Globalization and its effects on the development of educational service in Vietnam

loping country labour to move to developed countries. Winters (2002) finds that an opening of developed countries to allow temporary entry by foreign workers, equal to 3% of the current workforce, would generate welfare (real-income) gains that exceed those from full merchandise trade liberalisation. If developed countries permitted movement of labour of up to 3% of the total labour force, world incomes would rise by $156 billion. Developing countries would be the main gainers and the net welfare for the African region would be $14 billion. Several studies have examined the impact of emigration on growth in ‘sending’ countries. The effects are complex. For example, Beine et al. (2003) find, using a cross-section of 50 developing countries, that most countries combining low levels of human capital and low migration rates of skilled workers are affected positively by emigration. That is emigration leads to more investment in human capital. By contrast, the brain drain appears to have negative growth effects in countries where the migration rate of the highly educated is above 20% and/or where the proportion of population with higher education is above 5%. 1.4.3.3 Migration and private incentives to invest in human capital The effects of migration prospects on human capital formation have been the focus of several studies (see Vidal, 1998; Beine et al., 2001; Docquier and Rapoport, 2004), suggesting that such prospects may in fact foster human capital formation and growth in ‘sending’ countries. If the return to education is higher abroad than at home, the possibility of migration increases the expected return to human capital, thereby enhancing domestic enrolment in education. More people, therefore, invest in human capital as a result of increased migration opportunities. This acquisition can contribute positively to growth and economic performance. Docquier and Rapoport (2004) go as far as to suggest that the optimal migration rate of a highly educated population is likely to be positive. Much of this argument remains a hypothesis and based on unrealistic assumptions, such as perfect capital markets; unfortunately not everybody who wants to invest in human capital can borrow the funds to do so. 1.4.3.4 Other effects of migration There are other effects. Firstly migration is associated with remittances (World Bank, 2004); migration raises the possibilities of finance for education through remittances (e.g. Adams, 2003). Total remittances to developing countries amounted to US$80 billion in 2002, about 50% more than official aid flows. Table : Remittances and migration Country Remittances, 2002, US $ million Tertiary educated share of total migrants (%) Migration rates of tertiary educated (%) Barbados 84 Cuba 1,138 Dominican Republic 2,111 22.6 14.2 Guyana 119 (16.6% of GDP) 40.7 77.3 Haiti 931 (24.2% of GDP) Jamaica 1,288 (12.2% of GDP) 41.7 67.3 Trinidad and Tobago 59 46.7 57.2 Source: Nurse, K. (2004) and own calculations Secondly, migrants can learn valuable skills which can offer benefits to the ‘sending’ country if and when migrants return (Domingues Dos Santos and Postel Vinay, 2003) and skills have been acquired abroad. Thomas-Hope (2002) finds that Caribbeans in the UK increasingly return to the Caribbean – this would be consistent with decline in brain drain reported before. For instance, children of migrants have become skilled in the UK and then returned Thirdly, the disapora helps to create business and trade networks (Dustmann and Kirchkamp, 2002; Mesnard and Ravallion, 2002). Arora and Gambardella (2004) discuss the diaspora and human capital flows. The diaspora creates links with other countries by acting as intermediaries. Chapter II: Education services in Vietnam under the impact of globalization 2.1 Education services in Vietnam under the impact of global trade Before 1986, the education system in Vietnam was a near carbon copy of Soviet education system. After 1986, Vietnam has followed an innovation process. This process is focusing on economic liberalization and following the market economy model. Participating in global trade is expected to help Vietnam develop well and improve many aspects such as in the Social, Cultural, and educational fields, etc. Chart: Imports and exports and commercial deficit in Vietnam( million USD) Source: Vietnamese Office of estimation 2.1.1 Trade and demand for education at macro level The increase in international trade activities has increased the demand for skilled workers in Vietnam. Trade activities have an effect on the labor market, therefore affecting education system in Vietnam. The great demand for skilled workers calls for an education and training system capable of supplying a high enough quantity and quality of workers. Specialization on a global scale has forced countries to focus on some particular sectors. Vietnam is not an exception to this process of international trade. In Vietnam the main products for export are agricultural products, and outsourced products, most of which require only low-skilled workers, who do not need specialized training. Therefore, Vietnam’s education system must conduct further research and development activities in universities, training more talented and creative people to increase the intellectual content of the nation’s export products. This increase in export and import activities promotes the process of technology transfer from developed countries to Vietnam. There are many different types of technology that must be operated by skilled workers. Since technology is constantly changing, universities in Vietnam need to alter training to make workers better able to adapt quickly to these changes. The demand for engineers and high skilled engineers from entrepreneurs, both inside and outside Vietnam, is massive. 