for a job. So students are by definition not economically active. The distribution of the population by age, location, and economic activity is shown in Table14. From <Table 14 it can be seen that the Location indicator is particularly effective in distinguishing between the urban labor market and the rural labor markets. It is especially clear that unemployment is an urban phenomenon. Young people in urban areas tend to enter the labor force some 5 to 7 years later than young people in rural areas. Unemployment peaks at nearly 5% around the age 20-24 years in the urban areas. Unemployment in the rural areas never rises to 1%. The data in Table 14<Table suggest that in rural off-road communities, nearly 30% of young people become economically active, while in the 10-14 year age range, they proceed directly into employment. By contrast, in urban areas, only a slightly larger proportion (36%) become economically active, while in the 15-19 year age range, but for many, employment is not immediate, and unemployment reaches nearly 5%.
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<Table 1-14> Population Aged 10 and Above, by Economic Activity

(%)
Urban Rural On-Road Rural Off-Road Age Employ Un-emp Emplo Un-empl Inactiv Emplo Un-em Group Inactive Inactive ed loyed yed oyed e yed ployed 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ 5.1 33.0 65.1 81.7 84.4 85.6 85.2 83.6 74.8 62.2 40.3 27.1 13.9 6.8 1.0 3.5 4.9 3.3 1.9 1.2 0.9 0.8 0.6 0.6 0.5 0.4 0.4 0.5 92.5 62.4 29.0 14.1 12.8 12.4 13.2 14.9 23.9 36.4 58.3 71.5 84.2 90.7 17.9 61.4 91.4 96.3 96.9 97.0 96.4 95.2 84.6 74.4 51.3 39.0 21.8 35.9 0.4 0.7 0.7 0.4 0.2 0.2 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.9 79.9 36.9 7.0 2.5 2.2 2.2 2.9 4.2 14.6 24.7 47.6 59.8 76.7 84.0 29.3 71.9 94.6 97.7 98.0 97.9 96.9 95.3 82.5 72.3 48.9 38.1 21.9 14.3 0.5 0.4 0.3 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.3 0.3 67.8 26.6 4.2 1.4 1.3 1.5 2.5 4.1 16.8 26.8 50.1 60.6 76.6 83.8
Source: Steering Committee for Census of Population and Housing. Results from the Population and Housing Census 2005.
The data shown in five-year cohorts in Table 15 can be disaggregated using Sprague interpolation to provide estimates by individual year cohort for working children and youth under the legal age of 18. Such a disaggregation is shown in <Table 15. In total, over 130,000 children between the ages of 10 and 14 years were employed in 2005, and over 190,000 youth between the ages of 15 and 17 were employed.
<Table 1-15> Number & Percent of Children and Youth Employed, by Age & Location
Percent of Each Age Group Employed Number in Each Age Group Employed Age 10 11 12 13 14 15 16 17 18 Urban 0 0 3 8 14 21 26 33 39 Rural On-Road 9 11 16 23 32 43 54 65 73 Rural Off-Road 17 23 29 36 44 54 66 77 83 Urban 26 104 947 2,912 5,615 8,233 10,827 13,450 16,011 Rural On-Road 7,319 9,705 13,310 18,632 24,915 30,997 37,220 41,853 43,952 Rural Off-Road 5,769 7,816 9,838 11,733 13,476 15,218 17,005 18,167 18,407
Source: Author estimate based on disaggregation of published 2005 census results,
In both age groups and in all location categories, the proportion of girls employed is substantially higher than the proportion of boys employed. Of the 130,000 children between the ages of 10 and 14 years who were employed in 2005, 60% were girls. Of the 350,000 youth between the ages of 15 and 19 years, 58% were girls.
<Table 1-16> Children and Youth Employed, by Age, Gender, and Location
(Percent)
Age 10-14 15-19
Urban Males 3.8 27.5 Females 6.3 38.6
Rural On-Road Males 14.0 52.2 Females 22.1 70.7
Rural Off-Road Males 23.0 61.7 Females 36.0 81.7
Source: Census 2005.
LAO PDR 241
In recent years, there have been large increases in direct employment in exports and in small-scale retail trade, due to increased imports. According to the TVET Master Plan, overall, to ensure a growth rate of 7-8% in accordance with the targets in the Seventh National Social and Economic Development Plan (NSEDP7) during the period 2006-2010, employment must be created on average for 130,000 people per year.
2. LAO LABOR MARKET INDICATOR

According to the official estimates compiled by the MOLSW and NSC, the total population of Lao PDR was 5.7 million in 2003, of which 49 percent were men and 51 percent were women. Of these 3.2 million were aged 15 years and over. This means the 44 percent of the population was below working age. Employment and unemployment are not defined according to international standards for persons either in usual status or current status, but figures reflect the observations of those providing the information.4)
4) Usual status generally refers to main activities over the preceding twelve months with 183 days sometimes used as the measure of whether a person was usually employment, for example. Current status is determined by the principal activity during a short period. According to international standards, a person is counted as employed if he or she engaged in economic activity in the production of goods and services for at least one hour during the seven day reference period
<Table 1-17> Employed and unemployed population aged 15+ years, Lao PDR, 2001-2003 2001 2002 2003 Number (%) Number (%) Number (%) Employed 15+ Male 1,173,000 48.0 1,194,000 48.0 1,217,000 48.0 Female 1,272,000 52.0 1,296,000 52.0 1,320,000 52.0 Total 2,445,000 100.0 2,490,000 100.0 2,537,000 100.0
Unemployed 15+ Male Female Total
54,700 73,300 128,000
42.7 57.3 100.0
56,400 75,600 132,000
42.7 57.3 100.0
58,100 77,800 135,900
42.8 57.2 100.0
Source: MOLSW and NSC, Official estimates, 2005.
The data for 2003 shows that more women than men were counted as employed (1,320,000 or 52 percent) and unemployed (77,800 or 57 percent). It is, therefore, not surprising that there are more women in the labor force defined as the employed plus the unemployed.
<Table 1-18> Labor Force Aged 15+ Years, Lao PDR, 2001-2003 2001 2002 2003 Number (%) Number (%) Number (%) Male 1,227,700 47.7 1,250,400 47.7 1,275,100 47.7 Female 1,345,300 52.3 1,371,600 52.3 1,397,800 52.3 Total 2,573,000 100.0 2,622,000 100.0 2,672,900 100.0
The employment-to-population ratio gives a measure of the extent that the working age population is actually engaged in the production of goods and services. It is an indication of the capacity of the economy to employ its workforce. Four-fifths (80 percent) of the
LAO PDR 243
population aged 15 years and over were employed during 2003. There has been little change over the past few years.
<Table 1-19> Employment-to-Population Ratios, Labor Force Participation Rates, Unemployment Rates and Inactivity Rates for Lao PDR, 2001-2003 2001 2002 2003 Labour force participation rate 15+ Male 82.9 84.1 83.4 Female 86.6 86.0 85.3 Total 84.8 85.1 84.4 Employment-to-population ratio 15+ Male 79.3 80.3 79.6 Female 81.9 81.3 80.5 Total 80.6 80.8 80.1 Unemployment rates 15+ Male 4.5 4.5 4.6 Female 5.4 5.5 5.6 Total 5.0 5.0 5.1 Inactivity rate 15+ Male 17.1 15.9 16.6 Female 13.4 14.0 14.7 Total 15.2 14.9 15.6
The labor force participation rate is useful for predicting training needs and social security. It is generally directly related to agricultural activities and inversely related to school attendance. This rate was 84 percent in 2003. Given the fact that more women than men are economically active, it is not surprising that the labor force participation rate is slightly higher for women (85 percent) than for men (83 percent).
<Table 1-20> Age-Specific Labor Force Participation Rates by Urban and Rural, Lao PDR, 1995 Total Urban Rural Total Male Female Total Male Female Total Male Female 10-14 24.3 22.8 29.7 5.5 4.2 6.9 28.0 21.6 34.7 15-19 60.6 50.7 72.1 37.2 27.6 46.8 66.4 53.7 78.6 20-24 89.7 87.2 92.0 73.6 70.3 76.6 94.2 91.9 96.1 25-29 94.8 96.9 92.8 83.8 91.4 76.8 97.5 98.3 96.7 30-34 95.5 98.3 92.7 85.8 95.8 76.0 97.8 98.9 96.7 35-39 95.9 98.5 93.2 86.7 96.5 76.1 97.9 98.9 96.9 40-44 95.4 98.4 92.3 85.7 96.6 73.5 97.4 98.7 96.2 45-49 94.3 97.8 91.1 83.5 95.2 70.6 96.4 98.2 94.7 50-54 84.8 93.6 77.2 73.9 89.5 58.3 86.6 94.1 80.6 55-59 76.3 87.8 65.3 62.9 79.6 46.1 78.8 88.9 69.4 60-64 58.1 73.9 43.8 45.2 61.7 29.4 60.4 75.1 47.0 65-69 47.1 62.8 32.1 33.2 47.8 18.8 49.8 63.8 35.6 70+ 22.0 35.0 12.9 12.5 20.3 6.2 24.0 34.4 14.8 Not classified 0 0 0 0 0 0 1.4 0 2.4
Source: State Planning Committee, National Statistical Centre, Results from the Population Census 1995, Vientiane, April 1997.
The latest statistics available for age-specific labor force participation rates are from the 1995 population census. This data measures usual status over the past twelve months. On the basis of the 15+ age group of working age, the labor force participation rate for the whole country was 81 percent in 1995. At that time, the labor force participation rates were virtually the same for women and men. For Lao PDR as a whole the female labor force participation rates were higher than male labor force participation rates for children and youth, as shown in Figure 4. In rural areas, children aged 10-14 were more likely to be economically active than in urban areas.
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{Figure 1-4] Labour force participation rates

120
100
80
60
40
20
0 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70+
Total
Male
Female
Source: State Planning Committee, National Statistical Centre, Results from the Population Census 1995, Vientiane, April 1997 and Table 4.
In Lao PDR women and men who were not economically active represented 16 percent of the population in 2003. According to official estimates, 64 percent of those not economically active were students in 2004. Another 17 percent were retired, sick, or too old to work. Just 12 percent were occupied with household duties. The 1995 population census shows that the highest rates of unemployment are for young people aged 15-24 in urban areas. Unemployment rates for Lao PDR in 2003 were lower than average for Southeast Asia, as shown in Table 21.
<Table 1-21> Unemployment rates by region and sex, 2001 2002 Total Female Male Total Female Male World 6.1 6.3 6.0 6.3 6.5 6.2 Industrialized 6.1 6.4 5.9 6.8 7.0 6.7 economies Transition economies 9.5 9.4 9.5 9.4 9.3 9.5 East Asia 3.3 2.7 3.8 3.1 2.6 3.6 Southeast Asia 6.1 6.7 5.7 7.1 7.8 6.5 South Asia 4.7 6.0 4.1 4.8 6.1 4.2 Latin American and 9.0 11.3 7.6 9.0 11.2 7.6 the Caribbean Middle East and 12.0 16.3 10.5 11.9 16.2 10.4 North Africa Sub-Saharan Africa 10.6 9.3 11.6 10.8 9.5 11.8
Source: ILO KILM 3rd Edition, CD-ROM, 2005.
2001-2003 2003 Total Female Male 6.2 6.4 6.1

6.8 9.2 3.3 6.3 4.8 8.0 12.2 10.9 7.0 9.2 2.7 6.9 6.2 10.1 6.7 9.2 3.7 5.9 4.3 6.7
16.5 10.6 9.6 11.8
According to the official estimates produced for the labor market, most of the unemployed in Lao PDR are in the south (60 percent) with 32 percent in the north and 8 percent in the central region of the country. It is especially difficult for young people entering the labor market without appropriate skills, since they lack work experience, as well. While it is not possible to calculate unemployment rates for youth (15-24 years) and adults (25 years and over) based on the data that is available for recent years, there are indications that unemployment rates are still highest among educated youth in urban areas. In 2003, 19 percent of the unemployed had at least some lower secondary schooling. The highest level of education for one-fourth was some upper secondary school. Another 14 percent had vocational training at the post-secondary or tertiary level, while less
LAO PDR 247
than one percent had some university education or higher degree.

<Table 1-22> Unemployed Population by Educational Attainment, Lao PDR, 2001-2003 2001 2002 2003 Number (%) Number (%) Number (%) No education or less than 15,400 12.0 15,800 12.0 16,300 12.0 Primary Primary 23,200 18.1 23,900 18.1 24,600 18.1 Lower secondary 24,200 18.9 24,900 18.9 25,700 18.9 Upper secondary 32,200 25.2 33,300 25.2 34,300 25.2 Vocational-post-secondary 17,400 13.6 18,000 13.6 18,500 13.6 and tertiary University-undergraduate 400 0.3 400 0.3 400 0.3 and graduate Short couses 5,900 4.6 6,100 4.6 6,300 4.6 Other 9,300 7.3 9,600 7.3 9,900 7.3 Total 128,000 100.0 132,000 100.0 136,000 100.0
Indicators for Lao PDR also show that eight out of ten employed persons were working in agriculture, hunting, forestry, and fishing during 2003. This has not changed very much over the three years. However, the percentage in 2003 (82 percent) was lower than in 1995 (85 percent). This data does not indicate significant differences between men and women. The proportion of persons employed in industry was almost the same as in services at around 9 percent in 2003. The numbers of people employed in industry and services increased slightly over the three years.
<Table 1-23> Employment by Sector, Lao PDR, 2001-2003 2001 2002 2003 Number (%) Number (%) Number (%) Both sexes Agriculture 2,021,000 82.7 2,053,000 82.4 2,085000 82.2 Industry 213,000 8.7 224,000 9.0 235,000 9.3 Services 211,000 8.6 213,000 8.6 217,000 8.6 Total 2,445,000 100.0 2,490,000 100.0 2,537,000 100.0
Male Agriculture Industry Services Total Female Agriculture Industry Services Total
970,000 102,000 101,000 1,173,000
82.7 985,000 8.7 107,000 8.6 102,000 100.0 1,194,000
82.5 1,001,000 9.0 113,000 8.5 103,000 100.0 1,217,000
82.3 9.3 8.5 100.0
1,051,000 111,000 110,000 1,272,000
82.6 1,068,000 8.7 117,000 8.6 111,000 100.0 1,296,000
82.4 1,084,000 9.0 122,000 8.6 114,000 100.0 1,320,000
82.1 9.2 8.6 100.0
Figure 5 shows the percentage distributions of GDP and employment by sector in 2003. The agricultural sector accounts for 49 of the GDP, compared to 82 percent of the employed population. The result is low productivity and low incomes, placing a large number of the employed population among the working poor.
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[Figure 1-5] Distribution of GDP and Employment, Lao PDR, 2003

90
82.2
80 70 60 50 40 30 20 10 0
Percentages
48.6
25.9
25.5
9.3
8.6
Agriculture
Industry
Services
GDP
Employment
Source: MOLSW and NSC, Official estimates, 2005 and ADB Key Indicators of Developing Asian and Pacific Countries.
Data for that year shows an annual growth rate of 2.2 percent for agriculture. Most farmers depend on subsistence rice production, with just below 37 percent of agricultural products sold in the market, according to the LECS III. Aside from crops (51 percent), agricultural households produce vegetables and fruits (11 percent), meat (15 percent), poultry (5 percent), fish (12 percent), forestry products (1 percent) and other products (5 percent). Cash crops include coffee, tobacco, soybeans, and cotton. Given the limited use of irrigation, most cultivation is rain-fed production. Few farmers use purchased inputs of improved seeds, fertilizer, and pesticides. Inadequacy of infrastructure roads, transport, water, electricity, schools, and hospitals is often cited as an obstacle to development. The data for the proportion of the employed in agriculture is
somewhat misleading, since many workers, classified as employed in agriculture, have secondary jobs in off-farm activities, such as household businesses. According to the official estimates over one-half (56 percent) of the employed population was self-employed, and another one-fourth (26 percent) was classified as an unpaid family worker in 2003. Many work on family farms and in the informal economy. Together, self-employed workers and contributing family members accounted for 82 percent of the employed population. Official estimates for 2003 show that only 14 percent were in paid employment. A much smaller percentage (4 percent) was classified as a private employer, according to the estimates.
<Table 1-24> Employed Population by 2001 Number (%) Private employer 88,000 3.6 Employee-government 132,000 5.4 Employee-private 202,900 8.3 Self-employed 1,352,100 55.3 Unpaid family worker 670,000 27.4 Total 2,445,000 100.0 Status in Employment, Lao PDR 2002 2003 Number (%) Number (%) 92,200 3.7 96,400 3.8 132,000 5.3 131,900 5.2 216,700 8.7 233,400 9.2 1,382,500 55.5 1,413,100 55.7 667,600 26.8 662,200 26.1 2,491,000 100.0 2,537,000 100.0
Source: MOLSW and NSC, Official estimates, 2005
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[Figure 1-6] Status in Employment, Lao PDR

Private employer 4% Unpaid family worker 26% Employee government 5% Employee private 9%
Self-employed 56%
According to the labor market indicators prepared for 2001-2003, two-thirds of the employed persons in Lao PDR work at least 40 hours per week. Very few (4 percent) worked fewer than 20 hours in 2003. Altogether 15 percent worked fewer than 30 hours per week.
<Table 1-25> Hours of Work Per 2001 Number Less than 20 hours 100,300 20-29 hours 273,800 30-39 hours 449,900 40 hours and over 1,621,000 Total 2,445,000 Week, Lao PDR 2002 (%) Number 4.1 102,100 11.2 279,000 18.4 458,400 66.3 1,651,500 100.0 2,491,000
2003 (%) Number (%) 4.1 104,000 4.1 11.2 284,200 11.2 18.4 466,800 18.4 66.3 1,682,000 66.3 100.0 2,537,000 100.0
Comparative statistics indicate that Lao PDR has high rates of labor force participation and a high proportion of the population in employment, compared with other countries in Southeast Asia. This is consistent with the large numbers of working poor in the agricultural sector and informal employment. The unemployment rate is lower than the Philippines and Indonesia, but higher than other countries in the sub region with data for this indicator.
<Table 1-26> Comparative Labor Market Indicators, Southeast Asia Labour force participation rates Employment Share of Unemploy to population employment ment Total Male Female ratio in agriculture rate Brunei 66.0 83.3 46.7 na 2.0 na Cambodia 83.3 85.1 73.4 70.4 na 1.8 East Timor 82.6 89.3 76.3 na na na Indonesia 68.6 na na 62.9 43.8 6.1 Lao PDR 84.4 83.4 85.3 80.1 82.2 5.1 Malaysia 66.5 83.3 46.7 63.5 18.4 3.9 Myanmar 77.1 88.4 66.0 na 62.7 na Philippines 67.5 82.3 52.8 59.6 37.4 9.8 Singapore 68.6 81.1 55.5 65.5 0.3 3.4 Thailand 72.7 80.6 64.9 67.7 48.8 2.4 Viet Nam 71.9 76.0 66.2 74.3 69.1 2.3
Sources: Source: MOLSW and NSC, Official estimates, 2005 and ILO KILM 3rd Edition, CD-ROM, 2003
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<Table 1-27> Lao Labor Market Indicators

2001 Number Structure of output (% GDP at current factor prices) a/ Agriculture Industry Services Total Growth of output (annual % change) a/ Agriculture Indunstry Services Total Consumer price index (1999=100) a/ Gross enrolment ratio in primary schools b/ Male Female Total Gross enrolment ratio in secondary schools b/ Male Female Total Enrolment in tertiary education b/ Male Female Total 10,628 6,117 16,745 17,993 10,547 28,540 18,064 10,053 28,117 44 31 38 47 34 41 50 37 44 121 104 113 123 106 115 124 108 116 3.8 10.1 5.7 5.8 116.8 4.0 10.3 5.7 5.9 129.3 2.2 11.3 7.4 5.8 149.3 51.2 23.7 25.1 100.0 50.4 24.7 25.0 100.1 48.6 25.9 25.5 100.0 (%) 2002 Number (%) 2003 Number (%)
2001 Number Population Male Female Total Population aged 15+ Male Female Total Population aged < 15 Male Female Total Employed 15+ Male Female Total Unemployed 15+ Male Female Total Economically active population 15+ Male Female Total Economically inactive population 15+ Male Female Total 252,400 207,600 460,000 54.9 45.1 100.0 1,227,700 1,345,300 2,573,000 47.7 52.3 100.0 54,700 73,300 128,000 42.7 57.3 100.0 1,173,000 1,272,000 2,445,000 48.0 52.0 100.0 1,177,300 1,166,700 2,343,900 50.2 49.8 100.0 1,480,100 1,552,900 3,033,100 48.8 51.2 100.0 2,657,400 2,719,600 5,377,000 49.4 50.6 100.0 (%)
2002 Number 2,730,800 2,795,100 5,525,900 1,487,300 1,594,700 3,082,000 1,243,500 1,200,400 2,443,900 1,194,000 1,296,000 2,490,000 56,400 75,600 132,000 (%) 49.4 50.6 100.0 48.3 51.7 100.0 50.9 49.1 100.0 48.0 52.0 100.0 42.7 57.3 100.0
2003 Number 2,806,400 2,872,600 5,679,000 1,528,500 1,638,800 3,167,300 1,277,900 1,233,800 2,511,700 1,217,000 1,320,000 2,537,000 58,100 77,800 135,900 (%) 49.4 50.6 100.0 48.3 51.7 100.0 50.9 49.1 100.0 48.0 52.0 100.0 42.8 57.2 100.0
1,250,400 1,371,600 2,622,000
47.7 52.3 100.0
1,275,100 1,397,800 2,672,900
47.7 52.3 100.0
236,900 223,100 460,000
51.5 48.5 100.0
253,400 241,000 494,400
51.3 48.7 100.0
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2001 Number Labour force participation rate 15+ Male Female Total Employment-to-population ratio 15+ Male Female Total Unemployment rates 15+ Male Female Total Inactivity rate 15+ Male Female Total Employment by agriculture and non-agriculture Both sexes Agriculture Non-agriculture Total Male Agriculture Non-agriculture Total Female Agriculture Non-agriculture Total (%)
2002 Number (%)
2003 Number (%)
82.9 86.6 84.8
84.1 86.0 85.1
83.4 85.3 84.4
79.3 81.9 80.6 4.5 5.4 5.0 17.1 13.4 15.2
80.3 81.3 80.8 4.5 5.5 5.0 15.9 14.0 14.9
79.6 80.5 80.1 4.6 5.6 5.1 16.6 14.7 15.6
2,021,000 82.6 2,053,000 82.4 2,085,000 82.2 424,000 17.4 437,000 17.6 452,000 17.8 2,445,000 100.0 2,490,000 100.0 2,537,000 100.0 970,000 82.7 985,000 82.5 1,001,000 82.3 203,000 17.3 209,000 17.5 216,000 17.7 1,173,000 100.0 1,194,000 100.0 1,217,000 100.0 1,051,000 82.6 1,068,000 82.4 1,084,000 82.1 221,000 17.4 228,000 17.6 236,000 17.9 1,272,000 100.0 1,296,000 100.0 1,320,000 100.0
2001 Number (%) Employment by major sector Both sexes Agriculture 2,021,000 82.7 Industry 213,000 8.7 Services 211,000 8.6 Total 2,445,000 100.0 Male Agriculture 970,000 82.7 Industry 102,000 8.7 Services 101,000 8.6 Total 1,173,000 100.0 Female 1,051,000 82.6 Agriculture 8.7 Industry 111,000 8.6 Services 110,000 1,272,000 100.0 Total Status in employment 3.6 88,000 Private employer 5.4 132,000 Employee-government 8.3 202,900 Employee-private 1,352,100 55.3 Self-employed 670,000 27.4 Unpaid family worker 2,445,000 100.0 Total Employment by hours of work per week Less than 20 hours 100,300 4.1 20-29 hours 273,800 11.2 30-39 hours 449,900 18.4 40 hours and over 1,621,000 66.3 Total 2,445,000 100.0 Unemployed population 15+ Both sexes Central 10,200 8.0 North 41,200 32.2 South 76,400 59.7 Total 128,000 100.0
2002 Number (%)
2003 Number (%)
2,053,000 82.4 2,085,000 82.2 224,000 9.0 235,000 9.3 213,000 8.6 217,000 8.6 2,490,000 100.0 2,537,000 100.0 985,000 82.5 1,001,000 82.3 107,000 9.0 113,000 9.3 102,000 8.5 103,000 8.5 1,194,000 100.0 1,217,000 100.0 1,068,000 82.4 1,084,000 82.1 117,000 9.0 122,000 9.2 111,000 8.6 114,000 8.6 1,296,000 100.0 1,320,000 100.0 92,200 132,000 216,700 1,382,500 667,600 2,491,000 3.7 96,400 3.8 5.3 131,900 5.2 8.7 233,400 9.2 55.5 1,413,100 55.7 26.8 662,200 26.1 100 2,537,000 100.0
102,100 4.1 104,000 4.1 279,000 11.2 284,200 11.2 458,400 18.4 466,800 18.4 1,651,500 66.3 1,682,000 66.3 2,491,000 100.0 2,537,000 100.0
10,600 8.0 42,500 32.2 78,800 59.7 131,900 100.0
10,900 8.0 43,800 32.2 81,200 59.7 135,900 100.0
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2001 Number Male Central North South Total Female Central North South Total Unemployment by educational attainment No education or less than primary Primary Lower secondary Upper secondary Vocational- post-secondary and tertiary University-undergraduate and graduate Short couses Other Total Economically inactive population 15+ Household duties Students Retired, sick or too old to work Others Total 55,700 12.1 294,900 64.1 76,800 16.7 32,700 7.1 460,100 100.0 15,400 23,200 24,200 32,200 17,400 400 5,900 9,300 128,000 12.0 18.1 18.9 25.2 13.6 0.3 4.6 7.3 10.0 (%)
2002 Number (%)
2003 Number (%)
4,300 7.9 17,600 32.2 35,600 59.6 54,700 100.0 5,900 8.0 23,600 32.2 43,800 59.8 73,300 100.0
4,600 8.1 18,200 32.2 33,700 59.6 56,500 100.0 6,000 8.0 24,300 32.2 45,100 59.8 75,400 100.0
4,700 8.1 18,700 32.2 34,700 59.7 58,100 100.0 6,200 8.0 25,100 32.3 46,500 59.8 77,800 100.0
15,800 12.0 23,900 18.1 24,900 18.9 33,300 25.2 18,000 13.6 400 0.3 4.6 6,100 9,600 7.3 132,000 100.0 55,660 12.1 294,860 64.1 76,820 16.7 32,660 7.1 460,000 100.0
16,300 24,600 25,700 34,300 18,500 400 6,300 9,900 136,000 59,800 316,900 82,600 35,100 494,400
12.0 18.1 18.9 25.2 13.6 0.3 4.6 7.3 100.0 12.1 64.1 16.7 7.1 100.0
Sources: a/ADB Key Indicators of Developing Asian and Pacific Countries, b/UNESCO web sites: c/ MOLSW and NSC, Official estimates, 2005
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Chapter 2
TVET System by Target Groups
<Executive Summary>
In June 2007 the Strategic Plan for the Development of Technical and Vocational Education and Training from 2006 to 2020 (TVETStrategy) was approved by the Prime Minister. A master plan was needed in order to identify and plan all activities, as well as to determine a budget to carry out various initiatives. An interministerial team was set up, and it designed the following document, with the assistance from the Luxembourg Government Cooperation. Both the TVET-Strategy and the master plan are based on three key concepts which are used as guidelines for the development of the Education Sector Development Framework: Equitable Access; Quality and Relevance; and Management and Administration.
Within these key issues, seven strategic projects have been identified 1. The construction, upgrading, and expansion of the TVET institutions; 2. The expansion of the TVET offer and approaches; 3. The qualifications, training, and professional development of TVET teachers and other staff; 4. The quality assurance of TVET; 5. The development of TVET information resources; 6. The improvement of the organizational structure of The TVET sector; and 7. The formulation of policy and tools at the macro-level for the development of TVET. All these projects are detailed in 130 activities, each with its own indicators, responsible organization, budget, and implementation plan. They cover key components of the future TVET system, such as the need to reform curricula; the defining of a qualification system; the enlargement of the scope of TVET; the necessity to adjust supply and demand; the importance of developing teacher qualifications, and the collaboration needed among the different ministries involved in TVET. The full cost of the master plan from 2008 to 2015 is US$ 172.42 m, with the main part to be spent for the improvement of schools. This budget for 2008-2015 includes US$ 156.75 m to be spent on the master plan investment and follow up, as well as US$ 15.67 m
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for the recurrent costs (salaries, basic equipment, and staff development). Even if the Government of Lao PDR is able to increase its financial resources as a result of continuous economic development, donors from various organizations and countries will be needed to help support these ambitious projects. Their financial input; the coordination among different ministries and departments; and the long term follow up and management of this plan will be the key success factors.
Section 1. Issues to be Addressed

1. Scope of the Technical and Vocational Education and Training
The scope of technical and vocational education and training covers the skills level, basic vocational training, and higher vocational training. Following the TVET strategy, different types of training programs managed by the MOE of Lao PDR include: - short courses (less than 6 months); - courses for skilled workers (6 months to 3 years); - certificate level courses (2-3 years); and - diploma courses (2-3 years) at middle and higher level. The training programs may be full or part-time, and may include some work experience components (dual courses). TVET institutions
will be encouraged to provide courses for different target groups including new labor market entrants (school leavers), existing workers, young people, older adults, and disadvantaged groups. Because the needs of technical and vocational education at the lower and the middle levels are still high, technical and vocational education and training institutions will be expanded to all provinces. There will be at least one TVET institute in each province and, in addition, other centers of excellence will be developed for various specialist areas, such as hospitality, automotive engineering, garment manufacturing, and agriculture To ensure the optimum use of resources (both equipment and personnel), the concept of Integrated Vocational Education and Training (IVET) will be implemented in a step-by-step process. Using this approach, the various institutions will have more flexibility to propose a range of courses for different types of students. Courses can include short remedial courses for those with a low level of basic education; long courses; and training programs with work experience components.
2. Integration of Demand Side in Skills Development and Promotion of TVET

Considering the labor force of Lao PDR as a whole, only a small percentage of the population have skills and qualifications above the most basic level. Many lack even basic skills. Of those people with skills training, more and more are in areas where there is relatively
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little demand, and there is a significant need for skilled people in other areas. However, there has been little incentive for students to enter training in areas where there is high demand in the labor market, such as mechanical engineering, construction, mining, hospitality, quality assurance, and production planning management. At the present time, there are skills gaps in many employment sectors and, at the same time, there is an over supply in other sectors. This appears to be due to the fact that education and training institutions have been responding to a social demand of training in business, computing, and English language, as well as for higher level courses that can give access to a Bachelor Degree level. But skills training needs are in areas such as mechanical engineering, construction, mining, hospitality, quality assurance and production planning management. TVET institutions of MOE will be encouraged to place greater emphasis on these skills shortage areas, in preference to the general business training programs. The master Plan includes a review of the process of assessing training needs (including drawing advice on the Trades Working Groups, TWG); career guidance; promotion and counseling for would-be trainees; and new approaches to training that will improve the relevance of training and the supply of skilled workers to meet the needs of the developing economy and society. Promotion of TVET is a critical issue. Lao PDR is facing a problem shared by many countries. There is social demand and preference for university degrees and general business topics, instead
of practical technical studies. A strong marketing and promotion plan at the national and provincial level is needed, along with realistic incentives for parents, students, and training institutions.
3. National Qualification or Certification Framework

At the present time, there is a wide range of formal, non formal, and informal curricula, certificates, and diplomas available from many institutions and organizations. Some are for short courses varying from one week to one year. Others are for skills development courses with testing in the Ministry of Labor and Social Welfare (MLSW); Dual Cooperative Training (DCT); and other vocational and technical courses. Employers, training institutions, students, and parents do not have any reliable way of assessing the value of any given certificate, for instance, their value in terms of personal ability to do the job or proceed to further levels of education. A National Qualification or Certification Framework can help to make the system readable for all stakeholders and bring consistency, comparability, and quality. By setting up clearly defined levels against which training course, tests and their certificates can be measured, they provide coherence and, if they are inclusive, can address some negative perceptions about vocational/technical qualifications by showing their equivalence or link to more academic qualifications. A National Qualification or Certification Framework is an initial stage to ensure the quality of the training; upgrade the qualification
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closely to regional and international standards; and prepare for the international integration. Developing such a framework can be a time-consuming and complex process. However, there is a wealth of information available to help simplify the process, and this is also an area with good potential for country-to-country assistance. Finally, the National Qualification or Certification system in Lao PDR should be based on the reality of the Lao context, especially in terms of budget, available human resources, and responsibilities among concerned ministries. Once it is in place, it can be used for formal courses, competency assessments, validation of experience, or Recognition of Prior Learning for those with existing workplace experience. Possible information and sources of advice include: - The Association of South East Asian Nations (ASEAN) skills recognition development: An agreement has recently been discussed on a system of four certificate levels and two diploma levels based on competency based standards. Several countries were engaged in the initial discussions: Laos PDR, Cambodia, Vietnam, and Thailand. However, this agreement has yet to be formally endorsed. - The European experience can give valuable information on different kinds of Qualification or Certification systems adapted to each TVET approach and how they have been integrated (European Qualification Framework). - The International Labour Organization (ILO) in Geneva has also recently produced a publication which provides guidance for the
development of qualification frameworks covering policy and practical implementation issues.5)
Section 2. Curriculum Method and Content

A Curriculum or course should be based on the needs of Industry and/or the community. For the past years, professional disciplines have been developed. They include basic information on professional standards. This approach could be developed by deeper occupational analysis using formal processes such as the Developing a Curriculum (DACUM) approach which is already used. However, the necessary duration to implement this method and analytical work required could be significantly reduced if standards developed by other international organizations are used.
1. Competency Standards
Competency standards are directly linked to the kind of National Qualification or Certification system selected. Lao PDR can fully develop its own standards. However, it will be much more cost effective to use standards developed in other countries and to adjust these standards to match the need of Lao trade sectors. ILO has
5) Ron Tuck: An Introductory Guide to National Qualification Frameworks: Conceptual and Practical Issues for Policy Makers, Skills and Employability Department, International Labour Office (ILO), Geneva 2007
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already developed Regional Model Competency Standards for a number of industries, including manufacturing, tourism, and hospitality. Additional competency sets are also planned for construction, agriculture, and a number of other areas. Regional cooperation is developing and sets of competency standards prepared by other countries can be available for Lao PDR. Lao TWG can review and adjust these standards, then develop the suitable curriculum needed for their workers. Competency standards can also be used to design teaching, learning, and assessment materials.
2. Student-Centered Learning
Fore many years, rote learning and teacher centered approaches have been applied in many countries in Asia, as described in recent reports of the World Bank. However, the modern world needs people who are able to quickly integrate new concepts and technologies, and it is important to move away from these traditional approaches. Training within institutions needs to become more student centered. This means that the focus will be on student, rather than teacher activity, and students will have more choice in the directions their learning takes. Analytical thinking and problem solving abilities will be developed.
3. Practical Experience and Knowledge

From a recent survey on the situation of TVET, the directors of 18 schools considered that equipment and building are the most important needs. Two perceived by as the most important need6). Development in this area is essential, but practical experience of the trainees and students will also be gained through better linkages with companies, including internships. German cooperation is supporting an important project to promote the DCT concept in Lao PDR. Several institutions are implementing this system with adjustments to the context of local companies, which are mostly small and medium enterprises (SME).
4. Access and Equity

Specific approaches will be implemented to cater for training disadvantaged groups and people with lower levels of basic education, such as youth, low-skilled people, people with disabilities, ethnic minority groups, and the socially excluded. The IVET-concept of schools will support access through different means, and it supports the Education for All policy. The DNFE can help for this issue, which will take into account their experience gained from the Lao-German BAFIS-Project (Berufliche Ausbildung fuer den informellen Sektor = Vocational Training for the Informal Sector).
6) Source: Final report public technical vocational schools under the MOE, November 2007, VEDC
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Section 3. Teacher Development

While good equipment, buildings, and teaching aids are important, the critical elements of any skills development program are the teachers. It is recognized that salaries are low, and teachers might teach longer than they should (30 to 40 hours a week). The students/ teacher ratio varies a lot, depending on the curriculum. However, solutions will be sought to ensure that teachers are competent and remain motivated; these solutions will include professional development and improved career paths. Many TVET teachers and staff have a comparatively low level of education. In 2007, within the whole staff involved in TVET in the MOE7), 2 persons have a PhD; 29 have masters degrees; 160, a bachelor degree; while 793, a level of higher diploma or lower. Most of the teachers are young; many of them just finished their studies and go to teach. Many lack real working experience. Consequently, the upgrading of their education level will be a priority in order to ensure the quality improvement. The master plan includes a number of strategies for training and development in the following areas: - Pre-service training for new teachers through short courses focusing on teaching skills, technical skills, and competencybased training and assessment; - A project to develop studies at the levels of bachelor, master,
7) in the institutes as well as in the Ministry of Education, TVE Department
then PhD in technical education; - In-service training through systematic short courses, training plans, and upgrading of levels; - Opportunities for teachers to gain experience at work; - Upgrading and strengthening of the VEDC, as this center will be the main organization involved in these staff development activities; - Attracting personnel from companies in specific fields to come help teach special subjects (examples: hospitality, wood processing); - Employing part-time teachers from companies; and - Setting up standards for teachers that will eventually be based on skills standards following the precondition submitted in the World Bank report on teacher reform.8)
Section 4. Cross Cutting Issues

Some cross cutting issues will have to be tackled, such as: - Poverty Reduction Programs. They will include short courses to support those in the informal economy. International experience could be reviewed like the Training for Rural Economic Empowerment (TREE) Program of the ILO which is designed to build on existing job-creating programs of the government and non-government organizations (NGO); make those programs
8) The World Bank (2008), Teaching in Lao PDR
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more effective; and fill in gaps where programs are weak or do not exist; - Empowerment of women through cooperation with organizations, like Lao Womens Union (LWU) and Lao Young People Revolutionary Union (LYPRU). Special programs will be provided to assist women in establishing small businesses and entering the workforce; - Good governance, thanks to the review of management system at the central and local levels, including the implementation of a quality system; - Respect for the environment by the integration of new courses on this subject in many curricula; - Participative dialogue with the beneficiaries, thanks to a strong development of regional TVET committees, Regional Training Councils (RTC), and new TWG; - Self employment by the integration of a special ILO course Knowing About Business (KAB) in all curricula, thanks to the cooperation of a specialized institution, such as Lao-India Entrepreneurship Development Center (LIEDC); and - Sustainability of project activities/interventions through a strong emphasis on capacity building of the staff and teachers.
Section 5. Labor Market Information

To be most effective, TVET should be based on accurate information about the needs of the labor market. But a problem related to human
resource development planning in Lao PDR is the lack of information on the needs of the labor market. Information is usually collected, analyzed, made available, and published in various documents, either from the government, or from donors projects. However, coordination, coherence, and reliability of the information are still lacking. One priority in this master plan is to analyze needs of all social and economic sectors for the human resource development in order to plan the expansion of the TVET network. The MLSW will be responsible for this issue in close cooperation with the MOE and other concerned line ministries. National labor market analysis will be needed to support national strategies and plans. It can be realized through different ways: specific surveys (on request); annual labor market reviews; local skills needs analysis; and permanent sector-based observatories in close cooperation with the professional associations. They should be either provincial or sector based in approach. The master plan includes the creation of professional disciplines and curricula based on local labor market assessment through collaboration among different sectors, departments, and trade working groups at the local level. Schools can be partly responsible for the implementation of these local surveys. The VEDC will be in charge of the design of these new professional disciplines and curricula.
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Chapter 3
Governance of the TVET system
Section 1. Link with Other Sectoral Developments

The TVET master plan defines activities involving other departments and components of education, and a high level of cooperation is needed to ensure that master plan activities are incorporated into the priorities of the different organizations: - The DGE will progressively integrate vocational subjects in the general education curriculum; - The DNFE currently plans (2007-2020 Master Plan) to develop basic vocational skills in many centers based on the previous German funded BAFIS project. Targets of NFE are to train 10,000 people by 2010, then 20,000 people by 2015 in ten professional disciplines. As teachers and trainers will need to be trained in these basic practical skills, cooperation with VEDC and DTVE is essential.
- The Ministry of Agriculture and Forestrys (MAF) master plan focuses on strengthening the four existing agricultural schools through improvement of curriculum, competency-based training, and production facilities. It is essential that this training will be consistent with the competency-based approach outlined under this master plan. - The National Training Council (NTC) is adjusting its roles and activities to ensure greater effectiveness. - The MLSW is finalizing its master plan for 2007-2020. It includes important components to link to the TVET master plan: strategies on training and assessment for skills standards; labor market information; and the use of the training fund. Coordination between both ministries and the National Training Council is essential, since duplication is to be avoided. - The MOE should finalize within 2008 an ESDF for 2008-2018 covering all sectors of education, including TVET which sets forth 2 strategies concerning TVET: Expand TVET according to the needs of the labor market in the formal and informal economy; and Expand TVET capacity in order to enroll lower secondary graduates intending to go to technical and vocational education and training. When other ministries prepare and regularly review their master plans, they should include a human resources development component with precise information on the needs of occupations.
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This information should be sent to the MOE for consolidation.
Section 2. The present Situation of Supply and Demand

1. The Rapidly Changing Lao Socio-economic Context
9)
For the last 10 years, Lao PDR has been experiencing fundamental changes, especially after Lao PDR became a member of ASEAN in 1997. Over the five-year period 2001-2005, Gross Domestic Product (GDP) grew at the high rate of 6.24 percent per year, whilst GDP per capita rose to reach US$49110). This represents an increase of over 84 percent, compared to 1996. But Official Development Assistance (ODA) resources still plays a central role in the Lao economy, contributing over 60 percent of the total cost of the Public Investment Programme (PIP), and over 70 percent of total public expenditure in the socio-cultural sectors, including education and health. The International Monetary Fund (IMF) has predicted a continuing high ongoing annual growth rate of 6-7 percent11) in real GDP between 2006 and 2010. External trade is expected to grow at an average of over 10 percent annually.
9) Chapter 1.1 and 1.12 integrates parts of the report of An Analysis of the Capacity of the Education System to Meet the Employment Needs of a Lao Modern Economy, CRC-LBC, 2008 10) Source: CPI (Committee for Planning and Investment).
11) Which is just below the target of 7.5 set by the Eighth Lao Peoples Revolutionary
Party Congress
The Governments Sixth Five-Year Development Plan (20062010) places special emphasis on increasing international trade, and particularly exports, in line with the National Growth and Poverty Eradication Strategy (NGPES). Around 74 percent of Lao exports consist of garments, wood, tourism, and electricity, with this proportion projected to increase rapidly over the next few years. The NSEDP 2007-2008 mentions an increase of exports in 2006-2007 of 57% higher than the year before, especially due to the increase of minerals.
2. An Urgent Need for Skills

It is estimated that over 82 percent of the Lao people live in rural and remote areas12) and that some 80 percent are employed in agriculture, either directly or indirectly, with an estimated 60 percent of farms still producing mainly for subsistence, and not for the market13). In recent years, there have been large increases in direct employment in exports and in small-scale retail trade, due to increased imports. Overall, to ensure a growth rate of 7-8%, during the period 2006-2010, employment must be created on average for 130,000 people per year. Inadequate planning, management, and monitoring of labor development in various sectors persist.14) However, a recent report15)
12) 77% are classified as rural and ethnically diverse 13) Source: MAF (Ministry of Agriculture and Forestry), 2005.
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estimated that the critical shortage of the expertise required for development will pose one of the most serious constraints on economic development in the Lao PDR; the report also predicted that strengthening human resource capacity will represent one of the countrys major challenges over the foreseeable future, and overcoming this challenge will help Lao attain the NGPES goal of elevating her from the status of a least developed country by the year 2020. From the Lao Expenditure and Consumption Survey in 2002-2003, only 14% of the population had completed the lower education level. A national training needs analysis16), carried out in 2005, found that nearly 70,000 additional human resources personnel, skilled at different levels, would be required by the manufacturing industry sector by 2010. However, this did not consider the needs of the government, service, or agricultural sectors. The report concluded that there would be a significant shortage of training places to provide the necessary skills at this level, particularly for technician workers. As there is no precise labor market information available on needs of occupations and skills, it is only possible to predict the needs based on the evolution of the economic sectors. The 8 Resolution of the Party and the NESDP 2006-2010 give the key sectors that will push forward Lao economy, among them:
14) Source: The National Socio-Economic Development Plan 2007-2008 15) United Nations Common Country Assessment (CCA) for Lao PDR, 2006. 16) GTZ Lao-Germa HRDME Programme (2005)
th
- Agriculture, forestry, and aquatic products with 13% of growth per annum counting for 27-28% of total exports; the kind of skills needed will reflect the ability to produce chemicals and biological fertilizer; analyze results and conditions; and plant seeds. - Raw materials, energy, and minerals, with 44.6% of the exports in 2010, especially for electricity-minerals. Exports should increase 18-20% per year; technicians will be needed in gypsum plates, granites, glass, iron, aluminium, and copper. - Wood industry, with 7-9% per year export growth, taking into account the fact that the forest in 2020 should cover 70% of the Lao surface; food processing will develop. - Huge programs for construction and infrastructure needing skills in block and bricks laying, tiling for roof, ceiling, floor, but also design, building, and property water management. - Tourism is expected to increase 11-12% per year, as all provinces are encouraged to promote it, with skills in service, hospitality, home stay, and restaurants, as well as handicraft production and the necessary skills in place for bamboo, rattan, ceramics, weaving, and gold/silver smithery. - Industrial process will involve skills in productivity improvement, quality, production planning, installation service and maintenance, and repairing of machines (heavy, middle, light, production machines). - Car and motorcycles sector, with skills in the areas of electricity and electronics, forming, and painting.
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Section 3. General Situation of the TVET Providers

There is a very wide range of skill learning opportunities offered by different institutions which eventually can be split in two parts: - Training aimed primarily at increasing food security or generating supplementary income in villages; in impoverished rural areas in skills such as small plant, livestock production, development of cottage industries, handicraft production, eco-tourism activities; and - training aimed primarily at needs in urban or relatively advantaged areas, in skills such as dress-making, hairdressing/ beautician, using office computing software, hospitality/hotel services, general tourism services, foreign languages, plumbing, motorcycle repair, and air conditioning/refrigeration. Based on a survey by the DTVE in 2007, there were 50 registered education curricula in 27 areas covering 4 main fields (agriculture, business, industry, and handicrafts). A total of 47 public and private institutions and more than 50 training centers provide short courses. There are 15 departments; 10 ministries; and 2 mass organizations which are involved in vocational education and training. Most of TVET is implemented by institutions under the Ministry of Education, but many other institutions also provide training: schools under provincial departments of education; schools under other ministries; training centers under MLSW, the LPRYU, the LWU, and Community Learning Centers (CLC); private sector
schools; company training centers; NGOs; and on-the-job training, including a wide variety of short courses and workshops, not forgetting training courses taking place in other countries. If all these training providers are not based on an overall needs analysis, they will not contribute to a balanced development of student skills. This will result in an oversupply in terms of subjects, as well as inadequacies for local needs. Within the DTVE we find the following institutions: - Vocational schools recruiting school leavers from lower secondary schools to prepare them to become skilled worker. The duration of study is 3 years. - Technical schools recruiting school leavers from lower secondary schools to prepare them to become technician. The duration of study is 2-3 years. - Integrated vocational schools delivering formal vocational training and basic vocational training to the non-formal target groups. The Education Statistics Technology and Information Center (ESITC) of MOE estimated the enrollment in TVET institutions was 15,500 students in 2001/2002 and 25,000 in 2005/2006. But for the lowest level, the total is decreasing (vocational: 3,500 in 2001/2002 and 2,600 in 2005/2006). Institutions from other ministries (Agriculture and Forestry, Information and Culture*, Health, and Finance) provided TVET for a total of 7,200 students in 2005/2006. Other
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ministries such as the Ministry of Industries and Commerce (MIC); the MLSW; and the Ministry of Transport, Roads and Communications (MRC) also provide training. There is no precise projection of future numbers but, based, on the likely changes to the population (presently very young), around 65,000 to 80,000 students can be expected to need training in 2015. The system should be able to cope with this increase. These figures show the variety of training and education providers, as well as the strong trend towards students often seeking higher diploma level courses, so that they can then obtain bachelor degrees. MOE will face three important challenges: - To continue attracting students at the lower level; - To answer to the needs at the higher level; and - To organize the coordination among all these providers. To structure and guarantee efficiency, a quality system will be developed. It is one of the 7 strategic projects to be implemented and covers the analysis and setting up of a system of recognition and accreditations of training institutions and curricula. This project to develop a quality system will take advantage of the present situation on curriculum accreditation, as many institutions from other ministries (MOAF, MLSW, and Health) contact MOE, and especially VEDC, to gain assistance for curriculum design and accreditation. By providing these services, the MOE can strengthen this role in this area in the future. ISO standards, for example, can help in increasing the recognition
of the quality of training by industry, especially those involved in the international market.
Section 4. Specific Situation of the TVET Schools under the MOE

