Engineering industry hindered by skills, capital shortage The engineering industry in Vietnam is driving productivity with benefits across the economy, says the Ministry of Industry and Trade (MOIT). However, the gap between the supply and demand for people with the requisite engineering skills is still far too large and has triggered widespread concern for the long-term future of industrial development. A recently concluded industry analysis report by the MOITs Institute for Industrial Policy and Strategy Studies showed the domestic sector currently has the capacity to fill only about 20% of demand, with foreign engineers dominating the industry. In addition, it showed that a doubling of the number of engineering and technology and other related local graduates who are known to be prime candidates for entering engineering occupations after graduation is essential. Nguyen Quynh Van of the MOIT has said: Engineering is a growth industry that has great potential to drive productivity in Vietnam. However, the MOIT is deeply concerned about the need to train many more local engineering graduates if the nation is not to be left behind others in the region. Mr Van also voiced concern that the domestic engineering sector is far to undercapitalized. He cited MOIT statistics that showed that there are only 14,800 domestic sector engineering firms in the country, and further, that they possess virtually no capital to speak of. In fact, he said, the statistics showed that only 100 of the domestic sector engineering firms possessed at least US$22.5 million of capital, which if extrapolated out means there is only roughly US$225 million of capital sector wide. It is indispensable the government clarify preferential loans policies for the engineering industry, said Mr Van. At a minimum the government should provide engineering firms access to guaranteed loans with interest rates at 3% or below per annum over loan periods of 10-15 years. In addition, the government should give effect to policies providing funds for investing in activities such as hiring specialists, acquiring computer software and other cutting edge technology. Nguyen Van Thu, chair of Vietnam Association of Mechanical Industry, added: These capital shortages are compounded by insufficient numbers of young people, most notably girls, choosing a career in engineering. The country needs more people with the right skills to be confident that economic growth is on the right track and sustainable, he lamented. Currently, he noted, the MOIT has set goals to meet over 50% of demand for engineering by 2025 and 60% by 2035, pointing out these goals are simply unattainable unless and until more financial support is forthcoming. It is also time the country’s economic priorities are better reflected in the education system and that science and technology subjects are more highly promoted to more than just the obvious candidates. We need to fundamentally change the way engineering is perceived and make it more attractive and accessible to more students by championing the creative aspects of the discipline and the fundamentally vital role engineers play in society, Mr Thu concluded. VOV