2.1.2 Trade and supply for education at the micro level The increase in economic growth in Vietnam is due to increased activity of international trade, especially in exports from Vietnam. This should free up more fiscal resources for the supply of education. On the other hand the increase in export and import activities increases tax revenue. Therefore, the State budget in Vietnam is constantly growing. PUBLIC EXPENDITURE ON EDUCATION & TRAINING(VND billion) 2000 2001 2002 2003 2004 2005 2006 2007 Total 15609 20624 22795 32730 41630 55300 66770 Capital Expenditure   2360 3008 3200 4900 6623 9705 11530 Regular expenditure 10356 12649 16906 18625 27830 35007 45595 55240 National target program 600 600 710 970 1250 1770 2970 3380 Of which: For education 415 495 725 925 1305 2328 2333 Vocational training 90 110 130 200 340 500 700 Professional Secondary Education 20 25 30 35 35 37 50 Higher education 75 80 85 90 90 105 297 (*Source: education and training department) 2.1.3 Trade and education at the micro level In export entrepreneurships, wages of skilled workers is generally higher than in other fields, such as tourist services, mining, etc. Consequently, the demand for education in those sectors has increased. Vietnam is in the global value chains such as garments, tea, oil and gas, unprocessed agricultural products...so there is a great demand for workers in these areas. For example, in the global textile, design styles are made in many fashion centres of the world as Paris, London, New York...Cloth is produced in China, other auxiliary materials are made in India. And the final stage of products is made in countries with low labor costs such as Vietnam, China, Cambodia... 2.1.4 The impact of adhering to WTO on education services in Vietnam 2.1.4.1 The concept of education has changed Is education a kind of trade service? Article 1, chapter 3 of the trade agreement between Vietnam and the US: “Trade in services is defined as the supply of a service” According to article 1 above, the scope of the definition is : “ Services includes any services in any sectors except services that are provided to implement the authority of government, defined as every services that has no basis in trade, as well as having no competition with one or more suppliers. In the definition of trade services, what do the words “ supplying service” mean? According to article 11, chapter 3 : “ providing a service including the production, distribution, marketing, sale and supply of a service” . According the agreement above, education is one of fifty two trade services that the US is going to invest in Vietnam. After 3 years, on December 11th 2005 the US can make join-venture investment in Vietnam, after 7 years, on December 11th 2008 the US can invest with 100% capital in education service and many other services in Vietnam. An university is a company, is it not? According to article 9, chapter 1, the trade agreement between Vietnam and the US: “ company means any entity that is established and organized following the law with the goal of profit or non-profit” 2.4.1.2 The impact of adhering to WTO on education services in Vietnam Education is one of twelve services that is undertaken by Vietnam’s government opening for foreign investors following the general agree of trade and service( GATS). Education programs from foreign countries into Vietnam is rapidly increasing after participating of Vietnam in WTO such as programs of the United States as Hubert H. Humphrey Program that is a scholarship program, or cultural program specialist / academic , programs of American speakers ,etc. Universities in Vietnam, especially in economy, finance, technology ... which have many training programs in cooperation with foreign universities. For instance the National Economic University programs training partnership with the University of Sunderland, University of the Netherlands , etc. Foreign Investment in the education sector increased after “WTO”. Recently on August 21 2009, the World Bank (WB) has approved credits worth $ 177 million. Of these, 127 million will be put into programs ensuring the quality of school’s education. The goal of this program is to improve the quality of primary education in Vietnam. $ 50 million left will be used to invest in program of developing college education. 2.2 The impact of FDI on the education services in Vietnam 2.2.1 Macro effects on demand for education There are two types of FDI that follow two types of labor market. With high skilled workforce have almost in developed countries, FDI flows into those countries often focus on areas using high and advanced technology. On the other hand, with cheap labor cost and a great quantity of workforce almost in every developing countries, FDI flows into those countries often focus on areas using low technology, even though some FDI projects can make pollution. Chart: Registered FDI Capital over the last 10 years( Billions usd) Source: Vneconomy news The comparative advantage of Vietnam, not an exception comparing with other developing countries, is the numerous workforce available with low salary . There is an increase in demand for workers due to the constant flows of FDI flowing into Vietnam. And FDI companies often employ the local workers because of their salary is almost cheaper than the international salary in general. Hence, FDI companies increase the demand for quantity of local labor, therefore increase the demand for education in Vietnam. Thus, we have to build more schools, especially more colleges to train as well as educate more and more workers. Multinational enterprises is often the giant institutes with strong capital, operating in a global system and often at the leading-edge in use newest technology. whereby the workers who work for those institutes must have appropriate education and training to work in international environment and to adapt easily with the frequency of technology changing. Moreover, those institutes often supply the training program for local workers in international standards. In conclusion, the increase in FDI into Vietnam not only increases the demand for quantity but also increases the demand for quality of local labor. 