Rapid technological development, population aging and global labor mobility, and increasingly fierce competition for human resources... make the global talent shortage more complicated. It not only causes negative impacts on economic growth and labor productivity but also creates fierce competition between countries. What should Vietnam and Da Nang do to take advantage of this opportunity?

Why is there a shortage of talent?

In recent years, many countries have implemented “Global Talent” attraction programs to promote economic and technological development, especially the US, Australia, Japan... with study abroad scholarships, work visas or settlement programs for those who meet the prescribed conditions in priority development areas such as resources, high-tech agricultural technology, energy, healthcare, digital technology, information technology, semiconductors, infrastructure, financial services and education...

The Asian Information Technology

Conference held in Da Nang attracted

many young talents to discuss and share

regional and global issues,

bringing valuable opportunities to Da Nang

Why is there a shortage of talent? Firstly, the 4.0 industrial revolution promotes the development of new technologies such as artificial intelligence (AI), big data, blockchain, digital technology, internet of things (IoT), cybersecurity and automation... Businesses need human resources with high digital skills, while the education and training system cannot keep up with this demand. Digital transformation in industries such as finance, healthcare, and manufacturing also increases pressure on human resources.

According to a recent study by Randstad, 66 million jobs have been created in 15 countries over the past decade (Randstad is a multinational human resources company with 3,161 global locations, 618,730 employees, headquartered in the Netherlands). Of these, 14.6 million required a secondary education or higher. Due to the lack of training to meet demand, the skills gap has been created, many positions requiring digital skills cannot find suitable candidates, leading to a talent shortage.

On the other hand, workers need to learn new skills to avoid being left behind, but this process takes time and resources. The labor market is fragmented, causing some industries to see explosive demand (information technology, AI, semiconductor chips), while many traditional industries are replaced or have their roles reduced.

Secondly, the aging population in developed countries; typically Japan, Germany, Italy, and recently South Korea and China have had low birth rates for decades and high life expectancy, leading to rapidly aging populations. For example, Japan has about 28% of its population over 65 years old (according to 2023 data), the highest rate in the world. Meanwhile, the low birth rate (1.3 children/woman) is not enough to compensate for the shrinking workforce. The current total birth rate is below the replacement level - the level needed to maintain a stable population.

Candidates participated in the 5^th Central Highlands

Informatics Olympiad - 2024 organized by UD

Vietnam-Korea University of Information

and Communication Technology

According to a 2024 Manpower Group survey, 75% of global employers are struggling to fill vacancies. It is clear that fewer people are working, while the cost of caring for a growing elderly population is putting a heavy strain on economic systems, slowing growth and innovation around the world. Employers are increasingly struggling to find qualified candidates. Due to the labor shortage, developed countries are forced to rely on workers from developing countries, but this cannot completely solve the problem.

Thirdly, due to economic disparities and better opportunities, due to attractive talent attraction policies of developed countries and globalization of the international labor market allowing talents to easily work in other countries.

Students of the UD – University of Science

and Technology excellently won the First Prize

in LG Dream Code 2024

Opportunities for Da Nang

Vietnam has many advantages to attract and develop Global Talent, especially as globalization and digital transformation trends are growing. Vietnam has a young population, with more than 50% of the population being of working age. The workforce is dynamic, ready to learn and adapt quickly to new technologies. The proportion of young people accessing higher education and vocational training is increasing, especially in STEM (science, technology, engineering and mathematics) fields.

Vietnam’s labor, living and operating costs are lower than many other countries in the region, making it an attractive location for international companies and talent to develop their careers or invest here. Vietnam is becoming an emerging technology hub in the ASEAN region, with the emergence of many startups and research and development (R&D) centers of large corporations such as Samsung, Intel, LG and Google. Major cities such as Hanoi, Ho Chi Minh City and Da Nang are investing heavily in technology, digital transformation and digital infrastructure, creating a favorable environment for international experts.

