white paper
highlight EDUCATION BACKGROUND Top 10 Countries with the Most Engineering Graduates SOURCE World Economic Forum - Human Capital Report 2015
Top 10 Countries of Origin of International Students in Key Study-Abroad Markets SOURCES
IIE - Institute of International Education, Project Atlas, 2014 Japan Student Services Organization, 2014 Australian Government – Department of Education & Training, Mar 2015
Top 20 Countries for Basic Academic Skills in the World Top 2 in SE Asia SOURCES
OECD – PISA rankings 2015
PROFESSIONAL PERFORMANCE Top 10 Countries with the Highest Human Capital Index in Asia Pacific SOURCE World Economic Forum - Human Capital Report 2015
Top 5 Countries in Asia with the Fastest Improvement in English Skills SOURCE English Proficiency Index, 2014
EXECUTIVE SUMMARY
Vietnam
has
technology
recently outsourcing
been
emerging
powerhouse
as
a
that’s
This document aims to provide you with insight into the positive landscape of Vietnam’s engineering workforce
attracting a flood of investors from around the world.
and how it is gaining competitiveness in terms of both
Tech giants including Intel, Samsung, Foxconn,
educational background and professional performance.
Bosch, Toshiba, Avaya, Sony, Alcatel-Lucent, and Cisco, to name a few, have already invested in Vietnam. A large number of offshore software outsourcing companies and business processes
Facts and figures from global research organizations are attached to support and provide further information about statements made in this document.
outsourcing companies have been established in
In short, Vietnam has been recognized as having a
Vietnam and are growing rapidly. While taking
strong potential engineering talent pool with a reputable
advantage of the key competitive factor of cost, the
engineering education, as proven through many
country has also worked to improve its engineering
overseas students and engineering graduates, as well as
workforce to make it a key competitive advantage in
a high ranking in basic academic skills. In terms of
the future, investing heavily in human capital
professional
throughout the past decade. Worldwide economic
Vietnamese engineers reveal good progress.
performance,
the
English
skills
of
communities have begun to recognize the country’s
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consistent efforts.
EDUCATION BACKGROUND Top 10 Countries with the Most Engineering Graduates Rapid development of IT majors in Vietnam universities provide an extensive supply of software developers for Vietnam software outsourcing companies in the years to come
Vietnam has been listed as one of the top 10 countries with the most engineering graduates by the World Economic Forum in 2015. According to the report, the country has 100,390 new graduates each year. Other national reports have also recognized the sharp increase in both the labor population and the number of IT majors in Vietnam’s universities. This increase will provide an extensive supply of software developers for Vietnam’s software outsourcing companies in the years to come.
TOP 10 COUNTRIES WITH THE MOST GRADUATES IN ENGINEERING, MANUFACTURING AND CONSTRUCTION NO.
HUMAN CAPITAL INDEX 2015
NUMBER OF ANNUAL GRADUATES*
1
Russian Graduation
454,436
2
United States
237,826
3
Iran, Islamic Rep.
233,695
4
Japan
168,214
5
Korea, Rep.
147,858
6
Indonesia
140,169
7
Ukraine
130,391
8
Mexico
113,944
9
France
104,746
10
Vietnam
100,390
Source: World Economic Forum 2015/ UNESCO Institute for Statistics *2015 rank out of 124 economies. Note: No data available for China, India.
World Economic Forum - Human Capital Report 2015
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SOURCE
Top 10 Countries of Origin of International Students in Key Study-Abroad Markets
The United States is the top overseas destination for Vietnamese students, with 17,000 students .
In recent years, Vietnam has sent a large number of students overseas to study. The Vietnam Ministry of Education and Training reported that 125,000 Vietnamese students studied abroad in 2013.This has resulted in an overwhelming number of communities of Vietnamese students in key study-abroad markets like the US, Australia, and Japan.
DESTINATION COUNTRIES
VIETNAM’S RANKING
# OF VIETNAMESE STUDENTS
US
#8 (#1 among ASEAN countries)
17,000
Japan
#2
26,00
Australia
#3
22,000
When these students return home, they help boost the productivity, English communication, and interpersonal skills of the local labor force. Additionally, the increasing demand for international quality education has turned Vietnam into an attractive destination for foreign educators, with the amendment of law that allowed the establishment of foreign invested schools, colleges and universities, all of which will help in the long term to improve the quality of Vietnam’s workforce.
SOURCES
IIE - Institute of International Education, Project Atlas, 2014 / IIE - Who are studying What Japan Student Services Organization, 2014
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Australian Government – Department of Education & Training, Mar 2015
Top 20 Countries for Basic Academic Skills in the World
Available evidence suggests that Vietnamese education does a good job at imparting basic cognitive skills, together with excellent performance in mathematics, all of which are positive indicators for a competitive engineering workforce in the future.