2.2.2 Macro effects on supply for education It is generally acknowledged that FDI leads to growth in developing countries. FDI have positive impact on developing countries including Vietnam. This lead to more (private and fiscal) resources, some of which can be used for the provision of education development. 2.2.3 Micro effects on demand for education As foreign owned firms operate at the technology frontier, they need to install the latest technology which requires skilled and educated workers. The idea that technology and skills go hand in hand has been discussed since 1969 and this relationship is dialectic. We need skilled workers to be able to create more new technology and using new technology has a basis on high skills. On micro level, in Vietnam The demand for high-skilled workers is constantly increasing, especially for skilled engineers and skilled managers and in many sectors such as IT, telecommunication technology, automatic technology, etc, and many other fields. It is very clear that Vietnam’s Government would like to establish universities with international standards. Of course, currently Vietnam could not do it without the helps from developed countries. For instance, Viet-Duc university was established and opened its first semester in September, 2008. The openness of this university is due to the efforts of both Vietnam’s government and Germany’s Government as well as MNEs in Germany. Viet-Duc University’s training programs have focused on technique skills, IT skills and have followed the orgininal programs of universities in Germany, of course, the graduates from this will enhance an international certification. That is typical of many impacts that FDI have affected on Education in Vietnam, and the final goal, it will end up supplying high-quality-skilled workers for Vietnam’s human resources. Moreover, the capital from FDI has flown into Education sectors was not only for tertiary and vocational training, but also focused on lower-leveled education. The list of various-leveled Schools in Vietnam with capital from FDI is estimated approximately 30 as followed. ACG International School Vietnam Anglophone British Curriculum International School British International School Colette Shool Elementary& High School( Japan) Elementary High School( Taiwan) International School, HCMC(ISH)( England) Kinderworld International( Singapore) Kinderworld Kindergarten and Private School Ltd( Singapore) Korean Kindergarten ( Korea) Shool, HCMC( Korea) Singapore International Shool( Singapore) Asia- Pacific School( America- Australia programs) Fosco school( America) Binh An school( Korea) Creativekids Vietnam International Kindergarten International Kindergarten( America) International school( Vietnam-America) The Australian International Shool Saigon Horizon International Bilingual Shool APU( Amercia) Saigon International College FOSCO( America) Saigon Star International Primary School Newstar Bilingqual Primary School Mandarin primary shool( Singapore) American International School. These aforementioned schools have met the great demand from the rich families in Vietnam who want their kids being able to learn with international standards. 2.3 Education services in Vietnam under the impact of migration Migration of Vietnam workers is quite complicated. The advantage of cheap labor cost leads to the activities of exporting labor from Vietnam to other countries that are higher in salary for workers . Similar with many developing countries there is also the “brain drain” phenomenon in Vietnam, many people in Vietnam thought that this phenomenon is terrible for their country without deliberating this. In fact, in order to evaluate properly this phenomenon, we need to look into the effects both in short-term and long-term period of time. Exporting labor activities are really good for both Society and Economy in Vietnam. Moreover, workers who work in a foreign country, have many advantages of upgrading their skills. The advantages might be intensive skills for their work, ability of using new technology and learning valuable experiences and trade secret from companies they work for. In Vietnam, there is a phenomenon of rapid increase annually in going overseas for studying. Without a number of students who go abroad with their family’s money, there are many students who win scholarships from government of Vietnam or international institutes. There is a obvious fact that those students tend to settle and work in countries they went to for studying because of high perk, good working environment ,etc; Surely it would be difficult to have if they came back to Vietnam. But if we look at the bright side, those students are educated deeply from both Vietnam and a foreign country, there is no doubt about their abilities. And then they work for international companies, they would easily acquire new knowledge, valuable experiences as well as modern technology, specific skills in managing and administration. It is very useful for Vietnam when those people come back and dedicate the rest of their life for the Vietnam’s development. Actually, there are many professionals and science researchers are teaching at universities of Vietnam after a long time living and working abroad. It is very important that Vietnam’s government must have flexible policies for attracting those coming back to Vietnam. Also, they would train and educate our young students, more importantly they would be useful for helping Vietnam’s innovation processes in education system. 2.4 Education system in Vietnam under the impact of globalization We will examine whether and how the quantity, quality and type of human resources determine how Vietnam can participate in globalization. This is an important question because of it mentions the competition and effectiveness of economy. Education services have effect on labor market, determine quantity and quality of human resources and shape the correlation between globalization and countries across the World, Vietnam included. 