Group of students from UD - University of

Foreign Language Studies won the First Prize

in the National Science and Technology Award

Da Nang is located in the center of the North-South axis of Vietnam, is a dynamic city, an important gateway connecting the Central and Central Highlands provinces with the East Sea. Da Nang includes coastal plains, hills, rivers and peninsulas such as Son Tra, creating conditions for multi-industry development such as tourism, logistics and industry. Da Nang has convenient transportation including international airports, deep-water seaports, railways, roads, highways, etc.

Da Nang has a High-Tech Park, industrial parks, and an Information Technology Park, attracting domestic and foreign investment in high-tech industries such as software manufacturing, electronics, and biotechnology, and is a center for research and innovation development. Da Nang is known as the "city of information technology", with large data centers and advanced technology management systems. E-government and Smart City projects have been successfully implemented, becoming models for other provinces. Internet speed is among the fastest in Vietnam, suitable for developing technology services and software outsourcing.

In particular, Da Nang has just been approved by the National Assembly to pilot a free trade zone (Resolution No. 136/2024/QH15 of the National Assembly on the organization of urban government and piloting a number of specific mechanisms and policies for the development of Da Nang city) and the Politburo has agreed to the policy of building a regional financial center. The education system is investing heavily in public and private colleges and universities in a multi-disciplinary and multi-field direction.

A group of students from UD - University of

Technology and Education received the only prize

of the Loa Thanh Award,

majoring in Transportation - Infrastructure

The University of Danang will become a National University in the near future. Opportunities to develop technology talents through joint programs that have been and are being implemented very successfully with Japan (Unitech, Shinko Technos, Takemoto Denki, NAL Solutions, NiX Ecucation), Korea (KOICA), Taiwan (NTUSC, NCKU, NTU, Academia Sinica…), the US (UW, PSU, ASU)… and Europe (Grenoble, Nice, LMU, Erasmus+…) are valuable models. The government and localities support startups, tax incentives for high-tech enterprises and smart urban development projects. Da Nang has a healthy living environment, attracting young workers and families.

In addition, policies to improve skills (Upskill), re-skill (Reskill), and redeploy existing human resources are implemented according to policy mechanisms. For example, Singapore provides Reskill certificates for citizens over 40 years old (especially in technology, in Vietnam it can be language) so that they have the opportunity to access and change their working direction, helping to support this shortage. Da Nang should choose 2 to 3 key directions to focus on attracting foreign companies to promote the development of global human resources according to the Government's orientation: Fintech, ATP Semiconductor Technology.

To develop the micro, semiconductor and strategic sectors in line with the city's orientation, Da Nang needs to develop high-quality human resources through strong investment in STEM education and digital skills. Strengthening international cooperation in training and technology transfer. Having favorable settlement policies, multicultural working environment. Promoting the image of Da Nang as an innovation center in Vietnam. Building high-tech zones, creative workspaces (innovation hubs).

Students of UD - University of Science

and Technology practice on modern equipment

According to a report by human resources consulting group Korn Ferry, by 2030, the world will have a shortage of more than 85 million talents - nearly the population of Germany. Governments need to take the lead in training available talent, and smarter localities and organizations are proactively training, upgrading skills and developing talent.

With its outstanding potential and achievements, with open policies, under the guidance of Resolution No. 169/NQ-CP of the Government promulgating the action program to implement Conclusion No. 79-KL/TW of the Politburo on continuing to implement Resolution No. 43-KL/TW of the Politburo (term XII) on building and developing Da Nang city to 2030, with a vision to 2045, Resolution No. 26-NQ/TW of the Politburo on socio-economic development and ensuring national defense and security in the North Central and Central Coast regions to 2030, with a vision to 2045, Da Nang has the potential to become an attractive destination for students, for university graduates who need advanced training in localities in the region and the whole country, to both contribute to solving the problem of global talent shortage and promote the socio-economic development of Da Nang and Vietnam. Effective cooperation among stakeholders including government, businesses and educational institutions to implement the above strategies.