A recent survey made in 200717) provides interesting characteristics on the present situation of 18 TVET schools and colleges running under the MOE: - There are already an important number of 58 professional disciplines: 33 different areas of studies are taught in 4 possible levels; since each area can be taught at different levels, there are 58 different curricula available. - 10% of the students come from the quota system, and 60%, from the national examination system. But the schools tend to allocate places for more private fee-paying students. - The majority of the students chose accounting studies. Construction, which is the most commonly offered curriculum by institutions, is only ranked 10th according to number of students enrolled. - Most of the schools focus their development towards higher diploma. (80% of the students are at the higher diploma level). - The government budget share varies from 30% to 98% of the
17) Source: Final Report Public Technical Vocational Schools Under the MOE, November 2007, VEDC
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total budget of the school; the other resources come from fees paid by students and other contributions. - Most of the schools already offer short courses for income generation; in addition to their regular curriculum, but not many times per year (the average is one time per year for a duration of 9 days). This information illustrates the inadequacy of the current provision; the mismatch between the supply and demand; and also the risk of having more and more schools willing to satisfy the potential target, especially privately funded students, without taking into account the needs of companies. It also shows that the schools already have experience in developing income generation activities, such as training and production, which are supported under the master plan.
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Chapter 4
Financing of TVET
Section 1. The Budget for TVET Reform and Development

The financing and investment in TVET is expensive and requires an adequate policy and contributions from the public and private sector, including domestic and foreign assistance. The estimated budget refers to the needs of agencies concerned with TVET and the plan of operation up to the year 2010 and from 2010 to 2015. The plan of operation from 2016 to 2020 could not be planned, due to the lack of any accurate growth forecasts because of uncertain trends for the economy in that period. The budget needed for the period 2009-2015 is explained, as follows: - The budget for investment and development, as described in a log frame and covering 130 activities. This budget includes an
important part supported by organizations of the MOE directly implementing technical and vocational education: DTVE, VEDC, and NTC. It also includes a budget that will be under the responsibility of other organizations, such as the MLSW and the National University of Laos (NUOL). - The recurrent budget covering regular operating costs, such as salaries and scholarships. These two budgets can be added together, and, by subtracting the budget already supported by donors, the total budget requirements can be established. The main part of the master plan budget concerns the renovation and improvement of schools and colleges (Strategic Project 1), estimated at 795 million Kip. The contribution from donors will be requested (see chapters 5.3, 5.4). The budget planning for the development of TVET is described in the following table:
<Table 4-1> Budget Item
Budget Item Total Budget Needed for Implementation of the Master Plan until 2015 Recurrent Budget (salary, basic, equipment) Total Budget Already Supported by Donors in the Master Plan Total Budget Still Needed for the Implementation of the Activities Until 2015 Million (US$) 156.75 15.67 172.42 -24.7 147.72 Million (Kip) 1,410,733 141,073 1,551,806 -222,300 1,329,506
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The financial resources of the Lao PDR government and other training providers including companies will need to increase to continue to strengthen TVET.
1. The Regular Government TVET Budget

The GOL allocates a regular budget for TVET. However, because there is a need to improve the quality of the training, the method of budget allocation should be changed to base calculations on the unit cost per student. Referring to the study of Department of Finance, the recurrent budget provided for TVET by the MOE in 2006-7 was 14,159 million Kip. Based on an estimate of an annual increase of 10% the total recurrent budget from 2006 to 2015 will need to be approximately 162,538 million Kip.
2. The Consequence of Economic Development on the Financial Capacities of Companies

As mentioned above, they are positive trends showing the increase of financial possibilities of Lao PDR, thanks to economic development. Companies will be able to support directly the cost of training and staff development. There are already examples of how they are more and more involved in paying for training and development: - Missions of foreign specialists coming to provide in-house training in Lao companies;
- Workers are sent to local private or public training institutions and even abroad; and - Scholarships and equipment are being provided to schools and government institutions. Other future projects might be set up, similar to those found in neighboring countries: examples include, support for a complete workshop in a school, and creation and management of an internal training center.
3. The Legal Framework to Promote Training in Companies

Lao PDR has decided to implement training funds as stated in the labor law, promulgated in 2006.: - Companies will pay 1% of salaries or wages, and workers, 1.5% to a national skills development fund in the MLSW. However, in June 2008 there was no mechanism for the implementation of this strategy, and there was a need to establish a task force to formulate measures for its implementation. - A training fund is being discussed for SME and has been included in the SME-decree. - As of June 2008 MOE has not been involved in the work on financing incitation for companies. In order to have a system covering the overall scope of TVET from all providers, MOE should participate in the system, as it can help financing specific training schemes, like apprenticeship for the private sector.
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4. The Support Coming through Cooperation with Other Ministries

Various ministries and organizations are involved in some activities of this master plan, such as the development of curriculum; professional and vocational standards; national qualifications; teacher training, etc. The budget for those activities should come from the MOE and other organizations through collaborative project proposals. MLSW, MAF, MIC, Ministry of Health, Lao National Tourism Authority (LNTA), and Lao National Chamber of Commerce and Industry (LNCCI) could be partners to propose staff development projects, but this will need team work and proactive actions.
Section 2. Loans for TVET Development

TVET development is expensive. Many neighboring countries, such as Thailand, Vietnam, Cambodia, and Sri Lanka, have been able to get loans at low interest rates from international finance institutions, such as Asian Development Bank, to renovate their systems. This approach has the advantage of providing funds and technical assistance to implement specific activities, such as building, equipment, training, and qualifications systems. However, investments of this kind do not easily generate revenues which can be used to repay loans, and, as with any external funding source, there is a risk that local resource streams will not be developed to replace the external
funds, and many of the gains made are lost when the project ends.
1. Possible Foreign and International Assistance for TVET

The budget resources of GOL have not been sufficient to support the development of TVET, although donor participation from various countries helped considerably. Within the last 13 years, there were 36 major projects and activities under the DTVE, for a total amount of 13 million US$. For the near future, Lao PDR will continue to need foreign and international assistance for its TVET. Donors will request: - A clear definition of priorities among all the activities to be implemented; - A good cooperation among ministries concerned by the TVET projects; - The integration of the TVET component into the ESDF; and - Coordination and alignment among partners for TVET development.
2. Present Situation of Some Donors Concerning TVET

Already several countries and organizations expressed interest in this sector; if several of them develop projects, coordination should ensure a good mapping of the support from donors in coherence with the master plan: - Until now, Germany has been the main supporter of TVET. There are presently 2 important ongoing projects for the
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development of a labor market-oriented and integrated TVET, with duration until 2011-2012. One is a technical assistance project, providing consultancy for regulatory framework; publicprivate cooperation; IVET; capacity development for TVET staff; and supplementary equipment. The budget is EUR 6 m by Deutsche Gesellschaft fuer Technische Zusammenarbiet (GTZ) and EUR 6 m by Deutscher Entwicklungsdienst (DED), for providing experts for IVET-schools and business organizations. The other one is a financial cooperation project for the construction of buildings and procurement equipment for IVET-schools in six provinces in the northern part of Lao PDR. Kreditanstalt fuer Wiederaufbau (KfW, German Development Bank) provides a grant EUR 8.5 m, which is 80% of the total project budget;20% is borne by the provinces concerned. Germany has expressed interest in continuing development cooperation in TVET until 2015. - Luxembourg has been supporting TVET for several years, especially in the development of the TVET institute in Khammouane Province for 3.3 m. EUR. Luxembourg is interested in continuing development support for this sector. There could be important projects in field, like hospitality-tourism, banking/ financing, or efforts to address more general issues, like curriculum development or the strengthening of institutes. - UNIDO-UNDP is more and more involved in the development of Lao PDR. For the period of 2004-2008, projects amounted for 5.6 m US$ to support industrial development. A budget
increase is planned to support training and education projects in the following areas: Increase of productivity and standards, for example, with short courses for workers; Development of entrepreneurship; Assistance for the expansion of the industrial zone in Savannakhet, Vientiane; Training in specific sectors, like garment, wood processing, and agro processing; and Skills development for SME. - For the last 15 years, there were 103 experts and volunteers who assisted TVET institutions for durations of a minimum one year, with the support of organizations and government from Japan, Germany, Korea, India, Australia, Belgium, China, European Union, England, Singapore, and Luxembourg. Presently 13 positions are under discussion or ongoing. It is expected that this assistance will continue within the next years. MOE can help make it more focused and linked to the national strategies. - At the ASEAN level SEAMEO-VOCTECH (Regional Center for Vocational and Technical Education and Training) organizes each year with two or three sessions of a few days training. - The Francophonie supports partnerships between the French speaking countries in Southeast Asia (Lao PDR, Vietnam, and Cambodia) on teacher training; TVET administration; curriculum standards for a total amount of 100,000 EUR in 2008. - Australia is significantly increasing its support for Lao PDR (30
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m AUD in 2007-8), especially in education. TVET is traditionally an important part of Australian cooperation in Asia. There will be possibilities of assistance that can be either sector based, or focusing on general needs, like qualifications. - KOICA will increase significantly its support for Lao PDR, US$ 6.25 m in 2007 and US$ 10.26 m in 2008. Education is one of their 4 priorities. A survey of Laotian needs in 2008 will help to define the priorities for action over the next years. A loan is possible. - The European Union (EU) presently does not focus its activity on TVET, but there will be a review of priorities in 2009. The ESDF will give the direction. EU also provides budget allocation to the government to decide its priorities. - Asian Development Bank (ADB) concentrates presently more on basic education, but, at the request of the ESDF, the bank is willing to analyze needs in a broader way. Skills development is a key component to assist the present growth in Laos and Asia. At present the ADB has a strategy to support human resource development, by providing support to technical and vocational education, as well as to higher education. - Thailand is willing to increase its support for TVET; a program, Sister Schools, is developing in connection with 9 Thai schools to assist Lao schools in various fields. Projects to upgrade Thai teachers in nearby Thai universities are also being discussed. - Swiss Cooperation supports skills development projects, mainly
in the agriculture sector. This country supported the development of the master plan of five training institutes of the MAF. - The World Bank is currently implementing the 2005-2010 plans on early childhood and basic education. The new plan for 2010-2015 will be prepared in 2009. It is very likely that other components of education will be supported. Moreover, the Bank supports many projects linked to economic development: dams, constructions, and roads. The support of TVET is possible in the future. - UNESCO has defined a national education strategy for 2008-2013 to support Lao PDR. This is presently being reviewed. It is likely that TVET will be one of the sectors supported more at the policy level. - The French government is focusing on other issues and has no short term plan to assist TVET. - JICA presently supports, and will support, for the next 2-3 years agriculture, health, and basic education. They could be interested by TVET projects case by case, if they are linked to industrial investment. - ILO has also provided ongoing technical advice, mainly on competency standards; TVET policies and financing; and the role of the industry. It is expected that this support will continue in the future.
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Chapter 5
Internationalization of TVET
Section 1. Lessons Learnt and Recommendations from the International Experience for TVET Master Plans and Strategies18)
Countries such as Lao PDR cannot afford to have duplication of effort with many different government agencies providing different forms of vocational education and training. One strong coordination body is needed. NTC can eventually have this role. This must be supported by all agencies currently providing vocational education and training, so that there is a consistent message provided to employers, parents, and students. Quality standards and systems are essential. If an agreement on one structure of qualification is possible, there can be many providers, but they should not be competing for the same groups of students
18) A contribution of ILO Bangkok, 2008
and should not be duplicating competency development; course development; or providing competing courses to the same groups of students. International experience in a few areas may be of particular relevance to Lao PDR at this time: the link between national economic development strategies and human resource development; the need to involve the private sector; and improved coherence and coordination of national policies and implementation approaches. On the link between national economic development strategies and human resource development, ILO has observed that many countries have explicitly included a human resource development strategy as part of their national social-economic development plans. Countries such as Singapore and Malaysia explicitly see human resources as a key element in their economic development. This approach ensures that the human resources (skills, numbers, and locations) needed to realize economic goals are available. If this is not done, there may be significant barriers to achieving economic goals. Most importantly, conflicts between educational and economic objectives can be explored and addressed. This is most evident in the case of technical and vocational education and training. These training streams are relatively much more expensive in terms of equipment and supplies, and the occupations and education stream are often considered second choice by students and their families. Consequently, almost all economies find declining enrollment and underinvestment in this area, provoking a downward spiral, where fewer and fewer people enroll in training
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which is less and less relevant, thus robbing the economy of a key resource. In many countries, this gap is made up through the importation of skilled labor from other countries, on a permanent (in the case of countries like Australia and New Zealand) or temporary (as in Lao PDR and other countries in the Greater Mekong Region, GMS) basis. TVET master plans must be developed in a context that looks at both supply and demand issues. Simply building additional training centers will not address the critical issues of adequate numbers and relevant skills. International experience shows that greater involvement with, and alignment to the needs of employers and enterprises, is critical to the success of a TVET strategy. Companies must be fully involved in defining needs (both for number of workers, and their competencies), and, it is increasingly recognized, actively involved in delivering training and assessing the competencies. This is the most effective way to address both the question of relevance of training, and the high cost of training in technical areas: rather than attempting to build institutions that fully matches employers realities, schools more effectively focus on core and generic skills, and work with industry on more specialized, real workplace skills. Such a partnership ensures that students are trained in the actual materials and methods in use. Another important, and sometimes overlooked element, is the promotion of skilled trades and occupations to young people and to the parents and educators that influence them. As economies develop, and more young people are able to stay in and complete
schooling, the existing bias towards academic track education becomes increasingly pronounced, with the potential for many negative consequences, including a high graduate unemployment rate (as noted in a recent ILO and UNESCO work). Conversely, there is significant and growing need for skilled and technical workers, as a critical element in economic development. In addition, skilled and technical occupations offer a good route to successful entrepreneurship and self employment. Government, social partners, and industry have a mutual interest in promoting these occupations to young people and their parents, in order to assure a supply of human resources for developing employment. The role of the private sector is also critical. As noted above, ensuring that training is relevant to company needs depends very much on the degree to which employers and trades groups are involved in: - Defining needs; - Shaping competencies and qualifications; - Informing curriculum; and - Offering opportunities for hands-on training in real work settings. A range of options exists for promoting greater involvement, ranging from financing systems (as in Malaysia, Thailand and Singapore); trades committees and associations with delegated responsibility for defining standards (same countries), to advisory and policy bodies (such as the National Training Board in Cambodia). Finally, countries have taken a range of approaches to improving
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coordination of policy and implementation. In South Africa, much of the policy and management authority is delegated to industry councils, who are also responsible for disbursing public and private funds to training institutions and other providers. Singapore has created a separate implementation authority, the Workforce Development Agency, to manage specific tasks assigned from a range of ministries and departments. Cambodia has assigned lead responsibility for vocational training to the Ministry of Labor and Vocational Training, with coordination assured through common high level leadership of the National Training Board and the Accreditation Council of Cambodia (which oversees academic stream education). The major lesson is that, while there is no single right answer, the inherent challenges of coordination between systems designed for education for all versus training for the labor market must be acknowledged and addressed, with continual review to ensure the response chosen continues to be effective.
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Chapter 6
New Agenda and Plans for the Future
This master plan needs a strong follow-up and regular assessment to ensure a successful implementation. A master plan committee will be set up under the leadership of the Vice Minister of Education for TVET with the following responsibilities: - Review regularly the past activities; - Plan future activities with clear responsibilities of each department (see topic responsible organization in the matrix; - Identify and follow-up the possible sources of financing; - Adjust the activities based on the evolution of the context; and - Make an assessment in 2010 and 2015 to adjust the plan for the following five years. This operating committee should meet not less than once every two months in order to implement the important number of activities scheduled. The members of the master plan committee should
include representatives of the DTVE, DNFE, Department of Planning and International Cooperation (DPIC), and MLSW.
Section 1. Direction of the Master Plan

At this stage, forecasting the activities and budget for the period of 2016-2020 is not realistic. There are two main uncertainties: - Internal factors: The master plan 2006-2015 is ambitious; its success will highly depend on the available financial resources and the local human resources ready for implementation. Some activities might have to be extended to the period 2016-2020. - External factors: Globalization means that changes in the world can have direct effects on each individual country. There are very important financial, environmental, and political uncertainties for the next 10 years. The master plan will need a regular follow up, and the review in 2015 will enable finalization of the detailed activities and budget at this time, but the 3 main parts should stay the same.
1. Equitable Access Program

In order to bring Lao PDR out of the group of least developed countries, the TVET schools and colleges will need a continuing development in quantity and quality:
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- Existing institutions will be upgraded and renovated if they have not been completed during the period 2006-2015. New ones will be created, especially in remote areas, in cooperation with the MLSW and the DNFE. - The workforce will be important, as Lao population is presently young and continuing training will be needed. They will need to upgrade their skills and develop new ones, especially for industrial and IT development, and following the Lifelong Learning concept, predominant in many countries. - Curriculum development will continue with many different forms of learning. Flexibility will be the key word. There will be a need to follow closely the evolution of the demand at the local level to assist the forecasted industrial economic development. - Promotion and guidance will be always needed, as, even in many developed countries, students prefer going into general education, instead of the vocational path, and many sectors lack of technicians and skilled workers. - The focus will continue on women and disadvantaged target groups, so they can have a significant share of training and development. - The IVET concept will be disseminated and allow different target groups to enter training for different durations and objectives, but with the possibilities linked to a national curriculum.
2. Improvement of Quality
The period 2016-2020 should be the time that TVET in Lao PDR reaches international standards in terms of quality. - Staff and teachers are the key components for the success of TVET. They will also need to follow the lifelong learning concept. - New methods; the use of IT for teaching; the cooperation with the private sector in many forms will change the role of the teacher to become more facilitator, than only lecturer. - Short courses for in-service training will be needed, but upgrading at the level of Bachelor, Master, and PhD will have to continue in Vientiane and in universities in the provinces. - Research in TVET will be strengthened to find the suitable tools and methods for the Lao context. International cooperation will help human resources development through special programs with other schools, colleges, and universities in South East Asia, as well as with other countries. It will be the time to implement long term partnerships among institutions with exchanges of teachers and, eventually, students. - The national qualification system will assist in guaranteeing the quality of the curriculum, as well as the providers, if it has been developed in a simple way adapted to the Lao context of budget and personnel. - Validation of experience and skills testing can become key tools for the workers development, as most of the Lao workforce does not have any qualifications. During the phase 2006-2015, this
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system must be built in a way that the partners (individuals, companies, and institutions) have trust in its reliability and quality, so that it will really provide opportunities for professional and career development. - The number of private providers is going to increase at a very high rate in the next 10 years. Implementation of standards for curriculum, institutions, and teachers/trainers will be much needed. - All ministries and associations will have to be involved in human resources development to provide precise information on the needs of occupations and skills at the provincial and national sector levels, based on regular analysis and on request surveys.
3. Continuing Improvement of the Management and Administration

Within 2006-2015, it is expected that major changes will be decided and implemented in administration and management of TVET. But rules and regulations have to adapt constantly, especially in a developing country. Then, for the period 2016-2020, several priorities might appear: - Decentralization will have to be reinforced, because Vientiane is likely to attract many people to the workforce; new rules and regulations will be needed to promote local training and development for work in the provinces. - Regular review of the master plan will allow adaptation to
economic changes. - Following the forecast of growth, it is expected that the private sector will develop and need more people. If TVET institutions and organizations want to develop at the international level, they will need to attract qualified people or young graduates with potential. Salary, career path, and working conditions will have to be reviewed regularly to increase motivation to become directors, experts, teachers, and administrative officers. - For the next years, various donors will continue to support TVET, but, in the long term, this support might be reduced. Then, one key issue of the period 2010-2020 will be to set up a sustainable mechanism to finance most TVET activities. Cooperation with various partners especially MLSW, professional associations, LNCCI will be a key success factor in implementing a suitable financing system.
Section 2. Conditions to Succeed or How to Limit the Risks

To implement successfully the activities of the master plan and reduce potential risks, there should be the following guidelines: - The MOE is responsible of the implementation of this Master Plan in collaboration with all sectors concerned. - Key activities involving several ministries must be clearly
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defined with a description about the extent of responsibilities for each partner: NTC will be in charge of the national list of professional standards; qualification system analysis; and regional training council. DTVE is responsible for the development of TVET institutions (policy, implementations); the standards of these institutions; and general performance monitoring and promotion of TVET. DNFE can be responsible for the development of short courses for disadvantaged and low educated groups and basic vocational education courses. VEDC is responsible for expertise on competency and curriculum standards and development; training of staff and assessors; research on TVET; and an information system. MLSW will be responsible for the development of the financing system of skills development funding; labor market analysis and follow up; skills testing and validation of experience; and job counseling. For each of these subjects, committees can be set up under the responsibility of MLSW. Other ministries (MLSW, Health) can deliver vocational education and training curriculum, with the assistance of VEDC for designing these curricula and submission for accreditation. - Activities are precisely defined and feasible in terms of outputs, time frame, budget constraints, and available manpower to take care of them.
- Local short term consultants are hired for the implementation of projects within fix durations to compensate for the lack of human resources in MOE. - The actions are linked to the economic and social priorities, as well as national and local needs analyses. - There can be implementation of projects using a sector approach (examples: hospitality, financing, agriculture, garment, wood) or general topic approach (curriculum development, qualification system), but with real applications through pilot projects, then dissemination, if pilot projects are successful. - The budget tends to come from various sources: government, private sector, foreign donors and international organizations, and individuals when possible. Based on Laos economic evolution and the part of the Lao government, provinces and companies should increase to develop autonomy and sustainability, as well as reduce the uncertainty of foreign support. - A strong marketing and promotion plan is implemented to promote vocational education and training, especially for skills which are not so popular, but highly requested by companies. In conclusion, the master plan is ambitious and covers many activities. Its success will depend on a close follow up by the partners involved and regular review of its successes and difficulties.
MONGOLIA
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Chapter 1
Policy, Experience, and Trends of Technical and Vocational Education and Training in Mongolia
Section 1. THE NATIONAL CONTEXT OF TVET: INTRODUCTION

1. CONTEXT AND BACKGROUND
1.1 Political and Socio-cultural Context. Mongolia is a landlocked country in East and Central Asia. It is bordered by Russia to the north and the Peoples Republic of China to the south, east, and west. Although Mongolia does not share a border with Kazakhstan, its western-most point is only 38 kilometers from Kazakhstan's eastern tip. Ulaanbaatar, the capital and largest city, is home to about 38% of the population. The area of what is now Mongolia has been ruled by various nomadic empires, including the Xiongnu, the Xianbei, the Rouran,
the Gkturks, and others. The Mongol Empire was founded by Chinghis Khan in 1206. After the collapse of the Yuan Dynasty, the Mongols returned to their earlier pattern of constant internal conflict and occasional raids on the Chinese borderlands. In the 16th and 17th centuries, Mongolia came under the influence of Tibetan Buddhism. At the end of the 17th century, most of Mongolia had been incorporated into the area ruled by the Qing Dynasty. During the collapse of the Qing Dynasty in 1911, Mongolia declared independence, but had to struggle until 1921 to firmly establish de facto independence from the Republic of China, and until 1945 to gain international recognition. As a consequence, it came under strong Russian and Soviet influence; in 1924, the Mongolian People's Republic was declared, and Mongolian politics began to follow the same patterns as the Soviet politics of the time. After the breakdown of communist regimes in Eastern Europe in late 1989, Mongolia saw its own Democratic Revolution in early 1990, which led to a multi-party system, a new constitution in 1992, and transition to a market economy. Mongolias political system is a parliamentary republic. The parliament is elected by the people and in turn elects the government. The president is elected directly. Mongolia's constitution guarantees full freedom of expression, religion, and others. Mongolia has a number of political parties, the biggest ones being the Mongolian Peoples Revolutionary Party (MPRP) and the Democratic Party (DP). The MPRP formed the government of the country from 1921 to 1996 (until 1990 in a one-party system) and from 2000 to 2004.
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From 2004 to 2006, it was part of a coalition with the DP and two other parties, and since 2006 it has been the dominant party in two other coalitions. Both changes of government after 2004 were initiated by the MPRP. The DP was the dominant force in the ruling coalition between 1996 and 2000, and also an approximately equal partner with the MPRP in the 2004-2006 coalition. The MPRP won the last round of parliamentary elections, held in June 2008. Mongolia is divided into 21 aimags (provinces), which are in turn divided into 329 sums (districts). The capital Ulaanbaatar is administrated separately as a khot (municipality) with provincial status. 1.2 Population and Demographics. At 1,564,116 square kilometers, Mongolia is the 19th largest and the most sparsely populated independent country in the world, with a population of around 2.7 million people. It is also the worlds second-largest landlocked country after Kazakhstan. The country contains very little arable land, as much of its area is covered by steppes, with mountains to the north and west and the Gobi Desert to the south. Approximately 30% of the population is nomadic or semi-nomadic. The predominant religion in Mongolia is Tibetan Buddhism, and the majority of the states citizens are of the Mongol ethnicity, though Kazakhs, Tuvans, and other minorities also live in the country, especially in the west. As of 2008, the population of Mongolia has reached 2,683,500. Birth rates and population growth, which had been decreasing since
1990s, have been on the rise again since 2007. In terms of gender structure, 49.6 per cent of the total population is male and 50.4 percent is female. Regarding age structure, a high proportion of young and working-age people relative to the entire population demonstrates the potential boost to economic development though an emerging demographic window. However, the percentage of people above 65, a proxy indicator of an ageing population, is also projected to rise in the future. In recent years there has been an increase in internal migration from rural to urban areas, as well as an increase in external migration, with citizens seeking employment abroad for remittances. From 1995 to 2007, population density in rural areas increased to 0.93 people per square kilometer, from 0.91 people per square kilometer. For areas where internal migrants most often are moving, namely, the capital, Ulaanbaatar and Orkhon aimag (a province), this indicator increased by 1.6 and 1.3 times to 223.9 and 102.3 people per square kilometer, respectively, in twelve years, from 136.6 and 81.5 people per square kilometer, respectively, contributing to urban population growth. As of 2008, 61.8 percent of the total population lives in cities and urban areas, and 38.2 percent lives in rural areas. There are 1,071,700 residents in the capital city, Ulaanbaatar, accounting for about 38 per cent of the total population. 1.3 Economy. Mongolia's economy is centered on agriculture and mining. Mongolia
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has rich mineral resources, and copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. With the demise of the Soviet Union, the Mongolian economy faced considerable obstacles; during that era, the nation had become increasingly dependent on the USSR in the provision of resources and creation of capital. The immediate effects of the fall led to nearly triple digit inflation (300%) in 1992. There was a 20% decline in total output, due to recession in the period 1990-1993 and, thus, a low GDP growth rate. Today, Mongolia boasts of having been through an extremely turbulent era, but one from which she has been emerging with strong macroeconomic performance. By implementing monetary restraint strategies, the inflation rate averages 7%. GDP growth rate of nearly 7.5% in 2006 indicates that Mongolia has achieved relative normalcy. GDP per capita in 2008 was approximately $1,700. There are currently over 30,000 independent businesses in Mongolia, chiefly centered around the capital city. The majority of the population outside urban areas participates in subsistence herding; livestock typically consists of sheep, goats, cattle, horses, and camels. Agricultural crops include wheat, barley, potato, vegetables, tomato, watermelon, sea-buckthorn, and fodder crops. Although GDP has risen steadily since 2002 at the rate of 7.5% in an official 2006 estimate, the state is still working to overcome a sizable trade deficit. Despite growth, the proportion of the population below the poverty line is estimated to be 35.6% in 1998; 36.1% in 20022003; and 32.2% in 2006. Both the unemployment
rate and inflation rate are relatively high, at 3.2% and 6.0%, respectively (in 2006). Mongolia's largest trading partner is China. As of 2006, 68.4% of Mongolia's exports went to China, and China supplied 29.8% of Mongolia's imports. 1.4 GDP growth In early 1990s, the GDP growth sharply declined to -10%, due to serious cut back of financial aids from the USSR on which Mongolia highly depended. Mongolias real GDP growth turned positive at 2.3 percent in 1994, and it reached a peak level of 12.4 percent in 2008.
[Figure 1-1] GDP Growth
1.5 Education. Education is one of the areas of significant achievement in Mongolia. Illiteracy was virtually eliminated, in part through the use of seasonal boarding schools for children of nomadic families.
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Primary and secondary education formerly lasted 10 years, but it was expanded to 11 years. Since the 2008-2009 school year, new first graders have been using the 12 year system. With improving quality of and access to education of all levels in 2008, secondary schooling was shifted to a 12 year schooling system, and 6 year old children were enrolled into Grade 1. The legal environment has been laid out to regulate relations for the pre-school education of young children, and a policy on pre-school education training has been approved. A lunch program for pupils of Grade 1-5 at secondary schools has been in place since 2006. In response to the labor market demands, attention is being paid to the training of qualified workers in mining and manufacturing. To this end, the number of students to be enrolled in vocational training schools has been set, and the curriculum has been updated. With monthly stipends of 45.0 thousand MNT to each student, the enrollment in VTPCs shot up. In accordance with the education sector development master plan of Mongolia for 2006-2015, a policy to increase the number of engineering and technology students through economic incentives, rebates, and job placement as well as the provision of student loans from the State Training Fund (to three in every four students majoring in the above disciplines, and one in four students majoring in other disciplines) is now being pursued. As a result, the number of freshman year students majoring in engineering and technology reached 23.3 thousand in 2008, which is 0.7 points higher than the preceding year. Compared with previous years, the investment volume in scientific
laboratories and testing fields has dramatically increased. This allowed establishment of specialized laboratories for shared use by research and training organizations. With a view to building technological infrastructure, work has started on establishing an incubator center at the Academy of Sciences (AS) with an agricultural technological park and an extension center; also in progress are a biotechnological incubator at Agricultural University (AU), and a food technology incubator at Science and Technological University.
<Table 1-1> Primary School Enrollment, Pupils in Grades 1-5, Literacy Rate Indicators 1990 2000 2006 2007 2008 Net Enrollment Ratio in Primary 97.5 95.0 91.4 92.7 91.5 Education (1995) Proportion of Pupils Starting Grade 1 91.0 83.6 86.8 89.9 92.8 Who Reach Grade 5 99.0 97.7 97.7 97.7 97.7 Literacy Rate of 15-24Year-olds (1989) (2000) (2000) (2000) <Table 1-2> TVET Enrollment Years 20042005 STUDENT 22,024 New Student 9,765 Number of Graduates from Basic 7,583 Education in Certain Year Number of Graduates from 717 Complete Secondary Education in Certain Year from other schools 700 employed 149 unemployed 617 Graduates 8,338
20052006 23,249 11,137 9,160 762
20062007 24,766 11,531 8,796 948
20072008 29,906 14,416 11,624 1,227
20082009 37,867 19,241 14,948 2,520
20092010 44681 19754 13852 3426
382 226 607 7,054
285 133 1369 7,033
451 452 308 192 347 510 922 1156 1558 9,037 11403 15353
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The current education sector distortions can be expressed by the following graph that compares the enrollment in post-secondary education in Mongolia prepared by the National Vocational Education and Training Methodology Center (NVETMC) in November, 2004.
[Figure 1-2] Percentage of Enrollment in Post Secondary Education
The graph above explicitly shows that the higher education sector enrolls 80 percent of the entire body of post-secondary education students; the secondary vocational schools enroll 8 percent; and the primary vocational schools train 12 percent. The comparative ratio is 80:8:12. The graph below gives a comparative international perspective to the study of education enrollments and the vocational education component. The higher education sector in the major developed countries enrolls 12-20 percent of the entire number of students; the upper secondary education schools enroll 20-30 percent; and lower secondary and primary schools train 50-60 percent. The average
comparative ratio is approximately 17:28:55, while Mongolias ratio is approximately 16:3:81. The graph has been prepared by the National Vocational Education and Training Methodology Center (NVETMC), using the data provided by the National Center for Education Statistics, the Institute of Education Sciences, Washington, D.C., USA.
[Figure 1-3] Percentage distribution of education enrollment of 5- to 29-year-olds among levels of formal education
Graph 4 shows a comparative educational pyramid. The Mongolian pyramid is heavily dominated by the higher education sector, with the vocational education sector lagging behind and being several times smaller than the international average.
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[Figure 1-4] Educational Pyramid
The rapid expansion of the tertiary education sector that was greeted with enthusiasm in mid 1990s is now being reassessed, as it has led to a serious mismatch between the number of the higher education graduates and corresponding jobs in the labor market. At the same time, the industries that will serve as engines of the countrys economic growth, such as mining, construction, trade, and service sector (including tourism, communications, and manufacturing), have been suffering from a lack of workers with occupational skills. The scarcity of lower level skilled workers and a bloated higher education system present a serious structural distortion that requires drastic intervention through a policy change in education, including vocational education as one of the policy priorities. 1.6 National Development Plan and Strategies Mongolia has in place well-defined millieu of policy frameworks and programs meet its development goals. It is noteworthy that a
conscious effort has been made, not to have policies and programs in isolation of each other, but to take into consideration provisions of each while designing programmes. In practice, however, the challenge now is implementation of the policies, in a manner that permits reforms to take root and gainfully enables Mongolia to play its due role in the chaning global environment. The primary tier of national frameworks for macro policies, is provided chiefly through: - The Development Concept of Mongolia; - National Development Strategy 2020; - Economic Growth Support and PovertyReduction Strategy; - Social Security Strategy; and - The Concept of Regional Development. Parallel and complimentary to the national frameworks, Mongolia dovetails its international frameworks, which include, inter alia: - Mongolia Millennium Development Goals; - National Plan of Action for Decent Work; - United Nations Development Assistance Framework; and - MDG-based National Development Strategy of Mongolia. The second tier focuses on sectoral policies and laws, in support of the reform process, and they include: - Labor Law; - Employment Promotion Law;
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- Law on Education; - Law on Vocational Education and Training; - Law on Sending Workers Abroad and Employing Foreign Workers; and - Policy on Informal Employment. The third tier is inclusive of programs and projects being implemented nationally and/or provincially. Some of the most relevant to TVET include: - National Poverty Alleviation Program; - National Employment Promotion Program; - Social Security Sector Development Program; and - Programme for Support of Small and Medium-Sized Enterprises.
Section 2. EMPLOYMENT AND LABOR MARKET

1. Employment.
The central role of employment generation in poverty reduction was acknowledged at the September 2005 World Summit, when world leaders committed themselves to the following new MDG target: Achieve full and productive employment and decent work for all, including women and young people. This decision had been anticipated by Mongolia, which had
already created a third target under MDG 1 in its national MDG targets: Develop and implement strategies for decent and productive work for youth. The new global employment target is also included under Goal 1: Eradicate extreme poverty and hunger, and explicitly recognize the central place of decent work in poverty reduction. This highlights that halving world poverty by 2015 requires more efficient use of labor resources; increasing the share of the working-age population (both male and female), who are engaged in decent work; and enhancing the quality and productivity of available jobs. Statistics put Mongolias labor force at 1.5 million people, of whom were unemployed. Of those who were employed, 53 percent were self-employed and unpaid family workers; 14.1 percent were in the public sector; and the rest comprised paid employees (40 percent) and employers (9 percent). Unemployment strikes, irrespective of age and gender in Mongolia, though mainly among the younger and presumably newly graduated job seekers. Unemployment appears to be relatively high for persons in the 20-29 year-old age group. Studies reveal relatively large proportions of unemployed university graduates. Informal economy is a new phenomena in Mongolia emerging with transition to the market economy. Following are some figures showing the current situation of IE in Mongolia: 126 thousand people are engaged in the informal economy (LFS, NSO,2004);
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Main activities comprise retail trade, services, financial services, manufacturing, transport, and artisanal mining (32 activities listed as informal for taxation purpose); 44.9% of IE people are engaged in service; 34.9%, in the manufacturing and trade sectors; 55.2 % are male; 44.8% are female; and 64% of the people are aged 2040 years; Of the 115,000 PWDs, 4% are working in the informal economy, and 90% are unemployed; 98.9% of total working children are self employed; 70.9% are from urban areas; 29.1%, from rural; and there is a rate of high rural-urban migration (1/3 of UB population are in-migrants); and 70.5% possesses an education level higher than complete secondary.
2. Skill Supply and Demand

Employers in newly emerging sectors are trying to recruit skilled workers but have difficulty finding applicants who are qualified. Concern exists that young people lack basic skills. A 2004 survey by the Labor and Social Welfare Agency found that 71 percent of companies had difficulties recruiting employees; 80 percent thought applicants did not have suitable skills; and 67 percent replied that job seekers lacked experience. The same survey predicted employer demand for practical trades such as bricklayers, decorators, carpenters,
welders, plumbers, and assembly workers. Even while a significant number of Mongolian people are unable to find good employment, Mongolia faces significant gaps in filling key jobs critical to economic development, and foreign workers make up a significant proportion of the active workforce in the rapidly growing mining, construction, and road sectors. An interesting development is that employers are offering their own training on the job. According to the School-to-Work Transition Survey segment for employers, 70 percent provide training for new hires. Most training is for practical skills needed for a particular job. This suggests that on-the job training may be jobspecific, with less opportunity for acquired skills to be used in other firms. The results using data from the School-to- Work Transition Survey show that men with a vocational education have a very low wage premium, compared to those with compulsory education. This suggests a weakness in the vocational education system.
3. Mismatch
One of the key challenges that is faced by Mongolian education is a skills mismatch between human capital, in the form of education, skills, and experience of the labor force, and the demands of the labor market. A number of factors have contributed to this mismatch. Some children still drop out of school. Studies show that the likelihood of dropping out is linked to household poverty, geographical
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area, and family background. Boys in rural areas are more apt to leave school than girls. Children in poor households are more likely to drop out than those from non-poor households. There is awareness by the government, enterprises and workers that public and private training institutions are encountering severe difficulties in providing the level of skills training needed for modern enterprises. Technical skills are generally accorded low status and are given little recognition in Mongolia, and because academic education is seen, in many cases mistakenly, as a more helpful path toward lucrative employment, most young people continue to choose academic education, rather than vocational training. This is despite the fact that there are significant emerging opportunities in trade occupations and technical jobs. About 140,000 Mongolian students are attending university (about 15 percent of Mongolias workforce), and many of these graduates face difficulties in finding jobs because of the countrys skill mismatch. In 2006, only 7,100 (5.4 percent) of tertiary graduates were from TVET institutions, of which 48 percent were female. According to a study conducted by the State Employment Agency in 2003, there were 49 graduates of the higher education sector per one workplace in the construction industry, whereas there were 2.6 workplaces per one graduate of the secondary vocational sector, and 3.8 workplaces per one graduate of the primary vocational sector in the same industry.
[Figure 1-5] Labor Market Demand Ratio by Education Level (prepared by the State Employment Agency)
Shifting larger proportions of students into the TVET system may be one way to address the skills mismatch and improve labor market outcomes. However, such a policy option would be viable only if the quality of education and training students receive is of good quality and relevant to market demands, which can only be achieved through an overhaul of the existing system. With a good quality TVET system, graduates are more likely to be employed.
4. Data Monitoring
One of the needs in establishing a coherent and coordinated labor market information system is the provision of current information on labor market requirements; this information can serve to inform those who monitor and evaluate the output of the reformed TVET system. A good monitoring and evaluation system will ensure that there is quality control of the output of the TVET system, as it
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provides checks and balances to employers of TVET graduates.
5. New Demands: Industry and Government Policy

At a time when a considerable number of Mongolian people are unable to find decent work, Mongolia faces sizeable gaps in filling key jobs critical to economic development, while foreign workers make up a significant proportion of the active workforce in rapidly growing sectors. As noted above, this problem is related to both the education that young Mongolians are receiving, which frequently does not impart skills useful in the job market, and to more specialized vocational training for workers, which is also not adequately linked to the needs of the workplace. Addressing these problems will require a sustained cooperative effort involving all the key parties: educational institutions, training providers, employers, workers, and the government. Furthermore, an urgent need exists to reform vocational education and training to overcome the current mismatch between the skills provided by training institutions and the qualifications sought by competitive enterprises. Key priorities are skilled workers in certain service sectors, such as finance and tourism, as well as jobs such as mechanics, welders, plumbers, electricians, food technologists, construction engineers, and heavy equipment operators. Vocational education and training is currently outdated, underfunded, and inflexible. Although the problem has been identified by special
working groups and donor-funded projects, VET is, for the most part, centered in institutions and not linked to the workplace. There is a need to establish standards and develop assessments; upgrade curricula and train teachers; and revise textbooks and replace equipment. Young women and men need better bridges between classroom training and work experience. Consensus exists that education and training require stronger links to labor markets. This entails greater participation by employers and workers in reviewing training courses; setting occupational standards; offering on-the-job training and developing bridge programs between school and work, such as through apprenticeships and internships. In order to direct students to training opportunities, guidance counselors, and employment services require labor market information that is timely and practical. In addition to ongoing labor force surveys with comparable statistics to analyze trends in the labor market, there is a need for information and analysis to determine the specific needs in emerging sectors. These issues apply equally well to improving vocational training for adults looking for new jobs or better employment. Recent surveys by the Mongolian Employers Federation have found high levels of dissatisfaction among employers regarding the quality and usefulness of training received through existing training centers. To achieve these ends, Mongolia needs a national strategy and legal framework for policy coherence, with greater participation by employers organizations and trade unions together with the Ministry of Education, Culture and Science; Ministry of Social Welfare and Labor; other line ministries and government agencies; and non-
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government organizations. This should cover non-formal education and workplace training. It will require legal frameworks and policy coordination for education and training. Training and technical education need to continue strengthening coordination between line ministries, employers organizations, trade unions, private training providers, non-government organizations, and other partners. In addition, vocational education and training must find new sources of financial support. Evaluations in other countries indicate that successful training often relies on fees from participants and contributions by employers, as well as funding by the state. The government established a national council on vocational training, skills standards, and certification that is a key step toward making a large and sustainable improvement in the quality of these training programs. This involves key stakeholders to support the development of a legal framework, financing mechanisms, methodological centers, vocational standards, pedagogical issues, certification procedures, teacher training, school management and training facilities, among others. It leads to a system that identifies skill needs and delivers training services through formal institutions, non-formal learning and on-the-job training. Systems should be developed for workers to continuously advance their skills and qualifications on continuous
bases. Lifelong learning should be open to all workers, including young people. Three high-priority sectors for this skills program are mining, construction, and tourism, all of which are likely to continue to generate employment opportunities for those able to take advantage of them. Programs to provide potential employees in these and other sectors with the needed skills, and with certification of those skills, have the potential for significant impact. The government is making efforts to deal with the problem of negative public attitudes, particularly among young women and men, toward technical jobs and vocational training. The government encourages schools and media to promote the value of practical-oriented, hands-on approaches to developing skills required in the labor market. It is also taking steps to ensure that youth are able to participate in business incubators that link enterprise training with follow-up support through business development services. Business leaders are involved in mentoring programs to support young entrepreneurs. The government has been taking the following noteworthy measures: - Strengthening links between the supply of education and training and demand for skills in labor markets, through greater participation by employers and unions in reviewing training courses; setting occupational standards; offering on-the-job training and developing bridge programs between school and work, such as through apprenticeships and internships.
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- Launching a multi-stakeholder effort to reform vocational education and training to overcome the current mismatch between the skills provided by training institutions and the qualifications sought by competitive enterprises. Involve employers, trade unions, Government and schools in this effort. - Launching a campaign to change attitudes toward vocational education and training by promoting the value of practicaloriented, hands-on approaches to developing skills required in the labor market. - Establishing national council on vocational training, skills standards, and certification, involving key stakeholders who will work together to support the development of a legal framework, financing mechanisms, methodological centers, vocational standards, pedagogical issues, certification procedures, teacher training, school management and training facilities, among others. - Establishing professional qualification standards under the direction of this council that will be of use to Mongolian workers seeking employment at home and abroad
Section 3. Governance of the TVET System

1. Institutional Framework
TVET is administered under the overall supervision of National Council on TVET and purview of the Ministry of Education, Culture and Science (MECS) and government implementary agency for
TVET and the Ministry of Labor and Social Welfare Services (MLSWS). MECS oversees formal long term TVET (more than two years), while MLSWS oversees the non-formal short term TVET (ranging from two weeks to 45 days). On-the-job (apprenticeship) training is conducted by industry. All schools offering preliminary vocational education recruit students who have completed 9th grade, while intermediate vocational education institutions recruit students who
th have completed 11 grade.
[Figure 1-6] Framework of the Mongolian Education System
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The is depicted in diagram 1. Diagram 1 indicates that Preliminary Vocational Education lasts 2.5 years and usually admits students from 16 years onwards. Intermediate Vocational Educational lasts between 1.5 and 3 years.
[Figure 1-7] Mongolias Education System
Under informal short-term TVET, the LSWSO of MSWL coordinates activities related to employment and provides accreditation to 1,200 training providers to conduct informal short-term TVET. As of 2010, there are 1,200 training providers, 150 of which were also accredited to receive funding from labor development funds to train unemployed people. The main purpose for this short-term vocational training is to help unemployed people learn a new skill to seek employment. In 2009, the government of Mongolia piloted and implemented the On-the-Job (apprenticeship) Training Project financed by the
Employment Promotion Fund. 93 entities participated in the project. On-the-job (apprenticeship) training was conducted to provide advanced and professional skills to employees.
[Figure 1-8] TVET System
The students enrolled in VTPCs after completion of lower secondary education (basic education or incomplete secondary education) may continue to upper secondary school, or VTPCs, and they can access curricula in 152 professions. The students with a complete secondary education certificate can access technical and vocational education programs for 28 professions. According to the MECS statistics, students with complete secondary education account for only 30% of the total students in VTPCS and technical colleges.
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<Table 1-3> Types of Vocational Education/Training and Graduation Documents Degree/Certificate No Types of Training Duration Provider Granted 1 Vocational Education 2.5 years VTPC and Certificate of colleges Vocational Education 2 Training of Professional 1 to 2 VTPC and Occupational Workers years colleges Certificate 3 Training of Technicians 1.5 to 2 VTPC and Diploma and Technologists years colleges 4 Competency Training 1-2 months Short-term Competency training Certificate providers 5 Apprenticeship Training 3 months Employers Certificate
The governance structure, which sets the norms and standards for curricular development for the subsector, is facing capacity and quality issues. The National Vocational Education and Training Methodology Center was responsible for the development of skills standards and curricular materials for both formal and informal TVET courses; the production of textbooks; the training of TVET teachers and industry practitioners to develop modular training materials; teachers pedagogical training; and research work on TVET-related issues, such as labor market studies. From 2010 the government of Mongolia established a new TVET agency, responsible for TVET policy implementation and the above mentioned responsibilities of NVETMC. There is also an accreditation agency known as the National Council for Education Accreditation (MNCEA), whose role is to accredit the quality of TVET programs.
The current TVET system can, thus, be described at best as fragmented. Different agencies responsible for different roles in the TVET system are working in silo without much coordination, interaction, and synergy. Graph 7 shows the TVET professional development training system.
[Figure 1-9] TVET Professional Development Training System
Government Implementing AGENCY for VET
NCVET
Regional Methodology Center
Sector Councils
Training Provider
Training Provider
Training Provider
Professional Development
Training Provider
Training Provider
TVET School administrators TVET in-service teachers and instructors TVET pre-service teachers
VET short term training providers MECS and VET Authority staff
In addition, dated equipment, insufficient training, and the lack of skill development opportunities for teachers all seem to suggest that the developed standards and curricula have not been deployed at the school level.
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Section 4. TVET System by Target Groups:

The TVET sub-sector comprises specialized upper secondary schools, as well as post-secondary diploma programs housed in various types of technical and vocational education institutions. School-based vocational education: At the secondary school level, vocational education starts after completion of middle school. The training duration is 2.5 years, leading to an award of a Professional Certificate and Complete Secondary Education Certificate. The other option starts after high school for a one-year specialized training with a professional certificate. Technical Education: Technical education begins at the post secondary school level, with Grade 11 or a Complete Secondary Education Certificate as the common entry qualification. This arm of the system covers 2 years of advanced training for higher-level skills development, leading to a professional diploma. Completion of the diploma program can be linked with higher education after 2 years of further study, or 3-4 years after the professional certificate. The table below describes the composition of 63 TVET institutions under MECS:
<Table 1-4> Summary of TVET institutions

2004- 2005- 2006- 2007- 2008- 20092005 2006 2007 2008 2009 2010 TOTAL TVET SCHOOLS State Owned VTPCs Privately Owned VTPCs State Owned Colleges (with multi step training) Privately Owned Colleges (with multi step training) Branch or Attached School to Higher Education Institutions Secondary Schools Combined with Vocational Training 41 22 1 6 4 7 47 21 3 9 4 8 52 21 7 9 5 8 56 23 10 9 4 8 63 23 12 8 5 14 63 23 12 8 5 14
Vocational school teaching within the formal educational sector is predominantly organized according to school subjects. Contents are mainly of a general educational and theoretical nature, thus primarily providing preparation for further educational pathways, leading to qualification as a technician at a trade and technical school, or as an engineer. The labor market relevance of such training content and its applicability to occupational practice is, thus, relatively low.
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<Table 1-5> TVET Subject

