KCCI Steps Up to Address Regional Talent Shortages... Signs MOU with Vietnamese Universities for Talent Development

The Korea Chamber of Commerce and Industry (KCCI) announced on April 26 that it signed an "Educational Cooperation MOU for the Development of Industrial Technical Talent" with leading local universities-Hanoi National University, Hanoi University of Science and Technology, Hanoi University of Industry, and Posts and Telecommunications Institute of Technology-during the Korea-Vietnam Business Forum held in Hanoi on April 23.

Since this year, KCCI has been working with the Ministry of Trade, Industry and Energy on a "Foreign Professional Technical Talent Attraction Program," aimed at addressing the structural shortage of technical talent in regional small and medium-sized enterprises (SMEs) and mid-sized companies by bringing in bachelor-level overseas technical professionals to local areas. This agreement was made as part of that program.

The participating universities are among the most prestigious in Vietnam, ranking at the top nationally or designated as one of the country’s five key universities. Under the MOU, each university will cooperate to strengthen industry-academia links by: ▲ selecting and evaluating industrial technical talent, ▲ operating local educational programs, and ▲ developing curricula based on the needs of Korea's industrial sites. They plan to start selecting candidates and begin education from May 2024.

Korea Chamber of Commerce and Industry. Yonhap News.

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The core of the Foreign Professional Technical Talent Attraction Program is KCCI's own "Integrated Process of Selection, Training & Verification, Matching, and Follow-up Management." Previous overseas talent attraction projects mainly used a supply-driven approach, selecting available local candidates and then introducing them to companies. This initiative shifts to a demand-driven model, identifying the actual hiring and job requirements of regional SMEs and mid-sized companies through the nationwide chamber of commerce network. Local training is then tailored to these domestic needs, and only candidates equipped with practical skills are matched with companies.

KCCI especially emphasizes not just Korean language proficiency, but directly verifying the job competencies required by regional SMEs and mid-sized companies. Candidates undergo thorough assessments to ensure they can perform on the job without further retraining once placed at actual sites. Overseas talent must successfully complete hands-on job projects designed to mirror real workplace environments in order to earn the opportunity to be matched with Korean companies.

Additionally, KCCI will provide a follow-up support system for foreign talent who have been verified and employed in Korea, including Korean language education and a help desk, to assist with their stable settlement into local communities and industrial sites.

KCCI stated, "In 2024, the shortage rate of industrial technical talent at small and mid-sized businesses (2.9%) is approximately 5.8 times higher than that of large enterprises (0.5%). Moreover, the resignation rate in non-metropolitan regions (10.7%) surpasses the metropolitan area (7.3%), with regions such as Daegu (13.9%) and North Gyeongsang Province (12.3%) experiencing particularly severe labor shortages. Supplying talent who can be immediately deployed to the field is therefore key to resolving these challenges."

As part of this program, KCCI is expanding cooperation not only with top universities in Vietnam but also with Indonesia’s leading academic institutions, such as University of Indonesia, Gadjah Mada University, and Bandung Institute of Technology. This year, KCCI will establish Human Resource Development (HRD) Centers in both Vietnam and Indonesia, aiming to recruit a total of 200 talents, provide intensive training starting in June, and attract them to Korea in the second half of the year.

This systematic model has also received positive evaluations from experts. During the forum held before the MOU signing, Sungil Kwak, Center Director at Korea Institute for International Economic Policy (KIEP), remarked in his keynote presentation, "This program will help alleviate the shortage of professional technical talent in Korea while also offering opportunities for Vietnamese candidates to learn advanced technologies, thus serving as a mutually beneficial model that strengthens inter-country technological supply chain connections."

Sangbok Lee, Head of Human Resources Development at KCCI, commented, "For regional SMEs and mid-sized companies to achieve sustainable competitiveness, relying solely on domestic technical talent has its limits. Utilizing global professional technical talent is not an option but a necessity. We expect this program to not only strengthen the competitiveness of local industries but also contribute to balanced regional development and efforts to address local population decline."

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