2.4.1 Education services in Vietnam and international trade Developing education services and labor’s skills help companies and individuals participate in globalization processes such as commodity exporting, global value chains...Countries around the world need to have a suitable education system due to the impact of international trade that is continuously changing. While developed countries (especially Eastern Asian countries) have appropriate policies to develop their education system for exporting( In the case of Korea nowadays). Poorer countries are now in trouble to participate into international trade activities. And Vietnam have been in such this struggle because of inflexible education system. As previously analyzed, There is the great need for quantity and quality of human resources in Vietnam. Generally, education system in Vietnam has been changing rapidly to adapt to the skilled worker’s demand due to trade activities between Vietnam and other countries. Education system in Vietnam is now in a struggle . Even though there are many problems in its system such as having too much of slow-updating theories, even lacking of theories; lacking of advanced skill, specific skilled for real works, etc, we still see the great efforts of Vietnam’s government of innovating and clearing up all such problems. The innovation processes are in the right way-the way leading to participate successfully in international trade. There is a complicated mix-up between the olds and the news in Vietnam, the news is weak and the olds are still alive. The olds are from history, and the news are brought to by international trade activities in Vietnam, and generally we mention to all processes of globalization. The strategy for education innovation from now to 2020 is declared recently by Vietnam’s Government. According to this strategy, education services in Vietnam will focus on the learner, put them on the centre of education system. Form now up to 2020, Vietnam has a tendency to build up an university that has international standards. This strategy is following closely the needs from the labor market. The private sector is also very “sensitive” with the increasing demand for skilled workers. There are many private schools, institutes, etc, that supply services such as English education, IT education, soft skills training, business skill training, etc, most of them is due to the lack of education and training in national system. 2.4.2 Education in Vietnam and FDI As analyzed, skills of technology and technique are the key factor for attracting FDI in high technology areas. In Vietnam, we still have not meet the demand, this is the greatest weakness of Education system. For instance, in 2007 Intel corporation employed workers in Vietnam, they interviewed 1000 candidates but there was only 40 ones getting through. FDI Companies is creating a big demand for skilled workers in all areas in Vietnam. Many Vietnamese universities has been building up highly standard classes, for example, there are a lot of programs collaborating foreign education institutes with Vietnam’s universities. As analyzed, building high technology centers is the key in attracting FDI flows in to high technology industry. Vietnam is building a high technology center in Hoalac. With area of 1600ha, this high technology center in Hoalac will follow the model of a science city. This one will focus on developing high technologies such as IT, communication technology, software technology, biology technology, new material technology, Nano technology, new energy technology, etc, and some other special technologies. This will lead to the big demand for skilled workers in Vietnam for those kinds of high technology centers. And therefore, that will be a strong factor for attracting FDI in high technology areas, we will create more products with high value added, boost the economic development in Vietnam to reach a new constraint. Attracting FDI from developed countries might help Vietnamese companies learn about new technologies and trade secrets as well as experiences from multinational enterprises. But we need skilled workers to be able to work in those companies, and the more skilled workers is educated , the more chances we have for learning new technology. Generally, education system in Vietnam has not followed through the demands from multinational enterprises, so in order to learn from them we need innovate our education system rapidly, but in a suitable way. 2.4.3 Education and migration in Vietnam As analyzed, the more skilled individuals is educated, the higher their probability of migration is. In Vietnam, we call this phenomenon as “brain drain”. Just because of people find it better to work in foreign countries. There is a fact that the salary in Vietnam is too low and that is why a lot of Vietnamese people go abroad for work, most of them have educated both under Vietnamese education system and another country education system. Chapter III: Strategy for developing Education Services in Vietnam under the impact of Globalization 3.1 Increasing the impact of education on international trade 3.1.1 developing education system to export education services Vietnam has been importing education services from other countries, particularly from European countries, America, Australia, etc. Global education services are really profitable for those countries having advanced education system. Vietnam also exports education services, but just a little. There are students from Laos, Cambodia, China and a small group from European countries and America who come to Vietnam to learn or research about Vietnam’s culture and history. With the present advantages, in the near future, Vietnam should focus on some potential markets such as Cambodia, boundary towns in China and still keep the increase in traditional market as Laos. At the time when some universities in Vietnam reach to the international standards and become famous with its outcome, we will have more market share in this kind of service . This depends on how we shorten the distance in education standards with advanced countries, how we train students to become high-skilled workers and how we maintain our political system stably. 