Two Year Vocational 2.5 Year Vocational Education School Education School First year General education with professional content General education with professional content General education with professional content 3 Year Vocational Education School General education with professional content General education with professional content
Second General education Year with professional content
Professional theories Professional theories and practice and practice Third Year General education and Professional practice professional content at at some schools some schools
<Table 1-6> Training Subject

One year training First Semester 1.5 year training Core skills and professional Core skills and professional subjects subjects
Core skills and professional Core skills and professional subjects in the first half of the subjects Second Semester semester. Production practices in the second half of the semester. Third semester Production and prior graduation practice
Section 5. TVET INFRASTRUCTURE

1. Teachers and Instructors
Teachers, trainers, and in-company trainers lack knowledge in the field of new technologies and in the methods of employment-oriented teaching. The age of the teaching staff in schools, who were generally trained before the change of the political system, is relatively high. In addition, very little in the way of continuing training opportunities have been open to them thus far. They, therefore, lack the technical and didactic know-how to train skilled workers in a way which meets requirements. To a more limited extent, the same is true of trainers in companies. Although the fact that they are confronted with technical innovations in the companies on a daily basis means they have fewer deficits in the field of new technologies, they lack didactic and pedagogical qualifications. In order to bring about successful reform of skilled worker training, advanced training of pedagogical staff needs to be the first step.
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[Figure 1-10] TVET TEACHERS 2009-2010
517 682
generel education vocational practical
268 voc&prac combained 586
Total 2033 1256 female 61% 905 up to 30 years old 881 up to 31-50 134 up to 51-54 Doctor Ph 25 Master 434 Bachelor -1281 Others -293
There is currently no structured and coordinated pre-service or in-service teachers pedagogy or technical skills training. Teachers pedagogy training has been left very much to the initiative of the TVET schools. For technical skills upgrading, some schools send their teachers periodically for skills training. However, because of the lack of modern equipment that is in line with the needs of the employers, it is likely that most teachers would need technical skills training when new equipment and machines are put in place by schools.
2. Facility and Equipment

Most of the infrastructure of TVET schools needs rehabilitation and expansion. Interviews with TVET school directors revealed that the existing infrastructure of most schools, including practical
training facilities, may not be able to meet the training needs of implementing a demand-led competency-based TVET curriculum. For most schools, practical training equipment and machines are either outdated, broken, or of insufficient quantity to meet the requirements of practical training. Many schools are still using Russian-era equipment. The policy of providing stipends for students attending preliminary vocational education has led to an increase in enrollment of TVET students and, as a result, put additional pressure on existing facilities and infrastructure. Indeed, while some updated equipment donated by developmental partners has been helpful, it is most often only in limited quantity and may not be sufficient to meet the needs of an increased class size.
3. National Qualification Framework

As for our country, before 1990 the organization of the granting vocational degrees for qualified workers and the content development of vocational education and training had been carried out in accordance with the official reference book of salary tariffs for vocations. The failure of the recommendation to fulfill a path to free market economy and the abolishment of the state committee for labor and salary caused an unsuccessful infrastructure for TVET. In 2001 the Ministry of Social Welfare and Labor developed a rule and instructions to adjust the previous recommendation of vocation salary tariffs to the new conditions of market economy. However, the new rule doesnt cover the entire country, but is
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designed only to fix the vocational degrees of the workers and regulate the sizes of salaries of involved ministries, vocational associations, and enterprises based on their multi-side agreement. Therefore, issue of these documents has not been adequate to fully satisfy current conditions, and the situation is worsened by the lack of an appropriate regulatory structure. The national skills standard NQF is a relatively new concept for Mongolia, and it is understood to become a common vehicle in providing new regulations and co-ordination for vocational education, training, and employment.
4. Current Status of NQF and TVET

With the implementation of the goal to transform Mongolia into an agricultural-industrial society, many new industries and enterprises had been newly established. Technical and technological innovations made it necessary for people to fully master new equipment and technologies, thereby increasing industrial and labor productivity. This prerequisite and the governments educational policy have improved the organization and growth of vocational education and training in 1964-1990. Two subsystems evolved: technical and vocational schools and onsite training. Under this system worked various regulatory organizations, such as the Department of Vocational School Affairs; training methodology cabinet; regulatory council in charge of technical and vocational training affairs; and methodological councils of technical vocations
under the State Committee of Labor and Salary Affairs. In 1984 the General Authority of Technical and Vocational Schools evolved with broader rights and functions. In addition the mid career training service for the workers of TVSs, and the training and methodological councils at ministries, industrial combinations, and individual enterprises helped develop more policies and implemented more vocational education and training. A framework was established for developing the training curriculums, content, and methodologies for technical and vocational education, and for providing instructors with methodological guidance. The main documents to determine the vocational education and training content, such as the reference of vocational degrees and respective salary calculations, vocational definitions, training plans, and curriculums were developed and followed in the entire country.
<Table 1-7> Connection between the Training Types of Vocational Education and Qualifications for the Beginning and Intermediate Levels . Training Vocational Occupations Activity/Function Resource Degree To assist in production 4 Degrees, Production Technical and preparation with Technical Technician College activities Diploma Staff with Non To assist in research Primary & Production, Technical and processing Intermediat General College activities e Level Technician Vocational To implement Vocational Vocational Education Vocational production and Training Staff Degree 1-4 preparation of activities Institutes
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B.
Completed A VET, technical and vocational Production and secondary school; Master Technology subsequently worked in Management respective industry for more than three years; attended a masters course Completed A VET, technical and vocational To perform high secondary school; qualification Highly Skilled subsequently worked in activities in the Worker respective industry for broad vocational more than a year; framework involved in professional advancement courses Completed A VET, technical and vocational secondary school, or non To perform the formal training; Skilled Worker work of the subsequently worked in vocation degree respective industry for 1-2 years; attended high skill training programs To perform the Low Skilled or low level or Unskilled specific works Worker of the vocation
Vocational Degree 5-6
Skilled Workers
Obtained vocational skill by non formal training, Vocational secondary school, and Degree 1-2 labor training
In the first years of the economic transition the whole system collapsed and failed to function, and the national framework for granting vocational degrees ceased working. The majority of the vocational schools are now subordinate to the respective ministries, creating the inability to regulate training content and duration; vocational directions for students; and student numbers, etc.
In 1998 according to the order of the Ministry of Health and Social Welfare, a national occupational classification scheme was developed parallel to the international standard classifications of vocations. The methodology to develop the reference of vocations and relative salaries, and qualifications resulted in 2001 by the order of the Minister of the Social Welfare and Labor. One of the major differences from the previous recommendation is that the organizations are entitled to establish their own by laws. The methodology of how to develop and implement norms for workers and industries has been developed. However, the failure to implement the bylaws in most industries led to an absence of vocational degrees being granted by the three-sided national Committee on Labor and Social Convention. The national vocational and qualification system was, thus, in a precarious state.
5. Imperatives in Developing the National Qualification Framework

Along with the lack of the universal rules and regulations for vocations and related salaries, there was inadequate implementation of the order of the Minister of Social Welfare and Labor, dated November 11, 2001, which obliged each enterprise and organization to establish its own occupational and positional bylaws and labor norms; the granting of vocational degrees remained uncertain. Vocational definitions, based on job and occupational analysis, and
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vocational education and training standards, which defined the functions and tasks of vocational education and training, were inadequate to serve as nationally universal skills standards. A number of private sector enterprises, ranging in size from medium to large, have voluntarily come together under private sector leadership to identify broad vocational competencies as possible learning outcomes, and as a basis for upgrading technical and vocational training. Yet, there is no formal organization or agency that assumes the responsibility for advancing a coherent categorization of industry-recognized competencies, qualifications, and skills. This gap continues to weaken Mongolias progress towards a demand-driven and fully credentialed TVET system. Instructional programs and the formal curriculum in Mongolian TVET colleges and post-secondary school institutions continue to be discipline and subject-structured according to a traditional supply-driven model. Mongolias dynamic economy and labor market require a modernized TVET system, with labor market relevant occupational practice in line with regional and international standards though the TVET Project. The Government of Mongolia seeks to upgrade the TVET and higher education systems to ensure that graduates enter the labor market with the required skills and competency sets for new and emergent economic sectors. To evaluate and certify the education and respective skills, a state and private sector partnership is necessary for conducting high quality training aimed to help students master the skills fit for the labor market demands. The project of the Millennium Challenge
Corporation of the USA has begun the task of establishing national skills standards. The following work is undertaken: Development of agreed skills standards and a national vocational qualifications framework (NVQF) and the integration of current fragmented provisions for technical and vocational education and training into a single and uniform TVET system governed by the NVQF; Regular revision and adaptation of TVET instructional programs to new economic and business needs in line with the NVQF; Development, installation, and piloting of a competency-based training system that reflects the agreed upon educational and skills standards; modern and relevant TVET curriculum programs; teaching and learning methodologies; updated instructional materials; and new evaluation processes; Establishment of a national learning resource center (NLRC) to support new approaches to TVET, including training technologies for on hands-on experience by students; and Definition, design, development, and implementation of a national training program for TVET instructors, in support of a continuous learning approach to professional development. The overarching curriculum model will follow Mongolian-agreed NVQF principles and provide for a seamless and sequenced program of courses, units, and content that can be offered for short-term, credit (certificate) and non-credit training. It will provide the backbone for longer-term and formal education training, leading towards
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advanced certificates and associate diplomas, with articulation into degree studies within technology institutes and universities. It will be a competency-based curriculum framework, infused with a variety of approaches to learning, including alternative delivery systems. The competency-based approach to learning will enable self-paced learning and virtual applications, including virtual textbooks and laboratories. The new curriculum framework and NVQF will be guided by a proposed NQTF11 and comprise the most recent and relevant technologies required by industry and employers. Although new curricula and learning resources will be carefully and comprehensively installed in all TVET institutions, content of the program must be maintained on a digital learning management platform. A curriculum development process based on DACUM and SCID approaches.
6. Strategy:
Design, develop and a support a national vocational qualifications framework as the underpinning instrument for the development of a policy, legislative, and regulatory framework to guide rationalization and equalization of the national TVET system. Identify and describe in detail the process of consolidating the key instruments and stakeholders involved and critical to the creation, installation, and maintenance of the NVQF; Identify, describe, and define the processes, conditions, expectations, and steps to be taken for recognizing and validating trade and
occupational skills and competencies central to a functional NVQF; Develop and establish a provisional NVQF that provides a cohesive and coherent structure, drawing on all existing post-secondary school qualifications that are offered in recognized TVET colleges and organizations, into a single national and uniform framework and one that is appropriate to the skill development needs of Mongolia; Define the scope, pathways, and articulation of recognized qualifications included in the NVQF; Define each of the levels of the framework through level indicators and descriptors; Identify potential entry and exit points for improved articulation and career pathways; Develop a provisional credit transfer matrix for discussion and agreement; Develop and trial a draft policy matrix addressing management approaches, quality assurance procedures and routine operation of the NVQF; Design and develop a national registration and quality assurance structure detailing relevant systems and procedures; Design, define, and develop a testing and certification system; Facilitate internal quality assurance for the TVET institutions and regulatory bodies; Define and set skill standards for each qualification level, illustrating competency sets and skill development steps;
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Suggest to the NCVET a salary and wage rate system based on agreed skill sets and TVET qualifications obtained within registered TVET colleges and training organizations; and Revise and refine trade tests, taking account of new education and skill and occupational standards, in line with new competency sets within the proposed competency-based system.
Section 6. National Vision and Strategic Direction of TVET

The Government has made a strategic initiative on national TVET development. The new TVET Law was approved by the national Parliament in February 2009. One major outcome of the new TVET law was to establish the National Council of TVET to improve effectiveness of national TVET management and resources in promoting a more market-oriented and demand-driven TVET system. Under the new framework, the following challenges are identified: (i) inadequacy of the skills produced by the education and training systems to meet the needs of the labor market; (ii) mismatch between the skills that workers bring to the labor market and those demanded by the labor market; (iii) under-utilization of human capital; (iv) insufficient public-private partnership for TVET development; (v) improvement of teacher qualifications; (vi) amendment of the national training standard to the new labor market principle; and (vii) improvement of quality learning environment. Strategic policy on
vocational education and training has been implemented, since the transition to a market economy. The transition policy and phases can be grouped into 4-distinct stages: Stage 1. covers the period from 1993 to 1997, when the first ADB-supported education and human resource master plan was implemented. This stage coincides with Mongolias transition to a market economy. A strategy to make fundamental changes in the system of technical and vocational education was put forward by objectives detailed in the 1994 Education Master Plan. They included: Providing basic vocational skills and basic education within the general secondary education system; Developing technical education as a next level to general education; and Merging and privatizing training organizations that provide vocational training and re-training courses outside the general secondary education system. Stage 2. covers the period 1998 to 2003. The national program on vocational education and training was adopted, along with a subsequent action plan. Five objectives were put forth in support of activities: Creating a new management and organizational system and mechanisms for activities in technical and vocational education and improving capacity of human resource management;
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Undertaking capital investment in technical education and vocational training; renewal of its training programs, practice technology, and equipment supply to improve the training environment and comprehensive development of sector financing mechanisms; Developing flexible training content that meets the requirements of the customer interests and needs, as well as developments in production, technical, and technological fields; training students with skills levels that meet the new standards; piloting and implementing multi-optional approaches in training; Identifying an effective and comprehensive structure, modality, and location of technical education and vocational training organizations and increasing accessibility of training services delivered to trainees; and Ensuring better coordination to improve efficiency of programs and projects implemented through national and international cooperation schemes. Stage 3. The Education Sector Strategy, 2000-2005 was approved by the government in February, 2000, as a continuation of the 1994 Master Plan. The aim was to create a new system of technical vocational education in a market economy for a newly transformed Mongolia. The following strategic objectives were put forth within this mid-term strategy: Matching technical education and vocational training with labor market demand and needs;
Modernizing training standards and the assessment system of graduates; Training TVET teachers, including re-training, skills training, and in-service training; Reforming technology and equipment supply of the sector and enhancing the training and learning environment; Renewing textbooks and supplying the system with new training tools and instruments; and Developing comprehensive financial mechanisms. Within the Social Security Sector Development program, the National Vocational Methodological Center was established under MECS, in addition to 6 regional vocational methodological centers; 25employment training centers (18 of them at VETC, and 7, at the Employment Office) and 40 employment education centers in the secondary schools, as well as 6 business incubators and 7 employment training units. Stage 4. Education Sector Development Master Plan The government of Mongolia adopted the Master Plan to Develop Education of Mongolia for 2006-2010. The following objectives are put forth within its framework: - Expand the services of TVET; - Support establishment of private TVET schools; - Comply TVET training with the demands of the work force; - Improve technical support bases; supplies of training equipment;
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and tools of TVET schools; - Prepare teachers and re-train teachers; - Improve management and funding mechanisms; and - Establish social partnerships. The government of Mongolia has introduced a 2006-2015 master plan to increase the enrollment of TVET by 56.1%. The education statistics show that the enrollment rate in TVET increased by 62% between 2005 and 2008, and by 92% between 2005 and 2009. Within the development policy of TVET, the government, in cooperation with donors, the private sector, and civil society, has undertaken the following actions: 1. Reforms to TVET policy and operational framework, which aims to strengthen the policy and operational framework; create an efficient governance and standard setting mechanism; and secure private sector participation for TVET. 2. Creation of innovative skills standards and competencies focused on the establishment of skills standards and a competencybased qualification training system which will be installed in training institutes. 3. Competency-based training to implement the new competencybased training system in TVET schools. 4. Career guidance to provide career guidance and employment information services. 5. Improvement of learning environments in TVET schools through supplying select colleges and schools with essential
equipment, instructional technology, and media.
Section 7. Legal Frame for TVET Adults and Lifelong Learning

In January 1992, a new constitution was adopted for Mongolia that incorporated the principles of a democratic society based on a market economy and the guarantee of fundamental human rights. The constitution has been the basis for political and legal development in Mongolia, including the legal framework for the education sector. The government has granted the education sector a premium role, both in the Soviet era and since, as traditionally, Mongolians regard education as an important asset. The rapid social and economic changes from 1990 started with reforms to move the education system away from an old-fashioned education mechanism more suited to a centrally planned society. Several legal and policy documents, such as the 1995 government Policy toward Education, affirm that education is a priority sector and should play an important role in fulfilling the countrys development goals. The policy document advises that the Mongolian government recognizes that the source for Mongolias future progress is the continually developing, creative citizen with highly developed education and intellectual abilities and skills and so it places education as a priority sector of society. This document
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advises that education is the source for sustainable and accelerated economic and social growth, science and technology progress, intellectual and welfare creation, national sovereignty and security. Accordingly, education reform is a political priority in the national development agenda of the government, as a market economy will need different skills from those previously provided by the education system. Recently, the government focused on fighting poverty and regarded education as a key instrument for improving equity, living standards, and economic capacity. The government Policy toward Education and the Education Law identify the following principles governing the right of people to education and government responsibility in the provision of education service delivery: Education is to be developed as a priority sector. The government will continually support and nourish it while monitoring and coordinating its activities; The government will provide free basic secondary education for all; Citizens will be provided with an equal opportunity to learn in their own mother tongue by not discriminating on account of social origin, status, race, color, age, sex, wealth, job, position, or religious belief; It is prohibited to organize any training activities contradictory to the interests, health, and security of individuals and of society, or contradictory to democratic beliefs; and The government will support education institutions without
discriminating on the grounds of ownership. The legislation and policies on TVET and Adult Education are being supported through the following laws: - The Constitution of Mongolia; - Law on education; - Law on TVET; - Law on primary and secondary education; - Law on higher education; - Labor law; and - Law on employment promotion, and other legislative acts enacted in conformity with therein. The Constitution of Mongolia of 1992 states, Everyone has the right to education, the Government provides free basic education for all. It ensures all with the opportunities to have educational access appropriate for them in time, form and place. In 2002, the first independent law on VET was adopted. The purpose of professional education and training is to provide professional skill and education, to enhance the profession and develop both labor and communication culture in accordance with the main principles of education, and international common trends and norms, based on the citizens talent, interest, and need to engage in labor. The law provides legal framework for:
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- Management; - Content and standards; - Types of training institutions; - Quality assessment; - Rights and responsibilities of the participants in training relations; and - Financing and its sources.
Section 8. NATIONAL DEVELOPMENT AND TVET POLICY

1. TVET Policy History and Priority
In fulfillment of the social need to prepare skilled workers, the first vocational school, Mongol Trans, was established in 1929. Then Technical Vocational School was founded by the 265th degree of Ministers Council of the Peoples Republic of Mongolia in 1964 and became a foundation of the current TVET system. Until 1980, TVET in Mongolia was the responsibility of industry and technical ministries, and it was delivered by agencies which were directly answerable to technical ministries independent of the Ministry of Science and Education. In 1985-1986, the Ministry of Science and Education was given responsibility for policy on TVET, but training institutions remained under the supervision of other
ministries. It was not until the structural reform of the economy at the beginning of 1990s and the concomitant restructuring and closure of state companies and technical ministries that full responsibility was transferred to the Ministry of Science and Education. The 1991 Education Acts provided a framework for TVET. From 1992 onwards, a number of different types of institution came into being, offering various levels of training after the eighth and tenth years of schooling. The government of Mongolia declared 2007 as the Year of Great Construction and Workplace Increase. It set out objectives to create 800 thousand new workplaces in all sectors of the economy and focused on fighting unemployment and poverty. It regarded education, in particular, technical and vocational education and training, as a key instrument for improving equity, living standards, and economic capacity.
2. Economic Development and TVET: National Development Plan and TVET Policy
Mongolia has entered into a new era of growth. The nations Human Development Index (HDI) is now at its highest level ever, and it has increased in every region. All three components of the HDI, indicators measuring status of health, education, and income, have risen significantly in the last seven years, and the HDI has improved significantly in all aimags. In the last five years, the gap
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in the HDI between more and less advanced aimags has been shrinking. Mongolia is also showing progress in most of the Millennium Development Goals. Achievement of 60 percent of the 22 national targets is on track, including the vital infant and maternal mortality goals. This progress is taking place as the overall economic situation dramatically turns for the better, with economic growth averaging 8.7 percent for the last four years; budget revenues and expenditures rising by more than 30 percent per year; and a rapid expansion of the banking sector. Conditions are present for a sustained economic expansion and for a major government effort to promote human development throughout the country. Numerous national policies and strategies are being implemented for national economic and social development: - Development Concept of Mongolia; - National Development Strategy 2020; - Government Action Plan for 2008-2012; - Economic Growth Support and Povert Reduction Strategy; - Social Security Strategy; - Concept of Regional Development; - Mongolia Millennium Development Goals; - National Plan of Action for Decent Work; - United Nations Development Assistance Framework; - MDG-based National Development Strategy of Mongolia; - National Poverty Alleviation Program; - National Employment Promotion Program; - Social Security Sector Development Program; and
- Program for Support of Small and Medium-Sized Enterprises. Taking these national development policies into account, TVET policy is set to: - Increase access; - Improve quality and relevance; - Renew management and organization of TVET; and - Increase participation by private sector and industry.
3. Social Partnership and TVET

Within the framework of transition occurring since the 1990s, major changes have been undertaken in the countrys economy; labor economy and social welfare mechanisms; and new structures of public and non-governmental organizations, such as employment organizations; chamber of commerce and industry; employers associations; free trade unions; and others that have evolved. As transition into market-oriented relations has deepened, the industries and economic entities that provide workplaces, equipment, tools, materials, and facilities for practical training and skills development, as it used to be, have virtually disappeared. Difficulties have emerged in relation to the training of skilled workers through an old system. To align technical and vocational education with labor market needs and demands, a need has emerged for introducing regulation and coordination with respect to the legal environment; management systems and structure of training institutions; training
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content and technologies; and financing mechanisms for activities being implemented by stakeholders in the field of training skilled workers. A working group was established that is comprised of representatives from various social partners and stakeholders, including MECS, MSWL, and other line ministries and organizations to develop a draft of the Law on Vocational Education and Training which, in fact, was endorsed by the Parliament in 2002. Today Mongolia has been experiencing public and private sector partnerships in connection with the start of economic reform and transition to a market economy. Changes in social relations between administration, employees, and employers require them to review contracts and their entire legal regulations. During the transition to a market economy, labor relations with full regulations by administration have been progressing toward negotiation, in other words, partnership between the public and private sectors. As a result of the transition, a basis for contracts - the norms of social partnership based on triple negotiations of labor and social consensus - was founded. A plenipotentiary commission was founded with triple parties comprising the state sector (government ministries); employees interest-protecting organizations (Trade Unions); and representatives of employers organizations (e.g., Confederations of Employers; administrations of enterprises; and Chamber of Trade and Commerce). The above triple commission for social partnership is charged with keeping an optimal balance in implementing interests and equal
rights of hired workers and employers on the basis of their joint cooperation in circumstances of market economy relations. The main task of the state is to rationally determine rules for social partnership. Currently, the Mongolian state has been executing this main task in partnership with the private sector. Since the founding in 2000 of the plenipotentiary commission, social partnerships have deepened significantly, allowing the achievement of contract norms. Aspects of social partnership and registration of joint contracts and consensus were included in the Labor law as a chapter. Many other issues have been regulated by a number of legal acts, such as the law of import and export of workforces and law for support of employment. Norms and contract documents have been executing the role of lever for strengthening social partnerships and providing greater impetus for organizations and structures to regulate work relations between employers, trade unions, and state organizations. As a result, a new and open legal system paves the way for more democratic and less bureaucratic labor relations. Peoples aspiration for the establishment of an open, humanitarian, developed, and democratic society, combined with their desire for high socio-economic growth, has become the preferred approach of administration. For Mongolia, the democratic model of social administration was chosen in connection with the transition to a market economy, because of the establishment of various types of proprietorships. The most formalized 3 types of economic interests include private, state and employers.
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As these parties do not always reach consensus, it is necessary to study the essence of their interests and interactions, and to determine appropriate ways to create cooperation mechanisms to transition to new type of administration. Creation of social partnerships in the vocational education sector will greatly depend on determining labor market demands in coverage, and sectoral levels by the training organizations; developing training curriculum and standards; improving training quality; and establishing and implementing contracts by employers that situate graduates in the workplace. Social partnerships will create an opportunity to implement the main task of satisfying labor market demands with vocational employees. Currently, vocational training organizations cannot timely feel and answer the employers demands and requirements. The main problem facing this sector is that the older staff members do not fully grasp the rules of the new game and consequently are not ready for innovation and change. Therefore, administrative staff members, trainers, and other employees must be systematically prepared and are required to consciously change their thinking. Specifics of vocational education, including direct connection to labor market; benefits to all social members; practical lessons carried out in practical workshops; and production necessarily require the training organizations to cooperate with training beneficiary parties. The social partners are state institutions, employers, workers, trade unions, professional associations, labor regulating organs, and training organizations. Unless these partners establish cooperation
mechanisms in all stages to develop legal acts; determine policies and strategies for vocational education; implement administration in national, regional, local and organizational levels; define professions, its requirements and training curriculums; organize training and practices; give graduation examinations; and provide graduates with workplaces, it is impossible to prepare specialists who can meet the market demands. When the first law on vocational education clearly defined the cooperation directions of social partners, the cooperation mechanisms were unclear, and, on the other side, previous cooperation traditions and experiences were insufficient. In the previous social system, market demands were provided with free employees prepared by the state training institutions, but the law regulated production training and practical student work through contracts between training organizations and enterprises. Most of the practical student works is being carried out in workshops of the training organizations-meaning it is impossible to make considerable positive changes in the quality of profession attainment. Thus, in order to achieve goals and objectives of vocational education system in meeting market demands, it is essential to have both state-compulsory and state-public, or consensus administration of parties benefitting from this sector, plus an economic lever. In other words, in order to develop the vocational education sector and attract interests of students, it is necessary to evaluate each profession and provide relevant financial and economic support, such as that for tuition, clothes, transport expenses, accommodations, and any
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additional fee for academic purposes, taking into account students living levels and sectors specifics. Particularly, over 70 percent of students studying in vocational training schools in Mongolia come from families with income lower than subsistence level, so both state organizations and social partners should necessarily consider poverty when granting funds. Mongolia has been executing duties to develop education standards; keep education balances; certify education organizations and their trainers; develop target programs in the education sector; compile a list of professions being taught in vocational schools; develop norms of financing and material supply; establish funds for vocational education development; and strengthen implementation of vocational education law.
Section 9. CURRENT STATU from S OF SOCIAL PARTHNERSHIP

For Mongolia, a new legal framework for vocational education and training has been created; it comprises a national council which regulates inter-sector activities, enhancing cooperation between social partners and ensuring the application of employment policies set by the state; school management boards; and national and regional methodology centers. Provincial and regional councils are comprised of representatives
from the education sector, employment office, employers branches, trade unions, parents and childrens support funds, etc. At the national level, a council for vocational education and training will conduct following tasks: Provide assistance in developing backgrounds for policy and legal regulations to develop vocational training and technical education; Regulate vocational education and training activities carried out by state and non-government vocational education organizations, employers unions, and enterprises; Issue reports on the implementation of legal acts related to vocational training and technical education; Issue proposals and recommendations on vocational training and technical education; Approve national occupational classification; Approve national professional system, with vocational education standards certified by sectoral and professional committees; Study and make proposals on joining the international conventions and recommendations on vocational training and technical education; and Enforce implementation of resolutions and recommendations issued by the council. The national council has a work division and specialized committees for sectors and professions. The committees duties include: Bear witness to the national professional system; national
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occupational classifications; professional standards; and standards for vocational training and technical education; Develop regular legal, independent evaluations of professional skills and establish independently managed evaluation centers; Bear witness to the independent evaluation of professional skills and a testing database that provides information on graduates professional skills; Determine criteria for occupational skills; Draw conclusions on the correlation of approved budget, quality number, professional directions or strategies of the regions with activities of the training institutions; and Draw conclusions on the development and implementation of training institutions strategic planning. For creation of social partnerships between vocational schools, external factors become the driving force; influences include aspirations of the state and region, and the interest groups which increase direct contributions to vocational education in terms of economic growth. Internal factors include finding new income sources if direct state budgets are decreased and answering the demands of a variable labor market, as well as individual needs in more optimal ways. In recent years, the above mentioned driving forces are likely to be created in Mongolia. Moreover, demands of vocational employees; growth of training and production capacity of the schools; technological and management capacities; state policies, programs, projects, structures,
initiatives, and financial incentives supporting cooperation partnership; the schools experiences in production; schools skills in handling practical activities; schools culture; and schools support for social partnerships are all factors affecting cooperation. All these factors are being created, but are somehow insufficient. A project for the promotion of vocational education and training was funded by the German government and implemented by the German Technical Cooperation from January of 2000 through 2002. A major output of this project has been advocacy and proof of employer participation and understanding by school management and employers. Within the Social Security Sector Development Programs which had been implemented during 2003-2006, training equipment and materials were supplied to more than 20 vocational training and production centers, with the aim of providing skills development for unemployed youth and poor adults, as well as for 40 secondary schools. In addition, many activities aimed at improving skills of practical teachers; strengthening capacity of managers; and introducing modular based training technologies, etc. The importance of this project lies in fulfilling the role of a bridge to expand cooperation between the MSWL, MECS, and various agencies functioning under them.
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Section 10. ISSUES AND INNOVATIVE PRACTICES

As vocational education and training have become necessary, demands for people to live in the wealthy circumstances of a market economy have spurred relations to alleviate unemployment and poverty. Parties creating social partnerships acknowledged that vocational education and training are meeting the demands through improved policies and planning of vocational education increasing quality; effectiveness and outreach; strengthening of social partnerships, support for the private sector; and improved correlations between foreign aid and loans, and the signed Social Consensus Memorandum for Development of Vocational Education and Training in 2008. This document aims at developing state policies, strategies, concepts, directions, projects, and programs on vocational education and training; creating private sector involvement; updating the legal environment; creating financing mechanisms with multi sources; and coordinating foreign aids and loans. According to the consensus, the following objectives will be resolved, including: 1. Updating the legal environment; 2. Updating organizational management; 3. Reforming the training organizations type and structure; 4. Continuing reform of the training system; 5. Creating mechanisms to provide social partners involvement in vocational education and training; 6. Ensuring private sector involvement in vocational education
sector; 7. Rationally exploiting foreign aids and investment support; 8. Updating finance mechanisms for vocational education and training; 9. Updating the information database of vocational education and training; 10. Updating training content, technology, and methodology and providing training materials and textbooks; 11. Innovating the training environment and technologies; 12. Increasing human resource capacities and resolving social issues; and 13. Establishing evaluation systems to raise the reputation and improve competitive skills of vocational training institutions, students, and graduates.
Section 11. FUTURE PLANS FOR SOCIAL PARTHERSHIP

In order to satisfy the increased demands of the labor market with skillful vocational employees, it is necessary to reform whole system of vocational education and training to the level that prepares vocational employees to make a decent living by his/her obtained professions. It is necessary to guarantee sustainable activities by balancing the involvement of public and private sectors and vocational training institutions with policy and decision-making. Social partnerships
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must ensure regular activities to increase the involvement of representatives from the private sector and vocational institutions in todays national council for vocational education and training. It is advised to newly reorganize government agency structures which can integrate state policy on vocational education and training and state budget, through integration of duties distributed to various organizations. In addition, it is also necessary to take measures to create a favorable legal environment that guarantees private sector involvement; establish effective cooperation and partnerships covering all parties in vocational education and training; and strengthen a system responsible for the implementation of national occupational classification, skill standards, and training modules, in accordance with labor market circumstances.
[Figure 1-11] Financing of TVET
TVET FINANCING /present situation/

Ministry of Social Welfare and Labor (Employment promotion fund ) Labor and Welfare Services Authority
Ministry of Education, Culture and Science
Training cost
Variable cost per a student
Short term vocational training centers
TVET schools (not considering types of property)
Duration up to 3 months: 400000-500000 tugrics 1300Tugric =1$
10 months : 300000 tugrics
Mongolias TVET sector receives bits of financing from various sources, but the bulk of financing is derived from the state budget. In 2006, more than 80% of financing came from the government (MECS and MSWL); nearly 10% from tuition; and around 5% from self-income generating activities of VET schools (Diagram 3). In contrast, in the higher education sector, only 23.6% of total revenue came from state financed sources,1) while 57.3% of total revenue came from non-state sources in the form of tuition fees.2) The higher education sector has been much more successful in attracting private investment, given that it has a much higher (98%) private rate of return-- compared to TVET graduates (38%) private rate of return.3)
[Figure 1-12] 2006 revenue sources by sector (%)
Source: World Bank, 2009 Public Expenditure and Financial Management Review
1) These are tuition revenues from students, whose tuition is being paid by the state. 2) World Bank (2009) Public Expenditure and Financial Management Review. 3) World Bank (2009) Public Expenditure and Financial Management Review.
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<Table 1-8> Public Expenditure on Education, 1991, 2002 and 2007

1991 GDP per capita (US$) (nominal) Education Expenditure as Share of GDP (%) Education Share of Total Public Expenditure (%) % share of total education expenditure: Primary Secondary Technical & vocational Tertiary Per student public spending (as % of GDP p.c.) Primary Secondary Technical & vocational Tertiary 929 12% 18% n/a n/a n/a 15% 17% n/a 10% 10% 2002 1,113 8% 16% 40% 26% 5% 15% 17% 14% 5% 12% 2007 1,431 6.2% 17% 27% 37% 6% 10% 13% 18% 6% 14%
Compared to the other education sectors, TVET has received the smallest share of the state budget allocation. In 2007, the share of TVET expenditure in total education spending was only 7%, compared to 37% for secondary; 27% for primary; and 10% for tertiary education (graph 10). With tertiary education receiving most of its financing from tuition fees, and primary and secondary education getting the bulk of the states allocation on education, the TVET sector finds itself desperately in need of increased financing from additional sources, if it is to be overhauled to meet growing needs of the private sector and a growing economy. Total expenditure on TVET was .37% of total GDP for the year 2007, which was two times smaller than the average TVET spending of transition economies in Eastern Europe.4) While public spending is
4) The figure .63% of GDP as calculated in Financing VET in the EU
roughly 6% of the education budget, 45 % of the TVET budget is used for stipends to students (mainly to those recruited after the 8th grade), and less than one percent on improving infrastructure and training equipment5). The policy of providing stipends for TVET students has increased the enrollment of TVET students, and has put more pressure on existing facilities6).
[Figure 1-13] Percentage of TVET budget in the Total budget for education
TVET Finance
8 7 6 5 4
7
3 2
6.9
4.2 3.4 3.7
4.1
4.3
1 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
TVET Institutions are financially dependent from the Government. The budget allocated to TVET sector is insufficient (only 7% of total budget for education)
Private sector financial support to the VET institutions is minimal. There are about 15 private VET institutions that operate on tuition fee revenues. (These tend to receive erratic support from bilateral
member states and candidate countries (2005) by European Training Foundation (ETF) 5) World Ban, 2010 Tertiary Education in Mongolia: Meeting the Challenges of the Global Economy 6) World Ban, 2010 Tertiary Education in Mongolia: Meeting the Challenges of the Global Economy
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partners and the MSWL, and they are specialized by sectors, with courses of varying duration and quality.) Given that the outcomes at the public VET schools are below industry standards and competencies (only 11 schools delivering TVET are accredited, and only 10% of their programs, accredited7)), the larger mining and construction companies have started building their own training facilities, and, in some cases, serving the needs of related companies in their sectors. External development partners have been focused more on other educational sectors, rather than TVET. Primary and secondary education has so far attracted most of the donor financing, and rightly so. In 2009, it stood at 14 million USD, while a much smaller level of assistance, at 390,000 USD, went to the TVET sector (Table 9). More recently, the MCA has pledged over 47 million USD to upgrade and restructure the sector, a quantum leap in financing for the sector. The ADB and the GTZ continue to be active in the sector.
<Table 1-9> Current donor commitments for education sector by level
(In $US 000)
Total Pre-primary Primary & Secondary* TVET Higher Education
2007 28,994 529 42,311 1,351 2,118
2008 13,699 798 22,789 525 2,118
2009 14,009 421 20,681 390 2,118
Source: World Bank, 2009 Public Expenditure and Financial Management Review
7) World Ban, 2010 Tertiary Education in Mongolia: Meeting the Challenges of the Global Economy
Section 12. TECHNOLOGY: ICT, E-LEARNING

1. Current Status of ICT in Education
The Erdemnet network of education information and administration was established. The Ministry of Education, Culture and Science; educational and cultural centers of the aimags and the capital city; and about 25 universities and colleges, 70 secondary schools of both state and private sectors (with appropriate conditions) were connected to the Erdem network and were provided with computers and equipment; internet access; e-mail; and a local administration network. This network aims to become the united information network of the Mongolian education sector in the future. As a beginning, the educational and cultural centers of all aimags were supplied with network equipment, devices, and appropriate servers. Multi-leveled training for the teachers and students on the use of computer and information technology signals a starting point in the new phase of information technology development in the education sector. Presently about 513 secondary schools; regional center schools; and educational organizations have been provided with 2,882 computers. On March 12, 2008 the government issued resolution number 92 about implementing a program entitled Computer for Every Child. The unit charged with implementing this program was established by order 354, dated July 3, 2008, of the Ministry of Education, Culture, and Science, as a part of the resolution. The unit is comprised
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of seven staff members of the Ministry of the Education, Culture, and Science, and the Agency of Information and Communication Technology. In 2007 the Ministry of Education, Culture, and Science issued an order governing certain measures of information technology in the higher and vocational education sector. Under the order, the following steps have been initiated and implemented: () To make specific recommendations to the directors of the secondary schools about connecting their schools to the Erdemnet; () To establish a central electric library of educational organizations; () To establish an E-School under the University of Sciences and Technologies, responsible for distance training for the domestic universities and colleges; () To provide the universities, colleges, and vocational schools with information technology teachers and to determine their efficiencies in the use of English language information technology language; and () To connect the vocational training centers to the main network; help them have own websites; and improve their publicity via their websites.
2. Best Practices in Teaching and Learning through ICT

Despite the rapid development of information technology in Mongolia and its recognizance by the state and private sectors, the
advanced e-training systems have not yet reached proper development. However some progress has been made in the field. One of the pioneers in the field is the E-learning center under the University of Science and Technology. Initially the database of the internal activities was created, and subsequently the management and information system was developed and put into operation. Since 2005, the charge to transform the teaching materials into electric form, as a part of the universal goal of introducing E-learning into their activities, have been carried out, and presently some outputs are employed in the training of masters program of the university. Due attention is paid to strengthen the abilities of teachers in developing training aids for e-training and applying information technology in their activities.
3. Issues and Challenges in ICT Education

The most rapidly developing Asian countries see information and communication technology as their key educational development factor. More importantly, for Mongolia, a landlocked country with vast space and sparse population, it is urgent catch all the possibilities to overcome the distance obstacles. It is very necessary for Mongolia to introduce the latest information and communication technologies to the all sectors of Mongolia, specifically the educational sector. The main hindering factors against the consistent introduction of information and communication technology in the educational sector are:
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Lack of the primary legal environment; Lack of organized and universal concept and usage of information and communication technology at all management levels and in a unified system; Lack of the implementation method and uncertainty about financial resources, despite the effort to initiate information technology into education sector; Weak attention to improving use of information technology in the educational sector, and in preparing technical staff in the field; Lack of international information and communication backbone access via land; Persistent differences in information access and provision; Weak tradition of information and communication technology in the educational sector; No support or joint efforts made to promote ICT; Unequal introduction of information and communication technology throughout the country, coupled with weak provision of equipment and information and communication technology in the countryside; and Inadequate average level of knowledge of ICT among the population.
4. Future Plans
Currently an E-Education program is in progress to introduce
information and communication technology in the educational system of the nation under the framework of the E-Mongolia program. The following goals and objectives are presented under the program: To ensure equal opportunity for educational access, regardless of the location of the people, as it is critical for such a country with vast territory and scarce population. To make Mongolian education degrees universally recognized, helping the nation export and ensure the high quality of education. Objectives: To raise the information technology-related educational level of the population to the world average by 2012; To create distance training capacities for all towns and settlements by 2012; To introduce e-training for all training levels; establish model schools; and upgrade at least 50% of the schools as e-schools; and To strengthen the information technology-oriented schools and raise their research capacity to international standards. Activities to be implemented include: 1) Establish a management system to promote the new educational system;
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2) Develop the information infrastructure in the educational sector; 3) Build human resources while developing education; and 4) Promote public education of information technology.
Section 13. International Cooperation: Bilateral, Multilateral and International Organizations

1. DonorsActivity in TVET
The increased role of vocational education and training in Mongolia has turned this issue into a key focus of government policy, and consequent actions have been taken for promoting national and donor investment in the VET area. The government of Mongolia has reached an agreement with donors, such as ADB, GTZ, and Millennium Challenge Corporation, on supporting vocational education and training. Mongolia is entering a new period of education sector planning. With the support of the Asian Development Bank, activity management in the education sector will be guided by sector-wide planning, whereby the multilateral development banks, and multilateral and bilateral donor agencies, will aim to better coordinate and harmonize investment in the sector according to government planning priorities. The following proposal for funding from the Millennium Challenge Account is based on the selection of activity
in support of the national reform of the TVET system that is consistent with (a) the Master Plan to Develop Education of Mongolia, 2006-2015; and (b) progress in sector-wide planning, including the annual implementation plan for education projects and activity under MECS. International support for the national reform of the TVET system is being provided, initially, through the Third Education Development Project, or TEDP. With the support of Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), proposals are being prepared for the development of a TVET policy framework. This framework will focus on a reformed system for initial and continuing vocational training and education. Proposals from GTZ discuss the need to plan TVET, taking account of both formal and non formal training provisions (i.e., a dual system). Examples of early application of non formal approaches to TVET include the Non formal skills training for unemployed youth and adult project, jointly funded by ADB and government of Japan. Taking account of the parameters of the Master Plan for the TVET subsector, the TEDP will aim to develop a national policy framework promoting demand-driven TVET. The proposed policy framework will (i) streamline legislative, regulatory and institutional arrangements in support of the reform process; (ii) provide national skills standards; and (iii) develop a national vocational qualification system, based on standards of competency set by industry and
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employers. The terms of reference, objectives, and outputs of the TEDP will go some way forward in preparing the necessary policy studies and background studies for a range of reforms. Still, key activity, including definition of the roles of stakeholders; reaching consensus on national training standards; and preparation of a new TVET oriented curriculum, will take time. The MCC funded Vocational Education project will be a valuable contribution to the VET system reform (47.5 million USD). The MCC Vocational Education Project will consist of the following activities: Activity1. Reforms to TVET Policy and Operational Framework Activity: - Legal and regulatory reforms that will create and allow the implementation of demand driven TVET; - Establishment and support of the National Advisory Board for Vocational Education and Training (NABVET); and - Creation of efficient governance and standard-setting, with secure private sector participation for technical and vocational education and training. Activity 2. Creation of Skills Standards and Competencies System Activity. - Establishment of national TVET standards for short-term and long-term career training fields;
- Development of new, modern, curricula, courses, and instructional materials for short-term and long-term career training fields; - Development of an assessment and credentialing system to support the new standards and modernized TVET system; - Improvement of the capacity of regional and national methodology centers to create and distribute materials and training resources to instructors in all types of TVET institutes; and; and - Strengthening the linkage between in-service and pre-service vocational technical teacher training programs to improve the sustainability of the TVET teacher training system. Activity 3. Competency-Based Training System Activity. - Extension of training to vocational teachers and administrators; - Provision of equipment and materials needed to deliver the new curriculum; and - Identification and management of environmental, social, health, and safety concerns. Activity 4.Career Guidance System Activity. - Installation of employment information services in eight regional methodological centers; and - Establishment of a career guidance service and web-based career information system.
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2. Sustainability
To ensure the sustainability of the vocational education projects, the government of Mongolia is focusing policy to develop legal and regulatory reforms, which are expected to improve TVET institutes income-generating capacity, which, in turn, lead to increased funding for TVET institutes. To ensure the environmental and social sustainability of the vocational education projects as a whole, the government of Mongolia organized public consultations with various stakeholders (including women and other vulnerable groups) to participate in the development and implementation of vocational education projects and amendment of existing law on VET.
Section 14. Future Trends and Objectives of TVETs

An Action Plan for Education Development to 2015, which was developed with support of Asian Development Bank and adopted by the Government of Mongolia in August of 2006, was highly evaluated by international donor organizations. The plan included following objectives and strategies on TVET.
Section 15. TVET Objectives & Strategies (2006 to 2015)

. TVET coverage will be increased by 56.1 percent. - To increase share of privately owned vocational schools; - To expand vocational schools service types and coverages; - To render state support to students of vocational schools; - To increase operation and capacities of vocational schools; and - To support new establishment of vocational schools in connection with national strategy on regional development and local demands; B. Improving TVET Content and Creating Supply, Matching the Demands of Vocational Workers to the L Market The following objectives are methods of improving content and creating supply in the labor market: - To innovate TVET standards and contents in connection with market demands; - To develop teaching staff supply, their professional capacities and skills; - To increase state support for improving supply of training materials and textbooks of TVET; - To increase supply of TVET practice instruments and equipment; - To improve connection between training and practice; - To strengthen accrediting capacities of TVET institution and programs and to create quality control system;
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- To connect TVET training with workforce demands; - To conduct qualitative and quantitative and social benefits surveyes on labour market demands; - To establish information database on labour market demands; - To develop vocational training contents and standards connected with labour market demands; - To increase production and service participation in management, training and planning of TVET; - To establish training module database; - To improve supply of material basis, training equipment, and materials of TVET; - To resolve financial issues of repairworks of state-owned TVET institutions; - To increase supply of practice workshop equipment, instruments, and investments of TVET institutions; - To develop and implement a policy for composing, designing, and printing textbooks; - To increase employers participation in supply of textbooks and to develop training standards and modular programs of primary vocational training that can be conducted in general secondary schools; and - To supply general secondary schools with primary vocational training with practice workshop and laboratory equipment and training materials.
C. Training, Re-training and Qualification Upgrading of Teachers As stated in the master plan of education, proposed is the increase of finances in this sector to 6.3 percent by 2015, using the general education budget to increase teachers wages and assist with the practical attainment of education; expenses of training materials; and qualification upgrading of teachers. Therein are the following objectives: - To establish a national system for qualification upgrading of teachers working in TVET; - To increase financing for qualification upgrading of teachers working in TVET; - To develop standards and contents of training for qualification upgrading of master teachers; - To create training center of new technique and updated technologies for qualification upgrading of vocational teachers; and - To increase qualified teachers capable to teach theoretical and practical vocational lessons. D. Innovating TVET Management To innovate TVET management it is necessary: - To update types of management and financing of TVET institutions; - To update and follow financing norms on the basis of real expenses required to prepare vocational workers needed in the labor market;
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- To implement policies for developing the TVET in the direction of training, production, enterprenuership, and service; - To implement policies and programs for improving national and local schools management capacities; - To strengthen accrediting capacities of TVET institutions and to create a quality control system; and - To create favorable environment supporting foreign investments in TVET institutions. E. Creating Social Partnership Structure In creating social partnerships to strengthen TVET, it is critical to: - Engage representatives of employers and professional unions of production, service and businesses in the development of policies and planning at national levels; and - Match training, production, and service to the structure of social partnerships and place graduates in the workplace.
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Chapter 1
TVET POLICY, EXPERIENCE, AND TRENDS IN THE PHILIPPINES
Section 1. The National Context of TVET

