Viet Nam advances enterprise workforce development with new training fund framework

HANOI (ILO News) - Viet Nam has taken an important step towards strengthening enterprise investment in workforce skills with the adoption of a new framework for enterprise human resource training funds. Technical research and inputs supported by the International Labour Organization (ILO) had provided evidence on international standards and international practices for consideration by national stakeholders.

Government Decree No. 308/2026/ND-CP, issued on 5 August 2026, provides guidance for implementing the 2025 Law on Vocational Education regarding State support for enterprises and enterprise human resource training funds. The Decree encourages enterprises to establish training funds, primarily from after-tax profits, to support continuous workforce training and human resource development.

The framework covers training, reskilling and upskilling, skills assessment, and cooperation between enterprises and vocational education and training (TVET) institutions, including the development of digital and green skills to respond to changing labour market needs.

Through its Productivity Ecosystems for Decent Work project in Viet Nam, the ILO supported a study assessing options for an Enterprise Workforce Training Fund, drawing on Viet Nam's legal and financing framework, enterprise practices and international experience.

While enterprise-based funds provide a feasible short-term approach, the study recommends progressively developing an integrated skills financing mechanism that better coordinates and leverages public and enterprise resources, supports SMEs, strengthens tripartite governance and social dialogue, and links investment to labour market demand, lifelong learning and measurable enterprise and labour market outcomes.