3.1.2 Education and training for adapting new global value chains As analyzed, global value chains in Vietnam often base on cheap-salaried workers and varied other resources. Participating into those chains, Vietnam has obtained a piece of cake from the whole cake that is created by the whole chains. Because of lacking technology and skilled workers in Vietnam’s production processes. Therefore, Vietnam’s education system must build more R&D centers and educate more and more skilled workers to suit with other chains in global value chains, that will create more value added. For example, R&D in a global value chain about clothes would be made in Vietnam, that seems now to be impossible. But we must “make the impossible possible”. We should learn from Taiwan and Korea in ways they developed their national human resources to boost their exports. They were very successful at moving on to a new higher stage in GVCs. In general, we should divide a GVC into two parts, the part of “brain working” and the opposite part of “simple working”. Vietnam is now in a jail of using simple skills in activities of producing goods for export, and we have taken these activities like in order of a GVC. In a GVC of clothing, Taiwan or Korea is now in the stage of design and they transferred the stage of producing final products for Vietnam or another crowded-labored countries, they were very successful at moving on to this current stage in this GVC after a few years opening their economy and working as manufacturers of outsourcing products. The crucial thing we should do is to transfer the stage of producing final products to another countries such as Indonesia, China. And in this new GVC, the stage with more value added would be made in Vietnam. Vietnamese companies could make the stage of design??? They have the advantages of grasping the culture of Asian, especially Chinese and Vietnamese. That would be a great advantage in the negotiation of choosing the appropriate company ( and country) to make the stage of design in the GVC of clothing. At this moment, Vietnam would become as Taiwan or Korea nowadays. This trend will come true, but in a short-term or long-term period of time, it depends on how Vietnam’s human resources break through to take this. It is therefore we should evaluate the importance of Vietnam’s education system and boost the innovation processes rapider. 3.2 Education in Vietnam and the ability of attracting FDI 3.2.1 Attracting FDI into education itself Since the time we participated in the World Trade Organization (WTO), Vietnam has granted that education as a trade service. This is therefore, FDI flows into Vietnam’s education system seem to have increased in recent years. Vietnam’s government should have appropriate policies to encourage international education institutes in investing in Vietnam. That is the fastest way to help Vietnamese students approach to international standards right here in Vietnam. Moreover, this will increase the ability of competition for national university system. Because it is generally acknowledged that competition is the root of development in any fields. After adhering to WTO, we have expected the occurrence of big investors in education. But the reality has told us that is not as expected, there are some education coordination programs and some investors just invested in lower-leveled education. I believe in that we still have had inappropriate policies and unclear, complicated environment of investing. That is what we would acquire if we deliberated the development of education services in Singapore or Malaysia. Vietnam’s Government must have suitable policies in investments and attracting FDI as well as adapting as much as possible from the needs of MNEs as Havard University or MIT. However, we also consider seriously the experiences from countries as Caribean, where FDI projects were only for learners from developed countries ( Offshore Schools). Those Projects should be based on some certain rules to guarantee that Vietnamese students will be applied. 3.2.2. Education system not only adapts to the need of skilled workers from FDI companies but also create a well-known workforce to attract FDI. In order to accomplish this object, Vietnam’s education system must clear up the most remarkable problem, that is why students who are educated at Vietnamese college still could not meet the demand from FDI companies. 3.3 Education and migration 3.3.1 Encouraging Vietnamese Intelligentsia who are living and working at foreign countries to help Vietnam’s education development. There are a lot of Vietnamese people who are working as professionals, science researchers, etc, at foreign colleges. Vietnamese people is widely known as extreme patriotic people, so Vietnam’s government should has an appropriate policies to attract these ones coming back home in Vietnam. “ Brain drain” is constantly increasing in Vietnam. It would be hard to prevent this phenomenon. But Vietnam’s government would attract those with suitable policies. In order to prevent this, we still have the experiences in policies of other countries that is in government policies in the next part of this study. 3.3.2 Attracting scientists all over the world going to work and do research in Vietnam. This is a great way coming from experiences of developed countries as American. The key here that Vietnam’s government need to has appropriate policies. 3.4 Public Policies We will examine the effectiveness of policies aimed at reconciling the processes of globalization and education in a way that is conducive to development. As we have seen, the current forms of economic globalization have put new requirements on education and training (different types in different countries) opening up a potential wedge between supply and demand of education if education and training systems are not sufficiently responsive. On the other hand, the right type of education enables countries (or firms) to take part in economic globalization processes with ultimate benefits for development .The crucial issue is to make sure that the supply of education and training is in tune with the new demands arising from globalization. Hence the need for appropriate policies and institutions to ensure that human resource development is appropriately aligned with the opportunities and consequences of economic globalization processes. We will consider the 4 categories of policies : human resource development policies, investment policies, trade policies, migration policies. 