Implementing TVET Reform in Vietnam: Insights from the SOE Reform Process

Vietnam needs to raise labour productivity and upgrade its position in global value chains to sustain its successful economic growth. Vietnamese authorities have therefore introduced various reforms to strengthen university education and technical and vocational education (TVET). However, many of the reforms have not been implemented as intended (or at all) and skilled labour is therefore a scarce resource in the country. This article asks why reform implementation has been slow and how it could be accelerated. After summarizing some of the reform requirements and the government's responses, we provide a selective summary of the literature on policy implementation and argue that Vietnam's problems are related to the commanding body system. All public education institutes have a designated "owner" within the state with some control over strategic decisions. These "owners" are often unwilling to give up their privileged positions and have the power to block attempts by schools and universities to become more autonomous. To explore possible ways forward, we examine experiences from Vietnam's state-owned enterprise reforms which have been slow for similar reasons: vested interests have been able to block or delay many of the intended reforms. We conclude by outlining what is needed to reduce the power of commanding bodies and to move ahead with the necessary reforms of the TVET sector.