Vietnam took considerably high spots in the well-known school league tables published in 2012 by OECD – PISA Rankings (Programme for International Student Assessment). The rankings compare the abilities of 15-year-olds in core academic subjects (maths, reading, and science) across 65 countries and regions. Vietnam ranked 17th for maths, 19th for reading, and 8th for science, a high result compared with other countries in the same economic conditions. Among countries in South East Asia, Vietnam ranked 2nd for all subjects, following Singapore, and far outscored other countries in the region. THE GLOBAL RANKINGS The research was based on the results of a two-hour problem solving test sat by 510,000 15-year-olds from 65 countries
MATHS
READING
SCIENCE
1
Shanghai
1
Shanghai
1
Shanghai
2
Singapore
2
Hong Kong
2
Hong Kong
3
Hong Kong
3
Singapore
3
Singapore
4
Taipei
4
Japan
4
Japan
5
Korea
5
Korea
5
Finland
11
Estonia
7
Ireland
6
Estonia
14
Poland
10
Poland
8
Vietnam
17
Vietnam
11
Estonia
9
Poland
21
Slovenia
19
Vietnam
10
Canada
26
UK
23
UK
21
UK
Vietnamese talent are also well-known for their outstanding achievements in The International Mathematical Olympiad (IMO) YEAR
2012
2013
2014
2015
Participants
6
6
6
6
# of medals
6
6
6
6
Country ranking
9/100
7/97
10/101
5/104
SOURCES
Vietnam at Math Olympiad
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OECD - PISA Rankings 2015
PROFESSIONAL PERFORMANCE Top 10 Countries with the Highest Human Capital Index in Asia PaciďŹ c With positive ranking in current and especially future human capital resources, Vietnam is promisingly a new outsourcing powerhouse for many multi-national companies in the world.
Human capital refers to the ability and efficiency of people to transform raw materials and capital into goods and services, the consensus being that these skills can be learned through the educational system. The Human Capital Report by the World Economic Forum quantifies how countries are developing and deploying their human capital and tracks progress over time; measures present performance against an ideal benchmark, and offer insight into how well a country is positioned for deploying talent in the future Human Capital Report 2015 ranked Vietnam’s human capital index in the Top 10 of Asia Pacific countries, even higher than China, India, and Indonesia. The ranking is especially high when it comes to the 15-24 age group; falling in the top 30 of the world and the top 7 of the region.
ASIA AND THE PACIFIC: TOP 10 ECONOMIE LEVERAGING THEIR HUMAN CAPITAL OVERALL INDEX
15 - 24 AGE GROUP
1
Japan
Australia
2
New Zealand
New Zealand
3
Australia
Philippines
4
Singapore
Japan
5
Korea, Rep.
Singapore
6
Philipines
Korea, Rep.
7
Mongolia
Vietnam
8
Malaysia
Malaysia
9
Thailand
Thailand
10
Vietnam
China
Source: World Economic Forum - Human Capital Report 2015
World Economic Forum - Human Capital Report 2015
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SOURCE
Top 5 Countries in Asia with the Fastest Improvement in English skills
Vietnam showed some of the fastest gains in English proďŹ ciency, over the 7 year period (2007 to 2014 inclusive), alongside Thailand and Indonesia from Southeast Asia.
Vietnam has also made significant headway in English language education, and the government intends to further that progress, according to the English Proficiency Index 2014 published by Education First. Ho Chi Minh City is the best city in the country in terms of English language skills.
+8.38
+7.96
+7.25
+4.19
+3.63
Kazakhstan
Thailand
Indonesia
Vietnam
India
Malaysia
Taiwan
-0.57 South Korea
China
-1.29 Japan
+0.93
-1.94 Hong Kong
Singapore
-5.10 Sri Lanka
+2.53
+6.19
+11.23
EF EPI SCORE CHANGE (2007-2013)
Vietnam EPI Fact sheet
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SOURCE
Have you found the necessary insights into Vietnam’s engineering workforce? Should you have any queries, updates, or comments, don’t hesitate to contact our Market Research at bdu@tma.com.vn. We’d love to have a deeper discussion with you.
FOR MORE INFORMATION ABOUT VIETNAM SOFTWARE OUTSOURCING Please contact us or visit www.tmasolutions.com/whyvietnam. A wide range of whitepapers, infographics, presentations, etc., about various aspects of Vietnam software outsourcing are available for your download. As the industry pioneer with over 17 years of experience in Vietnam software outsourcing and a passion to help “put Vietnam on the World Map of Offshore Development by Exemplary Quality and Customer Focus”, we are
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