3.4.1 Human resources policies Intervening in human resource development Governments may want to address failures in the market for skills to encourage training in MNEs and other firms. There is extensive theoretical and empirical literature regarding who should pay – government, employers or employees – for different types of training and education, based on the idea that private actors alone could not capture all the benefits of these investments. Market and coordination failures are likely to be greater due to the emergence of globalization processes. Globalisation has meant an increase in the development of technology, technology flows across countries and increased fragmentation of production processes world wide. This has required an ever greater need for information flows to manage and take part in the processes of globalisation. Lack of information is precisely at the heart of market and coordination failures. So in times when technology moves faster and faster around the world, there is an increased need to be up to date with the latest needs for human resource development in order to solve market failures which would prevent a match between demand and supply of skills. Policies that have tried reconciling the supply of and demand for education in times of globalization include e.g. payroll taxes for training, use of sectoral skill taskforces and public–private consultations in determining human resources needs, public–private provision of education. There are various examples of incentives and public–private partnerships to encourage training within firms, including the use of subsidies and tax breaks for MNE training expenditure, tax levies dedicated to support training, sharing the costs of training instructors, equipment or locations. Governments have also supported cooperation between public research institutions and MNEs. Rich governments can support new R&D centres as part of a cluster strategy, acting as a magnet for asset-seeking MNEs. Above all, appropriate schooling is necessary as a basis for further education and training. Appropriate human resource development policies There have been widely varying experiences in the use of training programmes. There are examples of successful human resource programmes in Malaysia and Singapore, while several programmes did not work properly in South American countries (except Chile and Costa Rica). Green et al. (1999) examined the role of state in skill formation in the newly industrialised countries of East Asia. Education was very important in the competitiveness of the Tiger economies. Appropriate human resource policies enabled Singapore, South Korea and Taiwan to achieve the transformation of their workforce skills to match their economic transformation. They argue that economic miracles have been accompanied by education miracles. The key education elements in these countries are a group of schools, polytechnics and universities along with public and private training centres. The reforms of the education system were complemented by a sophisticated and modern public training system and lifelong learning. The reforms consisted of spending more on education and concentrating more effort on primary and secondary education. Education attendance was already at high level, partly because it affects social status and the egalitarian character of these economies. At the same time job and work related training was introduced. According to Green et al., the first element which helped these economies was the greater focus put on basic skills and primary schools at the first stage of the industrialisation process. At later stages of economic growth they had to switch to higher level occupational as well as general skills. One particular issue about Taiwan’s education for example, was a sufficient supply of vocational skills. In South Korea the focus was put instead on heavy industry and training systems so that students could go straight from schools to factories. Engineers and professionals needed technicians to assist them, and junior colleges created a supply of skilled technicians. Moreover, training was provided by several companies. In Singapore the basic literacy and IT skills were important, with the purpose of upgrading basic workers’ skills with lifelong learning Galhardi (1999) argues in the case for South Korea that whilst exporting manufacturing industries were less skill intensive than other industries during the period 1970–1990, skill-upgrading was fastest in the exporting industries to meet global competition. Overall demand for skilled workers increased sharply and was met by an active role of the government in providing the skills in order to meet the needs of the rapid growth in the exporting sectors. Based on the experiences of Korea and Brazil, she argues that domestic policies to support human capital accumulation are essential complements of outward oriented trade policies. Successful examples of appropriate education and training Asian countries have actively attempted to engage the private sector in the provision and planning of training, in contrast to much of the Latin American experience where training institutions have been supply and state driven. Malaysia for example has seen government initiatives for providing training, aimed at encouraging the role of the private sector and reducing the role of the government in training activities. The private sector in Malaysia is playing an increasingly important role in (the planning of) training. The Malaysian PSDC (Penang Skills Development Centre) is a good practical example of coordinating public and private sectors with respect to post-secondary training. The PSDC was setup