1 Context and Background
1.1 Political and Socio-Cultural Context The Republic of the Philippines is located in the heart of Southeast Asia and is the second worlds largest archipelago. It comprises 7,107 islands and islets in the western Pacific Ocean. The Philippines was under Spanish colonization from 1565 until its independence in 1898. From 1898 to 1946, it was under the United States, which strongly influenced the countrys educational system; the use of English language; and its contemporary pop culture. The influence of the United States has declined in recent decades.
The two official languages in the Philippines are Filipino and English. Filipino, which is based on Tagalog, is the national language. English is widely used and is the medium of instruction in education. The Philippines is a democratic and republican state, with a presidential form of government. There are three branches of government: executive, legislative, and judiciary. The highest authority of the government is the President who is elected for a six-year term and serves as the Chief Executive. The legislative branch of the government is bicameral in nature. It consists of the Senate and the House of the Representatives. The judicial branch, on the other hand, which consists of systems of courts, is headed by the Supreme Court.1) The country is divided into provinces, municipalities, and chartered cities, each enjoying a certain degree of local autonomy. Within the municipalities and cities are communities or barangays, which constitute the smallest political unit. Each of the provinces is headed by a governor; the municipalities and cities, by a mayor; and the barangays, by a barangay captain. The Local Government Code of 1991 provided for a more responsive and accountable localgovernment structure. Local governments are to be given more powers, authority, responsibilities, and resources through a system of decentralization. As of December 31, 2009, the Philippines had 80 provinces, 137 cities, 1,497 municipalities, and 42,023 barangays.
1) Syjuco, A.G. (2006). The Philippine TVET System. TESDA
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1.2 Population and Demographics The Philippine population has been steadily rising, as evidenced by the results of the census of population and housing. The census year of 1990 placed the countrys population at 60.70 million. This increased to 68.62 million in 1995; 76.5 million during the 2000 Census; and further to 88.6 million in the last census in the year 2007. As of 2010, the countrys population was projected at 94.01 million. The annual growth rate of Philippine population was at 2.36 percent during the 1995 to 2000 period and 2.04 percent for the years 2000 to 2007. The projected average annual population growth for 2005 to 2010 is 1.95%. Population growth impinged a lot on the provision of social services by the government , especially in terms of education, health, and nutrition and even in employment.
<Table 1-1> Philippine Population by Census Year Census Year Population (in millions) 1990 60.70 1995 68.62 2000 76.50 2007 88.57
Source: National Statistics Office
The countrys population is predominantly young, with 43.4 million representing 56.5% Filipinos aged 24 years old and below. The age group, 25-54 years of age, numbered 28.5 million representing 37.3%. A little of more than 8 % or 6.4 million belong to age group 55 years old and over.
There are more males than females with 38.5 million (50.4%) and 38 million (49.6%), respectively. The male-female ratio is registered at 101:100. Thirteen percent (13%) or roughly 11.6 million Filipinos are residing in the National Capital Region (NCR), a highly urbanized region wherein Manila, the capital of the Philippines and the seat of the national government is located.
<Table 1-2> Population by Age Group, by Sex and 2000 by Region: 2000 Age Group Both Sexes Male Female Total 76,504,077 38,524,267 37,979,810 Under 1 1,917,431 986,506 930,925 1-4 7,752,071 3,965,426 3,786,645 5-9 9,694,781 4,962,013 4,732,768 10-14 8,949,614 4,541,197 4,408,417 15-19 8,017,298 4,017,830 3,999,468 20-24 7,069,403 3,522,518 3,546,885 25-29 6,071,089 3,053,616 3,017,473 30-34 5,546,294 2,804,522 2,741,772 35-39 4,901,023 2,496,821 2,404,202 40-44 4,163,494 2,120,314 2,043,180 45-49 3,330,054 1,696,712 1,633,342 50-54 2,622,316 1,318,632 1,303,684 55-59 1,903,649 943,133 960,516 60-64 1,633,150 786,137 847,013 65-69 1,138,843 533,469 605,374 70-74 797,970 361,614 436,356 75-79 505,356 218,622 286,734 80 and over 490,241 195,185 295,056
Source: 2000 Census-based projection, NSO
The growing population of the country is manifested with the high birth rate. As of 2001, birth rate was registered at 22.0%. However,
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data from the NSO show a decreasing trend in birth rate. Birth rate in 2015-2020 is projected to go down to 18.5%.
<Table 1-3> Birth Rate, 2001-2005; 2015/2020 Year Birth Rate (per 2001 2002 2003 2004 2005 2015-2020
Source: 2000 Census-based projection 2008 Philippine Statistical year Book
thousand population) 22.0 21.0 20.6 20.7 20.0 18.5
Educational Attainment The educational level of the population of the Philippines, as presented in Table 4, showed that a significant number have not completed any grade. This means they have not even gone to school and most likely, lack the necessary knowledge and skills for employment for those of working age. The bulk of the population have completed elementary and high school, accounting for 27.9 million and 18.9 million, respectively. This is understandable, considering that the countrys population is predominantly young.
<Table 1-4> Household Population 5 Years Old and Over Educational Attainment 1990, 1995, 2000 Highest Educational 1990 1995 Attainment Total Population 5 48,865,341 59,071,714 Years Old & Over No grade completed 2,838,844 4,394,719 Preschool 432,359 1,931,882 Elementary 24,630,569 25,620,407 High school 12,780,193 16,448,857 Post secondary 1,088,665 1,340,813 College undergraduate 3,737,464 4,071,236 Academic degree holder 3,121,304 4,380,472 Post baccalaureate 114,839 Not stated 235,943 768,489
Source: The Philippines in Figures, 2010, National Statistics Office
by Highest
2000 66,666,156 3,962,330 1,542,884 27,924,770 18,903,125 2,561,983 6,685,949 2,876,616 267,713 1,940,786
Functional Literacy Results of the 2008 Functional Literacy, Education, and Mass Media Survey (FLEMMS) indicate a functional literacy rate of 86.4 percent, higher than the 2003 FLEMMS results of 84.1 percent. A total of 58 million of the estimated 67 million Filipinos who are 10 to 64 years old are functionally literate. A functionally literate person is one who can read, write, and compute, or one who can read, write, compute, and comprehend. Persons who completed high school or a higher level of education are also considered functionally literate. The functional literacy rate among the females is higher than males, with 88.7 percent and 84.2 percent, respectively. As expected, the functional literacy rate is higher among persons with a higher level of education. Among those who had reached,
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but did not finish high school, 89.8 percent were functionally literate, and, of those who had finished elementary, 80.8 percent were functionally literate. By comparison, 67.0 percent of those with some elementary education were functionally literate, while only five percent among those with no formal education were functionally literate.
<Table 1-5> Functional Literacy Rate of Population 10-64 Years Old by Highest Educational Attainment and Sex: Philippines 2008 Highest Educational Attainment High Population High No Grade Elem. Elem. School 10-64 School Grad. Or Yrs. Old Completed Level Graduate Level Higher Philippines 86.4 5.3 67.0 80.8 89.8 100.0
Male Female 84.2 88.7 5.3 5.2 63.9 71.1 79.8 81.9 88.6 91.1 100.0 100.0
Note: Persons who graduated from high school or completed higher level of education are, in this tabulation considered functionally literate. Source: National Statistics Office, 2008 Functional Literacy, Education and Mass Media Survey (FLEMMS)
Poverty Incidence The incidence of poverty, or the proportion of individuals whose annual income falls below the annual poverty threshold in the country, worsened from 30.0 percent in 2003, to 32.9 percent in 2006. Poverty incidence of Filipino families reached 24.4% in 2003 and rose to 26.9% in 2006. In absolute terms, this is translated to the number of poor
households increasing from 4.1 million in 2003, to 4.7 million in 2006. These families failed to meet the minimum income needed by a family of six to satisfy their food or nutritional requirements and other non-food basic needs. This can primarily be attributed to rising food prices; slower growth of incomes; and faster household formation. The 2006 Family Income and Expenditures Survey (FIES) pointed out that 33 percent of the population or roughly 27 million are poor or living on incomes below PhP6,300 (US$137) for a family of five. This translates to PhP42 (US$0.90) per person per day, or Php210 (US$4.5) a day or PhP75,600 (US$1,637) a year per family. This would mean that around one-third of Filipinos are living with less than US$1 per day, which is considered poor by UN standards.
<Table 1-6> Incidence of Poverty, Philippines: 2003 and 2006 Year Indicators 2003 2006 Annual Per Capita Thresholds (PhP) 12,309 15,057 Magnitude of Poor Families (000) 4,023 4,677 Magnitude of Poor Population (000) 23,836 27,617 Poverty Incidence of Families (%) 24.4 26.9 Poverty Incidence of Population (%) 30.0 32.9
Source: National Statistics Coordination Board (NSCB)
Migrant Filipinos One important aspect of the Philippine economy is the fact that the Philippines is one of the leading sources of migrant workers in the world. From more than half a million (615,095) migrant Filipinos registered in 1991, the number continues to increase, and in 2009, a total of 1,912,000 were working around the world.
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<Table 1-7> Overseas Filipino Workers: 1991-2009 Year Overseas Filipino Workers (OFWs) 1991 615,019 1992 723,448 1993 696,630 1994 719,602 1995 654,022 1996 660,122 1997 747,696 1998 831,643 1999 837,020 2000 841,628 2001 867,599 2002 891,908 2003 867,969 2004 933,588 2005 988,615 2006 1,062,567 2007 1,077,623 2008 2,002,002 2009 1,912,000
Sources of Data: National Statistics Office; Commission of Filipinos Overseas; Philippine Overseas Employment Administration
In 2009, the proportion of male overseas Filipino Workers (OFWs) (52.8%) remained higher than female OFWs (47.2%). Female OFWs were generally younger than male OFWs, with half of the female OFWs belonging to ages 25 to 34. Male OFWs have a lesser proportion (42.7%) in that same age category. There were more male OFWs (20.9%) than female OFWs (10.8%) in age group 45 and over (Table 8). OFWs who were laborers or unskilled workers comprised 32.3 percent of the total OFWs during the period April to September
2009. Those who worked as trades and related workers made up 14.9 percent; service workers and shop and market sales workers, 14.7 percent; and plant and machine operators and assemblers, 13.8 percent.
<Table 1-8> Number and Percentage Distribution of Overseas Filipino Workers by Selected Characteristics, Philippines: 2008 and 2009 Selected Characteristics 2008 2009 Philippines (000) 2002 1912 Type 100.0 100.0 Overseas Contract Workers 94.0 98.8 Other overseas Filipino workers 6.0 1.2 Sex 100.0 100.0 Male 51.7 52.8 Female 48.3 47.2 Age Group Both Sexes 100.0 100.0 15-24 10.0 9.8 25-29 25.7 24.8 30-34 21.0 21.7 35-39 15.1 15.5 40-44 11.8 12.0 45 and over 16.4 16.2 Male 100.0 100.0 15-24 6.7 7.1 25-29 22.8 22.7 30-34 21.8 20.1 35-39 14.7 15.7 40-44 13.2 13.5 45 and over 20.8 20.9 Female 100.0 100.0 15-24 13.5 12.9 25-29 28.8 27.2 30-34 20.3 23.5 35-39 15.6 15.3 40-44 10.3 10.3 45 and over 11.6 10.9
Source of Data: National Statistics Office (NSO)
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One out of five (21.6%) OFWs worked in Saudi Arabia, which remained the top destination of OFWs in April to September 2009. This was followed by UAE with 15.4%. OFWs in Europe and North and South America were registered at 8.3% and 7.9%, respectively.
<Table 1-9> OFWs by Major Occupation and by Place of Work: OFWs by Major Occupation/Place of Work 2008 Philippines (000) 2,002 Major Occupation 100.0 Officials of government and special-interest 2.7 organizations, corporate executives, managers, managing proprietors and supervisors Professionals 9.6 Technicians and associate professionals 6.2 Clerks 5.6 Service workers and shop and market sales workers 14.3 Farmers, forestry workers and fishermen 0.6 Trades and related workers 15.7 Plant and machine operators and assemblers 13.0 Laborers and unskilled workers 32.4 Special occupations Place of Work (in %) 100.0 Africa 1.5 Asia 78.2 East Asia 18.8 Hongkong 5.9 Japan 5.1 Taiwan 4.2 Other countries in East Asia 3.6 (including China and South Korea) Southeast and South Central Asia 10.3 Malaysia 2.6 Singapore 6.2 2008-2009 2009 1,912 100.0 2.5
10.1 6.3 4.9 14.8 .03 14.9 13.9 32.3 0.1 100.0 2.0 79.3 17.5 6.0 4.5 3.4 3.5 9.6 1.8 6.0
OFWs by Major Occupation/Place of Work Other countries in Southeast and South Central Asia (including Brunei) Western Asia Kuwait Qatar Saudi Arabia United Arab Emirates Other countries in Western Asia (including Bahrain Israel, Lebanon, Jordan) Australia Europe North and South America Other Countries
Source of Data: National Statistics Office (NSO)
2008 1.5 49.1 3.7 5.1 20.4 14.6 5.4
2009 1.8 52.1 3.7 6.1 21.6 15.4 5.4
2.4 9.4 8.4 0.2
2.6 8.3 7.9 -
1.3 The Philippine Economy Table 10 shows the GDP growth rate from 1994-2009. The Philippine economy posted positive GDP growth rates (at constant prices), except for 1998, wherein growth rate was -.58. Highest GDP growth rate was in 2007 at 7.19%. In 2009, however, the Philippines posted a GDP2) growth rate of 1.1 percent (at constant prices), lower than the 3.6% growth of 2008. This was expected, considering the spike in rice and oil prices and the global financial crisis.
2) Note: Source of GDP data is the National Statistical Coordination Board (website: www.nscb.gov.ph)
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<Table 1-10> Gross Domestic Product Growth Rate 1994-2009 GDP (%) Year Current Price Constant 1985 Price 1994 14.82 4.39 1995 12.58 4.68 1996 13.95 5.85 1997 11.73 5.19 1998 9.82 -0.58 1999 11.70 3.40 2000 12.69 5.97 2001 8.25 1.76 2002 9.15 4.45 2003 8.89 4.93 2004 12.86 6.38 2005 11.75 4.95 2006 10.82 5.40 2007 10.20 7.19 2008 11.45 3.54 2009 3.64 1.06
Source: National Statistical Coordination Board
By industrial origin, the agricultural sector comprised 15% of GDP and employed around 34% of total employment. The service sectors share to the GDP is registered at 55% (2009) and continuously expanding and increasing its contribution to the GDP and employment. This is attributed to the business process outsourcing (BPO) which is expected to generate around US$11.6B in 2010. The services sector showed the highest GDP growth in 2009 of 2.8 percent. The Industry sector experienced a decline of 0.9 percent. Despite the effects of typhoon Ondoy and Pepeng in agriculture, fisheries, and forestry, the sector was able to maintain the same level of outputs. While the GDP registered 1.1% growth rate, the GNP on the other
hand, grew by 4.0 percent in 2009, attributed largely to the increasing remittances of overseas Filipino workers (OFWs). The strong and sustained inflow of OFW remittances has kept the Philippine economy afloat and not falling into recession. OFW remittances3) reached US$ 4.722 billion during the 2nd quarter of 2010.
<Table 1-11> Gross National Product and Gross Domestic Product By Industrial Origin: Annual 2008 and 2009 at Current and Constant 1985 prices, in Million Pesos At Current Prices At Constant Prices INDUSTRY/INDUSTRY Growth Growth GROUP 2008 2009 Rate 2008 2009 Rate (%) (%) Agri. Fishery, Forestry 1,102,465 1,138,334 3.3 259,410 259,424 0.0 Industry Sector 2,347,803 2,318,882 -1.2 464,502 460,205 -0.9 Service Sector 3,959,102 4,221,702 6.6 693,176 712,486 2.8 GROSS DOMESTIC 7,409,371 7,678,917 3.6 1,417,087 1,432,115 1.1 PRODUCT (in Million US$) 168,394.8 174,520.8 Net factor income 852,121 1,131,067 174,022 222,821 from the rest of the world GROSS NATIONAL 8,261,492 8,809,984 6.6 1,591,109 1,654,936 4.0 PRODUCT
Source: National Statistical Coordination Board (NSCB)
Comparing the 2nd Quarter of 2009 and 2010, a more improved economic performance, as shown in Table 12, was noted. A more optimistic growth is expected for the whole year of 2010 and beyond. This can be attributed to the peaceful national elections; improved investors confidence, especially among local investors; the
3) Bangko Sentral ng Pilipinas website: www.bsp.gov.ph
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global economic recovery; increased capital expenditure of government; and a low base fueled domestic economy. The continued increase in the earnings of the countrys overseas workers sustained the NFIA.
<Table 1-12> Gross National Product and Gross Domestic Product by Industrial Origin: 2nd Quarter 2009 and 2nd Quarter 2010, in Million Pesos At Current Prices At Constant 1985 Prices INDUSTRY/INDUSTRY Growth Growth GROUP Q2 2009 Q2 2010 Rate Q2 2009 Q2 2010 Rate (%) (%) AGRI.FISHERY,FORESTRY 245,244 248,232 1.2 59,126 57,328 -3.0 INDUSTRY SECTOR 561,749 674,986 20.2 117,942 136,594 15.8 SERVICE SECTOR 1,052,888 1,166,206 10.8 178,624 189,989 6.4 GROSS DOMESTIC 1,859,880 2,089,424 12.3 355,692 383,911 7.9 PRODUCT Net factor income 290,521 325,853 57,375 61,788 from the rest of the world GROSS NATIONAL 2,150,401 2,415,277 12.3 413,067 445,700 7.9 PRODUCT
Source: National Statistical Coordination Board (NSCB)
1.4 Philippine Education System The education system in the Philippines embraces formal and non-formal education. It is closely related to the American model of education but differs in the number of school years, as other countries have 12 years basic education. In the Philippines, however, elementary education is composed of 6 years, and secondary education is 4 years which, together with the tertiary education, comprise the formal education system.4)
[Figure 1-1] Philippine Education System
The Congressional Commission for Education (EDCOM) recommended that the different levels/categories of education should be managed separately, so that the specific needs of each category can be identified and well attended to for effective and efficient implementation. Thus, the management of the countrys educational system is trifocalized with the Department of Education managing basic education (elementary and secondary levels); the Technical Education and Skills Development Authority (TESDA) responsible for post-secondary technical-vocational education and training; and the Commission on Higher Education (CHED) managing tertiary education in community colleges, universities, and specialized colleges.
4) Excerpt from Syjuco, A.G. The Philippine TVET System.
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As to the magnitude of schools in the Philippines providing education and training in all levels of education, there are around 44,691 elementary schools;10,066 secondary schools; 2,180 colleges and universities; and 4,041 TVET institutions. Basic Education Despite the fact that basic education is free, not all Filipinos of school-age population go to school. Around about 2.2 million children (17% of 13.2 million children aged 6-11) were unable to attend elementary schools in SY 2006-2007 for various reasons, mostly due to economic reasons. In terms of key basic education indicators presented in the following table, the country is far short of the commitments / targets set for Education for All (EFA) and the Millennium Development Goal (MDG).
<Table 1-13> Key Performance Indicators in Basic Education Basic Education Performance Indicators, 2004-2009
Indicators ELEMENTARY Net Intake Rate in Grade 1 Gross Enrolment Rate Net Enrolment Ratio Cohort Survival Rate Completion Rate Dropout Rate (School Leaver) NAT Result (MPS ) SECONDARY Gross Enrolment Rate Net Enrolment Ratio Cohort Survival Rate Completion Rate Dropout Rate (School Leaver) NAT Result (MPS Secondary)* 83.9 60.0 78.1 72.4 8.0 46.80 80.5 58.5 67.3 61.7 12.5 46.97 79.5 58.6 77.3 72.1 6.6 46.64 81.4 61.9 79.9 78.7 7.5 49.26 82.9 60.7 79.7 75.2 7.5 82.2 62.4 78.5 73.7 8.0 2.0 85.0 93.0 41.3 104.2 87.1 71.3 69.1 7.0 58.73 36.6 101.1 84.4 70.0 68.1 7.3 54.66 39.7 99.9 83.2 73.4 71.7 6.4 59.94 45.6 102.0 84.8 75.3 73.1 6.0 64.81 48.0 102.1 85.1 75.3 73.3 6.0 48.4 100.8 85.0 74.4 72.2 6.3 3.0 96.0 80.0 86.3 2004 2005 2006 2007 2008 2009 Target 2010
66.33 69.21**
47.40 46.38**
* Administered to 4th year students from 2004 to 2005 and 2nd year students from 2006 onwards ** Public only Source: Department of Education
The total enrolment in elementary level showed an increasing trend, registering 12,760,243 pupils enrolled in SY 2000-01, to 13,686,643 enrolled in SY 2008-09. In secondary education, enrollment also showed an increasing trend, from 1,245,682 enrolled in SY 2000-01, to 1,342,296 enrolled in SY 2008-09.
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<Table 1-14> Elementary and Secondary Enrollment: SY 2000-01 to SY 2008-09

School Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Enrollment Elementary 12,760,243 12,878,600 12,980,743 12,986,360 13,015,487 12,913,845 13,145,210 13,411,286 13,686,643 Secondary 1,245,682 1,281,193 1,219,403 1,244,252 1,268,255 1,287,985 1,290,792 1,332,846 1,342,296
Source: Department of Education
Technical Vocational Education and Training Total enrollment from 2001 of 624,723 reached 1,982,435 in 2009. From 2001 to 2007 there is a significant increase in total enrollment, except in 2004. Then from 2008 to 2009, a downward trend was observed. On the other hand, total graduates in 2001 were 567,930 and reached 1,903,793 in 2009. From 2001 to 2009, there is a significant increase in total graduates, except in 2003 and 2004.
<Table 1-15> TVET Enrolled and Graduates: 2001 to 2009

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: TESDA
Enrolled 624,723 1,240,099 1,318,088 1,220,438 1,683,382 1,736,865 2,142,414 2,013,920 1,982,435
Graduates 567,930 1,127,363 1,006,561 839,898 1,154,333 1,340,620 1,702,307 1,812,528 1,903,793
Higher Education The total enrollment in higher education was registered at 2,440,202 in SY 2000-2001, increasing to 2,483,645 in SY 2005-2006.
<Table 1-16> Higher Education Enrollment: SY 2000-01 to SY 2005-06
School Year 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
Source: CHED
Enrollment 2,430,842 2,466,056 2,426,976 2,431,378 2,402,315 2,483,645
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1.5 The Medium Term Philippine Development Plan (MTPDP) MTPDP 2004-2010 The MTPDP is the Philippines detailed roadmap towards economic and social development. For the MTPDP 2004-2010, the basic task of the plan is to fight poverty by building prosperity for the greatest number of the Filipino people. The plan also articulated that the country must open up economic opportunities; maintain socio-political stability; and promote good stewardship all to ensure better quality of life of its citizens. The focus on strategic measures and activities will spur economic growth and create jobs. This can only be done with a common purpose of putting the economic house back in order. The 10-point agenda of the government to be achieved by 2010 as contained in the plan are as follows: LIVELIHOOD - Ten (10) million jobs shall have been created. EDUCATION - Everyone of school age will be in school, in an uncrowded classroom, in surroundings conducive to learning. Three thousand school buildings a year shall have been build and a computer put in every high school. FISCAL STRENGTH - The budget shall have been balanced with the right revenues collected and spending on the right things ensured. DECENTRALIZED DEVELOPMENT 1. The network of transport and digital infrastructure on which the
government embarked in 2002 shall have linked the entire country. 2. Power and water shall have been regularly provided to the entire country. 3. Metro Manila will have been decongested with economic activity growing and spreading to new centers of government, business, and community in Luzon, the Visayas, and Mindanao. 4. The Subic-Clark corridor will have become the most competitive international service and logistics center in the Southeast Asian region. NATIONAL HARMONY 1. Elections will no longer raise a doubt about their integrity. The electoral process will have been completely computerized. 2. Peace will have come to Mindanao and all insurgency areas. 3. The divisive issues generated by EDSA 1, 2 and 3 will have had a just closure. Based on the 10-Point Agenda, the targets of the MTPDP 2004-2010 are as follows: GDP growth accelerating to 7-8% by the years 2009 and 2010; An investment in GDP ratio nearing 28% by 2010; Exports exceeding $50 billion by 2006; A balanced budget by 2010; Annual job creation exceeding 1.7 million jobs by 2009; and Poverty incidence reduced to below 20% by 2009.
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MTPDP 2011- 2016 The Philippines is now in the process of crafting the MediumTerm Philippine Development Plan for 2011-2016. The new plan will focus on translating President Benigno S. Aquinos III development agenda, as contained in his Social Contract with the Filipino People, into strategies, polices, and programs. The social contract specifies changes leading to the following: A. Transparent and accountable governance; B. Upliftment and empowerment of the poor and vulnerable; C. Growing the economy through: 1. Public infrastructure development, 2. Strategic public-private partnerships, and 3. Policy environment for greater governance; D. Creating sustainable development for reform through: 1. Peace, 2. Justice, and 3. Integrity of natural resources. The plan formulation, given the intended changes, shall focus on the following approaches: A. Attain a high and sustained economic growth; B. Provide equal access to development opportunities; and C. Formulate effective social safety nets.
2. Employment and Labor Market

Correspondingly, with the rise in population, the Philippine labor force is also increasing. From 28.1 M Filipinos in the labor force in 1995, the figure grew to 37.9 M in 2009. However, the labor force participation rate decreased from 65.6% in 1995, to 64.0% in 2009. The highest labor force participation rate was registered in 2003 at 67.5%. Over the last 15 years, employment rate was highest in 2007 at 93.7%, and unemployment rate at the manageable level of 6.3%. As of July 2010, the countrys employment rate was 93.1% (36.3 million) and is slightly higher than in 2009.
<Table 1-17> Household Population 15 1995-2010 Household Population, In the Labor Year 15 Years Old and Force (in 000) Over (in 000)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 42,770 45,034 46,214 47,415 48,637 48,076 49,424 50,841 52,305 53,569 54,799 55,988 56,845 58,183 59,237 60,934 28,057 29,632 30,270 31,294 32,003 30,913 33,361 33,657 35,097 35,623 35,510 35,832 35,926 37,063 37,912 38,993
and Over by Employment Status:

Labor Force Participation Employment Unemploymen Rate (%) t Rate (%) Rate (%) 65.6 91.6 8.4 65.8 92.6 7.4 65.5 92.1 7.9 66.0 90.4 9.6 65.8 90.6 9.4 64.3 89.9 10.1 67.5 90.2 9.8 66.2 89.8 10.2 67.1 89.8 10.1 66.5 89.1 10.9 64.8 92.6 7.4 64.0 92.1 7.9 63.2 93.7 6.3 63.7 92.9 7.1 64.0 92.5 7.5 64.0 93.1 6.9
* as of July 2010
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Source: National Statistical Coordination Board
As to the employment rate by sex, it will be noted that from 2000 to 2010, the female employment rate was higher than that of their male counterparts. In terms of total magnitude, however, there are more males employed than females. It is interesting to note also that employment rates are higher in the older age groups, i.e. 35-44, 45-54, and 64 and over categories. The age group 15-24 registered the lowest employment rate across age groups and periods. This could be attributed to the fact that most of the young people have just completed their schooling and have yet to earn experience which is one the requirements of the employers in hiring. Others, however, are inadequately educated and lack the necessary skills and qualifications to be employable.
<Table 1-18> Employment Rate by Sex and Age Group By Sex 2000 2001 2002 Male 89.7 90.6 89.9 Female 90.1 89.7 89.8 By Age Group 15-24 78.8 81.0 78.6 25-34 89.3 88.9 89.3 35-44 94.7 94.8 94.6 45-54 95.0 95.0 95.2 55-64 94.6 94.6 94.6 65 and over 93.4 93.1 92.7 Sex, By Age Group: Year 2003 2004 2005 2006 90.0 89.6 92.6 92.4 89.7 88.3 92.6 93.2
80.3 90.4 94.8 93.9 92.7 93.4 78.3 89.7 94.3 93.5 92.4 92.5 83.6 92.0 96.3 96.6 97.5 98.9 83.1 92.0 96.5 97.0 97.5 98.9
2000-2010
2007 2008 2009 93.6 93.0 92.6 94.0 93.4 93.3 85.1 93.2 97.3 97.6 97.6 99.0 83.5 93.0 97.0 97.3 97.3 99.0 83.4 92.0 96.8 97.3 97.6 98.9
Source: Labor Force Survey, National Statistics Office
Of the estimated 36.3 million employed persons in July 2010, the services sector was the largest group, comprising more than half
(51.2%) of the total employed population. The highest employed workforce in the services sector were in wholesale and retail trade; repair of motor vehicles and motorcycles; and personal and household goods (19.4% of the total employed). Workers in the agriculture sector accounted for 33.9 percent of the total employed, with those engaged in the agriculture, hunting, and forestry sub-sector making up the largest sub-sector (29.9% of the total employed). Only 14.9 percent of the total employed were in the industry sector, with the manufacturing sub-sector making up the largest percentage (8.3% of the total employed). Among the various occupation groups, the laborers and unskilled workers comprised the largest group, posting 31.8 percent of the total employed population. By class of worker, wage and salary workers in July 2010 accounted for 53.2 percent of the total employed. Government workers, or those working for government corporations, comprised only 8.4 percent of the total employed, while 5.0 percent were workers in private households.
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<Table 1-19> Employed Persons by Industry, Occupation, Class of Worker and Hours Worked, Philippines: July 2009 and July 2010 (in Percent) Selected Indicators July 2009 July 2010 Employed Persons (in 000) 35,508 36,285 Industry Sector 100.0 100.0 Agriculture 33.6 33.9 Industry 14.9 14.9 Services 51.5 51.2 Occupation 100.0 100.0 Officials of government and special interest 13.8 13.6 organization, corporate executives, managers, managing proprietors and supervisors Professionals 4.5 4.7 Technicians and associate professionals 2.6 2.6 Clerks 5.1 5.7 Service workers and shop and market sales workers 10.5 10.3 Farmers, forestry workers and fishermen 16.2 16.8 Trades and related workers 7.8 7.8 Plant and machine operators and assemblers 6.1 6.2 Laborers and unskilled workers 33.0 31.8 Special Occupations 0.4 0.4 Class of Worker 100.0 100.0 Wage and salary workers 55.3 53.2 Own Account 33.9 34.8 Unpaid family workers 10.8 12.0 Hours Worked 100.0 100.0 Working: Less than 40 hours 34.1 35.0 40 hours and over 64.9 64.3 Did not work 1.0 0.8
Source: July 2010 LFS, National Statistics Office
The number of unemployed persons was higher among males (62.6%), than among females (37.4%). More than half (52.4%) of
the unemployed were in the age group of 15 to 24 years. About one-third (32.5%) of the unemployed were high school graduates; 22.7 percent were college undergraduates; and 20.5 percent were college graduates.
<Table 1-20> Unemployed Person by Age Group, Sex, and Highest Grade Completed, Philippines: July 2009 and 2010 Selected Indicators July 2009 July 2010 Unemployed Persons (in 000) 2,922 2,708 Age Group 100.0 100.0 15-24 52.8 52.4 25-34 28.0 28.4 35-44 9.3 9.7 45-54 6.1 6.1 55-64 3.1 3.0 65 and Over 0.7 0.4 Sex 100.0 100.0 Male 62.6 62.6 Female 37.4 37.4 Highest Grade Completed 100.0 100.0 No Grade Completed 0.5 0.4 Elementary 13.4 12.4 Undergraduate 6.3 5.8 Graduate 7.2 6.6 High School 45.0 44.0 Undergraduate 12.0 11.5 Graduate 33.0 32.5 College 41.1 43.2 Undergraduate 21.5 22.7 Graduate 19.6 20.5
Source: July 2010 LFS, National Statistics Office
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2.1 Skill Supply and Demand: Skill Level and Numbers Skill Supply There are only two (2) government agencies that have a licensing/ certification mandate. TESDA is for certification of skilled workers/ middle-level manpower, while the Professional Regulation Commission (PRC) is for the professionals. On the average, almost 500 thousand certified workers in different qualifications are added to the pool of qualified / skilled workers. On the other hand, around 200 thousand professionals from different fields are licensed.
<Table 1-21> Persons Assessed and Certified by Priority Sector: 2005-2009
Sector Agriculture & Fishery Automotive Construction Electronics Footwear & Leathergoods A 3,704 39,361 26,495 11,519 2007 C % 2,743 74 21,736 55 18,855 71 5,877 51 A 2,751 37,107 20,295 15,801 2008 C % 2,377 86 28,216 76 17,179 85 11,318 72 A 4,958 60,233 50,168 37,185 35 2009* C % 4,513 91 45,391 75 40,968 82 25,607 69 35 100 80 93 82 65 96 81 85 93 83
Furniture 310 212 Garments 3,998 2,309 Health 107,963 97,294 HVAC-R 4,314 3,233 ICT 82,540 42,744 Maritime 62,195 59,137 Metals & Engineering 21,462 14,981 Tourism 34,148 23,505 Processed Foods Utilities 702 593 Others Total 398,711 293,219 Note: A Assessed, C Certified Source: TESDA
68 1 1 100 58 3,799 2,984 79 8,177 6,575 90 122,283 115,939 95 187,052 173,791 75 4,584 3,892 85 9,818 8,060 52 126,364 74,706 59 132,618 86,791 95 50,632 48,699 96 61,117 58,629 70 24,999 19,931 80 63,929 51,848 69 69,113 59,191 86 210,067 178,646 - 10,775 9,983 84 - 74,627 47,054 63 74 552,356 431,487 78 836,131 690,836
Annually, the higher education system is producing around 500,000 graduates of degree courses. Performance in licensure examination recorded in the PRC, however, shows an average passing rate of only 36.26% across all disciplines as of 2009.
<Table 1-22> Enrolment and Graduates of Degree Program by Discipline: 2007-2009
2 2008-20091 2006-2007 2007-2008 2 Enrollment Graduates Enrollment Graduates Enrollment Graduates Agri, Forestry, Fisheries, Vet. Med. 59,397 15,555 63,074 15,980 60,759 16,861 Architectural and Town Planning 19,015 3,485 20,305 3,623 20,040 3,865 Business Admin. And Related 572,174 111,283 520,711 111,530 511,301 114,872 Education and Teacher Training 331,416 87,351 339,065 90,691 329,279 96,646 Engineering and Teachnology 315,412 57,817 309,130 60,003 308,376 63,919 Fine and Applied Arts 12,216 2,002 12,225 2,087 12,694 2,232 General 20,698 2,568 15,892 2,120 10,803 1,717 Home Economic 5,568 1,371 4,684 1,431 4,354 1,532 Humanities 26,558 5,725 29,300 5,928 30,343 6,302 Information Technology 251,661 44,133 259,384 45,985 266,903 49,168 Law and Jurisprudence 16,977 3,796 18,080 4,028 18,068 4,379 Maritime 54,870 7,160 55,521 5,287 49,961 3,504 Mass Communication and 30,020 5,466 26,150 5,564 25,812 5,820 Documentation Mathematics 14,553 2,028 12,697 1,969 12,843 1,962 Medical and Allied Services 609,659 73,781 622,548 79,647 693,240 87,900 Natural Science 23,149 4,661 22,819 4,659 22,315 4,787 Religion and Theology 8,568 1,608 6,729 1,662 6,421 1,764 Service Trades 19,740 2,469 17,650 2,465 18,352 2,529 Social and Behavioral Science 67,452 15,821 70,506 16,270 71,705 17,184 Trade, Craft and Industrial 9,891 3,438 11,807 3,853 13,322 4,388 Other Disciplines4 135,455 22,095 127,257 23,741 132,904 26,096 Total Enrollment of Priority 1,679,132 295,971 1,704,543 307,844 1,763,716 328,612 Discipline Grand Total 2,604,449 473,613 2,565,534 488,523 2,619,795 517,427
Discipline Group
Note: Shaded row refers to Priority Discipline 1 Forecasted data 2 Preliminary data Includes graduates in pre-bacalaureate, post-baccalaureate, masters and doctorate programs As of 03 December 2008
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Demand for Professionals and Skilled Workers The in-demand occupations refer to active occupations/job vacancies posted/advertised recurrently by and across industries/establishments. On the other hand, hard-to-fill occupations refer to job vacancies for which an establishment has encountered difficulties in managing the recruitment process for various reasons, such as no applicants, applicants lack of experience, skill or license, preference for working abroad, seeking higher salary, problem with location, and other reasons. The Bureau of Labor and Employment (BLES) 2008 Occupational Shortages and Surpluses Survey provided statistical figures that substantiate the initial findings in the PROJECT JOBSFIT. Table 22 shows the hard-to-fill and in-demand occupations in the different industry sectors. The results are only in qualitative Form, and there are no indications on the level and quantity. The Project JobsFit validated the existence of labor supply and demand mismatch with the following major issues and gaps raised by the stakeholders: 1. Lack of experienced and highly skilled workers; 2. School curriculum not responsive to industry needs; and 3. Poor dissemination of labor market information.
<Table 1-23> Hard-to-Fill and In-Demand Occupations

INDUSTRY A. KEY EMPLOYMENT GENERATORS 1. AGRIBUSINESS IN-DEMAND HARD-TO-FILL Animal Husbandry Feed Processor/Food Technician Agricultural Economist Fishery Technologist Aqua-culturist Coconut Farmer Entomologist(Plant) Farmer(Fruit, Vegetable and Root Crops) Fisherman Horticulturist Plant Mechanic Rice Tresher Operator-Mechanic Veterinarian Pathologist Animator Accountant HR Outsourcing Specialist Call Center Agent Medical Transcription Editor Medical Transcription Computer Programmers Developer (Software, Web) IT(MIS Developer,Platform Engineer) Specialist (Learning Solution,System and Technical Support) Doctor Nurse Physical Therapist Herbologist Pharmacist Optician Medical Technologist Optometrist Physician/Surgeon Spa/Massage Therapist Masseur Cook Front Office Agent/Attendant Baker Food Server and Handler Food and Beverage Service Attendant Waiter Bartender Room Attendant Other Housekeeping Services Reservations Officer and other Frontline Occupation Tour Guides Geologist Mining Engineer
2.CYBERSERVICES Animation Back Office Processing Customer Contact Medical Transcription Software Development 3. HEALTH AND WELLNESS
4. HOTEL AND RESTAURANT & TOURISM
5. MINING
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HARD-TO-FILL Geodetic Engineer Metallurgical Engineer Mining & Metallurgical Technicians 6. CONSTRUCTION Fabricator Engineer (Civil, Pipe Fitter Electrical,Design,Structural, Welder Planning and Contract) 7. BANKING & FINANCE Operations Manager Accounting Clerks Teller Bookkeepers Auditor Cashier Credit Card Analyst Finance Analyst/Specialist Accountant (Account Officer, Analyst) Risk Management Officer/Manager 8. MANUFACTURING Electrical Technicians Chemist Finance and Accounting Managers Electrical Engineer Industrial Engineer Food Technologist IT Specialist Machine Operators Machinist Sewer Mechanical Engineers Mechanical Technicians Chemical Engineer Civil Engineer Building Manager 9. OWNERSHIP Mechanical Engineer DWELLINGS & REAL Construction Manager Surveyor ESTAE Construction Worker Architect Foreman Mason Welder Real Estate Agents/Brokers Marketer Gantry Operator 10. TRANSPORT & Checker Ground Engineer LOGISTICS Maintenance Mechanics Heavy Equipment Operator Stewardess Long Haul Driver Pilot Transport and Logistics Machinery Operator Aircraft Mechanic and other related skills 11. WHOLESALE & RETAIL Merchandiser/Buyer Cashier TRADE Salesman/Saleslady Promodizer Source: Project Jobsfit DOLE 2020 Vision
INDUSTRY
IN-DEMAND
New Demands: Industry and government policy

Annually, the Philippines, through the Board of Investments (BOI), formulates the Investment Priorities Plan (IPP) which is approved by the President. The IPP provides a platform for the country to maximize the opportunities and benefits of global economic developments and the implementation of its international agreements. It provides for priority investment areas which are covered by incentives. In 2010, the priority areas identified are those that can provide the greatest push for the country to attract more investments and generate more jobs. This covers the Regular List, which contains priority investment areas to support the current priority programs of the government; the Export Activities, which covers manufacture of export products, export services, and activities in support of exporters; the Mandatory List, which now includes the recently passed Republic Act No. 9593; the Tourism Act of 2009, which covers all areas/activities where the inclusion in the IPP and/or the grant of incentives under Executive Order 226 is mandated by law; and the ARMM List, which covers priority investment areas that have been determined by the Regional Board of Investments of the Autonomous Region of Muslim Mindanao (RBOI-ARMM), in accordance with Executive Order 458. The economic activities listed in the ARMM shall be entitled to incentives, provided that the said activities are undertaken in the ARMM region. Information on industry demand and priorities, such as those in the IPP, is regularly monitored, as this is critical in determining the
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availability of employment opportunities.
Section 2. The Philippine TVET System5)

Technical vocational education and training (TVET) in the Philippines has long been recognized as an instrument in preparing students and other clients for employment. It also addresses the skills training requirements of those who are already in the labor market and would need to upgrade or acquire new competencies to enhance employability; improve productivity; or facilitate career shift. The challenge for TVET remains as to how to make it more responsive to the dynamic changes in the local labor market, particularly with the structural adjustment and the changing patterns of trade and competition in the world economy. The continuing pressure on the technical vocational education and training sector to develop skills more efficiently in the face of globalization; the fast pace of technology change; and the need to effectively address the issue of jobs and skills mismatch calls for a TVET system that can address these concerns. The paradigm of SEEK+FIND+TRAIN+CERTIFY=EMPLOYABILITY fully illustrates the order of business in the TVET sector to enhance the employability of the TVET graduates. As the mandated government agency for TVET, TESDA seeks the jobs; finds the people that can
5) Excerpts ased from the Investing on the Filipinos Thru TVET: TESDA Report. July 201
fill them; and trains them based on the standards of industry; assessed and certified the workers, as evidence of competence and qualification of the jobs; and facilitate the employment of the qualified graduate for available jobs.
[Figure 1-2] The TVET Development Loop to Employability
This paradigm is operationalized through the TVET Development Loop to Employability. This consists of four main components: the TVET Support System; the TVET Delivery System; TVET Financing; and the TVET Quality Assurance System, which are interrelated and mutually reinforcing.
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1. TVET Support System

This pertains to pre- and post-training support to ensure the best-job-fit of workers and students. The major components include social marketing and advocacy campaign to elevate the status of TVET; labor market intelligence; career profiling and guidance services; job bridging and placement assistance; TVET scholarships; and TVET Trainer Development. Support is done in the form of labor market intelligence from our industry sector partners. In this respect, the availability of timely, relevant labor market information is very critical. The needed information from employers include where and when the jobs are needed and what specific skills and competencies are required from the workers. At the same time, information on how many; what skills and competencies are possessed by the graduates of the education and training system; and where are they located, are also essential features of a truly functional labor market information system. TESDA also utilizes labor information for career guidance activities. There are two mechanisms available in the Philippines to facilitate career guidance. One is the National Career Assessment Examination (NCAE) of the DepEd administered to 4th year high school students. TESDA has career profiling services for other clientele not reached by NCAE. The Career Profiling Program is a complete guidance delivery system to help young Filipinos make right career choices and displaced workers redirect themselves to new occupation paths, based on an objective assessment of their
strengths and interests, coupled with information on job/employment opportunities. Through this program, students and parents are equipped adequately to make the right career decision leading to a greater job fit and greater value to education and training investment. The career profiling efforts for the youth are anchored in the Seek-Find-Train Paradigm and proactive job-skills matching approach that aims for the BEST JOB FIT. The industry provides the cues to industry need; the Department of Labor and Employment- Public Employment Service Office (DOLE PESO) provides job facilitation services; and the network of public and private TVET providers delivers the training programs. After training, job referral and placement services are provided to shorten the job search period. It is also very critical that a tracking system is established to measure the effectiveness of our training interventions. In TESDA, the regular tracking of TVET graduates is being done every two years to determine their employability. At the institutional level, the TVET institutions are also encouraged to monitor the employment of their graduates within six months to one year after the end of the training program. The TVET Trainer is an important and critical element in the delivery of quality TVET programs. More than increasing the trainers in number, the greater challenge is ensuring their quality. TESDA has adopted the Philippine TVET Trainers Qualifications Framework (PTTQF) to guide the development and recognition of qualifications of trainers in the TVET sector. The PTTQF has the following features:
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Qualification Levels I to IV, from Trainer I to Mentor/Master Trainer; The qualification level is a combination of Competencies in Technology and Methodology / Professional streams; The technology levels follow the Philippine TVET Qualification Framework, a system of assessment and certification for workers; A trainer must have a National Certificate level higher than the qualification level of the trade he/she is teaching; A TVET trainer must be at least NC II certified; Only Mentors/Master Trainers are allowed to handle training of Trainers; and The methodology levels shall follow the Trainers development paradigm. With the PTTQF as the framework, TESDA has embarked on an intensified effort to capacitate the TVET trainers through the TVET Trainers Development Program (TTP). As a matter of policy, all TVET trainers must be at least TQ1 qualified to be allowed to teach TVET programs registered in qualifications with Training Regulations. Being TQ1 means the TVET Trainer is a qualified trainer and assessor. The trainer/assessor development program is a continuing initiative to raise the level of the TVET trainers from TQ1 to TQ2, and higher. TESDAs recognition of the importance of the TVET trainer is clearly manifested by the establishment of the National TVET Trainers Academy (NTTA). The NTTA is tasked to manage the
nationwide conduct of the Trainers/Assessors Methodology Program and ensure the development of qualified TVET trainers. From 2005 to 2009, a total of 20,381 TVET trainers have been certified as TQ1.
2. TVET Delivery
The Philippine technical-vocational education and training (TVET) system can be characterized as competency-based, accessible and open, flexible and responsive to industry requirements and quality assurances. TVET in the Philippines is delivered through by the network of public and private institutions through the following modes: school-, center-, enterprise--, and community-based technology training programs. The programs are registered with TESDA to ensure that they meet the minimum standards set by industry. School-Based Programs - These programs refer to the direct delivery or provision of TVET programs by the public and private providers, including the TESDA administered schools. These school-based programs include post-secondary course offerings of varying duration depending on the training regulation. Center-Based Programs - These programs refer to training programs being undertaken in the 16 TESDA Regional Training Centers (RTC); 45 provincial training centers (PTC); and specialized centers, such as the TESDA Womens Center, TESDA Training Center Taguig Campus Enterprise (TTCTCE), and Korea-Philippines Training Centers, as well as private
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training centers. Program offerings in the centers are also qualification- or TR-based, similar to the TVET schools. Enterprise-Based Programs These programs are training programs being implemented within companies/firms. They programs can be any of the following: - Learnership Program is practical, on-the-job training for approved learnable occupations for a period not exceeding three (3) months. Only companies with TESDA approved and registered learnership programs can hire learners. Learners are absorbed by the companies after training. - Dual Training System (DTS) is an instructional delivery system that involves two venues of learning 30% in the school/training center and 70% in the company/ establishment. The training is based on a training plan collaboratively designed and implemented by an accredited dual system educational institution/training center and accredited dual system of agricultural, industrial, and business establishments. The dual system aims to 1) encourage increasing levels of investments in TVET by both public and private institutions; 2) enhance the employability and productivity of graduates; and 3) strengthen training cooperation between the establishments and educational institutions. Schools/training centers and business establishments interested in adopting DTS must register their programs and apply for accreditation through TESDA. - Apprenticeship Program - This is an enterprise-based training
undertaken within the company which involves a contract between a trainee and an enterprise on an approved apprenticeable occupation. The program serves as a bridging mechanism to enhance the governments skills development and employment facilitation programs, and it provides new entrants to the labor force with the opportunity to acquire basic skills and work experience, which are of prime importance to employers in hiring new employees. Community-based Training These are TVET programs conducted in the communities, mostly in partnership with local government units (LGUs) and non-government organizations. Programs conducted are usually based on the local skills requirements and resources available in the area. Community-based Training These are TVET programs conducted in the communities, mostly in partnership with local government units (LGUs) and non-government organizations. Programs conducted are usually based on the local skills requirements and resources available in the area. As of December 2009, there were 4,041 public and private TVET institutions nationwide. TESDA directly administers 126 TESDA Technology Institutions, including specialized centers like the TESDA Womens Center; the TESDA Language Skills Institutes; and the Korea-Philippines Information Technology Centers. Within a 5-year time frame from 2005-2009, total TVET output has been on the rise, reaching 1.9 million graduates in FY 2009,
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from only 1.2 million in FY 2005, representing a 65% increase over the 5-year period. The total number TVET graduates from 2005 to 2009 is 7,913,581. These graduates are equipped with the necessary skills and competencies that can make them employable and productive.
3. TVET in Secondary Education

One of the priority programs of the Department of Education (DepEd) from 2007 to 2010 is the Strengthened TechnicalVocational Education (STVEP). This program is aimed at providing the tech-voc (technical-vocational) high school students with relevant and certifiable skills to give them greater chances of being employed, even if they drop out of high school or do not proceed to college. STVEP is also directed at linking basic education to post-secondary and/or higher education through the ladderized education system. DepEd recognizes the need to ensure that the tech-voc programs in high school comply with standards prescribed by industry through the training regulations promulgated by TESDA. TESDA provided assistance to DepEd in the training of more than a thousand principals, administrators, head teachers and teachers from 282 tech-voc high schools on competency-based system; training methodology; and curriculum and learning materials development. Support was also provided in the development of the competencybased curriculum (CBC); conceptual learning materials (CLM); and learning materials. The DepEd is now implementing the CBC, CLM,
and instructional modules in their tech-voc high schools. A total of 1,676 DepEd teachers have been certified in various qualifications, 102 of which have CoCs; 182 have NC I; and 1,392 have NC II.
4. TVET Quality Assurance

