Industry 4.0 poses a challenge to Vietnamese labor force. The country will struggle to adapt to Industry 4.0—the wave of rapid technological development transforming workforces and economies across the world.

For example, 86 per cent of workers in Vietnam’s textile and footwear industries are at great risk of losing their jobs under the influence of technological breakthroughs caused by Industry 4.0. Industry 4.0 will leave no place for farming workers. The youth unemployment rate will be higher. The shortage of skilled workers as Industry 4.0 comes will also be very high.

Among the 100 countries assessed, Vietnam was ranked among those that aren’t ready for Industry 4.0. More than half of Vietnam’s workforce is under the age of 40, with the proportion of workers aged 15 to 29 at 25 per cent. Not only lacking in professional knowledge, Vietnamese workers are weak in problem solving, leadership and communication skills. The quality of education and skills of staff, especially engineers and technicians, are below par. The advantage of low labor costs in Vietnam is gradually losing attractiveness in the eyes of foreign investors.

Training institutions need to adopt learner-centered training methods and the application of information technology in lecture design and delivery.