in 1989 in response to a growing shortage of skilled labour in the skill intensive operations (e.g. electronics and IT) of MNEs in the free trade zones and industrial estates. Financed initially through a pooling of public (grants, training materials, equipment and trainers) and private (donations, loan of equipment, furniture, private training facilities) resources, but it is now self-financing and offers courses at competitive rates and is officially recognised to offer technical and managerial skill training and higher education. The centre has the unique position of obtaining immediate feedback from the private sector about course content and future training needs. à In conclusion, Vietnam needs to learn from experiences of appropriate human resources policies in Singapore, Korea, Taiwan. The way is to invest strongly into Education sectors to promote Vietnam human resources for the development of economy. In these countries, they alternated their products for export by taking the before steps in development of human resources, that was due to their flexible education system. Hence, they were very successful at moving on to another stage of their oriented- export manufacturing system, a new manufacturing with higher value added. Secondly, we should learn how these countries intervene successfully into labor market by fiscal policies . When economy activities tend to change continuously under the impact of globalization, the purpose of fiscal policies is to reconcile the demand and the supply about human resources. Fiscal policies in this case might be the tax policies or public expenditures in Education sectors. Thirdly, the most important thing Vietnam needs to learn is have appropriate polices to attract private sectors to invest in Education. Vietnam is not in the situation of lacking “Viet kieu” who want to invest in Vietnam, Government should help them by suitable policies and lead them to invest in Education. 3.4.2 Investment policies There are several investment policies which may have a direct or indirect impact on education outcomes. Targeting Firm-specific targeting may be helpful when the government has the capacities to do this and when the basic fundamentals are in place. The targeting strategy by the investment promotion agency in Costa Rica has helped to attract electronics FDI. Attracting skill intensive FDI (such as Intel plants, etc.) will offer opportunities for skilled workers and provide a dynamic stimulus to human capital formation (Spar, 1998). Incentives Generally, incentives are not the main attractor of FDI but may help at the margin, and may be crucial in a handful of cases. However, it is surprising that developing countries offer incentives without linking these to performance. Relevant for this paper is that incentives can be linked to human resource development (and WTO consistent), either before entry (so that foreign firms bring in more skills) or after entry to upgrade the workforce, and these would not be different from incentives offered to local firms. The role of fiscal and financial incentives in attracting skill intensive FDI and increasing the contribution to human capital formation is not clear. This depends on the effectiveness of such incentives in general (which is doubtful) and, in the case of incentives linked to skill intensity, also on the elasticity of substitution between skilled and unskilled workers and capital, which varies from case to case. After care The more advanced investment promotion agencies provide ‘after care’. That is they look after MNE subsidiaries and promote linkages with training and technology institutes. à On balance, we should build our investment policies in the way as followed: Giving the pronounced, logical investment policies to lead the education system in the right way of supplying appropriate human resources. Increasing the links between training programs in MNEs and national education system. Encouraging the projects adding with high technology, and using skilled workers in Vietnam. 3.4.3 Trade polices There are three types of trade policy that may directly or indirectly affect education and training. Firstly, tariff liberalization affects education, though indirectly. If done too quickly, while not giving the domestic private sector time to respond, tariff liberalization can wipe out the domestic production . A loss in domestic manufacturing production reduces job opportunities and thus dynamic incentives for investing in human capital. It will also reduce on-the-job learning. So while consumers (and intermediate production) should benefit from lower import prices, there is a balance to be struck with regard to the timing of liberalization order to give producers of import competing products time to respond in an appropriate way, including by stepping up the efforts to train the workforce to become competitive . Secondly, export promotion in the broad sense needs to move in tandem with the human capital base. In the 1960s industrial policy in South Korea was focused on producing goods provided that they were for exports . The skill levels have been sufficient to sustain this. Thirdly, there is considerable discussion about the role of education in international trade negotiations on services (GATS, see e.g. Sauvé, 2002; UNESCO, 2003a). Some of this is clearly misguided. Countries are free to commit sectors for liberalization, but are never compelled to do so, and the services requests they face are usually not aimed at the education sector. Even so, many countries (we discussed the situation in the Caribbean) already allow foreign providers of tertiary education, so committing the education sector would not be liberalization per se and would signal a commitment to foreign providers and would set a transparent level playing field. Without binding legislation, foreign providers such as medical offshore schools may be unclear about the investment climate. In conclusion, Vietnam should build trade policies as followed: Liberalization process should be taken in pronounced steps, in order to avoid Vietnamese companies