TESDA ensures that all TVET programs are delivered in accordance with the minimum national standards through the enforcement of mandatory TVET program registration. As a vital quality assurance mechanism, TESDA also enforces mandatory assessment of all TVET graduates. All trainees who pass the assessment are given their certificates of competency which serve as a national trade credential. At the moment, TESDA is now working towards an ISO 2001-2008 certification. The TVET quality assurance mechanisms in place are described, as follows: 4.1 Training Regulations (TRs) Training Regulations (TRs) are developed in consultation with industry and promulgated by the TESDA Board. The TRs contain the national qualification; competency standards; training standards; and assessment and certification arrangements. They spell out the parameters for ensuring quality in delivery of a TVET program. They also serve as the bases for competency assessment and certification, registration, and delivery of TVET
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programs, and development of curriculum and assessment instruments. As of September 2010, a total of 218 training regulations have been promulgated by the TESDA Board. 4.2 Unified TVET Program Registration and Accreditation System (UTPRAS) The Unified TVET Program Registration and Accreditation System is the quality assurance mechanism for the mandatory registration of technical-vocational programs with TESDA. Registration signifies compliance of the TVET program in the following: curriculum design, qualification of trainers, facilities, and tools and equipment. UTPRAS is primarily intended to promote public interest and welfare by ensuring the quality of TVET Programs. The registration system is anchored on the competency-based system, wherein TVET programs adopt the qualification titles being prepared for and the competency or set of competencies that are to be acquired. The system prescribes compliance with minimum standards provided in the TRs promulgated by the TESDA Board. The registration system is referenced on the Philippine TVET Qualification and Certification System (PTQCS). As such, TVET programs shall be categorized on the basis of the qualification levels in the Philippine TVET Qualification Framework (PTQF) namely: National Certificate (NC) I; National Certificate (NC) II; National Certificate (NC) III and National Certificate (NC) IV. It leads to a
more efficient and effective management of the TVET sector. In order to ensure and monitor adherence to prescribed standards, compliance audits are being done regularly by the field offices. There were 19,706 registered TVET Programs as of September 2010. A component of UTPRAS is voluntary accreditation, which refers to the process of assessing and upgrading the quality of TVET programs through self-evaluation and external assessment by a TESDA-recognized accrediting body. The system provides multi-level accreditation status, public recognition, and conferment that a TVET program meets the standards set beyond the minimum requirements of program registration. TESDA has recognized the Asia Pacific Accreditation and Certification Commission (APACC) as one of the accrediting bodies for TVET. The APACC is a regional accreditation and certification body established by Colombo Plan member governments which recognize the need to cope with the rapid changes in the labor market and skills taught in technical and vocational education and training (TVET) institutions. The 7 APACC Accreditation Criteria used in the process include: Governance and Management; Teaching and Learning; Faculty and Staff; Research and Development; Extension, Consultancy, and Linkages; Resources, Financial Resources, Physical Plant and Facilities,
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Library, Workshops/Laboratories Information Technology; and Student Services. The implementation of program accreditation through APACC is initially focused on the 126 TESDA technology institutions (TTIs). As of 2009, there were three (3) TTIs that have been accredited as silver by APACC, and eight (8) were given Bronze Level accreditation. 4.3 Assessment and Certification Assessment and certification ensures that the TVET graduates and skilled workers have the necessary competence to perform the tasks consistent with the required standards in the workplace. As a matter of policy, TESDA requires mandatory assessment for graduation in qualifications covered by a promulgated training regulation. The assessment process is done to confirm that the graduate or worker can perform to the standard expected in the work place, based on the defined competency standards. Certification is provided to those who meet the standards. This ensures the productivity, quality, and global competitiveness of the middle-level workers. The national certificate (NC) issued to the worker/graduate is renewable every 5 years. TESDA has a registry of certified workers which provides information on the pool of certified workers for certain occupations nationwide. TESDA also has accredited assessment centers, as well as competency assessors, who conduct competency assessment
processes for persons applying for certification. TESDA is one of the only two (2) government agencies that have licensing/certification mandate. The Professional Regulation Commission (PRC) is for the professionals, while TESDA is for skilled workers/ middle-level manpower. The assessment and certification performance for the past 5 years showed an upward trend, signifying an increasing number of competent and skilled workers who are job-ready and meet the standards of industry. This also reflects the response of TVET institutions in meeting quality and competency standards defined in the training regulations. The number of persons assessed has risen considerably, from 223,984 in 2005, to 836,131 in 2009, or an increase of more than 270%, from the 2005 level. The number of persons certified increased from 108,361 in 2005, to 690,836 in 2009, or an increase of more than 500%. The certification rates also increased over time from 48.3% in 2005, to 82.6% in 2009.
Section 3. GOVERNANCE OF THE TVET SYSTEM

1.1 The Creation of TESDA The Technical Education and Skills Development Authority (TESDA) was created through the enactment of Republic Act No.
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7796, otherwise known as the Technical Education and Skills Development Act of 1994. It was signed by President Fidel V. Ramos on August 25, 1994. Under TESDA, the functions of the National Manpower and Youth Council (NMYC); the Bureau of Technical Vocational Education (BTVE) of the Department of Education, Culture and Sports (DECS); and the apprenticeship program of the Department of Labor and Employment (DOLE) were integrated. The creation of TESDA was initiated by virtue of the findings of the Congressional Commission on Education (EDCOM) way back in 1991. The EDCOM was tasked to review and assess the Philippine education and manpower training system. The major finding of the EDCOM is that the quality of education is continuously deteriorating, as indicated by the following: Elementary and high-schools are failing to teach the competence the average citizen needs to become responsible, productive, and self-fulfilling; College and technical vocational education are not producing the manpower needed to develop the economy; and Graduate education is mediocre and does not generate the research-based knowledge needed to create more jobs and raise the value of production. The EDCOM concluded that the education and manpower training system is deteriorating because of the following reasons:
The government is not adequately investing in the education system; and The education system is poorly managed. 1.2 Mandate and Objectives Mandate TESDA is mandated by law, to provide relevant, accessible, high quality and efficient technical education and skills development in support of the development of high quality Filipino middle-level manpower responsive to and in accordance with Philippine development goals and priorities. It shall encourage active participation of various concerned sectors, particularly private enterprises, being direct participants in and immediate beneficiaries of trained and skilled workforce, in providing technical education and skills development opportunities. (Sec. 2 R.A. 7796). Objectives TESDA is tasked to meet the following goals and objectives: Promote and strengthen the quality of technical education and skills development programs to attain international competitiveness; Focus technical education and skills development on meeting the changing demands for quality manpower; Encourage critical and creative thinking by disseminating the scientific and technical knowledge base of the middle-level
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manpower development programs; Recognize and encourage the complementary roles of public and private institutions in technical education and skills development and training systems; and Inculcate desirable values through the development of moral character with emphasis on work ethics, self-discipline, self-reliance and nationalism. 1.3 Vision, Mission and Value Statement The vision, mission, and value statement of TESDA express its highest aspirations and reasons for being and serve as the unifying framework for all its activities. Vision - TESDA is the leading partner in the development of the Filipino workforce with world class competence and positive work values. Mission - TESDA provides directions, policies, programs, and standards towards quality technical education and skills development. Value Statement - TESDA believes in demonstrated competence, institutional integrity, personal commitment, and a deep sense of nationalism. Quality Policy - We measure our worth by the satisfaction of the customers we serve through: Strategic decisions, Effectiveness, Responsiveness, Value Adding, Integrity, Citizen Focus, and Efficiency.
1.4 The Straddling Role of TESDA TESDAs socio-economic objectives and the multiplicity of its mandates and responsibilities, requires it to straddle three essential roles: education and training, employment, and poverty alleviation. As an education and training agency, its objectives call for the development of the knowledge, skills, and attitudes that will empower the Filipino workers to harness their potential and become creative citizens. As an agency contributing to employment, it provides the necessary competencies to make the person employable and economically productive. Both the education and training and employment objectives of TESDA and TVET ultimately, contribute to poverty alleviation. 1.5 Organizational Structure TESDA is composed of both the Board and the Secretariat. Together, they constitute TESDA as an authority. The TESDA Board The TESDA Board is the highest policy-making body, and it also represents the public-private partnership that works together for the benefit of its constituents. Its composition includes the key stakeholders of the whole TESD sector. As the Authoritys highest policy-making body, the composition of the TESDA Board reflects the public-private partnership that operates in the technical vocational
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and education (TVET) system. The Board has twenty-two (22) members, with the majority (14) coming from the private sector, consisting of 4 employers groups; 2 from investors groups; 6 labor groups;, 2 from associations of TVET institutions; and the remaining 8 from the government sector. The Secretary of the Department of Labor is the chair of the TESDA Board. Sitting as co-chairs are the Secretaries of Trade and Industry and Education. Powers and Functions Under Sec. 8 of RA No. 7796, the TESDA Board shall be primarily responsible for the formulation of continuing, coordinated, and fully integrated technical education and skills development policies, plans, and programs. The TESDA Board has the following powers: a) Approve and promulgate, after due consultation with industry groups, trade associations, associations of technical-vocational schools, employers and workers, the National Technical Education and Skills Development Plan for middle-level manpower and the policies, programs and guidelines as may be necessary for the effective implementation of the plan and of the Act. b) Organize and constitute various standing committees, subsidiary groups, or technical and working groups for efficient integration, coordination, and monitoring of technical education and skills
development programs at the national, regional, and local levels; c) Enter into, make, execute, perform, and carry out domestic and foreign contracts subject to existing laws, rules, and regulations; d) Restructure the entire sub-sector, consisting of all institutions and programs involved in the promotion and development of middle-level manpower through upgrading, merger, and/or phase out, following a user-led strategy; e) Approve trade skills standards and trade tests, as established and conducted by private industries; f) Establish and administer a system of accreditation of both public and private institutions; g) Establish, develop, and support trainors training and/or programs; h) Lend support and encourage increasing utilization of the dual training system, as provided for by Republic Act No. 7686; i) Extract reasonable fees and charges for such tests and trainings conducted, and retain such earnings for the use of the TESDA, subject to guidelines promulgated by the TESDA Board; j) Allocate resources, based on the TESDA Secretariats recommendations, for the programs and projects it shall undertake pursuant to an approved national technical education and skills development plan; k) Determine and approve systematic funding schemes, such as the levy-and-grant scheme for technical education and skills development purposes; l) Create, when deemed necessary, an advisory committee which
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shall approve expert and technical advice to the board to be chosen from the academe and the private sector: Provided, that in case the advisory committee is created, the board is hereby authorized to set aside a portion of its appropriation for its operation; m) Create such offices, as it may deem necessary, to carry out objectives, policies, and functions of the TESDA; n) Review and approve annual and other reports to the President on technical education and skills development; o) Manage and administer the TESDA Development Fund and formulate its implementing guidelines; and p) Perform such other duties and functions necessary to carry out the provisions of the Act. The TESDA Secretariat The TESDA Secretariat is the development and implementing arm of the Authority. At present, TESDAs organizational structure is largely based on the proposed Rationalization Plan (per E.O 366) approved by the TESDA Board in 2005 which rationalized the structure by the creation of additional units to address more efficiently and effectively the needs of the TVET sector.
Functions and Responsibilities

The TESDA Secretariat is mandated to have the following functions and responsibilities:
a) To establish and maintain a planning process and formulate a national technical education and skills development plan in which the member-agencies and other concerned entities of the Authority at various levels participate; b) To provide analytical inputs to policy decision-making of the Authority on allocation of resources and institutional roles and responsibilities, as shall be embodied in annual agencies technical education and skills development plans, in accordance with the manpower plan for middle-level skilled worker as approved by the Authority; c) To recommend measures, and implement the same upon approval by the Authority, for the effective and efficient implementation of the national technical education and skills development plan; d) To propose to the Authority the specific allocation of resources for the programs and projects it shall undertake, pursuant to the approved national technical education and skills development plan; e) To submit to the Authority periodic reports on the progress and accomplishment of work programs for the implementation of plans and policies on technical education and skills development; f) To prepare for approval by the Authority an annual report to the President on technical education and skills development; g) To implement and administer the apprenticeship program, as provided for in Section 18 of this Act; h) To prepare and implement upon approval by the Authority a
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program for the training of trainers, supervisors, planners, and managers, as provided for in Section 23 of this Act; i) To enter into agreement to implement approved plans and programs and perform activities as shall implement the declared policy of this Act; and j) To perform such other functions and duties as may be assigned by the Board. The TESDA Secretariat is headed by the Director General who exercises general supervision and control over TESDAs technical and administrative personnel. The Technical Education and Skills Development Committee As mandated by the law, TESDA established the Technical Education and Skills Development Committees (TESDCs) at the regional and local levels to coordinate and monitor the delivery of all skills development activities by the public and private sectors. The TESDCs perform their functions based on the principle of subsidiary. They have full authority and power to address and act on TVET issues and concerns specific to their area of responsibility, provided that their actions are within the bounds of the general guidelines promulgated by the TESDA Board or other relevant bodies. The TESDCs do not exercise powers vested solely to the TESDA Board unless provided with appropriate authority by the TESDA Board. Consistent with the principle of subsidiary, the TESDCs primarily
support and attend to the core business of TESDA on direction setting, quality assurance, support to TVET provision, and institutional capacity building. They ensure policy coherence, particularly at the sub-national level. To date, there are 17 regional TESDCs; 86 provincial TESDCs ; and 3 city TESDCs established nationwide.
2. National Development and TVET Policy6)

TESDA is mandated to formulate the National Technical Education and Skills Development Plan (NTESDP) which serves as a roadmap towards improving the quality of training and the development of the Filipino workforce to enhance their competitiveness and chances of success in the global market. The NTESDP is anchored to the Medium Term Philippine Development Plan. Together with the NTESDP, regional and provincial TESDP plans are formulated and implemented at the sub-national level. The NTESDP serves as the plan for technical education and skills development for the entire country. It became the basis for resource allocation decisions within the middle level skills development sub-sector. Guided by the governments 10-point Agenda and the MTPDP 2004-2010, the Second Cycle NTESDP 2005-2009 responds to the national development objectives in terms of generating 6-10 million
6) Taken from the National Technical Education and Skills Development Plan 2004-2010, the new framework is still ongoing
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jobs until 2010, especially in the agriculture and fisheries sector. These national development objectives are: Decent and Productive Employment. This means that productive employment is available, from which is derived adequate income for all at work. Sufficient productive employment is available, and workers have full access to income earning opportunities. Essential to decent employment is a continuous enhancement of competencies through building up of capabilities for skills training on global competitiveness and positive work ethic to make them more productive, under conditions of freedom, equity, security, and respect for fundamental rights at work. Industry and employees shall support this process by pursuing their institutional human resources development programs for their workers. Quality TVET Provision. Standards on systems, processes, and procedures among TVET providers will be applied accordingly to ensure quality graduates/workforce. Supply Matches Demand. It is recognized that economic growth triggers socio-economic improvements. However, the provision of training programs will be guided by adequate and timely labor market information, both in terms of quantity and quality set by industries, especially in critical occupations and in areas where there are high demand. 2.1 Strategic Framework The plan operates within the context of the PSALM approach to
TVET planning: Policy-oriented; Sector-focused; Area-based and Labor Market-driven. It considers development imperatives; labor market conditions, both local and overseas; and TVET interventions. Development Imperatives. These are social development concerns lined up by the national government, particularly for the special or socially excluded sectors of society, such as the poor, differentlyabled persons, out-of-school youths, and unemployed. Labor Market Conditions. These cover area and industry requirements, both local and overseas, gathered and disseminated with the assistance of the private sector. TVET Interventions. These are policies, programs, and standards developed through a process of participation among stakeholders and partners, and carried out through established networks of participative public and private TVET providers. TVET for Social Integration. Based on the universal principle of social inclusion, this puts people, particularly those who are socially excluded, in the mainstream of development, not only as beneficiaries, but also as active participants in the development process. It also addresses the provision of a wide range of economic and social options among poor and other needy Filipinos. TVET for Rural Development. This mainstreams the countryside in national development by addressing the skills requirements of economic activities in the rural areas, especially in pursuing technology-based and greater value-adding agriculture and fishery development. TVET for Global Competitiveness. This addresses the skills
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required by export-oriented activities, catalytic industries, industries undergoing economic adjustments, support industries, and overseas industries vis--vis acceptable global standards, in providing human resources capable of delivering quality products and services. 2.2 Three key result areas have been identified: Improved Access and Equity in TVET. This describes the state where opportunities are available and affordable for all clients that include, but are not limited to special clientele groups, like women, differently-abled persons, and indigenous people, among others. Relevant, timely information on training opportunities will be made available for prospective beneficiaries. Improved Assessment and Certification. There is an increased number of TVET graduates with verified/validated competence to perform a particular skill according to quality standards defined by industry. Also, the registry of certified TVET graduates is readily available to prospective employers, both for local and overseas employment. Enhanced Employability of TVET Graduates. This is the environment where TVET graduates have improved access to employment opportunities, both here and abroad. Graduates will also have improved prospects for entrepreneurial and self-employment endeavors. 2.3 Objectives of the Plan With this framework and the overall vision to generate a globally
competent Filipino workforce, the plan has three key objectives: 1. TVET shall help in ensuring that priority sectors are assured of their critical skills requirements; 2. TVET shall help in poverty alleviation, by giving equitable TVET opportunities for the poor, deserving, and qualified clients in filling up gaps in critical skills; and 3. TVET shall help communities achieve self-sufficiency in skills and bridge them to the local and overseas labor markets.
3. Assessment of TVET Policy7)

Improved access and equity in TVET (Efficiency) Despite limited public resources, TVET grew at a moderate pace, with the private sector contributing heavily, specially through schooland center-based delivery. Private institutions account for about 70 percent of total enrolment in formal TVET financed almost exclusively by tuition fees and endowment income, with minimal government subsidy. Over the years, TVET enrollment and graduates continued to increase, due to the expanded provision of TVET opportunities and the availability of additional scholarships given by the government.
7) Taken from the Impact Evaluation Studies 2008 and the National Technical Education and Skills Development Plan 2004-2010 and the TVET Statistics
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Increased private and local government units (LGUs) investments and accountability in TVET TESDA has capitalized on its partnership with the LGUs through the TESDA initiative project Invigorating Constituents Assistance in Reinforcing Employment (I-CARE). I-CARE is a counterparting funding arrangement between TESDA and the legislators through their priority development assistance funds, the local government units, and other non-government organizations. A number of scholarship programs were implemented, resulting in a notable increase of scholarship slots available for deserving TVET clients. Beneficiaries of scholarship programs, specifically the Training for Work Scholarship Program (TWSP) which started in mid 2006, totaled 1,265,864 for the period 2006-2009. TESDA has also embarked on partnership arrangements and linkages. Full participation and mobilization of the industry, labor, and LGUs were maximized in the development of TVET systems and standards; policies and plans; advancement of TVET agenda; implementation of TVET programs and scholarships; and co-management partnership for shared responsibilities. Improved assessment and certification (Effectiveness) The number of takers of competency assessment showed an increasing trend. This increase can be attributed to the mandatory assessment policy as pronounced by the TESDA Board. This can also be due to the free assessment service of TESDA (FAST). Improvements
in certification rates are also observed over the years which could be an indication also of the quality of TVET provision. The installation of a quality assurance system from standards development, to program registration, and up to assessment and certification, also contributed significantly to improvements in TVET performance. Improved employability of TVET graduates (relevance, effectiveness, and social impact) To measure the possible impact of TVET programs for its graduates, Impact Evaluation Studies of TVET programs are regularly conducted. They aim to measure the TVET graduates employability, relevance, and effectiveness of training, among other criteria. The relevance and responsiveness of TVET interventions, as measured in terms of the labor market performance of graduates, has reached decent levels when gauged against the average employment rates of the youth age group in the labor market. Based on the July 2010 labor force survey, youth (age 15-24) employment rate is registered at 47.6%. This indicates high unemployment among the youth, which is placed at 52.4%. Based on the 2008 Impact Evaluation Study (IES) commissioned by TESDA, the employment rate (as a percentage of the labor force) of TVET graduates was 55.1 percent, which is lesser than the 2005 IES figure of 64.6 percent. The decline can be attributed to factors like: the effects of the global financial crisis, which slowed down
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economic activities and resulted to job losses; skills mismatch between the requirements of the available jobs and the skills possessed by workers; and geographical mismatch between locations of job openings and job seekers, among others.
Section 4. Financing TVET

TVET financing largely comes from the government. The TVET share of the total education budget from the General Appropriations Act (GAA) averaged 2.6% in 2005-2009. Basic education, through DepEd, has the highest share at 84.7%, while higher education, composed of CHED and SUC budgets, accounted for 12.7% of the total education budget. The total budget for TVET for the last five years fluctuated, from PhP 1.70B in 2005, to PhP 3.48B in 2009 (GAA Regular Operations).
[Figure 1-3] Average Annual Education Budget, 2005-2009
TESDA had been a recipient of foreign assisted projects (FAPs) from 2005 to 2009 which were all aimed at addressing the relevance, quality, and equity improvement of the delivery of TVET programs.
<Table 1-24> TESDA Foreign Assisted Projects Foreign Assisted Projects 2005 2006 TOTAL 685,766 633,766 ADB-TESDP 504,202 578,766 Expansion of Dual Education and Training Project (EDETP) 127,064 Center of Excellence in Modern Manufacturing Technologies (CEMMT) 2,500 55,000 Korea-Philippines Training Centers (IT and Agriculture) 55,000 (000 pesos): 2005-2009 2007 2008 2009 633,766 271,000 249,177 466,167 102,656
167,599
168,344
249,177
With funding assistance from various sources, including the foreign assisted programs (FAPs), support for TVET increased tremendously from 2006-2009. The Training for Work Scholarship (TWSP), which was launched in 2006, increased substantially the
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total financial resources of TESDA by PhP 8.07 billion for the 2006 to 2009 period. TESDA also capitalized on its partnership with the local government units (LGUs) through I-CARE. A total of PhP 897 M in additional TVET financing was generated out of the PDAF of the Senators and Congressmen from 2005 to 2009. However, the study, Investment in TVET in the Philippines, conducted by the UNESCO11 in 2003 indicates the following findings: With 53.5%, the private sector contributes more than the government in funding TVET in the Philippines. In the private sector, according to the study: Trainees contribute 26.8% through tuition fees; Companies fund apprenticeship and learnership programs with 15.6%; and NGOs, with 6.8%. Also, the UNESCO study8) identified three main market sectors by funding mode: A regulated sector, in which access to government funds is limited to public (primarily TESDA) institutions, and in which resource allocation and training delivery are subject to relatively high levels of government planning and regulations;
8) David Atchoarna, et al.,Investment in Technical Vocational Education and Training (TVET) in the Philippine (International Institute for Educational Planning, 2008), 11
A partially regulated or quasi-market sector, in which public funds are allocated to public and private providers via regulated processes, such as funding submissions. These funding programs are subject to partial government regulation (provider and program registration) and coordinated at the local level, in particular community-based programs. An open-market or commercial sector, in which trainees directly purchase training programs from providers under free market conditions, providers being in direct competition for clients and resources and delivering training relatively free from government regulation.
Section 5. Internationalization of TVET

1. Impact on TVET Policy
1.1 Impact on TVET: FTA and DOHA Agreement At present, the Philippines has not made any commitment on the TVET sector in any international or free trade agreements, such as the GATS-WTO or ASEAN. There are constitutional provisions/ limitations and other laws and regulations that have to be observed by the foreign TVET providers intending to enter into the Philippine market. In this respect, there has been no significant impact yet on TVET as expected to be brought about by free trade and DOHA agreements.
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Nevertheless, the opening up of markets to global competition, such as the free trade agreements and DOHA agreements, has put pressures on TVET to meet the changing requirements of industry for highly skilled and qualified workers. 1.2 Labor Market Change: Migration and International Providers The Philippines has to take into account the significantly large and continuously growing population of overseas workers. The government is under tremendous pressure to address the growing scarcity of skills needed by domestic industries, as more and more workers leave the country and avail themselves of opportunities abroad. The government, at the same time, is under pressure to provide training and other services that will enable these workers to qualify for better paying foreign jobs that will them to more easily assimilate into foreign countries. The prospect of earning much higher incomes from skilled work abroad has lead to a significant increase in the demand for education and training in the country. Raising the quality of TVET graduates to meet international standards has become necessary. This is important to gain recognition of the competencies possessed by the workers in their countries of destination. 1.3 Technology: ICT and E-learning Information and communications technology (ICT), including the development of new broadband communication services and the
convergence of telecommunication with computers, offers opportunities for TVET to expand its capacity and enhance the learning process. In the Philippines, there are already initiatives to maximize the use of ICT in TVET. TESDA has established an e-portal which is envisioned to eventually provide viable technical learning online, as well as blended learning. This is expected to broaden the reach and capacity of the TVET system, thereby expanding access to training opportunities, including those persons who are difficult to reach.
2. International Cooperation: Bilateral, Multilateral, and International Organization

As indicated in the discussion under Financing TVET, the Philippines has been supported by donors under bilateral and multilateral arrangements. Other than the loans from the Asian Development Bank and the KfW, TESDA is also a recipient of various grants on TVET from the Australian government, through AusAid; the German government, through GTZ; the Korean government, through KOICA; and the Japanese government, through JICA. International organizations, such as the ILO and other UN organizations, have also provided support to TVET in the Philippines. The assistance is wide-ranging and comes in the form of financing; facilities and equipment; learning materials; provision of technical experts / consultants who assist in policy development; and standards and systems development, among others. TESDA also actively participates in international fora, such as the
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ASEAN and APEC. In all these fora, key policy positions being advocated include the use of competency-based systems in education and training; job-focused skills development; and seamless and borderless development of an education system that establishes bridges and pathways in all the education ladders, among others. TVET is being advocated as a strategic and viable option for developing human resources. Efforts are also being worked out by the Philippines for mutually beneficial arrangements with labor-receiving countries where bilateral arrangements on technical cooperation are available to allow the assessment of workers based on the host countrys qualification standards. This allows for comparability and benchmarking of the countrys standards against the standards of the host countries
The Philippines maintains its position not yet to liberalize the post-secondary education or TVET. Foreign nationals intending to establish TVET schools in the Philippines must comply with the Philippine Constitutional provision of 60-40 equity. However, as provided in the Philippine Constitution, the management of institutions is solely by Filipino citizens. In addition, compliance with the domestic laws and regulations, relative to TVET establishments, has to be addressed. This includes meeting the minimum set of standards set by TESDA for registration TVET programs in terms of curriculum, facilities and equipment, and trainer qualification.
To date, there are some TVET institutions in the Philippines that have existing partnership arrangements with foreign institutions, or with investments from foreign nationals. Their partnerships are in course/skills offerings which are highly in-demand, like tourism (hotels and restaurants), ICT, and languages.
Section 6. NEW AGENDA AND PLANS FOR THE FUTURE

1. Expanding Access and Equity to TVET Opportunities
TVET is recognized as a poverty alleviation tool. It serves as the common mans ticket to upward social and economic mobility. TVET must be made accessible and available to the broad range of clientele, particularly the poor and the marginalized sectors. TVET aims to reach the grassroots and empower those already reached. TVET will assure quality training and lifelong education to develop and enable all TVET learners with job opportunities through employability enhancement and provision of technical skills. Modular progression in training design is applied in TVET for quality short-term courses resulting in National Certifications (NC I, II, III, IV) that can be easily attained at the grassroots level by the TVET clients eventually opening opportunities for employment. Scholarships, student financial assistance and free training in public TVET institutions serve as the mechanisms to expand access and
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equity to TVET opportunities. Sustainable and adequate TVET financing is therefore crucial to realize this objective. Alternative modes of delivery in TVET, such as on-line and blended learning, facilitated by ICT can also help expand access to TVET opportunities.
2. Ensuring Sustainable and Adequate Financing for TVET and Funding the TESDA Development Fund
Quality TVET provision, by nature, is expensive, considering the cost of training equipment, tools, facilities, and supplies and materials and the need for highly competent trainers. To be effective, there is a need for adequate and sustainable TVET financing. TESDAs proposals on TVET Financing are as follows: Funding the TESDA Development Fund Despite the provision in the TESDA Law, the TESDA Development Fund (TDF) remains unfunded in terms of the one-time lump sum appropriation from the national government and contributions from the OWWA. The TDF should have been an additional sustainable source of TVET financing to award grants and provide assistance to training institutions, industries, and local government units for improving the quality, relevance, efficiency, and effectiveness of TVET provision. At present TVET financing, particularly, scholarships, comes
mainly from the General Appropriations Act (GAA) and in the past, from the Contingency Fund of the Office of the President. There might be a need for legislation to identify other sources of funds for the TDF to make it fully operational. Options include: Increasing budgetary allocation in the GAA for education, including TVET; Increasing allocation for PESFA TVET under the GASTPE; and Maintaining the budget allocation for training for work scholarship program (TWSP).
3. Strengthening
Industry-TVET
Linkage,
including
Enterprise-based Training
The involvement of industry/employers is essential to link training supply with demand. Being the end-user of skilled manpower, industry is in the best position to determine what type of skills and competencies have to be developed. Its involvement in the development of competency standards and in the design of curriculum has to be strengthened and sustained. More importantly, given the fact that skills are better learned in the workplace, enterprise-based training, such as apprenticeship, dual training, on-the-job training, and other related schemes need to be intensified and realigned to suit industry requirements. To fully harness the participation of industry / employers in the
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delivery of skills training, TESDA proposes the passage of the Enterprise-Based Training Bill. This bill aims to strengthen enterprise-based training by consolidating the apprenticeship/learnership, dual training, on-the-job training, and all other industry-based training arrangements into one (1) rationalized system of enterprisebased training. TESDA is also making efforts to revive/organize industry boards or associations to increase participation of the industry and employers in TVET. These initiatives will help improve industry-academe linkage and address the perennial problem of skills and jobs mismatch. Participation of Industry in TVET To facilitate sustainable systems of quality TVET programs, the involvement of the private sector is necessary. With its scarce resources, there are limits in what the government can offer in terms of skills formation. The delivery of TVET programs is a very costly undertaking, especially with the vast capital outlay for facilities, tools, and equipment. The private sector needs to do their share in skills formation by bearing some of the costs of skills formation. The cooperation of the private sector for much needed help and contribution can be done through sharing of expertise and training resources. Contributions in cash or in kind, like the use of their facilities in training, can be shared by the private sector.
Government needs to provide the policy environment and mechanisms to encourage industry participation in TVET. The provision of incentives to industry/enterprises, which should have been funded under the TDF, is one mechanism to encourage industry participation.
4. Institutionalizing the Philippine National Qualifications Framework and a System of Skills / Qualification Progression / Career Shifts and Lifelong Learning
The Philippine National Qualifications Framework was developed and approved in principle by the three (3) education agencies in 2005 through the National Coordinating Council on Education (NCCE). It has also been presented to the Presidential Task Force on Education (PTFE). The PNQF has been developed to establish a coherent national and internationally benchmarked structure for all qualifications awarded in the Philippines. The PNQF unifies the three sectors of the Philippine education system (Elementary, Secondary, and Tertiary which covers both higher education and post-secondary TVET). It is a national system covering all levels of formal and non-formal education qualifications, from the pre-school levels to doctoral degrees. All qualifications listed in the PNQF are quality assured so that there may be confidence not only in their academic standards and vocational relevance, but also in the quality of teaching, assessment, and the
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awarding of credentials. The PNQF promotes lifelong learning, building flexible pathways, with a variety of learning entry and exit points and access ramps across levels of education; it also facilitates the international recognition of qualifications and labor mobility. The development of national qualifications framework is deemed critical in the light of international developments, such as the Bologna Process, the Washington Accord, and other agreements that deal with comparability, benchmarking and recognition of academic degrees, professions, and skills qualifications which the Philippines is now pursuing. The Training Regulations are aligned with the TVET component of the PNQF. The enhancement and formal adoption of the PNQF by the education agencies is deemed critical for a seamless and flexible education system. Promoting TVET as a Viable Career Career in TVET is viewed as a dead-end with limited options for qualification progression. This image contributed to the traditional bias against TVET as inferior to college education. Deliberate social marketing efforts and strong career guidance to improve awareness and appreciation of TVET, including blue-collar occupations, should be made. Advocacy should be made to all sectors, particularly the students, parents, and the industry.
Recognition of Prior Learning and Career Progression TVET provision should also be part of continuing education within the framework of lifelong learning to expand the opportunities of the graduates and the skilled workers, allowing them to move up in career ladders. Broad provision should be made for enabling all persons, whatever their prior qualifications, to continue their education by facilitating seamless educational pathways through articulation, accreditation, and recognition of all prior learning and relevant work experience. TVET should develop close interfaces with all other education sectors to facilitate seamless pathways for learners, with an emphasis on articulation, accreditation, and recognition of prior learning.
5. Improving Labor Market Information and Addressing the Labor Supply and Demand Gaps and Matching Problems
Strong labor market intelligence and a functional labor market information system are critical to address the jobs and skills mismatch. This means ensuring the availability and accessibility of the relevant labor market information, anytime, anywhere to the industry, students, parents, educational institutions, and other stakeholders. The industry/employers play a very crucial role in making this a reality, since they provide the information on jobs and skills in demand. TVET is directed towards employment, and the availability
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of timely and relevant information on where and what the jobs are will contribute significantly in making TVET provision more relevant, thereby enhancing the employment chances of the graduates. The DOLEs PhilJob Net, and the Public Employment Service Offices (PESOs), as well as other public and private job boards, are essential elements of the countrys labor market information system. TESDAs efforts to address the job-skills mismatch, other than directing training to available jobs, include the Job Bridging and Referral program. This program is aimed at shortening the job search period and assisting the TVET graduates, particularly the TVET scholars, in finding immediate employment. It is implemented through the establishment of blue desks in all TESDA regional and provincial/district offices; TTIs and private TVIs; and jobs bridging events all over the country. The blue desks served as one-stop centers for TESDA information and services to include, but not be limited to job referral and placement assistance services, career profiling, and coaching.
6. Continuing Quality Improvement in TVET Provision

TVET needs to continuously adjust and adapt to technological changes and advancement. Training inputs, such as curriculum, facilities, equipment, tools, equipment, and materials, need to be regularly upgraded. TESDA ensures that program offerings of TVET institutions comply with the minimum standards prescribed by industry, as contained in the training regulations, through a quality
assurance mechanism called the Unified TVET Program Registration and Accreditation System (UTPRAS). The TESDA policy on mandatory assessment of TVET graduates in programs/qualifications covered by training regulations should be fully supported and strengthened. Assessment and certification ensures that the TVET graduates and skilled workers have the necessary competence to perform tasks consistent with the required standards in the workplace. Industry acceptance of certification shall also be promoted.
7. TVET Trainers Development

The TVET Trainer is an important and critical element in the delivery of quality TVET programs. More than increasing the number of trainers, the greater challenge is ensuring their quality. This calls for an extensive implementation of development programs for TVET trainers, with an estimated stock of 23,000 nationwide. In addition to qualifying the trainers, industry exposure/ immersion is also crucial in upgrading their competence. This is an area that will have to be addressed.
8. TVET for Sustainable Development

Education for sustainable development is a global concern, given the issues on climate change and the need to protect the environment. There is a need to re-orient curriculum towards sustainability,
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keeping the principles of the 5Rs: Reduce, Reuse, Recycle, Repair, and Rethink in the subject domain. Entire teaching and learning need to be geared up to take up these challenges. This is a new initiative that shall have to be addressed in the Philippines
9. Preparing the Workers for the Knowledge Society

The rapid pace of innovation and technological change, especially in the areas of information and communication technology and biotechnology, impacts heavily on the countrys education and training system. The lack of relevant skills, if the education and training system is not able to respond, may be a major impediment to the ability of a country to restructure its economy and industries; exploit emerging opportunities; and undertake technological innovations. The deepening of technical knowledge raises more demand for knowledge workers with a competitive edge in performing work fit for high-end and emerging technologies. The integration of technological knowledge and skills in education training needs to be emphasized to expand the lifelong capabilities of a knowledgebased worker. The need to upscale the competencies of the current and future workforce to meet these requirements is essential. The development of Higher Order Thinking Skills (HOTS) which includes critical thinking, creative thinking, innovation, and problem solving, can augment and enhance learning outcomes in education and training. Teaching generic soft skills is also a pre-requisite in effectively
preparing the workforce for the world of work and to be more flexible. Skills including cognitive, interpersonal, work values, and adaptability are skills requirements to complement core technical skills. Learning to learn is the key to survival in an era of rapid technological change. These are the essential elements that shall have to be addressed by TVET in the country.
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References
TESDA Reports and Other TVET Related Sources
1. Department of Labor (2010): Project Jobs Fit: DOLE 2020 Vision or PROJECT JOBSFIT 2. Syjuco, A.G. (2006). The Philippine TVET System. TESDA 3. The Medium Term Philippine Development Plan 2004-2009 4. Technical Education and Skills Development Authority (2010) Report: July 2010 5. Technical Education and Skills Development Authority. (2006). 2nd Cycle National Technical Education and Skills Development Plan 2004-2009 6. Technical Education and Skills Development Authority. (2006). TVET Outlook 7. TVET Statistics 2005-2009 8. Valisno, M. (2009). Beat the Odds: The Philippine Main Education Highway. Towards a Knowledge-Based Economy. Department of Education. Philippines
Websites
1. Department of Education at www.deped.gov.ph 2. Bangko Sentral ng Pilipinas at www.bsp.gov.ph 3. National Statistical Coordination Board at www.nscb.gov.ph 4. National Statistics Office at www.census.gov.ph
5. Philippine Overseas Employment Authority at www.poea.gov.ph 6. TESDA at www.tesda.gov.ph 7. The Philippine Business Registration at http://philippinesbusinessregistration.com/foreign-owned 8. Wikepedia on Culture of the Philippines at http://en.wikipedia.org/wiki/Culture_of_the_Philippines on Oct. 7, 2010
Philippine Laws
1. 1987 Philippine Constitution 2. Executive Order 358: Ladderized Education 3. Republic Act 7796: TESDA LAW 4. Republic Act 7722: CHED Law 5. Republic Act 7686: Dual Training System
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Chapter 1
TVET Policies and Implementation Process of Sri Lanka
Section 1. Political and Socio-Cultural context,

1. Government and political party system in Sri Lanka.
Politics of Sri Lanka take place within the framework of a presidential, representative, democratic republic, whereby the President of Sri Lanka is both head of state and head of government, and of a multi party system. Executive power is exercised by the government. Legislative power is invested in both the government and parliament. Since the beginning, the party system has been dominated by the socialist Sri Lanka Freedom Party and the conservative United National Party. The Judiciary is independent of the executive branch and the legislature. At independence in 1948, Sri Lanka, then called Ceylon, was a commonwealth realm, with the monarch represented by the Governor
General. The parliament was bicameral, consisting of a Senate and a House of Representatives. In 1971 the Senate was abolished, and the following year, Ceylon was renamed Sri Lanka, and became a republic within the Commonwealth of Nations, with the last Governor General becoming the first President of Sri Lanka. Under the first republican constitution, the unicameral legislature was known as the National State Assembly. In 1978, a new constitution was adopted, which provided for an executive president, and the legislature was renamed Parliament. Sri Lankas two major political polities, the United National Party (UNP) and the Sri Lanka Freedom Party (SLFP) embrace democratic values, international nonalignment, and encouragement of Sri Lankan culture. Past differences between the two on foreign and economic policy have narrowed. The President, directly elected for a six year term, is head of state, head of government, and commander-in-chief of the army forces. The election occurs under the Sri Lankan form of the preferential vote. Responsible to Parliament for the exercise of duties under the constitution and laws, the President may be removed from office by a two third vote of parliament with the concurrence of the Supreme Court. The President appoints and heads a cabinet of ministers responsible to Parliament. The Presidents deputy is the Prime Minister, who leads the ruling party in Parliament. A parliamentary no-confidence vote requires dissolution of the Cabinet and appointment of a new one by the President.
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2. Legislative
The Parliament has 225 members, elected for a six year term; 196 members, elected in multi-seat constituencies; and 29 by proportional representation. The President may summon, suspend, or end a legislative session and dissolve Parliament any time after it has served for one year. Parliament reserves the power to make all laws. The primary modification is that the party that receives the largest number of valid votes in each constituency gains a unique bonus seat.
3. Summery of the 2010 Sri Lankan Parliamentary Election

<Table 1-1> Summery of the 2010 Sri Lankan Parliamentary Election Seats Alliances and Parties Votes % District National Total United Peoples Freedom Alliance. 4,846,388 68.33 127 17 144 All Ceylon Muslim Congress Ceylon Workers Congress Communist Party of Sri Lanka Eelam Peoples Democratic Party Jathika Hela Urumaya Lanka Sama Samaja Party Mahajana Eksatha Peramuna National Congress National Freedom Party Sri Lanka Freedom Party UP- country Peoples Front
United National Front Democratic Peoples Front Sri Lanka Muslin Congress United National Party 2,357,057 29.34 51 9 60
Alliances and Parties Tamil National Alliance Eelam Peoples Revolutionary Liberation Front Illankai Tamil Arasu Kachchi Tamil Ealam Liberation Organization Democratic National Alliance Janatha Wimukthi Peramuna Independence List Up Country Peoples Front Tamil Makkai Viduthalai Pulikal Sinhalaye Mahasammatha Bhoomiputhra Pakshaya Tamil United Liberation Front. Tamil National Peoples Front All Ceylon Tamil Congress Democratic Peoples Liberation Front Sri Lanka National Front Others Valid Votes Rejected Votes Total Polled Registered Electors Turnout
Votes 233,190
Seats District National Total 2.90 13 1 14 %
441,251 38.947 24,670 20,284 12,170 9,223 7,544 6,036 5,313 31,644 8,033,717 596,972 8,630,689 14,088,500 61.26
5.49 0.48 0.31 0.25 0.15 0.11 0.09 0.08 0.07 0.39 100
5 0 0 0 0 0 0 0 0 0 196
2 0 0 0 0 0 0 0 0 0 29
7 0 0 0 0 0 0 0 0 0 225
Source: Department of Elections Sri Lanka.
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4. Civil Service Structure

The country is divided into 25 Districts, each of which has a district secretary, the GA or Government Agent, who is appointed. Each district comprises 5-16 divisions, each with a DS or divisional secretary, again appointed. At the village level Grama Niladhari (Village Officers), Samurdhi Niladhari, and agriculture extension officers work for the divisional Secretary.
5. Local Government System Provincial council structure

The centralized system of Sri Lanka which is a unitary state, failed to satisfy the aspirations of the people, and there was growing insistence on decentralization of administrative processes in order to achieve rapid economic and social development of the country. Many attempts have been made to decentralize administrative decisionmaking. As early as 1955, there were proposals for decentralization, but they were declined for political and other reasons. There were repeated demands for decentralization, and those demands resulted in the following attempts: 1973/74 District political authority system; 1970/80 District development councils; and 1987/88 Provincial council system. In the Sri Lankan context, devolution means transferring political and administrative decision-making authority from the central
government to elected bodies at lower levels.
6. The Instruments of Devolution

. The thirteenth Amendment to the constitution (1987); and . The provincial councils Act No 42 of 1987. The thirteenth Amendment to the constitution provides for: The establishment of provincial councils; The appointment and powers of the Governor of provinces; Membership and tenure of provincial councils; The appointment and power of the Board of Ministers; The Legislative powers of the provincial councils; Alternative arrangement where there is a failure in the administrative machinery; The establishment of High Courts of the province; and The establishment of the Finance Commission. The Provincials councils act No. 42 of 1987 provides for: The membership of provincial councils; Meetings and conduct of business in provincial councils; The financial procedure of the provincial council; and The establishment of provincial public service. A provincial council is not: A government ministry or department;
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A Local Authority; A statutory corporation or Authority; or A public company. A provincial council: Is an autonomous body and is not under any ministry; Derives its authority and powers from the constitution and acts of Parliament; Undertakes activities which had earlier been undertaken by the central government ministry, Departments, corporations and statutory Authorities. There are nine (9) provinces in Sri Lanka. However only eight (8) provincial councils were established because the Northern and Eastern provinces have been temporarily merged into one in terms of the Indo Sri Lanka Accord. They were originally established in 1988 for a period of five years and were dissolved in 1993. Fresh elections were held after five years. Powers Devolved to provinces: Executive power to the Governor; and Legislative power for the Provincial Council.
7. Functions of Provincial Councils

The functions of the Government and the provincial councils are listed in the Ninth schedule to the constitution, which comprises three lists: List . - Provincial council list; List . - Reserved List; and List . - Concurrent list. Organization of Provincial Councils: . The Governor; . The Council (Legislature); . The Chief Minister; . Four Provincial Ministers; . The Provincial Public Service Commission; . The Chief Secretary; . The Provincial Secretariat; and . The Provincial Fund.
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Section 2. Population and Demographics

<Table 1-2> Population Item 1981/82 Population by Sex and Age Groups, % 49.0 Male 51.0 Female 34.0 13 Years and Below 11.3 14-18 Years 13.5 19-25 Years 14.4 26-35 Years 9.9 36-45 Years 8.0 46-55 Years 8.9 Above 55 Years Literacy Rate, % 85.4 Male 89.9 Female 81.1 Educational Attainment, % No Schooling 15.1 Primary 42.9 29.2 Secondary 12.8 Tertiary
1986/87 48.5 51.5 30.8 11.7 12.5 14.3 11.2 8.4 11.1 88.6 92.2 85.2 11.8 41.1 32.1 15.0 1996/97 48.4 51.6 25.1 11.5 11.7 14.4 13.3 10.7 13.3 91.8 94.3 89.4 8.6 35.2 35.5 20.7
1. Demography
<Table 1-3> Demography Indicator Mid-Year Population. Mn.
Population Growth %
Ref. Year Sri Lanka 1980 14.8 1990 16.3 2000 18.5 2006 19.9 2007 20.0 20.2 2008 2006 1.1 2007 0.6 2008 1.0
Indicator Ref. Year Sri Lanka Density of Population (Persons per Sq.Km.) 2008 321.9 Population By Age Group, % 0-14 Years 2007 23 70 15-64 Years 2007 7 65 Years and Above 2007 2007 15.1 Urban Population, % 2007 19.0 Crude Birth Rate, per 1,000 Crude Death Rate, per 1,000 2007 6.0 Total Fertility Rate, Birth per Woman 2007 1.9 Infant Mortality Rate (per 1,000 Live Births) 2007 Maternal Mortality Rate (per 100,000 Live Births) 2005 58 Life Expectancy at Birth, Year 2007 74.0
2. National Accounts
<Table 1-4> National Accounts Indicator Gross National Product (GNP), Mn. US $
Ref. Year Sri Lanka 2000 16,292 2006 27,878 2007 32,332 2008 39,744 2000 2006 2007 2008 2007 2005 2006 2007 2008 2008 2008 2008 881 1,401 1,617 1,968 4,243 6.2 7.7 6.8 6.0 15.2 30.6 54.1
GNP Per Capita, US $
GDP Per Capita PPP, US $ Real GDP Growth, %
Sectoral Composition of GDP,% Agriculture Industry Services
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Expenditure and Savings, % of GDP Private Consumption Government Consumption Gross Capital Formation Domestic Savings National Savings
Source: Sri Lanka Socio Economic Data 2010 Central Bank of Sri Lanka 2010 June Vol XXXIII
2008 2008 2008 2008 2008
69.7 16.2 27.0 14.1 18.2
Section 3. Governance of the TVET system

The Technical Education and Vocational Training (TVET) sector in Sri Lanka comprises a diverse mix of study programs offered by the government, private sector, and non-government organizations (NGOs) catering to a variety of target groups, including the poor. Sri Lankas TVET system has evolved over a period of 117 years. It is officially recorded that the technical education in Sri Lanka was initiated in the year 1893. The specific event was the establishment of the very first technical training institute by the government. From there on the technical and vocational education and training (TVET) sector has developed to the present state. It is now estimated that there are more than 5000 training institutes in Sri Lanka belonging to the government, private and non-governmental organizations. Even today the government plays a key role in providing education and training in the TVET sector through a number of government
departments and other agencies. Under the present government, the Ministry of Youth Affairs (former Ministry of Vocational and Technical Training) has been mandated the vocational education and technical training subject. Almost all leading public sector TVET institutions, whose primary function is training, function under the Ministry of Youth Affairs. In addition, many ministries and provincial councils through the Departments and corporations under their purview, undertake training as an associate function.
2. Government Bodies Responsible for TVET

