Introduction and Background
South-East Asia is undergoing rapid economic transformation driven by digitalization, automation, green growth, and regional integration. Countries such as Thailand and Vietnam have emerged as key manufacturing, services, and innovation hubs, yet their labor markets are facing a critical skills mismatch. While young people constitute a large share of the population, many lack the future‑ready skills required by evolving industries, limiting their access to decent and sustainable employment.
Technological change, the rise of Industry 4.0, and the transition to green and digital economies are reshaping job requirements across sectors such as manufacturing, logistics, ICT, tourism, renewable energy, and healthcare. At the same time, traditional education and training systems often struggle to keep pace with labor market needs, particularly for youth from low-income, rural, or marginalized backgrounds.
In Thailand and Vietnam, youth unemployment and underemployment persist despite economic growth. Employers report difficulties in finding workers with relevant digital, technical, and soft skills, while young people face barriers to gaining practical experience and industry exposure. Addressing this gap is essential for inclusive growth, social stability, and regional competitiveness.
This proposal presents a comprehensive program to deliver future-ready skills training for youth employment in Thailand and Vietnam, combining digital skills, green skills, employability competencies, and strong private-sector linkages to support successful school-to-work transitions.
Problem Statement
Youth in Thailand and Vietnam face multiple, interconnected challenges in accessing quality employment:
- Mismatch between education outcomes and labor market demands
- Limited access to practical, work-relevant skills training
- Low exposure to digital and emerging technologies
- Insufficient soft skills such as communication, teamwork, and problem-solving
- Barriers for women, rural youth, and disadvantaged groups to access quality training
As economies become more technology-driven and sustainability-focused, these challenges risk widening inequality and leaving large numbers of young people behind. Without targeted investment in future-ready skills, youth may remain trapped in informal, low-paid, or unstable work.
Project Goal and Objectives
Overall Goal
To enhance youth employability and access to decent work in Thailand and Vietnam through future-ready skills training aligned with labor market needs.
Specific Objectives
- Equip youth with digital, technical, and green skills relevant to high-growth sectors.
- Strengthen employability and soft skills for successful labor market integration.
- Improve linkages between training providers, employers, and industry partners.
- Promote inclusive access to skills training for women and marginalized youth.
- Support pathways to employment, entrepreneurship, and decent work.
Target Areas and Beneficiaries
Geographic Focus
- Thailand: Urban and peri-urban areas with growing demand for skilled labor, as well as underserved regions.
- Vietnam: Industrial zones, secondary cities, and rural-to-urban transition areas.
Target Beneficiaries
- Youth aged 18–30, including recent graduates and unemployed or underemployed youth
- Women and marginalized groups
- Technical and vocational education and training (TVET) institutions
- Employers and industry partners
The program aims to directly benefit 50,000 youth over the project period.
Project Components and Key Activities
- Component 1: Labor Market Assessment and Skills Mapping
- Conduct labor market assessments to identify high-demand skills and sectors.
- Map current skills gaps and training supply.
- Engage employers to co-design training pathways.
- Component 2: Future-Ready Skills Training Programs
- Deliver modular training in digital skills (ICT, data literacy, basic AI, digital marketing).
- Provide technical skills training aligned with priority sectors such as advanced manufacturing, logistics, tourism, and renewable energy.
- Integrate green skills and sustainability practices.
- Component 3: Employability and Soft Skills Development
- Provide training in communication, teamwork, critical thinking, and adaptability.
- Offer career guidance, mentoring, and job readiness support.
- Strengthen entrepreneurial and financial literacy skills.
- Component 4: Work-Based Learning and Industry Partnerships
- Facilitate internships, apprenticeships, and on-the-job training.
- Partner with private sector companies to offer real-world learning opportunities.
- Support job matching and placement services.
- Component 5: Inclusion, Gender, and Digital Access
- Promote women’s participation in non-traditional and technology-driven fields.
- Provide scholarships or stipends for disadvantaged youth.
- Use blended and digital learning approaches to expand access.
Cross-Cutting Themes
- Gender Equality and Social Inclusion
- The program will actively address gender and social barriers, ensuring equal participation and tailored support for women and marginalized youth.
- Digital Transformation
- Digital tools and platforms will be integrated into training delivery, monitoring, and job matching.
- Green and Sustainable Growth
- Training will align with national green growth strategies and promote environmentally sustainable practices.
Expected Results and Outcomes
Key Outputs
- Market-aligned training curricula developed and delivered
- 50,000 youth trained in future-ready skills
- Strong partnerships established with employers and industry bodies
- Work-based learning opportunities created
Outcomes
- Improved employability and job placement rates among trained youth
- Increased youth participation in high-growth sectors
- Reduced skills mismatch in local labor markets
- Greater inclusion of women and disadvantaged youth in decent work
Monitoring, Evaluation, and Learning (MEL)
The MEL framework will include:
- Baseline and endline assessments of skills and employment outcomes
- Tracking of job placement, retention, and income levels
- Gender- and inclusion-disaggregated data analysis
- Continuous learning and program adaptation
Implementation Strategy and Partnerships
The program will be implemented through partnerships with:
- Ministries of Labor and Education
- TVET institutions and universities
- Private sector employers and industry associations
- Youth organizations and NGOs
Coordination mechanisms will ensure alignment with national employment and skills strategies.
Sustainability and Exit Strategy
Sustainability will be ensured through:
- Institutionalization of training programs within TVET systems
- Long-term partnerships with employers
- Capacity building of local training providers
- Integration with national youth employment initiatives
An exit strategy will focus on local ownership and continued financing.
Budget Overview (Indicative)
The estimated budget for the four-year program is USD XX–XX million, covering:
- Training delivery and curriculum development
- Digital platforms and learning tools
- Industry partnerships and work-based learning
- Monitoring, evaluation, and program management
A detailed budget will be developed with partners and donors.
Conclusion
Investing in future-ready skills is critical for enabling youth in South-East Asia to thrive in changing labor markets. By aligning skills training with employer needs, promoting inclusion, and supporting pathways to decent work, this program will contribute to sustainable economic growth and youth empowerment in Thailand and Vietnam, while advancing SDG 4 and SDG 8.