going bankrupt and might cause the increase of unemployment. The system of manufacturing products for export should go hand in hand with the development of human resources. It is very important to make sure the role of education system, the role of encouraging the change in exporting products, in the way of altering simple products by another products with more value added. Proclaiming the suitable laws toward education service as a kind of trade service and individuals and institutes involved, especially with private sectors and foreign institutions 3.4.4 Migration policies Migration raises welfare and provides benefits to ‘sending’ countries up to a point, so it does not seem sensible to restrict migration. However, the mobility of nurses and teachers is a concern to small ‘sending’ countries. Caribbean countries have become the target of recruitment agencies from bodies such as the UK NHS and the UK health private sector. There are several options to address the problems, to maintain a good education system and to limit the negative effects on human resources: Limit migration. Countries would not limit emigration by legislation, but they could try to limit the activities of recruitment agencies. Change the nature of migration from permanent to short-term, by encouraging temporary migration. Maximize the benefits of migration by targeting the diaspora. Seek compensation for loss of capacities Conclusion During the research time, the author has discovered many new things in Vietnam’s processes of educational innovation. When we distinguish clearly the purposes of the whole of education system , we tend to put the roles of “ doing education” in the right place. It is very clear to define the first role of Education, it is to supply underlying knowledge regarding to all fields based on the aggregate development of an individual. In order to make sure this purpose is taken care of, it is obvious to focus on the innovation in primary, secondary schools( in the case of Vietnam) and intensive innovation in “High school” education (this stage of education is pretty specific due to it is the basic step to shape national human resources afterwards). So, “who” should play the main role to make sure this purpose running properly?? Of course it is the department of Education and Training in Vietnam. But how “many percentages” should this department commit into those stages of education? The answer is 100%, they should commit themselves 100% into this purpose to make sure the development of basic education. With the capital from Government’s budget, this department should “tap” all “ money” in investing to primary, secondary, high schools. On one hand, we should invest in the way of improving infrastructure in education, modernizing educational premises and equipments for education and training step by step, year by year. On the other hand, we should learn from the education programs in developed countries applying with these levels of education. Is this right that what we are looking for is that Vietnamese young learners have the high-leveled ability of self-studying and independence in thinking as well as grasping Social knowledge?? According to the opinions of many current students, they would like to learn “soft skills” in lower levels of education, not until tertiary education, the best time to learn is after applying to “high school” Education. If the department of education and training lacked necessary resources, they would entrust these responsibility to private companies in education and training, such as Tamviet organization, Viet human resources company, Khoidaumoi project, etc. Secondly, the second purpose of Education is to “build” Vietnamese human resources for economic development( under the impact of Globalization). It is also what is this study about! For this purpose, it is the various coordination in the roles of Universities, Colleges, vocational Schools; companies in all fields; the national departments( the department of education and training included). In which, the main role must be Universities, Colleges!!!. The department of Education and Training should not intervene the activities of Universities( should we separate these ones from the current control of the department of education and training???). if we perceived University as company, it would be easier for them( the universities in Vietnam) to be a “ bridge” connecting companies( especially private sector and foreign companies), national departments and Vietnamese human resources. References: “Giáo trình kinh tế quôc tế”- Đại học kinh tế quốc dân “Tạp chí kinh tế phát triển”- Đại học kinh tế quốc dân “Tạp chí nghiên cứu kinh tế” - Viện kinh tế “Thế giới phẳng”- Thomas l. friedman. “Chiếc xe Lexus và cây Oliu”- Thomas l.friedman. “Kinh tế tri thức”- Trung tâm thông tin và tư liêu KH&CN quốc gia “Tạp chí nghiên cứu kinh tế”- Đại học KTTPHCM “Globalization: The human consequences”- Zygmunt Bauman “Globalization and Education: Critical perspectives”- Nicholas C. 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Sturgeon (2004) ‘Globalization, Employment, and Economic Development: A Briefing Paper’, Sloan Workshop Series in Industry Studies, Rockport, Massachusetts, June 14–16, 2004. “Globalization, the state, and violence”- Jonathan Friedman “Human resource development”- Jennifer Joy-Matthews, David Megginson, Mark Surtees. Human resource development: learning& training for individuals &organizations” “Suy ngẫm lại sự thần kỳ Đông Á”- Joseph E. Stigitz và Shahid Yusuf “Macroeconomics” –Mankiw “International economics”- Paul Knigman “The international economy”- Peter B.Kenen 24. Al-Samarrai, S. and P. Bennell (2003) ‘Where Has all the Education Gone in Africa? Employment Outcomes Amongst Secondary School and University Leavers’, Institute of Development Studies paper. 25. Adams Jr, R. H. (2003) ‘International Migration, Remittances and the Brain Drain: A Study of 2 Labor-Exporting Countries’ World Bank Policy Research Working Paper 3069. Washington, D.C.: World Bank. 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