Outlined here are the evolution mandates and functions of the key agencies which are mainly responsible for policy formulation, planning, and delivery of technical education and vocational training. 2.1 Central Government Level Ministry of Youth Affairs The main responsibility of formulating and implementing the national policy for technical education and vocational training is vested in the Ministry of Youth Affairs (former Ministry of Vocational and Technical Training). Objectives of the Ministry Promote knowledge and skills for productive employment in the field of Technical Education and Vocational Training; Produce trained labor for productive job opportunities in the
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industrial sector; Contribute to the national development process by way of reducing poverty through the provision of more jobs in the field of TVET; and Make awareness to reach the higher professional level (Degree level) in the TVET sector. Functions Introduce develop and implement training courses for public and private sector training institutions which conduct technical education and vocational training in complying with national and international labor market requirements; Extend TVET to rural areas of the country and increase access to this sector for women, the disabled, and poor; Promote private sector participation for the TVET sector; Implement entrepreneur development programs and promote self employment opportunities for trained youth; Invest intensely in developing a sufficient and high quality teaching staff which possesses pedagogical qualifications and professional skills; Encourage stakeholders, such as industries and the corporate sector that provide funding for TVET initiation; Work with donor agencies to support implementation of TVET related reform programs; Develop and disseminate career and training information to
students, graduates (job seekers), employers and, members of the community; Maintain international relations to get technical, technological, and financial assistance to develop the TVET sector. 2.2 Tertiary and Vocational Education Commission (TVEC) The Tertiary and Vocational Education Commission, which functions under the Ministry of Youth Affairs, is the national level apex body responsible for policy formulation, planning, quality assurance, coordination, and development of tertiary and vocational education in the country. The major programs of the TVET are: . Vocational Education and Training Plans (TVET); . Quality Assurance; . Labor Market Information System; and . Systems Development; Vocational Education and Training (VET) plans have been prepared for selected growing industry sectors. A VET plan for a particular industry identifies the manpower and training needs; assesses the existing training supply; analyzes the gaps and surpluses between the demand and supply of skills; and introduces interventions to provide required human resources to the industry sector. These TVET plans are regularly updated in consultation with the industry, and the training providers are advised to be guided by the target of the plans. TVETs quality assurance responsibilities are performed through
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the program of registration of institutes and accreditation of courses. Over 1,500 training institutes have been registered with the TVEC, and national training standards are prepared to provide the basis for course accreditation. The Labor Market Information system provides a series of Labor Market Information Bulletins, which provide signals to the training providers on trends in the job market on a regular basis. System development is mainly through new projects and development work for the benefit of the TVET system. The national skill profile of Sri Lanka is the recent system development project accomplished. The National Skill profile provides data on the educated skill base and the output of the TVET system. This information is valuable for prospective investors and employers. 2.3 Department of Technical Education and Training This department has a 116 year history. It delivers formal, institutional type training at 38 technical colleges located in major provincial and district capitals. The objective of this department is to produce competent and productive man power for better livelihood through quality and relevant occupational training to meet the challenges of changing global socio-economic and technological goals. Its main study areas are: Technician Studies; Craft Studies;
Business Studies; and General Studies. Under the recent reforms, 9 colleges have been upgraded as colleges of technology, to offer middle level technician study programs. 2.4 Vocational Training Authority of Sri Lanka The Vocational Training Authority was established in 1995 as a statutory body, with the intention of providing vocational training for the cut-off schools and unemployed youths. It facilitates self employment and supplies urgently needed skills, particularly for the informal sector through employment-oriented short courses. The Vocational Training Authority of Sri Lanka consists of six (6) national training institutes; 22 district vocational training centers; and 237 rural vocational training centers. Functions Conduct carrier guidance and counseling programs; Conduct national trade tests; Carry out research and development programs; Facilitate the trained youth for further training and provide employment or self-employment opportunities; Provide bank loans for the trained youths to start small scale self-employment projects; Establish public and private sector partnership programs with the industry; and
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Liaise and establish links with International vocational training organizations and institutions. 2.5 National Apprentice and Industrial Training Authority Formal Apprenticeship is the responsibility of the National Apprentice and Industrial Training Authority (NAITA), which was established in 1990. The main task of the authority is to impart skills pertaining to an occupation through industry- based apprenticeship training. In this connection, about 3,500 government and private sector, industrial/service organizations participate, and, in addition to that, dual apprenticeship training (imparted at the center and in industry) is implemented by the 3 national institutes and 54 regional apprenticeship training centers. Apprenticeship is essentially a contract between a learner, employer, and the government, which is normally the regulatory body. For Sri Lanka, NAITA represents the government. The learner agrees to be trained on the job under an employer for a fixed period, depending on the trade or occupation. The employer is committed to provide training and pays wages according to the stipulated norms. In the case of NAITA, it pays a stipend to the apprentices, not to the employers. Training conducted in industry is supplemented by theoretical and related instructions given on full or part time basis at an institution. Functions: Plans, organizes, and provides vocational training; Specifies standards in relating to vocational training;
Conducts examinations and issues certificates and other awards in relation to vocational training; Conducts National Trade Test; Conducts research and development in vocational training; Holds competitions to promote the developments of various skills; Develops the training capacities of establishments and other institutions which provide vocational training; Advises the Tertiary and Vocational Education Commission in regard to vocational training; Links with institutions in Sri Lanka and abroad having similar objects and equates or validate certificates, diplomas, and degrees in allied subjects and courses. Provides on-the-job training to trainees of other vocational training organizations; Provides in-plant training to engineering undergraduates of the universities; Issues National Vocational Qualification (NVQ) certificates through recognition of prior learning (RPL) in respect of informally skills acquired craftsman. Conducts entrepreneurship development programs and refers trainees to grant loans. Conducts career guidance programs for school children school leavers and other targeted groups; and Develops national competency standards for the vocational training sector.
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2.6 University of Vocational Technology The University of Vocational Technology (UNIVOTEC) was established as the first ever university for the vocational education and training sector in 2008. Functions: Facilitates the students of vocational and technical training sector to continue their education up to university level; Provides training on training technology for the employees of the vocational sector and industry; Creates opportunity for middle level technicians by developing educational programs to enter the university; and Establishes partnerships with state and private sector organizations to develop degree level programs.
3. Regional Level
Technical education and vocational training remains a national functions, as it has not been constitutionally devolved in provincial councils. The training centers and technical colleges though located in the districts and rural areas, are planned and managed by their head offices in Colombo. However, decentralized management arrangements have been made through the establishment of provincial/ district offices. The practice of planning and management from the centers has hindered the orientation of training to the needs of provinces, districts, and rural areas. Attempts are now being made to prepare district plans based on district needs and to allocate
human and physical resources based on such plans by the relevant training organizations. However, much is needed to decentralize the TVET planning and management through developing institutional capability at the provincial /district level for training need analysis, ordination, and evaluation . The Department of Technical Education and Training, which has the biggest training network in the country, is in the process of upgrading nine (9) technical colleges as colleges of technology (COT) on a provincial basis. Students who have completed National Vocational Qualification level 4 courses (certificate courses) from district technical colleges will attend to colleges of technology to follow diploma and higher diploma courses (NVQ level5 and 6 courses). Students who have completed NVQ level 4 courses from other districts and regional training centers, and state training organizations (such as the Vocational Training Authority and National Apprentice and Industrial Training Authority) also can attend the provincial colleges of technology to follow diploma and higher diploma courses. In addition to this state training network, a large number of private and non government organizations conduct training programs in district and rural level.
4. Relationship between Government Bodies

Sri Lankas TVET system has evolved over a period of more than 100 years, registering rapid expansion after her independence in the 1950s and, thereafter, from 1970-1990. The expansion was largely
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driven by the concerns of the successive governments to find solutions for unemployment in TVET, an initiative that received the support of donors. During 1970-1990, several training agencies and institutions were establish under different ministries. The proliferation of TVET institutions and programs and resultant duplication of misguided effort were much of the debate in the latter part of 1980s. This led to the creation of agencies such as the Human Resource Development Council and Tertiary and Vocational Education Commission, for planning and coordination, and the National Institute of Technical Education of Sri Lanka (NITESL) for specialist services, such as curriculum development and technical teacher training. The public sector is the largest provider of institutional training. Public policies on education and training, employment, human resources development, poverty alleviations, and underpinning equity concerns have created an expanded network of training institutions in the public sector spreading across a number of ministries. There are two types of agencies undertaking training in the public sector. They are: . Agencies whose primary responsibility is training; and . Agencies that undertake training as a subsidiary function. 4.1 Agencies Whose Primary Responsibility Is Training . Sri Lanka Institute of Advanced Technical Education (SLIATE). SLIATE has a network of 12 colleges offering
National Diploma courses in technical and commerce subjects. . Department of Technical Education and Training (DTET). DTET manages 29 technical colleges located in the city centers of the districts and 9 colleges of technology (COTS) in which there is one college per province. Annually, about 16,000 youths are admitted to the technological, technical, and craft-level courses of these colleges. . Vocational Training Authority of Sri Lanka (VTA). The focus of the VTA is on training for rural youths, For this purpose, it maintains a network of 237 rural vocational training centers (RVTC); 22 district vocational training centers (DVTC); and 6 national level training centers. 4.2 Public Sector Agencies that Undertake Training as a Subsidiary Function Sectoral ministries and their major departments and statutory bodies maintain training centers mainly to provide training for new entrants and skills upgrading for existing employees in support of their specialized technical functions. The departments of Agriculture, Fisheries, Posts, Health, Railways, Social Services and Cooperatives are major examples. The National Youth Service Council also has a network of training center that provide skills training. Provincial departments of Industries, Textiles, etc., have small training centers that provide skills training in their respective fields. There has been a tendency to offer pre-employment training by these agencies, as
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well. All the agencies where primary responsibility is training have been instructed to follow the national TVET policy. They have been advised to get their training curricula accredited by the Tertiary and Vocational Education Commission.
5. National Vision and Strategic Direction of TVET.

With socio-economic development, various opportunities are evolving in the technical and vocational sector, which seems to be expanding in Sri Lanka. Though technical and vocational education and training (TVET) is conceived as the industrial sector in the present context. It is, in fact, the service sector that dominates the other. For example, sectors such as agriculture, and sub sectors, like civil, mechanical, chemical, electrical, electronics, production, mining, materials, textile and garment, etc., are providing avenues for so called blue color jobs, and had been dominant in TVET. But, on the other hand, Accounting, Human Resources, Administration, Management, Marketing, Banking, Hospitality, Health, Insurance, Security, Trade and Commerce, Transport and Logistics, etc., could encompass a major portion of the service sector, which is considered white color. Following are increased vocational opportunities in the industry and service sectors. The tertiary education system, in particular, has not adequately made appropriate reforms. Nor have they guided youth in a direction which will help them set and achieve goals, or
enabling them to acquire skills and competencies required to meet the demands of both sectors. The national education system, which leads to ordinary level and advanced level certificates, does not provide competencies for youth to be employable in the TVET sector. As such, the demand for technical and vocational training courses is high, and as a result public, private, and NGOs have mushroomed in the country to cater to the demand, formally and non formally. Employers and employees are faced with the dilemma as to what type of vocational training courses / or diploma they should choose or recognize among the vast spectrum of vocational training courses available in public, private, and NGO sectors in Sri Lanka. In the meantime, it is also observed that the Tertiary and Vocational Education Commission (TVEC) as an apex body of the TVET sector under the Ministry of Vocational and Technical Training, has introduced a national vocational qualification (NVQ) framework; this new reform seeks a unified system for TVET in the country. The following issues have been identified and need to be addressed in the technical and vocational sector, as set forth in the Ten Year Horizon Development Framework 2006-2016 of the Mahinda Chinthana vision for a New Sri Lanka: Lack of focus on knowledge, skills, and attitudes to perform a particular occupation in a rapidly changing technical environment; Absence of mechanisms to ensure the quality of trainee output
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against set standards; Absence of trustworthy qualifications that reflect the level of competency of the trainee against the publicly known standard; Internal and external inefficiencies, including duplication of courses, outdated curricula and equipment, shortage of good trainers, as well as in-optimal utilization of workshops, laboratories, training, and equipment leading to a high dropout rate of around 20% - 25%; Lower social acceptance of technical and vocational education and training and, hence, the inability to attract persons to training courses; Gender imbalance in enrollment; Need for the diversification of providers and creation of an enabling environment for the private sector investment; Inadequate coordination and linkage among public, private, and non-government stake holders; Lack of sufficient awareness of the available opportunities; Need for sustainability through cost recovery and other means; and Inadequate linkage between technical and vocational education and general education, on the other hand, and university education, on the other. In resolving or finding solutions to the key issues above, a policy framework to achieve a theme of Skills for Life Jobs for Skills has been proposed; it will provide nationally and internationally recognized training in keeping with advancing technology that meets
the demand of labor markets, at home and abroad. A new network of vocational training institutes will be set up to significantly increase student output. The priorities of this policy framework entail. Improving the quality and relevance of programs; Improving quality and opportunities for upward career paths; Ensuring uniformity in national standards; Promoting the relevance of courses; and Increasing enrollment in technical and vocational Institutions.
Section 4. Government Policy

1. Evolution of TVET Policies
The TVET institutional framework and training policies have evolved over the past three decades. One policy objective, however, had remained constant: government provision of preemployment technical and vocational training to address the problem of high youth unemployment. However, other policy considerations have emerged with changes in the macroeconomic environment, including meeting the skill needs of industrial restructuring and competitiveness in the global economy. The State Council in the 1940s and the Parliament after independence have considered many proposals or expansion of TVET systems as a measure of human resources development. In
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1961, a national committee to review technical education had been appointed to make recommendations on the development and management of technical education in Sri Lanka. Thereafter, TVET has undergone fast expansion, focused on solving unemployment and training skilled technicians for work. On the demand side, the promotion of TVET began with the post-1977 pro-market reforms, which continued through the 1980s. The 1977 policy reforms of trade and industry and the adoption of export-led growth strategies led to expansion of the secondary and tertiary sectors of the economy, creating additional demand for skilled, semi-skilled, and unskilled labor. The state TVET sector did not have the resources or the institutional flexibility to respond, which created opportunities for private sector providers to enter and fill this unsatisfied demand for training. The private sector training role was explicitly recognized as part of a larger strategy of promoting TVET for national competitiveness within the 1989 industrialization plan of the Ministry of Industrial Development, but, this expansion did not focus on quality and relevance. Therefore, from 1990 an attempt has been made to coordinate different training institutions to deliver relevant, quality training according to the nationally agreed plan. This was symbolized by the establishment of the Tertiary and Vocational Education Commission (TVEC), the apex body in TVET, and the creation of a separate ministry for TVET in 1994. The policy statement issued by the President in January 1995 is instructive; it stated that despite its high levels of literacy, the Sri Lankan work force lacks the requisite skills that are essentials for industrial
upgrading and diversification. The numerous short-run skill development programs and the general education system are essentially supply-driven and therefore have a poor record of providing industry-relevant skills. The vocational training system will be extensively restructured so as to be demand-driven, in cooperation with the private sector who will be the eventual employers. The 1995 budget speech emphasized the importance of consolidating the variety of dispersed and uncoordinated facilities for vocational training and directing them to create skills which are sorely needed by the growing economy. In 1995, the Ministry of Industrial Development identified three major areas for TVET reforms; . Restructuring tertiary education and vocational training, system; . Setting up a skills development fund; and . Reorienting public sector technical institutes to meet market needs. In October, 1997 a special task force was established to study inter-ministerial barriers and to come up with policy recommendations for TVET sector development involving both the public and private sectors. Its findings led to major changes in the TVET sector in terms of rationalization; recognition of vocational training as a ministerial function; and coordination of TVET activities at the national level. Since 2001, a large number of policy documents have been published highlighting the challenges facing the TVET sector; proposing further reforms to and rationalization of public training
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institutions; introducing competency standards and accreditation; and offering new financial incentives and policy instruments for fostering demand-led training. Vision 2010 (2001) identified three major challenges facing the TVET sector: quantitative and qualitative mismatches in certain areas of skills demand; external and internal inefficiencies in the sector with duplication of courses, outdated equipment and curricula, shortage of good trainers, and high dropout rates; and sub-optimal use of public sector workshop and laboratories. In response to these challenges, policies in the TVET sector should: . Promote private sector led skills training; . Target youth with an entrepreneurial mind-set; . Link performance and budgets and provide institutions with increased autonomy; . Foster more skilled training through a system of skill accreditation; . Provide skills to compete in global labor market; and . Train to match industrys skill needs. Regaining Sri Lanka (Sri Lankan government, 2001), noted that, post secondary skills training institutes suffer from a mismatch between the training offered and the skills required in a modern, market economy. Management deficiencies, outdated equipment and curricular and shortage of capable trainers lead to high dropout rates and low returns of training. It proposed that: . Performance standards for vocational training be revised along the line of competency based training based on standards
derived from industry, and . A higher Institute of applied technology is established to lead the vocational training process and provide a recognized system of professional certification in the vocational trends. The Draft National Employment Policy (Ministry of Employment and Labor, 2002) recommended six major policy reforms for the TVET sector: . Training systems restructured to meet future demands. . Promotion of vocational training for the informal sector; . Fostering government industry partnership in training; . The government to function as a facilitator, standard setter, and regulator of training; and . Financial incentives for training targeting the corporate sector and provision to disadvantaged groups of financial assistance for training. The budget speech for 2003 and 2004 elaborated on the operational details of these recommendations, including the establishment of Human Resource Endowment Fund (HREF) that would provide training vouchers for unemployed youth and skills upgrading for employees, as well as soft loans to upgrade training facilities for providers. The National Policy and Action Plan for the Development of Technical Education (National Education Council, 2002) called for the reorganization and upgrading of the TVET sector. Seven major elements are to considered essential in formulating the national policy framework for the TVET sector:
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. Skills laddering to facilitate upward mobility of skills acquisition; . Better linkages of TVET with the school and university systems; . Private sector participation in training; . Improved functions of the technical and vocational Education commission (TVEC) as the apex body for TVET; . Accreditation and quality monitoring of public and private training institution; . Nationalization of the public sector TVET system and; . Setting up a degree awarding institution for TVET. In 1995 a presidential task force was appointed to make recommendations on the development of the TVET sector. As a result, in 1998 then Ministry of Skill Development, Vocational and Technical Education, established a skill development project with the assistance of the Asian Development Bank to introduce major reforms to the VT sector with following objectives: Establish a unified qualification framework based on national occupational standards to issue VT qualifications; Convert certificate level VT courses into competency based training (CBT) to facilitate issue of level I to 4 NVA certificates; Establish a network of career guidance centers and a learning resource development center with a network of learning resource utilization centers; Incorporate entrepreneurship development into TVET;
Establish a quality assurance system in each training center awarding NVQ certificates and leading them to accreditation; Develop a management Information system and labor market Information system; and Develop institutional capacity to conduct research in TVET. The Ministry of Vocational and Technical Training established another ADB assisted project. The Technical Education Development Project (DEDP) transitioned the NVQ framework from level 5 to level 7. In addition, actions have been taken to develop 9 technical colleges in 9 provinces as colleges of technology to award NVQ level 5 an 6 qualification. Further, the first ever university for the TVET sector, the University of Vocational Technology was established in 2009 to award NVQ level 7 (degree) qualifications. According to the above analysis, the TVET sector has evolved with the establishment of different institutions from time to time. Due to wide diversity in training needs in the TVET sector, different institutions have focused on different aspects of vocational training. Legislations of TVET institutions have listed certain policies. The presidential task force has focused some policy issues. NVQ framework has introduced some policies. The Mahinda Chinthana election manifesto of the present government and 10 year development plan have outlined some policies. Unfortunately the numerous and varying policies are unknown to many stakeholders in the TVET sector, and different aspects of these policies will not be effective in addressing the range of needs in the TVET sector. It is, therefore, imperative to have one unified policy document
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covering all issues relevant to the TVET sector.
2. Assessment of TVET Policies

The strategies adopted by the Sri Lankan government over the last decade have been highly relevant to evolving needs, opportunities, and government priorities. One distinctive theme was reducing the gap between education/training and the needs of the labor market by improving the quality, relevance, and efficiency of education and training over time. The sector strategy also addressed the reduction of disparities in access to quality education and training by the poor and disadvantaged. The sector strategy and program has been in harmony with government priorities on promoting equity, social mobility, and human development. The government has been committed to improving quality access, equity, and student competencies throughout the countrys education system a system that covers general education, TVET, and institutions of advanced learning. The focus on human capital enhancement and knowledge creation is a cornerstone for developing the economy, reducing poverty, and fostering social harmony; more specifically, recent programs and propjets have been structured to meet critical needs and gaps in programs. Two projects in TVET implemented by the Asian Development Bank (ADB) the skills Development Project and the Technical Education Development Project have supported strategies to
achieve the government objective of reforming this sector to increase its external efficiency. Project components are relevant to reforming the high incidence of male and female youth unemployment, and meeting increased demand for skills at craft, at middle and higher technological levels and for entrepreneurship development. They also meet the need to establish a structure that permits an alternative career path to higher education. Poverty reduction strategy focuses on the need of making education and TVET responsive to market needs and broadening access to education-supported economic growth and social development. The sector strategy and program aimed to reduce the gender gap in access to TVET and information technology, and recognize that education and skills development must be complemented by womens access to microcredit and other vital services. This was consistent with expanding womens economic opportunities to reduce poverty, and it was aligned with the governments policy on gender and development in support of strategic and multifaceted solutions to redress gender disparities.
3. Effectiveness
In the TVET sector a planned set of strategies and programs implemented through foreign funded projects has replaced ad-hoc interventions in national policy. A sense of direction has been given to this sector, as seen in the following summary of achievements: . An institutionalized competency based training system, starting with 45 trades, was introduced in all state training institutions
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and for the private sector, as well; . More than 20 courses are being conducted in competency based training (CBT) mode; . The NVQ system comprises seven levels that established standards from craft level, to middle level and higher level technological course (offering a career path as an alternative avenue to higher education, while vocational training centers have worked toward the goal of offering courses, approved for NVQ levels); 341 training centers (public and private) were registered and renewed under (TVEC); 145 courses were accredited by TVEC; Opportunities have been provided for local and overseas staff development programs; Career guidance and placement by district career guidance units of around 20,000 persons for on-the-job training and linkages with the job net program of the Ministry of Labor; 9 technical colleges were up graded as colleges of technology in 9 provinces; A separate university, University of Vocational Technology (UNIVOTEC) was established in 2006 for the TVET sector; Introduced modular based certificate, diploma and degree level teacher training courses for trainers in the TVET sector by the UNIVOTEC; Introduced Bachelors Degree of Education in Technology (B.Ed.Tec) of National Vocational Qualification (NVQ) Level 7;
Developed 18 new curriculum for the B.Ed.Tec. (technology degree) of the University; Set up 7 sector policy and training derisory councils (SPTACS) for Construction, Plantation, Production and Mechanical, Handicrafts, Hotel and Restaurant, Creative Arts and ICT; Implementation of quality management system in training institutions, where 15 quality manuals have been prepared and 8 quality procedures have been reviewed by TVET; Local and foreign job opportunities were provided to the students who have passed out from technical colleges, providing local employment to 2,806 persons and foreign employment to 1,246 during 2009; Provided 887 TVET course training programs to 46,007 students in technical colleges during 2009; 47 people were directed by the Sri Lanka Vocational Training Authority (SLVTA) to foreign employment; 338 self employment; and 4,197 to local employment during 2009; and Autonomy was granted to two technical colleges at Kandy (central province) and Maradana (Colombo capital) to generate income through special mechanisms (i.e., issuance of a ministerial order and establishment of a private guaranteed company) to ensure sustainability. Although significant progress has been made, equity in the distribution of physical and human resources needs to be further
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addressed. For instance, while there are well equipped skills development programs in district vocational centers, some rural vocational training centers have limited curricula, minimal staff, and little prospect of accreditation for NVQ levels. There is a shortage of qualified staff.
4. Efficiency
The skills development project (SDP) implemented under the Asian Development Banks (ADB) loan scheme has seen steady progress. It has achieved its targets in developing skills standards and competency based training. Vocational training center registration and accreditation; training of around 800 staff; and establishment of a learning resource development center (LRDC) in Colombo and 50 learning resource utilization centers (LRUCC) for vocational training in different districts. The project has also established a national information center; 5 regional centers; and 59 village centers conducting fee-levying national certificate courses and a 1 year diploma course in Information Technology, and 52 career guidance units. It has organized a management Information system in 90 vocational centers, established linkages with industry; and conducted awareness programs to improve the social image of TVET. Under the ADB assisted Technical Education Development Project, almost all the programs and activities that were planned during the project period have been successfully completed. It paved the way for a alternative career path in technology and technical
education by successfully implementing NVQ level 5 Diploma programs in 6 colleges of technology from the 1st Quarter of 2009, and it established the University of Vocational Technology. There has been institutionalization of technical teacher education; voluntary registration and accreditation with active peer participation for training institutions and programs; facilitation of the Tertiary and Vocational Education Commission (TVEC) to strengthen policies which upgrade TVEC sectors laddering system; and linkage with higher education for tertiary and vocational education and training based on Internationally benchmarked training standards, among other achieved objectives. But, in a sector which has a multiplicity of centers and at least four island-wide institutionalized networks, inevitably much more needs to be done to reduce disparities.
5. Impact
The Sri Lankan TVET sector has achieved a significant development with the implementation of the projects funded by the Asian Development Bank (ADB), KOICA, JICA, and G.T.Z. Specifically the ADBs distinctive contributions to the TVET sector have been in: . Streamlining TVET under the Ministry of Vocational & Technical Training, which brought multiple and fragmented TVET institutions under a single umbrella;
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. Establishing an NVQ framework, which has served as a unifying policy mechanism for bringing coherence to the TVET sector and for formulating qualification standards; . Introducing competency -based training; and . Strengthening the Tertiary and Vocational Education Commission as a policy making and regulatory body for TVET. One impact study on TVET in Sri Lanka conducted by the Asian Development Bank found that the project-funded technical colleges have underutilized and operated below capacity, due to the lack of recurrent expenditure budget. The effectiveness of the teachinglearning process was hampered by the lack of textbooks; teachers lack of practical skills; and absence of continuing staff development. More proactive social marketing programs are necessary to change the negative attitude of private sector employers, parents, and students to state TVET institutions. The poor employment record of those who have attended short courses needs to be considered in planning programs. Career guidance centers in isolated locations have had little impact. Six months of on-the-job training after the completion of a course facilitated access to employment but support services are inadequate to utilize loans for self employment. While policies have been gender sensitive, they have been relatively ineffective without concomitant motivation programs to encourage women to enroll in technical training programs.
Section 5. Legal Framework of TVET for Students and Adolescents

a) Part 1 of the Tertiary and Vocational Education (TVE) Act No. 20 of 1990, establishes the Tertiary and Vocational Education Commission with a mandate to set general policy, planning, and coordination, as well as to set standards and regulate the TVET sector. This act was revised in 1990 with the provision of additional powers granted to the Commission for Funding and Research. b) Part II of the TVET Act No. 20 of 1990, which converted the National Apprentice Board (NAB ) to the National Apprentice and Industrial Training Authority (NAITA), undertakes the public sector apprenticeship program trade tests. The Tertiary and Vocational Education Commission has the legal authority to prepare guidelines for initial training, the maximum number of trainees to be trained under different categories; qualification of staff; provision of on-the-job training etc. c) The Sri Lanka Institute of Advance Technical Education Act No. 29 of 1995 provides training towards Higher National Diploma and Diploma level qualifications. d) The Vocational Training Authority of Sri Lanka Act No. 12 of 1995 establishes the Vocational Training Authority with a special focus on training youth in rural areas.
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e) The National Institute of Technical Education of Sri Lanka established under Act No.59 of 1998 performs the functions of technical teacher training and curriculum development activity for the TVET sector, and also provides training at the certificate and diploma levels, as well as planning degree level programs. f) UNIVOTEC will be included. In the past, many acts have been carried out in isolation. Therefore, many acts show repetition. Unlike in the past, there is now more coordination and cooperation among institutions and their staff. From 1990, attempts have been made to co-coordinate different training institutions to deliver training with quality and relevance according to the nationally agreed plan. This was symbolized by the establishment in 1990 of the Tertiary and Vocational Education Commission, the apex body in TVET, and establishment of a separate ministry for the TVET in 1994. A presidential taskforce was appointed in 1995 to make recommendations on the development of the TVET sector. The NVQ framework, which was introduced by order of the Minister, also has well explained the role of each institution, as it provides a context for rationalization.
Section 6. Qualifications
1. National Culture of Skill and the Skilled
A significant feature of Sri Lankan technical and vocational education (TVET) is its heterogeneity with regard to training delivery and assessment of skills and knowledge on completion of training programs. Training is delivered mainly by registered, as well as nonregistered training institutions belonging to public, private, and non-governmental organizations. In addition, the upgrading of programs organized by business companies allows them to cater their own skills requirements a key feature of training delivery. Traditional craftsmanship has been a conventional mode of skill acquisition in rural areas, where skills are transferred to the next generation, without properly organized training and assessment of skills. In this context, to cope up with skills needs of the growing economy of Sri Lanka and the demands of international labor market, it is of utmost importance to assure quality of training delivery and consistency of assessment, so that national and international skills demands can be fulfilled. It is, therefore, very important to provide the right competencies, as required by the industry, so that the employability of skilled craftsman can be increased, and industry can be strengthened with an appropriately qualified labor force. In 2005, The Ministry of Vocational and Technical Training of Sri Lanka introduced a national vocational qualification framework (NVQ). It provides the opportunity for sustainable, strategic solutions
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for national training needs, as well as for the employment mis-match in both the formal and the informal sectors. The NVQ qualification system will easily be able to achieve international recognition for qualification, skills, and knowledge of Sri Lankans in an increasingly globalized and competitive world. This will enhance the mobility of Sri Lanka workers nationally and internationally. The expectations sought from the establishment of the national vocational qualification framework relate to increasing the relevance and quality of skills development of vocational and technical education and training. Specifically there shall be: Greater alignment with national goals; Strengthened linkages with industry, commerce, and other external state holders; Increased responsiveness to industry training needs; Convenient and flexible access for potential trainees; More proactive education and training strategies; Improved international linkages and recognition; Collaboration and nationalization among the training agencies; Enhanced quality, relevance, performance effectiveness, efficiency, and transparency; and An education and training culture of responsiveness and excellence.
2. National Vocational Qualification (NVQ) System

Developing the NVQ system shall ensure that all current and newly emerging technical and vocational education and training activities are well coordinated.
<Table 1-5> The system awards qualifications of seven levels as given below. Level No. Qualification Description Level 1 National Certificate This level I recognizes the acquisition of a core entry level skill. Level 2 Levels 2, 3, and 4, recognize Level 3 National Certificate increasing levels of competencies. Level 4 Level 4 qualification provides for full national Craftsmanship. Level 5 Levels 5 and 6 recognize the Level 6 Diploma increasing levels of competencies, ranging from technician level, to management level. Level 7 Bachelors Degree or This level includes resource planning Equivalent and management processes.
3. Private Qualification System

Before the introduction of NVQ, the private and NGQ sector training providers were conducting different types and levels of training programs. The programs varied in content and duration according to the educational attainment, age, and experience of the learners. Those who planned and provided technical education and vocational training had a diversity of interests and overlapping
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mandates. Training programs conducted by the private sector training providers were not always market oriented. Duplication of training was provided, absent of unified standards, and curricula often did not match the requirements of the labor market. In most cases teachers and instructors were not qualified. In order to establish a unified technical and vocational education and training system, the Ministry of Vocational and Technical Training formulated policies and guidelines for the public, private, and NGQ training providers. Private sector training providers are required to be registered under the Tertiary and Vocational Education Commission (TVEC), if they want to award NVQ certificates which are certified and issued by the Director General of the TVEC for the trainers who have successfully completed the training programs. In order to maintain the quality and relevance of the TVET sector in the country, the TVEC has advised the private sector training providers on the following aspects: Registration of training Institutions at the TVET; Accreditation of courses; Quality management systems; Selection and training of competency based assessors; Apprenticeship training; Good practices for efficient and effective delivery of training; and Access to TVET for vulnerable groups.
All the structured programs conducted by the public and private sectors can be considered as formal and can be recognized under the NVQ framework. All the other non-structured programs that are conducted by the private sector fall into the category of non-formal. The number of vocational training programs conducted by private and non-governmental organizations in Sri Lanka is too numerous to list. Even to prepare a list of all the training providers in Sri Lanka is a difficult task, as many of them may not have registered with the register of companies, or with the TVEC. Most of the private sector training providers are conducting only certificate level courses, while a very few private sector training institutions offer diploma certificates, but no signal private sector training institute has obtained accreditation with the TVEC to be eligible to offer diploma level certificates.
4. Role of Qualification in Labor Market

A recent survey conducted by the Technical Education Development Project (TEDP), funded by the Asian Development Bank (ADB) under the Ministry of Vocational and Technical Training, revealed that most employers were of the opinion that employees were needed in Plant training. Sixty-eight percent of the employers were satisfied with the training that they had received and were willing to train them further. About 75% of the employees at the national level; 60% at the regional level; and about 25% at the village level felt that their employers were satisfied with the skills acquired. Employers
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also provide in-house training to trainees to supplement their training obtained at vocational institutes. Employer satisfaction of the qualifications and training of the employees ranged from 50%, to 72% among the various institutes. About 8% of the employees reported employers dissatisfaction. The main reason for employers dissatisfaction was low productivity and low skill level.
Section 7. National Development and TVET Policy

The principal policy document of the present government is the Mahinda Chinthana vision for a new Sri Lanka. A ten year development framework 2006-2016 identifies three distinct sub sectors: General Education, Technical & Vocational Education, and Higher Education. This document identifies three main policy initiatives in the technical and vocational education and training (TVET) sub sector: . Improving the quality and relevance of programs; . Increasing enrollment at TVET institutions; and . Improving operational and management efficiency at TVE institutions. Policy relating to financial and economic aspects of TVET is closely related to the third policy initiative stated in the Mahinda Chinthana policy document. This policy document also identifies key
issues to address in policy formulation, such as: 1. Lack of focus on knowledge, skills, and attitudes to perform a particular occupation in a rapidly changing technological environment; 2. Absences of mechanisms to ensure that the quality of trainee out-put conforms to set standards in the labor market; 3. Absence of a trustworthy qualification that reflects the level of competency of the trainee against a publicly known standard; 4. Internal and external inefficiencies, including duplication of courses; outdated curricular and equipment; shortage of good trainees; and in-optimal utilization of worships, laboratories and training equipment, leading to a high dropout rate of around 30 percent; and 5. Need for sustainability through cost recovery and other means. Taking the above key issues into consideration, the government has initiated the following strategies for implementation by relevant agencies: . Improving the quality and relevance of programs; . Increasing enrollment in technical and vocational institutions from secondary schools and the workforce; . Improving the operating and managerial efficiency of technical and vocational education institutions; . Providing opportunities for upward carrier path; and . Ensuring uniformity in national standards.
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1. Economic Development and TVET

In Sri Lanka a large member of students who are successful at the G.C.E.(A/L) examinations are not able to gain entry to university education, due to the lack of capacity in the university system. Vocational training provides a ready alternative to these students for continuing their higher education goals. The vocational training system provides a wide variety of job-oriented courses from which these students can choose to pursue higher education and training. Despite the shortcomings in the current TVET system, evidence shows that only about 25% of the trainees remain unemployed after vocational training. With a few adjustments and improvements to the curriculum, quality certification, and market orientation of courses in the vocational training sector, it is likely that the unemployment rate can be brought down further, providing greater opportunities for G.C.E. (A/L) qualified young persons to be absorbed into the economic mainstream of the country. Foreign employment is another avenue that vocational trainees can pursue. There is high demand for personnel in certain types of vocational trades. Thus, another tangible benefit of vocational education is the opportunity created by vocational training for employment abroad, particularly in the Middle East. The economic benefits include higher pay, and greater savings in income sent back to the country, resulting in greater wealth creation and further economic development. The housing sector received considerable investment from such inflows. The income flow originating from the vocational trade sector does have
a multiplication effect on the general economy creating more employment, income, investments, and contribution to the countrys GDP. The estimated direct contribution of the TVET sector, as worked out from the models developed by consultants under the Technical Education Development project (TEDP, funded by the Asian Development Bank, ADB, functioning under the Ministry of Vocational and Technical Training Technical) is Rs.22 billion per annum, or the equivalent of 0.8% of the national GDP (current market price) of Rs. 2802 billion for 2006.This estimate is based on the extrapolation of the study carried out by the said consultants for the entire TVET sector, comprising only the registered VT institutes as published by the Ministry. If the unregistered VT institutes are included, the actual contribution may be higher.
2. Social Development and TVET

A recent survey carried out by the Ministry of Vocational and Technical Education (through the Technical Education Development Project (TEDP) under the ADB, Asian Development Bank) reveals that a greater proportion of national level trainees reported housing improvements and increases in movable and fixed asserts, than other trainees. Investment in fixed assets remained around 17% and was more or less similar for all types and levels of institutes. Investment in real estate was low, but with a higher proportion reporting from national level institutions. Except for trainees from village level institutes, over 50% of trainees from all other types and levels of
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institutes reported increases in food and other expenditures. Improvement in family nutrition was reported by a greater proportion of trainees in national institutes. Only a small proportion (13%) of trainees reported being indebted before training, with highest percentage reported by national level private trainees. Except for village level trainees, over 50 % of those indebted had commenced repayment after training A very small proportion of trainees had taken life insurance, and most had taken such insurance after the training. About 7.2 million persons (excluding those in the northern and
st eastern provinces) were employed in the 1 Quarter of 2009; of these
employed persons, about 4.7 million (64%) were males, and 2.6 million (36%) were female. The employment rate gradually increased from 2003 through 2008. Agriculture sector recorded the highest employment (about 2.5 million) in the 1st quarter of 2009. The lowest employment of 7,000 persons was recorded in the industries. More than 80 percent were eligible for the Employment Provident Fund (EPF). Pensions for the occupational categories of senior officials and managers; professionals, technicians, and associate professionals; and unspecified workers accounted for only 13 percent of the total skilled. Agricultural and fishery workers were eligible for EPF/pension in the 1 half of 2009. From January to June 2009, a large member of workers, 116,961, have sought foreign employment. The highest number of departures for foreign employment was recorded for Saudi Arabia; female participation in foreign employment (54%) was higher than male participation (46%). The
st
highest departures were recorded for the Housemaid category. The TVET sector contributes substantially to the economy. It was estimated that the TVET sector contributes up to 0.8% of the GDP of the country. Individual trainees have also received considerable economic and social benefits, in addition to the financial benefits of employment. Their housing, nutrition, social acceptance, and expenditures have increased. Over 60% have obtained wage or self employment, and a further 15% have sought more training to improve their chances of employment, although 24S of the trainees remain unemployed. The overall benefits to the country and trainees have been positive. In addition, the income generated by the TVET sector will have multiplier effects and contribute further to the countrys economy, as 60% of the previously unemployed trainees begin spending their newly earned incomes.
Section 8. TVET System by Target Groups

1. TVET for Students by Level of Education under the Secondary Level Compulsory Education
Sri Lankas education is divided into five parts: primary, junior secondary, senior secondary, collegiate and tertiary. Primary education lasts five to six years (Grades 1-5) and at the end of this period, the students may elect to take a national exam called, The Scholarship Exam, which allows students with exceptional skills to
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move on to better schools. After primary education, the junior secondary level lasts for 4 years (Grades 6-9), followed by 2 years (Grade 10-11) of the senior secondary level, which is the preparation for the General Certificate of Education (GCE) Ordinary Level (O/Ls). According to Sri Lankan Law, it is compulsory that all children go to school until grade 9 (age 14), at which point they can choose to continue their education, or drop out and engage in apprenticeship for a job or farming. However, the Ministry of Education strongly advises all students to continue with their studies at least till the GCE Ordinary Level. Students who are pursuing tertiary education must pass GCE/OL in order to enter the collegiate level to study for another 2 years (Grades 12-13) and sit for the GCE Advanced Level. On successful completion of this exam, students can move on to tertiary education. Therefore, the GCE A/L is the university entrance exam in Sri Lanka.
2. Government Schools
Most of the schools in Sri Lanka are maintained by the government as a part of the free education. Currently there are 9,410 government schools. With the establishment of the provincial council system in the 1980s, the central government handed control of most schools to the provincial councils. There are two types of government schools: National schools; and Provincial schools.
National schools come under the direct control of the Ministry of Education and therefore are directly funded by the state. Most of these schools were established during the colonial period and were well established institutions. Provincial schools constitute the vast majority of schools in Sri Lanka. Funded and controlled by the local governments, many suffer from poor facilities and a shortage of teachers.
3. Private School
There has been a considerable increase in the number of private schools in Sri Lanka, due to the emergence of the upper-middle class during the colonial era. Private schools follow the local curriculum set up by the Ministry of Education in the local language medium of Sinhala, Tamil, or English. Many of the private schools have better access to new facilities than state run schools. Currently there are 98 private schools approved by the government. Enrollment rates are provided from 2006 through 2009:
<Table 1-6> Enrollment rate (2006-2009) Item 2006 2007 Total No of Schools 10,461 10,430 Government 9,714 9,678 Private 93 94 Total No. of Pupils 4,000,714 4,111,022 Government Schools 3,837,548 3,942,185 Private Schools 107,874 113,884
Source: Ministry of Education Sri Lanka socio Economic Data 2010 Central Bank of Sri Lanka June 2010
2008 10,445 9,662 92 4,101,509 3,930,374 115,070
2009 10,205 9,410 98 4,032,760 3,860,176 114,486
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4. Secondary Level, Upper Secondary Level, and Nonschooling Level; Vocational and Academic Rate; and Apprenticeship Enrollment Rate
Most trainees (70%) have either completed the A/L or have studied up to the A/L classes. About 43% of the trainees have obtained apprenticeship training. A further 38% have obtained institutional training, while 15% have completed dual training. Thus, there appears to be greater preference for apprenticeship training, which may due to the market demand for such trained persons. Certificate level training was the main type of training provided, with about 80% trainees following such courses. Diploma training was reported by only 6% of the trainees. It may be useful to establish whether the low enrollment in diploma course is due to the lack of facilities in the institution, or whether it is due to fewer institutions providing such training. The low level of enrollment in diploma level courses may also be attributed to the lack of demand in the job market; longer duration and higher cost; stringent entry requirements; lack of capacity to meet demand; or poor quality of training. Student enrollment and output statistics are provided for the institutions functioning under the Ministry of Vocational and Technical Training which are the major training providers of the country. The entry level qualification for the trainees is secondary or upper secondary level.
<Table 1-7> Student enrollment and output statistics

Institution Year Intake Completed Dropout 18,604 21,984 13,958 21,495 24,302 25,362 15,810 18,261 25,585 1,973 1,144 1,359 3,899 3,671 7,932 63,040 70,470 74,595 14,630 11,673 16,857 16,322 18,471 21,068 8,368 10,732 15,428 1,647 898 1,259 3,654 2,871 4,159 Dropout Rate
Department of Technical 2006/2007 Education and Training 2007/2008 (DTET) 2008/2009 Vocational Training Authority (VTA) National Apprentice and Industrials Training Authority (NAITA) National Institute of Technical Education of Sri Lanka National Institute of Business Management (NIBM) Total 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
3,690 19.83% 6,486 29.50% 3,568 26.51% 3,192 14.85% 3,884 15.98% 4,507 17.77% 4,016 25.40% 4,653 25.48% 4,250 16.61% 14 23 33 38 54 164 1.00% 1.69% 2.43% 1.00% 1.50% 2.00%
45,725 11,031 17.49% 45,655 15,198 21.56% 60,115 12,707 17.03%
Source: Statistical unit Ministry of vocational and Technical Training.
More than two thirds of the trainees have followed or passed ALs, indicating that training is a major vocational avenue for those who have failed to enter universities. An additional economic benefit of vocational training is that it provides greater opportunities for educated youth to contribute to the economy; it provides further education and training and fills job vacancies less preferable to University graduates.
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5. Training Scheme for Non-schooling

Recognition of prior learning (RPL) is a kind of terminal assessment conducted mainly in the workplace. The main objective of RPL is to recognize skills and competencies acquired through non-institutional training, informal training, or work place experience. RPL is one route to awarding National Vocational Qualification (NVQ) certificates. This route helps people obtain NVQ qualification without following a structured course. Those who acquire skills through the following means are eligible to appear for RPL assessments: Workplace experience; life experience; self directed study; informal/uncertified learning; formal uncertified learning; informal study; on the job-training; open learning or distance education; community-based learning; and overseas education, training, or experience. RPL assessments are conducted based on the requirements of the national skills standards. RPL assessments are conducted mostly with the use of supportive evidence.
6. TVET and Enterprises

Young people are the current and future leaders of any community. Encouraging civic enrollment and investing in youths key concerns must be and urgent priority of the government and civil society. Young people are the forefront of social, economic, and political
developments, and they are often agents of change and innovation. The world of work provides the environment through which youth can actively participate in society; contribute their talents and visions for the future; and develop a sensor of commitment. There is a growing realization about the potential contribution of small enterprises in Sri Lanka. Healthy small business is rightly considered to be the backbone of the economy. Entrepreneurship training is increasingly tried to promote local business, and it accelerates the pace of small enterprise development. It is needless to emphasize that quality and quantity of entrepreneurship input are crucial in the process of entrepreneurship development. The subject of entrepreneurship has, thus, become important and necessary for the education sector which is widely responsible for the development of the economy. Sri Lanka has identified the small business sector as an important sector of economy. The technical and vocational education and training (TVET) sub sector within the education sector is specifically responsible for providing technical and skilled manpower to the large medium and small scale enterprises and industries. The government, private, and NGO vocational training providers have introduced entrepreneurship concepts and initiated entrepreneurship programs in their instructions. Training cannot create employment. However, training is a powerful means of preparing young people for employment. But training alone is not sufficient for self employment. The key government training providers, Vocational Training Authority (VTA) Department of Technical Education and Training (DTET) and National Apprentice
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and Industrial Training Authority (NAITA) of Sri Lanka, focused more attention on promoting self employment programs by providing necessary skills, start-up capital, business know how, access to raw materials, and markets.
7. Self Employment Promotion Initiative (SEPI)

The government of Sri Lanka entered in to a loan agreement with the Asia Development Bank (ADB) in 2004 to improve the quality and relevance of training and build a high quality workforce; they restructured and reoriented the vocational training system by introducing competency based training (CBT). One of the components of this project is innovative Interventions and NGO private sector participation. Under this component, the Self Employment Promotion Initiative (SEPI) was established to provide skills training through qualified government, NGO, and private sector institutions, including a credit component to provide graduates with resources to purchase basic equipment and raw materials required for start up businesses. SEPI was a pilot initiative to support poor people who had completed skills training programs. It provided initial financial support to establish a small-scale entrepreneurial or self employment activity. This was mainly covered the initial purchase of basic equipment and materials. Seventy percent of beneficiaries were males selected according to agreed upon criteria. The project was implemented in 18 districts. The issuing of loans began in January 2004, and a sum of Rs.
94,542,103.37 (US. $ 851,730) was issued among 886 loan applicants. It was the responsibility of the vocational training institute officers to guide the youth who were selected and provide them with knowledge to maintain a successful enterprise. Although there had been a high recovery rate of 83.38%, it was observed that the failure of some was due to several factors:. 1. Adverse selection of prospective borrowers, due to inadequate screening to ascertain their honesty, integrity, and repayment capacity; 2. Poor quality of products/services; 3. Lack of marketing facilities and marketing linkages; 4. Inadequate skills training; and 5. Weak entrepreneurial skills.
8. TVET Infrastructure
8.1 Teachers and Instructors Technical and vocational education and training (TVET) is a comprehensive educational process that goes beyond general education, helping trainees to achieve knowledge, skills, attitudes and mental preparedness necessary for a variety of vocations and jobs. It ensures that those who are educated and trained will enter the labor market and be employed in the workplace using their acquired knowledge and skills. It is important to develop high quality human resources in the TVET sector. The most important issues are the qualifications
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and the quality of teaching and training staff. As a result, the achievement of the goals of the TVET sector depends mainly on the TVET system, in general, and on the compliances and qualifications of the trainers, in particular. The quality of TVET programs is directly impacted by the qualification and compliances of staff delivering the training and assessment. Presently there are no specific or distinct human resource management and development policies in the TVET sector in this country. The rules, regulations, and procedures drawn by the government are generally adapted by the training organizations in the public sector. Although these organizations adapt personal management practices, only a few organizations really pursue HRD policies. Currently there are no policies or guidelines stipulated for training organizations that cover all the areas recruitment, development, transfers, promotions, and staff development, to name a few. Although there were certain guidelines and procedures laid down for recruitment, deployment, and transfers, there seem to be anomalies creating disadvantages for staff members of different organizations. Therefore, it has become important to introduce a common and nationally accepted HR development policy for the entire TVET sector. All organizations perform HR planning, formally or informally. At present a common process for recruitment is not practiced by either public or private sector training organizations. Although the open advertisement procedure is mostly applied for recruitment, qualifications considered for a post seem to vary from organization to organization.
Particulars of teaching and training staff in major organizations functioning under the Ministry of Vocational and Technical Training at the end of 2009 are as follows.
<Table 1-8> Particulars of teaching and training staff in major organizations functioning under the Ministry of Vocational and Technical Training at the end of 2009 No. of courses Employee strength No. of Institute Part- Full Non Centers Academic time time academic Department of Technical Education 38 24 46 240 2045 and Training (DTET)
Vocational Training Authority (VTA) Rural Training Centers Regional Training Centers National Training Centers National Apprenticeship & Industrial Training Authority (NAITA) National Institute Regional Training Centers Rural Training Institutes Affiliated Centers 265 237 22 06 104 05 06 55 38 148 884 1075 559
83
235
582
367
9. Staff Development & Teacher Training

At present there is no proper policy for staff development. Although in-service training is provided for the staff of many organizations in an ad-hoc manner, pre-service training, which is comparatively important, could not be seen in the public or private sector. Faced by socio-economic and technology challenges, human resource management in TVET providers needs to bring to the
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forefront the development of multi skill and core competencies of the staff. Knowledge and competencies of both academic and non-academic staff of TVET providers will continuously be updated and upgraded in par with current global trends. The National Institute of Technical Education of Sri Lanka (NITE-SL) was responsible for professional services in Human Resources, learning resources, research curriculum development, and consultancy for public sector technical teachers and vocational trainers. In 2009, with the establishment of the University of Vocational Technology, the functions of the NITE-SL were absorbed by the university. The University of Vocational Technology (UNIVOTEC) provides training in technology for the employees of the vocational and technical training sector and industry. The UNIVOTEC has introduced a modular-based certificate, with diploma & degree level teacher training for trainers in the TVET sector. 9.1 Issues to be Addressed Because the TVET management staff are not adequately exposed to the changing dynamics of TVET, their thinking is stereotyped and conventional, making them non-responsive to market demand. Though there is a significant change in the education sector in Sri Lanka, in terms of quality and quantity, some important issues emerge in the teaching and training of staff in technical and vocational education, including:
Lack of qualified staff in technical and vocational education; Uneven distribution of teachers and the imbalance between the supply and the demand of teachers; Mismatches between the teachers educational background and the subjects being taught; High percentage of unqualified and under qualified teachers in the technical and vocational schools; Low quality in teacher performance and conservative teaching methods; and Weaknesses in continuing education; employment and career development; the rights and responsibilities of teachers; teachers salaries; and social security.
Section 9. Employment and the Labor Market

The total labor force within Sri Lanka is approximately 7.5 million, and it is estimated that approximately 1.5 million Sri Lankans work overseas at any given time. According to the survey results of the Department of Census and Statistics, only about 16% of the labor force have received formal vocational or technical training. Approximately 25% of those who have received vocational training are unemployed, proving that their training was not in keeping with labor market demands.
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<Table 1-9>Statistics for 2009

Sri Lanka Labor Force Employed Population Employment Rate 8,073,688 7,602,414 94.2% Male 5,186,457 4,963,176 95.7% Female 2,887,211 2,639,238 91.4%
(Sri Lanka Labor Force Survey, Annual Report 2009) Employment: Number of Employed 1990-2009 Employment Rate by Gender and Age 2000-2010
<Table 1-10> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and Over Both Sexes
Labor Force Year Household Population (10 Years & Over) Total Labor Force Employed Unemployed Not in Labor Labor Rate (% Rate (% force Force Partici: Number to total Number To Total Number Labor Labor Rate (%) Force) Force) 51.9 49.8 48.2 49.1 48.7 47.9 48.6 48.7 51.7 50.7 50.3 48.8 5047354 5015517 4962105 5201474 5281272 5357117 5537285 5607881 6049238 6082641 6310145 6235588 84.1 85.3 85.4 86.2 86.9 87.7 88.7 89.5 90.8 91.2 92.4 92.1 953794 861680 845957 830910 797591 749021 704604 658279 611285 590846 517168 537246 15.9 14.7 14.6 13.8 13.1 12.3 11.3 10.5 9.2 8.9 7.6 7.9 5572793 5918596 6250400 6245675 6413985 6630048 6589365 6604630 6221274 6495782 6737345 7097644
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
11573941 6001148 11795793 5877198 12058463 5808062 12278055 6032383 12492850 6078863 12736185 6106138 12831240 6241889 12870791 6266160 12881790 6660520 13169250 6673487 13564660 6827312 13870479 6772834
Labor Force Year Household Population (10 Years & Over) Total Labor Force Employed Unemployed Not in Labor Labor Rate (% Rate (% force Force Partici: Number to total Number To Total Number Labor Labor Rate (%) Force) Force) 50.3 48.9 48.6 48.3 51.2 49.8 49.5 50.2 48.7 49.2 6519415 7012755 7394029 7518007 7105322 7041874 7648305 7174706 7602414 7139537 91.2 91.6 91.7 92.3 93.5 94.0 94.6 94.8 94.2 94.3 625967 640961 667324 623341 493440 447021 433397 394009 471254 432852 8.8 8.4 8.3 7.7 6.5 6.0 5.4 5.2 5.8 5.7 7056014 7997763 8532077 8729628 7235040 7558986 8237363 7509301 8504961 7825206
2002 *2003
14201396 7145382 15651479 7653716
**2004 16593431 8061354 ***2005 16870976 8141347 #2006 #2007 *2008 #2008 *2009 #2009 14833801 7598762 15047882 7488896 16319065 8081702 15078016 7568715 16578628 8073668 15397595 7572388
* Including Eastern province, but Excluding Northern province ** Excluding Mulathivu, Kilinochchi districts. *** All the districts are included # Excluding Northern & Eastern provinces. Source Labor Force Survey Annual Report 2009
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<Table 1-11> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and Over Male.
Labor Force Household Population (10 Years & Over) Total Labor Force 3989443 4072937 4068608 4200886 4184248 4281996 4402713 4501597 4529016 4705586 5144206 5372897 5436362 4837308 4862788 5227427 4838462 5186457 Labor Force Partici: Rate (%) 65.3 65.4 64.4 65.9 65.6 67.5 67.7 67.2 66.2 67.9 67.2 66.7 67.1 68.1 67.8 67.8 67.9 66.6 Employed Not in Rate Rate Labor (% to (% To force total Number Total Number Labor Labor Force) Force) 90.3 90.3 91.0 91.8 92.3 93.5 93.3 94.2 93.8 93.4 94.0 94.0 94.5 95.3 95.7 96.3 96.4 95.7 95.7 387663 394289 367656 343741 322168 277491 295217 260120 280139 310421 310723 323471 301597 226664 209721 193978 175184 223281 206343 9.7 9.7 9.0 8.2 7.7 6.5 6.7 5.8 6.2 6.6 6.0 6.0 5.5 4.7 4.3 3.7 3.6 4.3 4.3 2120044 2155127 2249395 2172784 2188110 2062456 2103953 2201274 2308248 2229427 2513162 2676746 2666654 2261505 2311888 2486253 2283702 2597035 2405934 Unemployed
Year
Number
*1993 *1994 *1995 *1996 *1997 *1998 *1999 *2000 *2001 *2002 **2003 ***2004 *2006 *2007 **2008 *2008 **2009 *2009
* ** *** **** Source
6109486 6228064 6318003 6373670 6372365 6344453 6506662 6702871 6837264 6935012 7657368 8049643 7098813 7174676 7713680 7122164 7783492
3601779 3678648 3700951 3857147 3862087 4004504 5107497 4241477 4248877 4395164 4833483 5049426 5134765 4610643 4653067 5033449 4663277 4963176 4609198
****2005 8103016
7221475 48155541 66.7
Excluding Northern & Eastern provinces. Including Eastern province but Excluding Northern province Excluding Mulathivu, Kilinochchi districts. All the districts are included Labor Force Survey Annual Report 2009
<Table 1-12> Historical Table of Labor Force Status (Current) of the Household Population. 10 Years of Age and Over Female. Labor Force Employed Unemployed Household Labor Rate Rate Not in Population Total Force (% to (% To Labor Year (10 Years & Labor Partici total Total force Over) Force : Rate Number Labor Number Labor Number (%) Force) Force) *1993 6168572 2042941 33.1 1599695 78.3 443247 21.7 4125631 *1994 6264782 2005927 32.0 1602625 79.9 403302 20.1 4258857 *1995 6418183 2037530 31.7 1656166 81.3 381364 18.7 4380652 *1996 6457583 2041002 31.6 1680138 82.3 360864 17.7 4416583 *1997 6498427 2081906 32.0 1745794 83.9 336112 16.1 4416521 *1998 6537344 2378526 36.4 2044732 86.0 333795 14.0 4158818 *1999 6662613 2270782 34.1 1975153 87.0 295629 13.0 4392047 *2000 6861794 2325716 33.9 2068667 89.0 257048 11.0 4536078 *2001 7033214 2243818 31.9 1986711 88.5 257107 11.5 4789396 *2002 7266384 2439796 33.6 2124250 87.1 315546 12.9 4826588 **2003 7994111 2509510 31.4 2179272 86.8 330238 13.2 5484600 ***2004 8543788 2688457 31.5 2344604 87.2 343853 12.8 5855331 ****2005 8767960 2704985 30.9 2383241 88. 32744 11.9 6062975 *2006 7734989 2761454 35.7 2494679 90.3 266775 9.7 4973535 *2007 7873206 2626108 33.4 2388807 91.0 237300 9.0 5247098 **2008 8605385 2854275 33.2 2614856 91.6 239419 8.4 5751110 *2008 7955852 2730253 34.3 2511429 92.0 218825 8.0 5225599 **2009 8795136 2887211 32.8 2639238 91.4 247973 8.6 5907926 *2009 8176119 2756847 33.7 2530339 91.8 226508 8.2 5419272
* ** *** **** Source Excluding Northern & Eastern provinces. Including Eastern province but Excluding Northern province Excluding Mulathivu, Kilinochchi districts. All the districts are included Labor Force Survey Annual Report 2009
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1. Skills supply and demand

The main responsibility of the technical and vocational educational programs is the development of knowledge, skills, and attitudes necessary for ensuring placements in the workforce, at levels ranging from trade, through to professional. The national vocational qualification framework, implemented by the state and private sector training providers, offers a unified technical education system. It Identifies levels of training according to process and learning demand. The stakeholders of TVET are aware of the features of the qualification system on national standards; competency-based curricula; competency-based assessments; and unified certification. Fifty three percent (53%) of the vocational pass outs are employed in the private sector. This is about three times the number employed by the government sector. A comparatively high percentage of vocational pass outs have acquired the competencies that are needed at employment.
2. Skills Mismatch, Skill Shortage, and unemployment.

Employment in the service and production sectors have indicated that the training received and skills gathered were not adequate to keep pace with employer demands. In the workplace, new employees confront unfamiliar machines, equipment, tools, and procedures to which they had no prior exposure. Some of the machines, such as
CNC Lathes, are so sophisticated and expensive that the employers were reluctant to provide on-the-job training to the trainees. In the field of information technology trainees, had no opportunity to learn new software packages. Especially given the rapid development of technology, employed vocational pass outs are not able to meet all the requirements of the employer. About 10% of the vocational graduates were either partly satisfied or not satisfied. The main reasons for dissatisfaction with the courses at national level were: 1) poor quality of training; and 2) courses and curricula were not broad enough to enable trainees to work in a wider field of employment. At the regional and village levels the main reasons for dissatisfaction with the training courses were: 1) poor job market demand; and 2) limited scope of courses offered by employers. Some of the employees feel that there is a demand for knowledge and skills at the workplace on certain items, like electronic fuel injection (EFI); automatic transmission; sensors/digital technologies; modern vehicle repairs; IC programing/ robotics; machine/transformer installation; English to understand manuals; gas analyzers /emission test; mechtronics; computer assisted drawing (CAD); customer service; and handling of construction equipment. A high percentage of employers is in favor of vocational pass outs in the fields of practical knowledge; attitude to learn; improving mathematics; English and scientific theory; and general updating of trainer knowledge. Sixty eight percent (68%) of the employees have said the mismatch between employer requirements and training skills
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gathered at the technical training Institution is nil, or at a very low extent. Only 33% have said that there is a mismatch.
3. New Demands
Seventy seven present (77%) of the employees are in favor of upgrading their knowledge and skills to meet employer demand. The highest percentage of responses is for the need of practical knowledge in the field (20%). The lowest percentage is for management & planning skills (11%). The employees are confident that they have acquired the basic theoretical knowledge; the basic practical skills; and the ability to manipulate equipments and tools, as required by the employer at the training. However, some of the employees feel that there is a demand for knowledge and skills on modern equipment at the work place. Considering the future labor market demand for vocational pass outs, the trades can be ranked based on the responses of employers.
Rank Order of Trades

Rank Order 1 2 3 4 5 Trade/Field Welder Electrician Others Auto Electrician Auto Mechanics
6 7 8 9 10
Auto A/C Technician Computer Assistant Auto Service Supervisor Mason Carpenter
The Labor Market Information Bulletin of the Tertiary and Vocational Education Commission (TVET- Volume 01/09 -June 2009) ranks the demand for local jobs and lists the top 10 demand jobs under the following categories. Senior Officials and Managers ; Professionals; Technicians & Associate Professionals; Clerical & Related Workers; Service Workers & Shop and Market Sales Workers; Craft & Related Workers; Manufacture of Food Products & Beverages; Manufacture of Clothing Apparel; Construction; Computer & Related Activities; Sale, Repair & Maintenances of Motor Vehicles & Motor Cycles; and Manufacture of Furniture.
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Section 10. International Corporation: Bilateral, Multilateral and International Organization

Sri Lanka is the member of the Commonwealth of Nations; the United Nations; the South Asian Association for Regional Cooperation (SAARC), the World Bank; and the Asian Development Bank. International development agencies have assisted the country to achieve the Millennium Development Goals through financing schemes that develop key economic sectors and support much-needed reforms in public finance management and government. Bilateral and multilateral development agencies have provided assistance in infrastructure; education and vocational training; health; public sector reforms; and in other areas vital for the Sri Lankas overall human development. Support for reforms in tertiary and vocational education have been under way since the 1970s, including quality and curriculum development capacity development; enhancing physical facilities; staff development for teachers and management; and increasing responsiveness to labor market demands. The World Bank (1981) funded the Construction Industry Training Project and the Institute for Construction Training and Development (CITP ICTAD). This was a sector wide project to develop: skill standards for construction craftsman (module on practices developed in the United Kingdom); and standard curricula for construction training teaching, including learning materials and associated trainer
training. The outputs were adopted by several major training agencies. The partner delivery agencies were the Department of Technical Education and Training (DTET); technical colleges; the Department of Labor District and Mobile Training Centers (the Department of Labor District and Mobile Training Centers were adsorbed into the Vocational Training Authority in 1988); several non- governmental organizations; and other government agencies providing construction related training. The World Bank initiative went as far as the design of training workshops for the delivery of efficient teachinglearning, including the development and monitoring of on-site training. Several major bilateral donor agencies are actively involved in supporting the tertiary and vocational education and training (TVET) sector, but their inputs are primarily aimed at disadvantaged and vulnerable groups, with the understanding that established national structures, processes, and standards will be adopted by the respective vocational training deliverers in their training related operations. A significant wave of donor input was funded by the Asian Development Bank (ADB). There were two projects, both with national remit and highly influential in terms of paving the way for the establishment of the national vocational qualification (NVQ) framework. The first was the Skills Development Project (ADB Loan No 1707 SRI), which ran between March 2001 and January 2007 (with an extension). It forecasted the reform of TVET and involved all training providers. The main objectives of this project were to: 1) Strengthen the national sectoral apex body, the Tertiary and Vocational Education Commission, so as to coordinate
SRI LANKA 557
interventions to improve the quality and market relevance of skills training programs; 2) Rationalize the resource allocation and budgeting for vocational training agencies; 3) Standardize competency-based training standards; curriculum; teacher training; and the quality of instructional materials across the 300 public sector vocational training centers; 4) Develop 20 new skills training courses and convert 25 existing courses into competency-based format; 5) Develop skills standards with corresponding training standards and trade tests for the 45 competency-based training courses; 6) Develop test, produce, and distribute competency-based training materials for all 45 courses; and 7) Establish a national vocational qualification framework, including the development of an accreditation system; assessor training and certification; expansion of the national trade testing programs; and establishment of a quality management system, preparing the ground for full implementation (in terms of human capacity building, system building, and institutional building.) The second was the Technical Education Development Project (ADB Loan No. 2197), which runs from April 2006 to October 2010 (parallel with the end of ADB Loan 1707-SRI). It focused on linkages between TVET and higher education. The main objectives of this project were to: 1) Strengthen the Ministry of Skills Development, Vocational and
Technical Education (the predecessor of the current Ministry of Vocational and Technical training and other relevant institutions in support of market- responsiveness); 2) Strengthen policy analysis in the sector; 3) Embed the standards developed in the first project and develop standards for technologists and technicians; 4) Strengthen quality assurance systems in TVET; 5) Enhancing the public image of the sector; 6) Establish the University of Vocational Technology, focusing on technical and technological education and developing University administration and technical capacity, student selection procedure, new curricular and upgrading facilities and equipment. Both projects were concerned with strengthening national coordination and management through TVEC to ensure quality, relevance, effectiveness, and efficiency. The projects attempted to tackle the rationalization of resources, particularly to support less-resourced vocational training centers in rural areas and in some economically disadvantaged districts. In addition to the ADB funded project, the Japan International Corporation Agency (JICA); Korean International Corporation Agency (KOICA); and the Rehabilitation, Reconstruction, and Modernization of Technical and Vocational Training Institutes (REVO) Project-GTZ also provided financial and technical assistance for the development of the TVET sector in Sri Lanka. The JICA, KOICA, and GTZ projects assisted three technical colleges
SRI LANKA 559
with modern equipment and local and International training for academic staff members. Several other international NGOs are also conducting training programs in mostly rural areas of the country, in line with the policies introduced by the government.
Section 11. New Needs for New Skills

Technological, economic, and social trends have clearly posed profound implications on TVET systems in the region. The changing nature of the world of work, pressed by globalization and technological, economic, and social changes, requires the identification of major development pockets and deeper understanding of how they impact upon the quality of TVET systems. Rapid technological changes require workers to adapt to the fast changing technological environment. Teaching generic soft skills has become a pre-requisite in effectively preparing the workforce for the world of works. Skills including cognitive reasoning, interpersonal communication, work values, and adaptability must complement core technical skills. The globalization of economies has spurred the movement of knowledge workers and seekers across the world. It has opened up new doors for technology, services, products, and labor to come freely, while emerging skills and competencies are demanded to meet industry needs. Possession of the optimum combination of generic and technical competencies raises the opportunities for any person to be employed,
due to his/her anticipated ability to move horizontally or vertically, as may be required by the workplace. Therefore, greater emphasis should be given to employability, rather than employment. The knowledge workers of today require the ability to jump between fields of technical specialization and capture the key issues quickly. High capacity to learn skills of scientific concepts and processes reduce the time taken to master new areas, when emerging tasks and work processes occur. Therefore, trainable recruits are more important than trainee recruits. With the emergence of key climate issues and their impact on all aspects of living, there is a greater need for environmentally-oriented adjectives. After 30 years of prevailing conflict, Sri Lanka in 2009 began experiencing rapid economic growth. This economic growth has caused the significant rise in demand for TVET skills to meet job requirements in the industries, particularly in the countrys northern and eastern regions. The apparent distance of the TVET system from the industry, which is also marked by the current mismatch between the skills taught and those actually in demand, is attributable to the general disconnect between TVET, industry, and the supply-driven nature of government policies regarding TVET. Developing public-private partnerships and maintaining close interactions with industry are necessary to overcome the skills mismatch and make TVET more market oriented. The concept of small and medium scale enterprises (SME) bears particular significance, as it involves providing formal skill training to the poor and backward sections of society for whom the length
SRI LANKA 561
and cost of usual formal training options are impractical due to social and economic constraints. The SME embodies the idea of imparting various types of minimum skills that enable a person to obtain gainful employment. Moreover, the importance of developing entrepreneurial skills is also increasing, as current trends indicate that the majority of the workforce is likely to be absorbed in the un-organized and informal sector in the near future. Therefore, encouraging workers to develop micro and small enterprises, or to become self-employed, is likely to provide a better option for earning a livelihood than wage labor. The flexibility of such modular credit-based courses in TVET is likely to lead to skill upgrading, multi skilling, multi-point entry and exit, vertical mobility, and recognition of prior learning through certification of skills acquired informally. Preparing teachers to face the challenges of an ICT enriched teaching and learning environment is crucial. Teachers need to be equipped with the fundamentals of ICT tools and sufficient understanding of the integration of these tools in teaching and learning. Efforts must be oriented towards changing mind set and developing positive attitudes towards ICT application in teaching and learning, to improve TVET delivery and promote quality in instruction. New approaches to institutional management and learning are rapidly catching up and taking over traditional management approaches. The Quality Management System (QMS) movement is cross-cutting every field and is given particular emphasis in the
TVET sector. Improvement of internal efficiency and effectiveness of programs and institutions allow TVET systems to respond to industry needs and support appropriate monitoring, evaluation, and quality assurance.
Section 12. Future Challenges and Opportunities

ADB, KOICA, JICA, and GTZ Projects have injected dynamism into the previously stagnate TVET sector. The challenge is to continue this momentum and optimize the benefits of the changes that have been introduced. Programs need to be directed toward achieving following crucial goals: Meet the labor market demand for relevant skills and the demand for training and employment by over 200,000 secondary school leavers each year; Improve the quality of training to make it an acceptable alternative path to further education; Reduce geographical disparities in the provision of TVET facilities; Maximize the resources of the existing network of institutions and expedite the development of the training institutions and University of Vocational Technology; Reduce gender imbalances in technical related training; Improve the poor image of TVET institutions among
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employers, parents, and students in the private sector; Improve the quality of TVET and its output in terms of standardized qualifications and employment; Reduce dropout and failure rates and recruit, train, and retain qualified staff; Provide equitable distribution of career guidance units; Establish a revolving fund for loans for employment, with flexibility on the part of banks to ensure easy access to loans and support for the currently marginalized sections of the informal sector; Establish production units in the training institutions that can generate income for the training centers and facilitate the application of the knowledge and skills acquired in the TVET institution; Provide necessary facilities to rural training institutions where standards are uneven some rural centers are, as yet, outside the ambit of recent developments, such as competency- ased training; NVQs; and provision of qualified staff and modern equipment; Ensure effective management and continuous monitoring, and move tracer studies to prevent dilution of current programs and their outcomes; Review the distribution of training centers/institutions to further improve access, and in so doing monitor effectiveness, efficiency, and sustainability of training programs; Foster commitment to the TVET development strategy and
NVQ, mapping NVQ with international qualification frames; developing a TVET development plan that is in harmony with a human resource development policy; and building effective linkages with secondary education and tertiary education; Introduce higher order thinking skills to advocate critical thinking, analysis, and problem solving to augment and enhance learning outcomes in TVET; Enable possession of generic soft skills, a pre-requisite in the new work place. Skills including cognitive reasoning, interpersonal communication, attitudes, values, work habits and enterprise, innovation and creativity must be embedded in capacity building in TVET. Learning to learn becomes a key attribute; Secondary education will have strong vocational component in the curriculum to ensure that students can be sufficiently equipped both in knowledge and skills to directly join the labor market and have the option to pursue higher studies; Many jobs in the current labor market do not require long term rigorous training. Therefore, specific skills will be imparted through short modular courses for informal sector workers to develop micro and small enterprises or to become self employed; Identify the skills requirements of the informal sector and facilitate skill development to enhance productivity and develop an enabling environment for the vulnerable sections of the society. It is necessary to overcome the skills shortage
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in the sector; Strengthen research and development to accommodate innovations of emerging technologies, along with development, in particular, of technology in local and international areas; and Conduct a comprehensive impact evaluation of the new developments and provide a recommendation to the relevant authorities.
References
1. ADB Sector Paper - Sri Lanka Country Assistance Program Evaluation. August 2007. 2. Performance Report, 2009. The Ministry of Vocational and Technical Training.
VIETNAM
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Chapter 1
TVET POLICY, EXPERIENCE, AND TRENDS
IN VIETNAM

Vietnams territorial waters make around 1,000,000 km2, with over 3,000 km long coastline lines. Vietnam lies along the Indochinese Peninsula and circles the old southeastern part of the Asian continent with its back turned to the Eastern Sea (Pacific Ocean). These mountain and sea areas boast a diversity and richness in natural resources, as well as minerals.
1. Population
Vietnams population size increased from 77.63 million in 2000,
th to 86.03 million in 2008, and it ranks 13 in the group of nations
with densely populated rate. The majority of the population gathers in rural areas. In 2008
the proportion of the Vietnamese population living in rural areas still occupied 72.15% (62.07 million). The population structure by sex has not experiences much decline, remarkably with the proportion of female (50.84% in 2000 and 50.73% in 2008) slightly higher than that of the male. The Vietnamese population is young, and step close to the golden change. In this period, over half of the Vietnamese population belongs to the age group of less than 25 years. The proportion of the age from 15 and up is rather high (67.99% in 2000 and 74.94% in 2008). The rate dependent on population reduced from 71% in 1999, to 58.63%.
<Table 1-1> Population in 2000-2008 2000 2004 2005 2006 2007 2008 2015 Population (000s) 77635.80 82031.70 83106.30 84136.80 85171.70 86210.80 93647.00 Male 38166.40 40310.50 40846.20 41354.90 41868.00 42384.50 46410 Female 39469.40 41721.20 42260.10 42781.90 43303.70 43826.30 47237
Source: Statistical Yearbook 2000-2008, General Statistical Office, Vietnam, 2009.
2. The Vietnamese Economy

Vietnam is a developing market economy. Since the mid 1980s, through the i mi (reform) period, Vietnam has made a shift from a centrally planned economy, to a socialist-oriented market economy. Over that period, the economy has experienced rapid growth. Today, Vietnam is in the period of integrating into the world's economy, as a part of globalization. Vietnam has been rising as a leading agricultural exporter and an attractive foreign investment
VIETNAM 571
destination in Southeast Asia. In 2009, the nominal GDP reached $92.439 billion, with a nominal GDP per capita of $1,060.
<Table 1-2> Gross Domestic Product at Current Prices by Economic Sector Of which Agriculture, Total Industry and construction Service forestry and fishing Bill. Dongs 1990 41955 16252 9513 16190 1991 76707 31058 18252 27397 1992 110532 37513 30135 42884 1993 140258 41895 40535 57828 1994 178534 48968 51540 78026 1995 228892 62219 65820 100853 1996 272036 75514 80876 115646 1997 313623 80826 100595 132202 1998 361017 93073 117299 150645 1999 399942 101723 137959 160260 2000 441646 108356 162220 171070 2001 481295 111858 183515 185922 2002 535762 123383 206197 206182 2003 613443 138285 242126 233032 2004 715307 155992 287616 271699 2005 839211 175984 344224 319003 2006 974266 198798 404697 370771 2007 1143715 232586 474423 436706 2008 1485038 329886 591608 563544 2009 1658389 346786 667323 644280 Structure (%) 1990 100.00 38.74 22.67 38.59 1991 100.00 40.49 23.79 35.72 1992 100.00 33.94 27.26 38.80 1993 100.00 29.87 28.90 41.23 1994 100.00 27.43 28.87 43.70 1995 100.00 27.18 28.76 44.06 1996 100.00 27.76 29.73 42.51 1997 100.00 25.77 32.08 42.15 1998 100.00 25.78 32.49 41.73
Of which Total 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Agriculture, forestry and fishing 25.43 24.53 23.24 23.03 22.54 21.81 20.97 20.40 20.34 22.21 20.91 Industry and construction 34.50 36.73 38.13 38.49 39.47 40.21 41.02 41.54 41.48 39.84 40.24 Service 40.07 38.74 38.63 38.48 37.99 37.98 38.01 38.06 38.18 37.95 38.85
Source: General Statistical Office (GSO) of Vietnam, 2009
Although industry contributed 40.1 percent of GDP in 2004, it employed only 12.9% of the workforce. In 2000, 22.4% of industrial production was attributable to non-state activities. During 1994-2004, industrial GDP grew at an average annual rate of 10.3 percent. Manufacturing contributed 20.3 percent of GDP in 2004, while employing 10.2 percent of the workforce. During 1994-2004, manufacturing GDP grew at an average annual rate of 11.2 percent. The top manufacturing sectors food processing, cigarettes and tobacco, textiles, chemicals, and electrical goods experienced rapid growth. In 2004, services accounted for 38.2 percent of the gross domestic product (GDP). During 1994-2004, GDP attributable to the services sector grew at an average annual rate of 6.0 percent. Table 3 provides detailed data for each sector of the Vietnamese economy:
<Table 1-3> Gross Domestic Product at Current Prices by Ownership and by Kind of Economic Activity
2007 2008 Prel. 2009
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
TOTAL
228892 272036 313623 361017 399942 441646 481295 535762 613443 715307 839211 974266 1143715 1485038 1658389 582674 771688 84025 90410 182684 498594 304027 285030 32947 72492 88897 38335 46124 58409 99702 111700 146607 61756 165310 333166 22224 31558 37100 25090 44558 28929 53276 33464 64503 39869 79712 47169 95696 58592 110255
By Ownership
State 27946 22625 28450 70696 10130 19768 51700 8604 20522 20858 21764 23642 27931 10339 11725 13993 16028 18201 61906 70767 81979 24196 33703 42606 44345 46153 57326 11598 12651 14906 17904 20340 24125 27474 81474 89072 93450 36214 48958 58626 66212 73697 26153 29004 32267 38243 44491 50500 60703 74612 32131 35347 37907 38781 42800 45966 50718 57193 63622 71059
91977 108634 126970 144407 154927 170141 184836 205652 239736 279704 322241 364250 410883 527732
Non-State
122487 143296 158203 180396 196057 212879 230247 256413 284963 327347 382804 444560 527432 683654 91710 116505 155905
Collective
23020
27271
Private
17020
20129
Household
82447
95896 107632 122112 131706 142705 153223 169122 188497 215926 250999 289227 339868 443724 88744 108256 134166 165456 205400 273652
Foreign investment sector
14428
20106
By Kind of Economic Activity 93954 103043 114160 128519 143037 160462 186462 271477
Agriculture and forestry
55555
65743
Fishing
6664
9771
Mining and quarrying
11009
15282
Manufacturing
34318
41290
95211 110285 125476 145475 173122 207027 243142 302136
Electricity, gas and water supply
4701
6538
Construction
15792
17766
Wholesale and retail trade; repair of motor vehicles, motor cycles and personal and household goods 48914 55783 59384 62836
37491
43125
67788
75617
83297
96995 113768 132794 156442 212139
244933
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
11307 12418 5444 1774 15355 17683 18260 19173 21589 24452 27287 31304 33635 36814 43509 2026 1902 2345 2646 3009 3694 4315 5247 6059 7065 6274 7488 8148 8762 9763 10858 12737 15072 17607 20756 27215 9296 53743 14076 15546 17341 19431 21095 24725 30402 36629 43825 51118 66359 72412 31617 10581 60234 12404 13412 14343 15412 17154 18472 22529 29329 35861 44992 57067 67394
2007
2008
Prel. 2009
Hotels and restaurants
8625
9776
Transport, storage and communications
9117
10390
Financial intermediation
4604
5148
Scientific activities and technology
1405
1629
Real estate, renting and business activities
12392
13507
Public administration and defense; compulsory social security 10460 11274 4381 1844 443 7855 734 850 895 953 985 8874 9323 9853 10412 11412 1037 577 584 614 651 712 774 12497 1108 2068 2378 2558 2800 2987 3376 4979 5401 5999 6417 7057 8865 10851 3693 885 14354 1237 13202 14004 14841 16245 18071 21403 23335 26948 12412 4158 1054 16293 1421 11849 11683 12066 12784 13816 16676 19061 23038
8278
9417
26737 30718 14093 4617 1217 18789 1642
31310 34843 16160 5200 1425 21959 1927
41279 38261 19178 5842 1909 28704 2551
47042 42780 21537 6964 2046 33843 2898
Education and training
8293
9887
Health and social work
3642
4007
Recreational, cultural and sporting activities
1259
1511
Activities of party and of membership organizations
223
281
Community, social and personal service activities
4979
6319
Private households with employed persons
545
649
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3. Education System of Vietnam

Education in Vietnam is divided into five levels: pre-primary, primary, intermediate (lower secondary), secondary (upper secondary), and higher education. Formal education consists of twelve years of basic education. Basic education consists of five years of primary education; four years of intermediate education; and three years of secondary education. The majority of basic education students are enrolled on a half-day basis. Vietnam is currently trying to overhaul its education system, with a view to 1) preparing students for the increasing role of English as the language of business; and 2) emphasizing the importance of internationalizing the education system, to maintain a workforce equipped to maintain the rapid economic growth of the last two decades.
[Figure 1-1] The Education and Training System of Vietnam
<Table 1-4> Number of Schools and Classes of General Education as of 30 September
1995 - 1996- 1997- 1998- 1999 - 2000 - 2001 - 2002 - 2003 - 2004 - 2005- 2006- 2007- 2008- 20091996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Number of schools (School) 6258 894 2047 701 476.9 323.4 124.9 28.6 Index(previous year = 100) - % 104.2 105.1 98.7 127.7 111.6 95.8 103.7 101.7 106.6 116.3 118.5 115.9 106.8 104.6 103.5 114.8 101.2 98.5 99.3 103.7 101.3 101.7 101.7 98.3 106.4 111.3 97.4 96.8 97.6 87.6 65.9 97.6 90.3 106.4 94.6 95.0 100.7 98.2 104.9 103.8 107.6 114.4 114.3 111.0 109.7 114.4 103.6 104.4 104.6 103.7 103.9 101.9 102.5 100.3 101.9 101.3 104.2 108.6 95.5 84.5 99.8 97.0 102.7 107.1 103.3 102.6 102.8 102.2 102.4 102.0 101.8 101.2 103.4 109.9 90.5 87.2 99.8 96.5 103.1 107.3 101.5 101.2 103.8 106.8 86.0 79.5 97.9 95.7 98.0 107.8 101.3 101.0 102.7 104.7 87.0 97.5 98.5 97.7 97.8 104.0 101.1 100.7 101.5 105.1 94.0 100.3 98.8 98.6 97.8 102.1 100.8 100.8 101.2 102.0 92.7 95.8 98.2 99.5 96.3 97.4 33.9 39.3 45.1 50.2 52.1 55.8 59.9 133.4 139.5 144.4 153.7 161.3 165.7 170.9 167.5 64.6 327.3 322.4 320.1 314.5 308.8 299.4 288.9 276.6 494.6 501.2 509.6 518.4 522.2 520.9 519.7 508.7 501.2 270.2 163.8 67.2 683 661 645 565 537 454 396 315 307 308 495.2 266.4 160.2 68.6 1349 1316 1189 1265 1197 1143 1034 889 773 727 962 1101 1258 1396 1532 1664 1828 1952 2044 2149 2192 674 295 486.2 265.1 154.3 66.8 7164 7417 7741 8096 8396 8745 9041 9383 9635 9781
21049 21754 22664 23414 24012 24692 25225 25825 26352 26817 27227 27593 27898 28114 28408 9902 10064 2267 611 294 484.5 268.1 150.0 66.4 101.0 100.8 101.6 103.4 90.7 99.7 99.7 101.1 97.2 99.4
Primary school
11701 12145 12764 13259 13517 13859 13903 14163 14346 14518 14688 14834 14933 15051 15172
Lower secondary school
5902
6340
Upper secondary school
644
703
Primary & lower secondary school
2101
1834
Lower & upper secondary school
701
732
Number of classes (Thous. Of classes)
436.4
459.7
Primary
310.3
317.9
Lower secondary
104.3
117.2
Upper secondary
21.8
24.6
School
104.7
103.3
Primary school
106.5
103.8
Lower secondary school
111.9
107.4
Upper secondary school
104.7
109.2
Primary & lower secondary school
82.3
87.3
Lower & upper secondary school
104.5
104.4
Class
106.6
105.3
Primary
103.7
102.4
Lower secondary
114.6
112.4
Upper secondary
114.1
112.8
<Table 1-5> Number of Teachers & Pupils of General Education (Dec)

20062007 789.6 349.5 314.9 125.2 134.4 317.5 348.7 349.7 317.0 140.2 800.6 806.9 818.7 355.2 317.2 146.3 20072008 20082009 20092010
1995 1996 - 1997 - 1998 - 1999 - 2000 - 2001 - 2002 - 2003 - 2004 - 2005-1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 565.6 333.1 184.2 48.3 55.8 64.2 72.0 80.1 88.6 98.8 106.1 115.5 202.7 216.2 233.8 254.1 271.8 290.4 302.5 310.2 346.0 351.3 355.9 359.9 363.1 366.2 362.4 354.8 604.5 631.7 661.7 694.1 723.5 755.4 771.0 780.5
Number of direct teaching teachers (Thous. of pers)
492.7
521.0
Primary
298.9
311.5
Lower secondary
154.4
167.0
Upper secondary
39.4
42.5
Number of pupils (Thous of 15561.0 16348.0 16970.2 17391.1 17685.3 17776.1 17875.6 17699.6 17505.4 17122.6 16650.6 16256.6 15685.2 15127.9 14912.1 .pupils)
Primary
10228.8 10352.7 10383.6 10223.9 10033.5 9741.1 9315.3 8815.7 8346.0 7744.8 7304.0 7029.4 6860.3 6731.6 6908.0
Lower secondary Index (Previous year = 100) - % 108.6 106.9 110.3 113.6 103.8 100.3 107.5 119.6 119.6 118.4 111.0 106.0 103.3 103.0 98.5 98.1 97.1 95.6 106.7 106.0 102.5 101.7 100.5 100.6 115.5 115.1 112.1 111.3 110.6 99.0 94.6 102.7 106.6 110.0 106.7 108.1 108.7 107.0 103.9 101.5 101.3 101.1 100.9 100.9 106.8 111.5 98.9 94.7 102.2 105.5 106.9 104.5 104.7 104.9 104.2 104.4 102.1 99.0 104.2 107.4 97.8 92.8 100.7 106.6
4312.7 4839.7 5204.6 5514.3 5694.8 5863.6 6259.1 6429.7 6569.8 6616.7 6371.3 6152.0 5803.3 5468.7 5163.2
Upper secondary
1019.5 1155.6 1382.0 1652.9 1957.0 2171.4 2301.2 2454.2 2589.6 2761.1 2975.3 3075.2 3021.6 2927.6 2840.9 101.2 97.9 102.6 108.9 97.2 94.3 96.3 107.8 101.2 98.5 101.5 108.4 97.6 96.2 96.6 103.4 101.4 99.8 100.8 107.3 96.5 97.6 94.3 98.3 100.8 100.3 99.8 104.3 96.4 98.1 94.2 96.9 101.5 101.6 100.1 104.4 98.6 102.6 94.4 97.0
Direct teaching teacher
105.4
105.7
Primary
103.7
104.2
Lower secondary
108.6
108.2
Upper secondary
106.2
107.9
Pupil
107.1
105.1
Primary
102.0
101.2
Lower secondary
117.9
112.2
Upper secondary
120.9
113.3
University entrance is based on the scores achieved in the entrance examination. High school graduates need high scores to be admitted to universities. Securing a place in a public university is considered a major step towards a successful career, especially for those from rural areas or disadvantaged families. The pressure on the candidates, therefore, remains very high, despite the measures taken to reduce the importance of these exams. In 2004, it was estimated that nearly one million students took the exam, but on average only 20% passed.
<Table 1-6> University & College Education

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Prel. 2009
Number of schools
178 109 30 32.3 22.8 4.5 4.5 5.3 5.1 7.6 6.6 23.5 24.1 26.1 27.1 27.9 31.4 33.4 34.9 40.0 42.0 35.9 38.7 40.0 47.6 48.6 53.4 45.7 7.7 23 23 27 29 34 47 64 56.1 51.3 4.8 96 110 123 131 148 168 179 187 201 243 275 305 191 202 214 230 277 322 369
(*)
(School)
393 322 71 60.7 54.8 5.9
403 326 77 65.1 57.5 7.6
Public
Non-public
Number of teachers(**) (Thous. pers.)
Public
Non-public
Number of students(***) (Thous. Students)
899.5 974.1 1020.7 1131.0 1319.8 1387.1 1666.2 1603.5 1719.5 1796.2 297.9 509.3 662.8 682.3 734.9 795.6 873.0 908.8 993.9 1182.0 1226.7 1456.7 1414.7 1501.3 1547.4 103.9 101.1 111.9 137.1 137.8 160.4 209.5 188.8 218.2 248.8 173.1 236.3 357.6 401.7 421.4 552.5 579.2 604.4 653.7 729.4 836.7 917.2 1033.2 1203.5 1295.0 452.4 480.8 493.8 529.6 601.8 698.4 754.9 864.9 982.1 1032.7 100.1 98.4 110.6 124.1 127.6 138.3 162.3 168.3 221.4 262.3
Public
Non-public
Of which: Full-time training
Public
Non-public
58.5 78.5
Number of graduates (Thous. students)
162.5 168.9 166.8 165.7 195.6 210.9 232.5 234.0 222.7 246.6 74.1 103.4 113.6 149.9 157.5 152.6 152.6 180.8 195.0 216.5 215.2 208.7 223.9 12.6 11.4 14.2 13.1 14.8 15.9 16.0 18.8 14.0 22.7
Public
Non-public
Index (Previous year = 100) - %
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
107.3 105.8 105.9 107.5 120.4 116.2 114.6 106.5 102.5 100.0 88.1 114.6 111.8 106.5 113.0 113.5 106.5 104.5 107.5 120.9 113.2 110.9 105.6 101.2 76.7 100.0 117.4 107.4 117.2 138.2 136.2 110.9 108.5 106.7 111.1 107.6 103.4 119.1 101.9 109.9 105.1 108.2 107.4 105.1 103.1 102.6 108.3 103.8 102.9 112.6 106.3 104.6 114.5 105.0 108.7 112.2 106.8 105.1 138.4 101.3 116.7 96.1 150.9 85.8 117.8 62.8 122.1 128.3 96.2 107.2 104.5 97.1 106.1 103.1 90.1 115.5 114.0
Prel. 2009
School
Public
Non-public
Teacher
Public
109.3 108.3 104.8 110.8 116.7 105.1 120.1 146.5 171.0 130.1 102.9 107.7 108.3 109.7 104.1 109.4 118.9 103.8 118.8 117.8 97.3 110.6 122.6 100.5 116.4 130.6
Non-public
Student
Public
Non-public
Of which: Full-time training

114.0 112.3 112.6 133.6 104.0 158.5 134.2 157.0 94.4 139.5 109.9 131.9 105.1 98.7
126.4 136.5 151.3 112.3 104.9 108.5 104.8 104.4 108.2 111.6 114.7 109.6 112.6 116.5 107.6 107.4 106.3 102.7 107.2 113.6 116.1 108.1 114.6 113.5 105.2 70.7 102.8 108.4 117.4 103.7 131.6 118.5 99.3 118.1 107.8 110.2 100.6 96.9 100.0 118.5 107.8 111.0 90.4 124.7 99.4 91.8 113.5 107.9 100.2 117.5 95.2 110.7 97.0 100.5 74.5 162.5
Public
Non-public
Graduate
Public
Non-public
(*) From 2008, include member colleges. (**) From 2009, excluding invited teachers. (***) From 2009, excluding number of students studying second diploma, distance training, complete knowledge and inter-level diploma. Source: General Statistical Office (GSO) of Vietnam, 2009
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1. Employment
In Vietnam, the labor force is understood as people from 15 years old who may have a job or be unemployed. According to this definition, in 2008, the labor force was 47.72 million and 49.1 million in 2009 In 2008, the female labor force was 23,066,670 people, accounting for 48.33 percent of the total labor force. This rate slightly decreased in comparison to that of 2000 (49.66 percent). The reason is that the growth rate of the female labor force during the period of 2000-2008 is lower than that of the whole labor force (2.28 percent yearly, compared to 2.71 percent yearly).
[Figure 1-2] Labor Force 2000-2008 (In Millions of Persons)
60 50 40 30 20 10 0 2000 2001 2004
Labour Force
39.3 19.5
40.1 19.9
43.2
44.4
45.6
46.7
47.7
21.2
21.6
22.1
22.6
23.1
2005
2006
Female Labour Force
2007
2008
Source: Statistical data of employment and unemployment in Viet Nam 1996-2006Labor - Social Publishing House, 2006 and MOLISA 2007. Statistical data of employment and unemployment in Vietnam 0n 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009.
Labor is concentrated in agricultural and rural areas. The scale of rural labor in 2008 was about 35.58 million (increased by 5.6 million compared to 2000). The average annual number of rural workers increased about 707 thousand, so the number of rural workers accounted for 58.02% of the workforce of the increasing labor force nationwide. However, the proportion of rural workers has decreased from 77.42% in 2000, to 73.51% in 2008.
[Figure 1-3] Structure of Workforce by Region and Sex
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<Table 1-7> Labor Force in 2000-2008

2000 Working age population 15+ (000s) Male Female Labor force (000s) Male Female Not in labor force (000) Male Female Labor force participation rate (% ) Male Female 2004 2005 2006 2007 2008 2015
54284.48 25961.70 28322.78 39253.33 19760.05 19493.28
60556.74 29221.81 31334.93 43242.04 22059.17 21182.87
62441.45 30143.43 32298.01 44382.09 22757.86 21624.23
64867.24 31367.51 33499.73 45579.43 23430.19 22149.24
66967.58 32401.79 34565.79 46707.92 24096.61 22611.31
68106.53 33290.47 34816.06 47719.13 24652.46 23066.67
69587
53127 27629 25498 16460
15031.15 17314.70 18059.36 19287.82 20259.65 20387.40 6201.65 7162.64 7385.57 10069.54 8305.18 8638.01 8829.50 10152.06 10673.79 11350.49 11954.48 11749.39 72.31 76.11 68.83 71.41 75.49 67.60 71.08 75.50 66.95 70.27 69.94 66.12 69.75 74.37 65.42 70.0 74.05 66.25
76.35
2. Unemployment
Unemployment in Vietnam is understood as people from 15 years old who, in the week before the survey, were unemployed, but were able to work and actively looked for jobs. In other words, the unemployed is considered as a part of the labor force. In line with economic growth, the unemployment rate in Vietnam in the last several years decreased. The unemployment rate of the labor force representing working ages in urban areas was 4.8 percent in 2006; it decreased to 2.42 percent in 2007, and in 2008 it was 2.20 percent.
[Figure 1-4] Unemployment Rate 2002 - 2009 (%)
Source: Statistical data of employment and unemployment in Viet Nam 1996-2006Labor - Social Publishing House, 2006 and MOLISA 2007. Statistical data of employment and unemployment in Vietnam 0n 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009
The majority of the unemployed people have low-skilled technical qualifications. Of the total unemployed, the proportion of under-medium qualified ones takes the majority (63.89% in 2004, and 53.62% in 2007). If classified under the qualified and technical category, the majority of unemployed people (88.20% in 2003, and 76.17% in 2008) have qualifications under secondary technical school. The job shortage has gradually improved, and the majority of unemployed persons have not had any skills and technical qualifications. The unemployment rate in rural areas is higher than that in urban areas, and unemployed persons are mainly those with no technical qualifications (85.4%).
3. The number of workers related to jobs

In 2008, there were 46,256,580 workers situated in jobs relevant
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to their training; females made up 48.25 percent of this figure. The number of employed persons has been rising dramatically during the past 4 years, from 39.6 million in 2003, to 46.25 million in 2008. In 2008, two thirds (66.92%) of the population aged 15 and above (age 15+) had jobs relevant to their training. This ratio has been decreasing during the past 10 years, from 70.68 percent in 2000, to 67.92 per cent in 2008.
<Table 1-8> Number of Employment 2000-2008
2000 2003 2004 2005 2006 2007 2008 Employment (000s) 38367.59 41175.72 42315.62 43452.40 44548.93 45578.75 46256.58 Male 19292.05 20959.21 21649.33 22312.83 22893.51 23525.30 23949.33 Female 19075.54 20216.51 20666.29 21139.57 21655.41 22053.45 22307.25 Employment to-population 15+ ratio (% ) 70.68 70.39 69.88 69.59 68.68 68.06 67.92 Male 74.31 74.40 74.09 74.02 68.34 72.60 71.94 Female 67.35 66.66 65.95 65.45 64.64 63.80 64.07
4. Employment by industry
The data shows that, the proportion of employed workers in the agriculture-forestry-aquaculture sector continued to decrease, from 56.7 percent in 2005, to 52.5 percent in 2008. In contrast, the proportion of employed workers in the industry-construction sector and services sector increased continuously, from 17.9% and 25.4% in 2005, to 20.8% and 26.7%, respectively.
There is a big difference among these sectors in term of employment structure. The employment proportion of the agricultureforestry-aquaculture sector was always the highest, followed by that of the services sector and industry-construction sector. With respect to transformation in employment structure, the trend is that the proportion of employment in the agriculture-forestryaquaculture sector is decreasing, while that of services sector and industry-construction sector is increasing. This trend also reflects that of industrialization and modernization, as well as integration in the national course of economic restructuring.
<Table 1-9> Employment by Industry on 1/7/2008 By Industry AgricultureIndustrieTotal ForestryConstruction Aquaculture people 43452.4 24637.51 7777.98 2005 % 100 56.7 17.9 people 44548.93 24368.26 8152.45 2006 % 100 54.7 18.3 people 45578.75 24316.26 8819.49 2007 % 100 53.35 19.35 people 46256.46 24284.64 9621.34 2008 % 100 52.5 20.8
Services 11036.91 25.4 12028.21 27 12443 27.3 12350.47 26.7
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<Table 1-10> Employment by Kind of Job in 2000-2008

Unit: Percent Total Agriculture and forestry Fishery Mining and quarrying Manufacturing Electricity, gas and water supply Construction Whole sale and retail trade; repair of motor vehicles, motor cycles and personal and household goods Hotel and restaurants Transport, storage and communications Financial intermediations Other 2000 100 62.46 2.63 0.68 9.44 0.22 2.77 2004 100 55.37 3.38 0.78 11.62 0.33 4.62 2005 100 53.61 3.49 0.8 12.34 0.36 4.7 2006 100 51.78 3.59 0.85 13.05 0.4 4.93 2007 100 50.2 3.7 0.9 13.5 0.45 5.13 2008 100 48.87 3.75 0.96 14.04 0.5 5.33
10.36 1.82 3.12 0.2 6.3
11.46 1.82 2.89 0.3 7.43
11.6 1.8 2.84 0.37 8.09
11.8 1.81 2.8 0.42 8.57
11.98 1.84 2.76 0.48 9.06
11.96 1.85 2.72 0.49 9.53
5. Employment by position-based
The number of employed people in Vietnams work force accounts for a large proportion. However, employed laborers are mainly in the form of self-employment or household economy, especially in the agricultural and rural sectors. In 2005, the number of laborers of this kind accounted for 73.95% in the employed work force. In 2008, this proportion was 67.34%.
<Table 1-11> Employment by Position-Based in 2000-2008

Unit: Percent
Percentage shares (% ) Paid worker Enterprise owner Self employed Unpaid Household Worker Others
2000 100 18.43 0.21 43.02 37.04 1.3
2005 100 25.65 0.4 40.96 32.99 0
2006 100 21.49 0.91 39.16 38.43 0
2007 100 30.3 3.2 53.5 12.9 0.1
2008 100 29.5 3.08 48.25 19.09 0.07
The table shows that the proportion of paid workers tends to increase, while the proportion of self-employed and unpaid household workers tends to decrease, with marginal differences.
6. Employment by ownership sector

By ownership, the rate of workers, who were employed in state enterprises, was decreasing (from 9.9 percent in 2004, to 9.3 percent in 2008), and the rate of workers employed in the foreign investment sector was increasing, from 1.5 percent, to 3.1 percent.
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<Table 1-12> Structure of Workers by Ownership in 2004-2008

Unit: Percent
By ownership A 2004 2006 2007 2008
Total 1 100.0 100.0 100.0 100.0
State-Owned Non-State Foreign Investment sector Owned Sector Sector 2 3 4 9.9 88.6 1.5 9.2 89.2 1.6 9.3 88.7 2.0 9.0 87.9 3.1
Source: Statistical Data of Employment and Unemployment in Vietnam 1996-2006, Labor-Social Publishing House, 2006, and MOLISA 2007. Statistical Data of Employment and Unemployment in Vietnam on 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009.
7. Employment by job performed

Related to jobs performed, among the employed people, manual employees account for a large proportion (61.68% in 2005, and 61.50% in 2008). Those who belong to the highly skilled and middle skilled levels in technical areas account for 7.90% (about 3.5 million in 2008). This shows that the quality of work force in Vietnam is still restrictive, which reflects the current technology level in Vietnams industries. Skilled craftsmen in 2008 made up 11.50% of the total employed workers.
<Table 1-13> Employment by Occupation Performed in 2008

Unit: Percent
123456789-
Job Groups 2004 Total 100.00 Administrator 0.74 High level of technical profession 3.49 Middle level of technical profession 3.18 Professional worker 0.99 Staff for personal service and social 8.53 security Skilled employees in agriculture, 6.29 forestry Skilled craftman 12.38 Manichary installer and operator 3.39 Manual employees 61.01
2006 100.00 3.22 3.90 2.71 0.89 6.41 4.60 12.14 3.63 62.51
2007 100.00 3.82 4.02 2.80 0.90 6.90 4.62 11.05 4.87 61.02
2008 100.00 3.50 4.10 3.80 1.00 6.60 4.30 11.50 3.70 61.50
Source: Statistical data of employment and unemployment in Viet Nam 1996-2006Labor - Social Publishing House, 2006 and MOLISA 2007. Statistical data of employment and unemployment in Vietnam 0n 1/7/2007 and 1/7/2008, MOLISA, Vietnam, 2009
Section 3. The TVET System in Vietnam

1. In General
1.1 Establishing practical technical training for socio-economic development According to the Law on Education in 2005 and Vocational Training Law in 2006, the vocational training system has been developed with three training levels to provide direct technical labor for production, business, and services. Accordingly, legal documents guiding vocational training operations have been promulgated timely
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and adequately, such as the list of training occupations; regulations on developing frame curriculum; documents on procedures for establishing vocational secondary schools and vocational colleges; documents on monitoring vocational training quality; and other relevant policies and mechanisms. The above-mentioned legal documents and policies have created a comprehensive and consistent legal corridor for implementing vocational training effectively, proving the soundness of targets set-forth in Education Strategy 2001-2010. The master plan for developing vocational colleges, vocational secondary schools, and vocational training centers by 2010 and directions towards 2020 has been implemented. The network of vocational colleges, vocational secondary schools, and vocational training centers has been diversified in terms of ownerships and training modes. As compared to that in 2001, the number of vocational training establishments has increased by 3.3 times1). These establishments are allocated according to development conditions of individual economic regions. The master plan is currently being studied and supplemented to facilitate vocational training establishments in their delivery of national standards occupations which are comparable with training levels of developed countries.
1) As of July 2009, there are 102 vocational colleges, 265 vocational secondary schools, more than 700 vocational training centers and hundreds of universities, colleges, professional secondary schools and enterprises participating in vocational training
1.2 Expanding the scale of vocational training by level and adjusting training structure Vocational training has been transferred from supply-driven to demand-driven by various policies and measures, such as developing and issuing a list of training occupations, with 385 occupations listed at the secondary level, and 301 occupations, at the college level all suitable to the labor demand of enterprises and labor market. Pilot application of training orders on the basis of enterprises' demand and local socio-economic orientations will be conducted. Through this, vocational training establishments need to link training plans with the demand of enterprises. This is a preparatory step to transform training methods, from state-granted, to state-ordered. To contribute to economic and labor restructuring, in parallel with overall mechanism and policies, vocational training for farmers and labor in intensive farming areas (including tobacco, tea, and rubber farming areas) has been implemented on a pilot basis. Given timely mechanisms and policies, vocational training has been gradually restructured in relation to the structure of labor demand by technical level; industries and trades; and regions. 1.3 Improving the quality and efficiency of vocational training During the implementation of Education Strategy, beside scale expansion, attention has been paid to the improvement of vocational training quality and efficiency. Some progress has been made. Investment in a vocational training network has transitioned from
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a dispersed and average approach, to a concentrated method, through to involvement by key vocational training establishments. At the same time, investment should be focused on vocational training establishments in areas with difficulties so that conditions ensuring vocational training quality will improve. The contingent of vocational trainers has increased in terms of quantity and gradually improved in quality2). It is being standardized by such indicators as: training level and pedagogical and occupational skills (currently, occupational skill is a weakness of vocational teachers). A training program for vocational trainers of the UK is currently applied on a pilot basis; this is a training program in which occupational skills of trainers are appreciated. A model is being implemented for establishing vocational pedagogical faculties in vocational colleges to train vocational pedagogical professionals and trainers in occupational skills. At present, there are only five pedagogical technical schools which cannot meet the demand for vocational trainers. The number of vocational managerial staff in vocational training establishments, ministries, industries, and localities has increased, but their management skills are still weak. Short-term supplementary training programs for this target group have been developed, but the content is limited. A pilot supplementary training program for vocational managerial staff of the UK has been implemented. Sets of frame curriculum at vocational secondary and vocational
2) In 2008, there were 10,195 trainers in vocational schools and vocational training centers a figure 2.88 times higher than that in 1998.
college levels have been promulgated. Vocational training programs have been developed using advanced methods, with participation by enterprises3). Over the past ten years, infrastructure and equipment of many vocational training establishments have been strengthened by national targeted programs and ODA-funded projects4). Some key occupations are equipped with modern technology relevant to practical production machinery. Owing to investment in training conditions, the quality and occupational skills of graduates from vocational training centers have been enhanced5). In occupations like welding; seamanship; hotel and restaurant services; cooking; postal services and telecommunications; oil and gas; and aviation, the occupational skills of Vietnamese labor have reached international standards. Vietnam has attended five ASEAN professional competitions, winning two first prizes and one second prize. Vietnam also attended two world professional competitions, awarded with one excellent occupational certificate in 2007, and five corresponding certificates in 2009, ranking the 30th among 46 countries participating in the competition. The trained
3) To date, 108 sets of frame curriculum have been issued at vocational secondary and vocational college levels. 4) National targeted programs and ODA projects have invested in 100 vocational schools and 290 vocational training centers 5) According to the evaluation of enterprises, 80-85 percent of trained labor is used at proper training level; 30 percent of them gained a good or higher skill level (Survey of General Department of Vocational Train in 2006).
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labor force has undertaken many job positions which require high occupational skills that used to be performed by foreign workers. In implementing government guidelines on demand-driven vocational training, many localities, ministries, and industries have provided successful leadership of certain goals. Vocational training establishments have adjusted training activities towards demanddriven training, matching the needs of enterprises; creating domestic jobs; and preparing for labor export. About 70 percent of trainees find jobs, or are self-employed right after graduation. In some occupations, this proportion reaches more that 90 percent. Though at the beginning stage, vocational training for farmers, especially for workers in intensive farming areas, has gained manifest achievements. Thanks to vocational training, farmers gain new knowledge and improve occupational skills, leading to increases in labor productivity and contributing to poverty reduction in rural area s6). Vocational training has not only contributed to domestic job creation, but also improved human resource quality for labor export7); this helps improve income and stabilize lives of workers and their families. In general, vocational training is taking steps to meet the demand of technical workers of enterprises and the labor market. Vietnamese workers are now almost able to take on key positions in the
6) In some intensive farming areas, people's labor productivity after completing vocational training increases by 1.5 - 2 times. 7) According to the Management Boards of Overseas Labor, the proportion of labor with occupational skills is about 25 percent of total workers dispatched to work abroad.
production line, even in high-tech industries, making contributions to the improvement of productivity, as well as products competitiveness. 1.4 Weakness and causes Weakness: The system of practical technical training with three levels has been newly established. The vocational training scale of establishments remains small, especially the training capacity at high level, which has not met the demand for highly skilled labor for spearhead and key industries and for labor export; The share of the trained labor force of Vietnam remains relatively low, as compared to some countries in the region8). In the context of international economic integration, this is the weakness in competition, and it imposes the risk of importing foreign labor,9) while domestic workers are still underemployed; Training structure by level and occupations has been irrelevant, not matched as required by the labor structure of industries and labor market; and In general, Vietnamese labor is still weak in labor discipline,
8) Evaluation of the ADB sho that the rate of trained labor force of Thailand and Singapore reaches about 60 percent. 9) According to preliminary statistics, there are about 80,000 foreign laborers currently working in Vietnam.
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working style, health, creative capacity, and communication skills. Causes: Different government levels and sectors have not paid proper attention to investment in vocational training development; Many vocational training establishments have not developed the interrelation with enterprises in vocational training and not been active in conducting demand-driven training; No synchronous investment has been made to establish key and advanced occupations to train workers at high level, meeting the labor demand of spearhead industrial zones, key economic regions, to develop special occupations in regions and sub-region, and to provide high-level skilled workers for labor export; The contingent of vocational trainers is insufficient in terms of quantity and occupational skills (as regards to theoretical teachers). Infrastructure and equipment of many vocational training establishments are poor and outdated; The activities of vocational information, promotion, and career guidance are not strong, and have not provided necessary information for pupils and youth to select suitable learning path; Social resources have not been mobilized thoroughly. The spending on vocational training out of total state budget for education and training is still low;10) and
10) In 2001, spending on vocational training out of the state budget for education and training was 4.9 percent and it increased to 7.5 percent in 2008.
The government administration apparatus over vocational training at provincial and district levels is not corresponding to the functions and tasked assigned. The capacity of vocational managerial staff is limited, not professional, and unable to satisfy job requirements.
2. Implementation of vocational capability development

2.1 Type of courses, number of courses for each type, number of trainees, number of facilities, etc. Many policies on expanding vocational training scale have been issued, such as policies on formal vocational training; regular vocational training; vocational training in enterprises and trade villages; and the training for farmers, demobilized soldiers, ethnic minority, the disabled, and the poor. As a result, the scale of vocational training enrollment has been expanded rapidly, 2 times higher than that in 200111), raising the proportion of the trained labor force to 26 percent in 2008. This proportion is expected to go up to 28 percent in 2009, and 30 percent in 2010. Thus, it will be two years ahead of the target set-forth in Education Strategy, which is 26 percent.
11) On average, vocational training enrollment in 2001 - 2008 increased by 6.5 percent per year; 8.1 million people were trained, of which 1.45 million people received long-term vocational training (an increase of 15 percent per year) and 6.65 million people attended short-term vocational training (an increase of 6 percent per year).
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<Table 1-14> Vocational Training Enrollment Targets and Scale in 2001-2008

Target New vocational training enrollments Of which, non-public schools One-year or more 1 vocational training Of which, non-public schools Less than one-year 2 vocational training Of which, non-public schools Vocational Training II Scale Of which, non-public schools One-year or more 1 vocational training Of which, non-public schools Less than one-year 2 vocational training Of which, non-public schools I 2001 2002 2003 2004 2005 2006 2007 2008 Total 20012008
887,300 1,005,000 1,074,100 1,153,000 1,207,000 1,340,000 1,436,500 1,538,000 9,640,900 170,858 126,100 2,522 761,200 168,330 174,630 146,500 2,930 858,500 171,700 227,953 176,400 3,528 897,700 224,425 291,171 202,700 6,081 950,300 285,090 362,271 230,000 7,620 445,000 260,000 13,000 514,443 * 305.500 16,803 - 2,186,326 258,000 1,705,200 52,484
977,000 1,080,000 1,131,000 1,280,000 7,935,700 354,651 432,000 497,640 - 2,133,836 - 9,353,100 - 2,229,913 - 2,697,400 93,467
995,800 1,131,100 1,220,600 1,329,400 1,409,700 1,570,000 1,696,500 174,500 234,600 3,560 761,200 168,330 175,789 272,600 4,089 858,500 171,700 230,883 322,900 6,458 897,700 224,425 294,568 379,100 9,478 950,300 285,090 368,930 432,700 14,279 456,500 490,000 24,500 528,743 565,500 31,103
977,000 1,080,000 1,131,000 354,651 432,000 497,640
- 6,655,700 - 2,133,836
Source: General Department of Vocational Training, 2009
2.2 Vocational training agencies network The vocational training agency network has been developed in accordance with the renovation of the master plan, and it has covered the whole country with diversification of ownership form and training method. For the last 8 years, the number of vocational training schools has increased 2 times; the number of vocational training centers has increased more than 5 times.
<Table 1-15> Number of Vocational Training Schools, Vocational Training Centers, and Others, as of 30 June 2009.
Other types of Vocational Total Training Units Of Of Of Of Of Of which which which which which which Total Total Total Total Total Total public public public public public public schools schools schools schools schools schools Vocational Training College Vocational Secondary Schools Vocational Training Schools Vocational Training Centre
Regions
Total 2.155 1.301 1 North East 232 175 2 North West 38 32 Red River 3 Delta 610 383 North Central 4 Coast 238 169 South Central 5 Coast 213 146 Central 6 Highlands 60 37 7 South East 420 165 Mekong 8 River Delta 344 194
75 8 1 34 7 6 2 12 5
64 204 8 20 1 5 29 6 5 2 9 4 81 23 20 4 33 18
153 8 4 53 23 17 4 27 18
40 2 2 25 6 3 2 0 0
19 684 1 98 2 14 8 157 5 2 82 63
433 1.152 64 104 12 16 101 58 49 14 45 90 313 120 121 27 242 209
629 85 13 198 77 73 16 85 82
1 25 0 133 0 112
2.3 Vocational trainers: From 200 to 2008, there have been 12,000 cycles of teacher training, improving the status of professional qualifications, skills, technology, and methodology. Updated technology and advanced teaching methodologies, in particular, contributed to the health of TVET. The contingent of vocational trainers have increased in terms of both quality and quantity; for the school year 2007-2008, there have been 20,195 teachers working in all vocational schools and centers, representing an increase of 2.4 times over the to 1997-1998 school
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year. In addition, there are thousands of teachers working in other units that have been involved in vocational training. About 95% of vocational trainers have met the professional standards to qualify as trainer-- the proportion of trainers with college or university level and above is 60% currently.
<Table 1-16> Number and Structure of Vocational Training Trainers by Qualification in 2008
VT schools Total of Doctor VT Num trainers % ber Master Num % ber Qualification University College Technician Others Num Num Num Num % % % % ber ber ber ber
A I 1 2 3 II
B VT schools and VT centre Vocational Training College Vocational Secondary Schools Vocational Training Centre Other types of Vocational Training Units Total
1 20,195 4,678 9,583 5,934 15,767 35,962
10
11
12
13
83 0.41 23 0.49 55 0.57 5 0.08
927 4.59 9,707 48.07 3,663 18.14 3,339 16.53 2,476 12.26 363 7.76 2,856 61.05 633 13.53 506 10.82 297 6.35 388 4.05 4,748 49.55 1,820 18.99 1,319 13.76 1,253 13.08 176 2.97 2,103 35.44 1,210 20.39 1,514 25.51 926 15.60
105 0.67 2,667 16.92 6,767 42.92 2,264 14.36 2,005 12.72 1,959 12.42 188 0.52 3,594 9.99 16,474 45.81 5,927 16.48 5,344 14.86 4,435 12.33
Source: General Department of Vocational Training, 2009 Constraints: The contingent of vocational trainers is still limited in terms of quality and quantity to fully respond to practical demands, especially for the vocational training centers in local areas and private agencies.
2.4 Vocational Training Managerial Cadre The number of vocational managerial staff in vocational training establishments, ministries, industries, and localities has increased, but their management skills are still weak. There are short-term supplementary training programs for this target group, but the
content is limited. A pilot supplementary training program for vocational managerial staff of the UK has been implemented.
<Table 1-17> Number and Qualification of Vocational Training Managerial Cadre in 2000-2008 Vocational Training 2000 2005 2008 Managerial Cadre Total 148 173 233 Qualification - Doctor 0 0 0 - Master 1 5 9 - University 106 136 199 - College 27 20 15 - others 13 13 10
2.5 Training Program, Curricular : A number of training programs have been reformed in accordance with the requirements of practical production. By 2009, 108 new vocational training curriculum frameworks were developed for the vocational training college level and high level. Constraint: Although training programs and curriculum have been revised and updated, they have not responded to the requirements of the market. 2.6 Vocational Training Infrastructure and Equipment Over the past ten years, infrastructure and equipment of many vocational training establishments have been strengthened by national targeted programs and ODA-funded projects. National
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targeted programs and ODA projects have invested in 100 vocational schools and 290 vocational training centers. Constraint: There is poor training and learning equipment of newly established vocational training schools and centers in some provinces. Only 20%-25% of total vocational training agencies have invested in relevant level of equipment. The rest are installed with equipment for fundamental practices.
3. Public Vocational Training Development Institution

3.1 Training Capacity By the end of 2008, nationwide there are a total of 1,268 public vocational training institutions, of which: 70 are vocational training colleges; 171 are public vocational training high schools; 434 are vocational training centers; and about 590 are other institutions that provide vocational training. Most of the public vocational training schools have small training capacities: Only 6% of total public vocational training schools have designated intake capacities of over 1500 students /school year; About 15% of total public vocational training schools have intake capacities under 300 students /school year; and Up to 50% of total public vocational training schools have intake capacities between 300 and 500 students /school year.
The actual intake capacities of the public vocational training schools are 17% higher than its designated capacities. 3.2 Equipment and Facilities In recent years, a number of public vocational training schools have been equipped by some international and national projects, but in general, equipment and facilities for skill practice and practical section are short in quantity and backward in quality. Only 35% of total facilities and equipment at current vocational schools are considered relatively adequate for todays production processes and technologies. Meanwhile, over 9% are too old and under-developed.
4. Support for Vocational Training by Private Firms

The guideline on diversification of resources for vocational training has been translated into initial achievement. Many organizations, enterprises, and individuals have invested in setting up vocational training agencies; as a result, the share of financial investment from the non-state sector was increased to 40% in 2008. The number of private agencies accounts for 34.1% in 2008, of which the vocational training schools and centers amount to 24.5%. There has been strong participation of socio-political organizations, with respect to the encouragement and facilitation of their membership to attend vocational training courses. During the several recent years, the state has provided support to private vocational training units, in term of provision of training
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curriculum; critical equipment; and training of vocational teachers. Consequently, the vocational training capacity of such units has been much improved. Enterprises or big companies have provided support for vocational training, such as receiving apprentices; funding vocational training equipment; and providing scholarships for students. Enterprises have also collaborated with vocational training schools to develop the list of trades and vocations; designing training curriculum; and sending experienced experts to provide practical guidance for students. However, in general, there is still weak cooperation between enterprises, including private enterprises and vocational training agencies. Enterprises have not adequately grasped their responsibility in vocational training, and there are no regulatory provisions governing their duties.
Section 4. Governance of the TVET system

1.1 National context and the preparation for vocational training development in the next period In the context of globalization and international economic integration, cooperation is always accompanied by increasingly fierce competition. In this setting, quality of human resources will be the key to creating competitive advantage.
Globalization and international economic integration create capital flows from developed countries to developing ones, as well as labor movement among countries. As a result, resources will be internationalized, resulting in new international labor divisions. Workers in developing countries, including Vietnam, on one hand, will have chance to take part in the international labor market; on the other hand, they will cope with increasing competition, even in the domestic labor market. Therefore, human resource quality has increasingly become a core issue and determinant of an individual countrys competitiveness. International economic integration facilitates the flows of training services from developed countries into the developing ones, which become increasingly more popular. This is not only a challenge, but also an opportunity for developing countries to access an advanced education and training to early integrate into the worlds knowledge economy. The emerging knowledge economy and vigorously developing science and technology of the world, especially with the development of information technology, have removed distance and created linkage among economies. Thanks to IT, less developed countries stand greater chances of quickly acquiring scientific and technology achievements, reducing the development gap with first world countries. Successfully applied in developed countries, demand-driven training has become an effective training approach. ILOs Global Work Program has recommended that countries arrange flexible
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vocational training in response to the labor market demand of creating decent work. With rapid global growth in science and technology, enhanced by the usage of advanced technical technology, many new careers and occupations will be developed. Along this line, vocational training needs to be regularly updated and improved with more sophisticated, or even new, training curriculum to prepare a contingent of savvy, qualified technical staff, versed in new and modern technology. National context and the preparation for vocational training development have set the context for the next period. According to strategic orientation, by 2020, Vietnam will basically become an industrialized and modern country with robust changes in economic and labor structure12). A modern industry requires a highly skilled labor force, and labor in agriculture also needs to be modernized. As a result, vocational training should be expanded and improved in terms of the structure of technical levels; the structure of training occupations; and vocational training, structured by region and area. Vietnam has become an official member of WTO. In addition to increasing cooperation, competition has also become increasingly fierce. It is necessary to train a labor force with high vocational skills, including hard skills (i.e. professional skills) and soft skills (i.e. creativeness, adaptability to changes, communication capacity, and culture) to continue contributing to the economys competitiveness.
12) According to the World Bank, in order to become an industrial country, the share of agriculture in GDP needs to be less than 10 percent.
This is a big challenge because, at present, Vietnams human resource quality and competitiveness are still low. In general, Vietnam is still a less developed, agricultural, and poor country13), and its human resource quality is still limited. According to the World Banks evaluation, the quality of Vietnams human resources received 3.79 points in 10-point scale, ranking 11th out of 12 Asian countries. This is one of the main reasons for Vietnams low competitiveness. In 2006, Vietnam was ranked 77th out of 125 countries and economies.14) Therefore, it is necessary to boost the improvement of education, training, and vocational training, especially high-level vocational training. In 2008, Vietnams population was about 85.7 million people,
rd th ranking 3 in ASEAN and 13 in the world. The young population
and labor force are not only advantages, but also challenges to Vietnam in the fields of vocational training, job creation, and poverty reduction. The plan for developing industries until 2020, which addresses the need for human resources at various technical levels, requires that the Vocational Training Strategy should be developed appropriately.
13) According to the UNs Human Development Report (2008) and the World Banks report (2009) it may take Vietnam 51 years to catch up with Indonesia; 95 years to keep pace with Thailand; and even 158 years to catch up with Singapore in terms of income per capita. 14) According to the World Economic Forum (WEF) (2006), in 2005 Vietnam was ranked 79th among 120countries.
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1.2 Opportunities and Challenges The international and national contexts both create great opportunities and significant challenges to vocational training in Vietnam. Opportunities for vocational training: The government, from central to local levels, industries, enterprises, and society, have been paying attention to and investing in vocational training; Vietnam has maintained high economic growth over years, creating many jobs which have attracted skilled labor; and Greater international economic integration is a good opportunity for Vietnams vocational training to quickly access the experience and achievements in vocational training of countries in the region and in the world. Challenges to vocational training: Opening the labor market in the process of international integration creates severe competition between Vietnams direct technical workers and other countries technical workers, not only in the international labor market, but also in the domestic one. There has been a phenomenon that some enterprises have to import direct technical workers at high level from other countries. Therefore, the risk is emerging that Vietnams direct technical workers cannot compete with their foreign counterparts working in Vietnam;
In order to expand the scale of vocational training and improve its quality, especially the high-level skilled labor force, huge resources are needed to upgrade infrastructure and equipment, as well as enhance the quality of vocational teachers and managers. Meanwhile, investment in vocational training is still limited. Vietnams economy is transitioning to a socialism-oriented market economy, thus requiring structural and vocational training reforms relevant to the new situation. The international and national context requires Vietnam to uphold its advantages; grip opportunities to renew and develop vocational training towards modernization; and provide high quality human resources for industrialization and modernization. These factors will facilitate labor export and, international economic integration; contribute to job creation; and improve workers living standards. Reforming and developing vocational training is an objective, pressing, and long-term requirement.
2. Organizations Involved and Total System (including Functions and Responsibilities of Both Central and Local Governments)
2.1 Development of vocational training establishment network The network of vocational training establishments will be planned by training occupations and training levels on the basis of socio-economic development strategy and the master plan of
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the whole country, industries, regions, sub-regions, and localities. The network of vocational training establishments will be built, as follows: Develop vocational colleges and vocational secondary schools, which are capable of training some national standard occupations; develop vocational colleges and professional secondary schools capable of training regional and international standard occupations to meet the demand for high-quality labor in spearhead industries, economic zones, and labor export; realize the tasks of training and supplementary training in occupational skills to grant occupational skill certificates for vocational trainers. It is expected that each province will be able to train at least two national standard occupations for the demand of local labor market; Prioritize the development of vocational colleges and vocational secondary schools in the South West, Central Highland, the North West regions, provinces challenged by the task of poverty reduction, and reduce the gap in socio-economic development among regions and localities; Develop vocational training centers to facilitate vocational universalization; occupational shift; job creation; and income improvement, raising living standards for workers, especially rural and ethnic minority areas. This issue has been addressed in the master plan on Vocational Training for Rural Labor by 2020.
Concentrate state budget on public vocational colleges and public vocational secondary schools so they can train some key occupations at national, regional, and international levels. The indicators and process of selecting targeted occupations, colleges, and schools need to ensure openness, transparency, and democracy. Domestic and foreign organizations and individuals are encouraged to establish non-public vocational training schools. 2.2 Developing the contingent of vocational trainers Developing the contingent of trainers in vocational colleges and vocational secondary schools who are able to teach national standard occupations requires: Issuing national standards on qualified vocational teachers, including standards on professional level, pedagogical profession, and occupational skill level; Standardizing vocational trainers; the vocational pedagogical profession in all vocational pedagogical faculties of vocational colleges and technical pedagogical schools; and occupational skills in public and non-public vocational colleges which train people for occupations at national, regional and international levels; Quickly increasing the number of qualified vocational trainers following their orientations to training programs: Standardizing the technical pedagogical profession and occupational
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skills for university graduates with occupational skills so they become vocational teachers at vocational secondary and college levels; Annually upgrading and updating methods, technology, techniques, and practices for and by vocational trainers in production, business, and service establishments - domestic and overseas. Developing the contingent of trainers in vocational colleges and vocational secondary schools who are able to teach regional and international standard occupations requires: Applying standards to vocational trainers of developed countries; Recruiting national qualified teachers; distinguished graduates; post-graduate holders; and experienced experts in production, business, and services (targeted individuals will be trained, upgraded, and certified in their technical pedagogical profession and occupational skills, in accordance with accredited training programs of developed countries); Standardizing English for vocational trainers; and A, vocational trainers will be upgraded and updated with training methods, new technology, and techniques and practices at production, business, and services establishments in developed countries in the region and in the world. Developing the cadre of trainers at vocational elementary and under three-month vocational training levels has been addressed in the master plan, Vocational Training for Rural Labor by 2020.
2.3 Developing the contingent of vocational managerial personnel Developing the contingent of vocational managerial personnel requires: Renovating training programs on vocational management for vocational managerial personnel at all levels and managers of vocational training establishments; applying vocational management training programs of developed countries; Establishing three vocational management training centers under three technical pedagogical universities in three regions; and Conducting periodical training and supplementary training for vocational managerial officers, domestically and overseas. 2.4 Developing vocational training programs, curricular and syllabuses and training methods Developing vocational training programs, curriculum, syllabuses, and training methods require: Speeding development of the curriculum frame for vocational colleges and professional vocational schools to design their own curriculum and syllabi in 2010; Increasing the proportion of selectable content in the curriculum frame to 40%, to enhance the autonomy of schools in developing curriculum. (Teachers are entitled to develop training content based on training curriculum produced by the schools. The government will only administer the vocational training framework from 2015);
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Renovating the structure of training; instead of separating theory and practice, modules will combine theory, practical skills, and working attitudes; Vocational training programs will be developed on the basis of occupational skill standards or performance capacity, in accordance with DACUM development methods in which enterprises lengthened; Renovating training and learning methods to uphold proactiveness, independence, group work, and longer periods of self-learning and practice during the process of learning, practicing, and apprenticeship; Intensifying the application of IT in vocational training and online training; Conducting training of the trainers in developing vocational training curriculum and syllabi; Developing transferable vocational training among levels: from vocational secondary level, to college and university, and from university and vocational college, to technical university (Some vocational training programs can be transferred into corresponding vocational training programs of foreign countries); Developing syllabi for popular training occupations which will be recommended for application in all schools nationwide; and Establishing pilot vocational training programs for the practiced engineer, which will be applied in some vocational colleges that qualify to meet national, regional, and international standards. participate and apprenticeship periods are
For vocational college training programs at regional and international levels, individuals may: Select to apply for training programs of developed countries which are suitable with Vietnam; and Synchronously transfer curriculum frame, occupational skill standards, curricular, syllabuses and teaching methods; training and supplementary training for teachers to deliver new training programs. 2.5 Standardizing and modernizing infrastructure and equipment for vocational training Standardizing infrastructure and equipment for vocational training necessitates: Issuing standards for building vocational colleges and vocational secondary schools to ensure appropriate conditions for teaching and practicing; working environment; and labor safety relevant to module-based vocational training programs; Issuing an official list of standard vocational training equipment for individual training occupation and level, including fundamental equipment; simulation equipment; and other modern equipment and facilities suitable for practical production; Training the cadre of managerial and maintenance staff; Investing in infrastructure and equipment for vocational training which are standard and modern, and match technology and
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techniques in production and business establishments; and Developing workshops within the schools for pupils and students to practice.
3. Financing TVET
3.1 Total budget amount of national dedicated to vocational training: Despite many difficulties, the government of Vietnam still spends a significant budget on education and training. In 2001, spending on education and training accounted for 15.5 percent of the state budget, and it increased to 20 percent in 2008. Of the total budget for education and training, the share for vocational training is still modest about 5 percent in 2001, increasing to 7.5 percent in 2008.
<Table 1-18> State Budget Spending on Vocational Training in 2001-2008

Item 2001 2002 2003 2004 2005 2006 2007 2008 481 295 535 762 613 443 715 307 839 211 973 791 1 129 598 1 338 000 I GDP Total Sate budget 127 675 143 764 181 183 209 024 239 470 297232 356 678 398 980 II spending Total State spending 19 747 22 541 28 835 34 872 42 943 54798 71 336 79 796 III on education and training % of total state 15.5% 15.7% 15.9% 16.7% 17.9% 18.4% 20.0% 20.0% budget spending Spending on 968 1 240 1 644 2 162 2 791 3671 4 993 5 985 IV vocational training % of total state 4.9% 5.5% 5.7% 6.2% 6.5% 6.7% 7.0% 7.5% spending on education and training 569 661 796 915 1 335 1 735 2 200 2 944 1 Regular spending Spending on national 104.7 139.6 168 265 425 630 1 050 1 100 2 targeted programs Spending on Capital 294 439 679 982 1 031 1 306 1 743 1 941 3 Construction
Source: General Department of Vocational Training, 2009.
3.2 Renovating financial mechanisms in vocational training The Ministry of Labor, Invalids and Social Affairs, in conjunction with the Ministry of Finance; Ministry of Planning and Investment; and local labor, invalids, and social affairs body (in cooperation with their local finance and planning counterparts), are responsible for allocating and monitoring the disbursement of annual estimated state budgets for vocational training of ministries and sectors and localities, respectively. The state budget holds the key position in vocational training investment. The growth rate of the annual budget for vocational training development, within the annual total spending on education and training, will reach 12 percent by 2020.
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The mechanism in which the state budget is granted and managed by vocational training establishments will be gradually transformed; vocational training establishments will deliver training services on the basis of vocational training service contracts; bids for training targets; or assigned training targets. Priorities will be given to special occupations; trainees who are policy beneficiaries; national devotes; poor and ethnic minorities, and accredited vocational training establishments (both public and private). Regular spending will be planned and allocated, depending on the training level costs for individuals or occupational groups and the price frame for vocational training services. The central government budget will be used to: concentrate investment in establishing the system of high-quality vocational college and vocational secondary schools; facilitate the investment in public vocational colleges and vocational secondary schools in provinces with difficulties, in which priorities will be given to schools in revolutionary bases and ethnic minority areas; invest in vocational training establishments to train occupations which are highly demanded by the labor market, but hard to be socialized; develop frame curriculum, including syllabi for popular occupations; apply qualified vocational training programs, curriculum, syllabi, and materials of foreign countries into regional and international qualified occupations; provide training and supplementary training for vocational teachers, vocational managerial staff, and
the cadre of inspectors; develop standards for the list of vocational training equipment; implement vocational training order for high-tech occupations, spearhead occupations, hazardous and toxic occupations, and other occupations which find it hard to enroll students; provide school fee compensation for establishments which enroll beneficiaries of school fee exemption and reduction; support vocational trainees in localities which have not arranged their own budget; conduct vocational training accreditation; support the development of public vocational training accreditation centers; develop standards and produce occupational skill exam questions; support the costs for the occupational skill evaluation of workers; and support the construction of national occupational skill evaluation centers. Localities which can plan their own budget need to ensure sufficient local funding to implement support policies for vocational trainees and the master plan for vocational training development of the provinces. 3.3 Developing a relevant mechanism to foster the mobilization of resources for socialization-oriented investment in vocational training The government promulgates incentive policies (including those for preferential credit; taxation; and the support of training to maximize participation by enterprises and trade villages). These
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policies will allow persons to participate in training in enterprises, or invest in vocational training establishments. Students will be provided with occupational practice in real production settings, inclusive of advanced training for vocational trainers. The government also has policies on mobilizing enterprises to contribute vocational training costs by recruiting trained workers; The production, business, services, association and joint venture of vocational training establishments will be expanded to yield revenue to support training costs; The government's decree on foreign investment and cooperation with foreign partners in education, training, and vocational training will be amended and supplemented with more convenient procedures and investment conditions to intensify foreign investment in vocational training. Priorities will be given to foreign loan projects that invest in vocational training, especially technical assistance projects, infrastructure, and equipment for vocational training. Also of precedence is the development of training curriculum and syllabi, and supplementary training of managerial staff and teachers; Vocational training establishments which deliver high-quality training programs will be allowed to collect equivalent training fees to compensate for training costs.
3.4 Promoting financial monitoring in vocational training Promoting financial monitoring in vocational training entails: Studying and developing indicators and procedures for evaluating the effectiveness of state budget spending on vocational training; Announcements by vocational training establishments on standards of graduation, training, and financial capacity; institutions will report on finances to their superior body, in accordance with the government's regulations, and ensure that their budgets are realized openly, transparently, correctly and legally; and Social monitoring of the disbursement of budget/revenue in vocational training establishments, in accordance with their internal spending regulations.
4.1 International Context and Educational Trend of the World In the context of globalization and international economic integration, cooperation is always accompanied by increasingly fierce competition. In this setting, quality of human resources will be the key to create competitive advantage. Globalization and international economic integration create capital flows from developed countries to developing ones, as well as labor movement among countries. As a result, resources will be internationalized, resulting in new international labor divisions.
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Workers in developing countries, including Vietnam, on one hand, will have chance to take part in the international labor market; on the other hand, they will cope with increasing competition, even in the domestic labor market. Therefore, human resource quality has increasingly become a core issue and determinant of an individual countrys competitiveness. International economic integration facilitates the flows of training services from developed countries into the developing ones, which become increasingly more popular. This is not only a challenge, but also an opportunity for developing countries to access an advanced education and training to early integrate into the worlds knowledge economy. The emerging knowledge economy and vigorously developing science and technology of the world, especially with the development of information technology, have removed distance and created linkage among economies. Thanks to IT, less developed countries stand greater chances of quickly acquiring scientific and technology achievements, reducing the development gap with first world countries. Successfully applied in developed countries, demand-driven training has become an effective training approach. ILOs Global Work Program has recommended that countries arrange flexible vocational training in response to the labor market demand of creating decent work. With rapid global growth in science and technology, enhanced by the usage of advanced technical technology, many new careers and
occupations will be developed. Along this line, vocational training needs to be regularly updated and improved with more sophisticated, or even new, training curriculum to prepare a contingent of savvy, qualified technical staff, versed in new and modern technology. In the context of globalization, Vietnam needs more support from other countries and the international community to increase the countrys competitiveness and respond to the demands of vocational training. 4.2 Orientation for International Cooperation Activities: Orientation for international cooperation activities will include: Active participation in the vocational training activities held by international organizations, such as APEC, ILO, ASEAN, the world skills contest, ASEAN skills contest, to enhance the learning process and vocational training experience exchange with other countries; Enacting the agreement with other countries in the region and the world on the equivalency of certificates and diplomas; enhancing training cooperation with other advanced training institutions in the region and in the world; attracting more foreign investment to Vietnam in the area of vocational training; encouraging foreign trainers to work and provide training services in Vietnam; promoting the experience exchanges between trainers of vocational training agencies with other countries;
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Encouraging vocational training agencies to select and provide training services with the curriculum of advanced countries; carrying out the training in English for the trade of high demands in the international labor market; Creating mechanisms and enabling conditions for investors, the prestige vocational training institutions in the world, to open schools in Vietnam and promote join ventures with other international institution in vocational training in Vietnam; and Promoting research on vocational training, in particular studies on the application of modern and advanced technology relevant to Vietnam. 4.3 Specific supported project and activities on vocational training for Vietnam by foreign countries and international organizations: Beside mobilization of domestic resource for TVET, the Vietnam government is mobilizing ODA loans or grants from international organizations and other countries. There are many big projects funded by the Asian Development Bank, Nordic Development Fund, AFD, JICA, and the governments of Germany, Korea, Australia, and other countries. These resources are making a great contribution in the TVET development progress. 4.4 ADB project (1998-2008): The Asian Development Bank (ADB) approved a loan of $54
million on December 1998 for the Vocational and Technical Education Project. The project is co-financed on a parallel basis by AFD, JICA, and NDF. The project has three components: (i) improving the market orientation; (ii) developing 15 key schools (KSs), and (iii) introducing policy reforms. Phase I of this project finished at the end of 2008. Phase II is being prepared with the total budget of US$ 1.5 million. The targeted group of Phase II is poor households in rural areas. 4.5 Civil Works financed by ADB, AFD funds in KSs were completed with total $ 10.3 millions. (2002-2007) Training Equipment: Preparation for the procurement of training equipment started in January 2002. The procurement plan included 12 packages, comprising 7 packages under the ADB financing for $ 12.4 million, and 5 packages under the NFD for $7.0 million. Installation of training equipment is in KSs, and was anticipated to be completed by January 2007. 4.6 Project on improving capacity for vocational training center, with grant support from the Swiss government (SWITCONTAC) with 4 phases and total fund is USD 7 million dollars. This project aimed to invest in equipment and formulation of training curriculums for 30 vocational training centers in three regions: northern, southern and central Vietnam. The project terminated in 2008.
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4.7 Project on upgrading 11 key schools, with financial support of the German government (via KWB) (2007-2010) with total fund of 11 millions euro. These schools shall benefit from advanced equipment and capacity improvement for their trainers.
4.8 Project on capacity building for 5 key-vocational training schools funded by the government of South Korea (2007-2010), with a total budget of US$ 64 million. This project aimed to invest in teaching equipment; formulation of training curriculums; and capacity building for vocational training teachers. 4.9 Project on technical assistant for vocational training in Vietnam (2008 - 2010) funded by the government of Germany, with a total budget of 1.5 million EUR. This project focused on: (i) consultation of vocational training; (ii) developing training materials; (iii) developing training curriculums; and (iv) training needs assessment.
4.10 The EU Project on evaluating workers occupational skills with technical assistant of the ILO, with a total budget of 10 million EUR. This project focus on: (i) training for evaluators; (ii) developing evaluating documents, such as guidelines, and criteria; and (iii) pilot assessment of some
trades in different occupational skill levels.
4.11 The Project on development vocational training funded by the government of Japan through ADB with a non-refundable support of 1.5 million USD. This project provided support for five provinces in Cuu Long Rivers Delta (2008 - 2010). It focused on: (i) capacity building for some vocational training schools; and (ii) connecting vocational training with job creation.
5. New Agenda and Plans for the Future

5.1 The Vocational Training Strategy for the period of 2011 to 2020 Overall objectives are set forth, as follows: To develop a modern, rationale, flexible and effective vocational training system, which is accessible, equal and sustainable; To contribute to enhance the competitiveness of the human resources; to create qualified jobs, especially for the rural labor force, improving workers living standards; and To serve Vietnams socio-economic development to become an industrialized and modern country by 2020. 5.2 Specific objectives Specific objective 1: Create and strengthen a relevant vocational training system in response to development requirements of the labor
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market and society, to fulfill the needs of an industrialized and modern country and approach a knowledge economy. The needs of employers and vocational trainees become the most important basis for designing vocational training programs and courses, with an aim to matching the quality and utilization structure of the labor force in an industrialized country. Specific objective 2: Ensure that a modern and qualified vocational training system operates effectively. On the basis of logically mobilizing and allocating resources, vocational training will be developed towards standardization, modernization, and integration, capable of providing some occupations at the regional and international levels. This objective serves to create a breakthrough in quality; upgrade occupational skills; enhance creativeness, and strengthen the health and working style of workers. After the training, vocational trainees will be ensured with necessary occupational skills and jobs in a highly competitive labor market. Specific objective 3: Arrange vocational training towards flexibility, accessibility, equity, and fulfilling the needs for life-long learning of all people. To ensure demand-driven vocational training in a quickly growing technology context, vocational training needs to be designed as a flexible system involving all social partners. At the same time, vocational training needs to satisfy the demands of all people and
all social groups, especially the vulnerable in society, and in the labor market, while meeting the demand for domestic and foreign employment. Specific objective 4: A sustainably developed vocational training system A suitable mechanism will be established to mobilize resources for developing and finalizing a capable vocational training system that is relevant to the economys on-going development needs in an international competitive market. 5.3 Specific objectives a) Period from 2009 to 2020: 24.58 million people will enroll in vocational training, of which 5.815 million people will be trained at vocational secondary, vocational college, and practiced engineer levels, covering 115 thousand students trained in accordance with occupational skill standards found in developed countries of ASEAN and in the world; and 40,000 people will be trained with vocational pedagogic and occupational skills to become vocational trainers. b) Up to 2020: There will be 230 vocational colleges (including 40 private vocational colleges) and 310 vocational secondary schools
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(consisting of 70 private schools). Within there will be 15 vocational colleges (including 10 public ones), with three to five international standard occupations per institution; 25 vocational colleges (including 20 public ones), with three to five regional standard occupations; 140 vocational colleges (including 120 public ones), with two to three national standard occupations per institution. This objective aims at developing a vocational training system capable of training persons in 86 national standard occupations, 30 regional standard occupations, and 20 international standard occupations. It is expected that each district will have at least one vocational training center or vocational secondary school; 100 percent of vocational trainers will provide combined theoretical and practical training; 40 percent of trainers in vocational colleges will hold post-graduate degrees; the converted teacher-student/pupil will be 1:15 in vocational colleges and vocational secondary schools. 100 percent of vocational managerial staff will be involved in vocational training management; Vocational training curriculum shall be developed for all trades at the vocational college and vocational secondary levels; training programs of developed countries shall be applied for 30 regional standard occupations and 20 international standard occupations; 130 training programs and syllabi will be developed for common trades; and 40 training programs and syllabi for the practiced engineer level;
A standard list of vocational training equipment will be developed for all training occupations at the vocational college and vocational secondary levels; 90 percent of vocational colleges and professional secondary schools; 70 percent of vocational training centers; and 70 percent of training programs in vocational colleges and professional secondary schools will controlled with vocational training accreditation; and There will be 400 sets of national occupational skill standards; question banks for national occupational skill evaluation will be applied for 400 trades; and 6 million workers will be evaluated in terms of occupational skills.
Section 5. Conclusion
From 2001 - 2009, vocational training has developed and been renovated, reaching the goals and objectives of vocational training, as set forth in Vietnams education development strategy. The country met pressing demands for a technical labor force, with significant socio-economic development in this period. However, vocational training will face national and international challenges in the future. From 2011-2020, and in response to industrialization and modernization -- resulting from international economic integration -it is necessary to concentrate all resources on creating a breakthrough in quality of the whole vocational training system. Vietnam must
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develop a rationale training structure, not only for highly competitive modern occupations, but also more traditional types of work. On a national level, Vietnam should focus vocational training on the agricultural sector and rural areas, facilitating labor restructuring and improvement of labor quality to strengthen education, economy, and the well-being of her citizens.
Profile Kim, Young-Saing - Korea Research Institute for Vocational Education and Training Research Fellow Chung, Ji-Sun - Korea Research Institute for Vocational Education and Training Senior Research Fellow Lee, Sang-Don - Korea Research Institute for Vocational Education and Training Research Fellow Lim, Young-Sub - Korea Research Institute for Vocational Education and Training Research Fellow Ryu, Ki-Rak - Korea Research Institute for Vocational Education and Training Associate Research Fellow
TVET Policy Reviews of 8 Asian Countries

UNESCO Regional Center (2010)
Date of Publication Published by December 2010 Dae-Bong Kwon Korea Research Institute for Vocational Education and Training (KRIVET) 46, Samseong-ro 147gil, Gangnam-gu, Seoul 135-949 Republic of Korea Tel. 82-2-3485-5000, 5100 Fax. 82-2-3485-5200 Bumsin Co., Ltd. (02)720-9786 11 June 1998 16-1681
Printed by Date of Registration Registration Number
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TVET Policy Reviews of 8 Asian Countries

TVET Policy, Experience, and Trends in Bangladesh3

Section 2. Employment and Labor Market21

TVET Systems by Target Group: Adults, Teachers, Trainers, and Enterprises33

Section 3. TVET for Adults42 Section 4. TVET and Enterprises43

Section 5. TVET Infrastructure47

Governance of TVET system51

Section 2. National Development and TVET Policy53

Section 3. Assessment of TVET Policy56

Section 2. International Cooperation66

Section 2. Future plans74 References75

THE NATIONAL CONTEXT OF TVET: INTRODUCTION79

GOVERNANCE OF THE TVET SYSTEM107

Technical Vocational Education and Training in Indonesia153

The National Context of TVET217

Section 2. EMPLOYMENT AND LABOR FORCE237

TVET System by Target Groups259

Section 2. Curriculum Method and Content266

Governance of the TVET system273

Section 2. Loans for TVET Development289

New Agenda and Plans for the Future301

Section 2. Conditions to Succeed or How to Limit the Risks306

Section 2. EMPLOYMENT AND LABOR MARKET323

Section 3. Governance of the TVET System333

Section 4. TVET System by Target Groups339

Section 5. TVET INFRASTRUCTURE342

Section 13. International Cooperation: Bilateral, Multilateral and International Organizations385

TVET POLICY, EXPERIENCE, AND TRENDS IN THE PHILIPPINES397

Section 2. The Philippine TVET System431

Section 3. GOVERNANCE OF THE TVET SYSTEM444

Section 4. Financing TVET461

Section 5. Internationalization of TVET464

Section 6. NEW AGENDA AND PLANS FOR THE FUTURE468

TVET Policies and Implementation Process of Sri Lanka483

Section 2. Population and Demographics491

Section 3. Governance of the TVET system493

Section 4. Government Policy508

3. Private Qualification System526 4. Role of Qualification in Labor Market528

Section 7. National Development and TVET Policy529

Section 8. TVET System by Target Groups534

Section 9. Employment and the Labor Market546

Section 12. Future Challenges and Opportunities562 References565

TVET POLICY, EXPERIENCE, AND TRENDS569

Section 2. Employment and Labor Market581

Section 3. The TVET System in Vietnam590

Section 4. Governance of the TVET system605

Table Index xvii

xviii Table Index

Table Index xix

Table Index xxi

xxii Table Index

Table Index xxiii

xxiv Table Index

Table Index xxv

xxvi Figure index

Figure index xxvii

xxviii Figure index

TVET Policy, Experience, and Trends in Bangladesh

4 TVET Policy Reviews of 8 Asian Countries

Section 1. Context and Background

1. Political and Socio-cultural Context

Education expenditures represented 2.7% of GDP in 2005.