J1270N KOTO Vietnam

The Situation

Vietnam’s social and economic position in 2025–2026 is marked by robust growth and ongoing challenges. Its GDP expanded strongly — around 7–8 % annually — led by manufacturing, exports, and services, making Vietnam one of Southeast Asia’s fastest-growing economies. Foreign direct investment and employment have risen, and poverty rates have fallen sharply, with social welfare coverage expanding. Domestic incomes and consumption are improving, but structural issues remain: heavy reliance on export-led growth, the need for private-sector development, financial market deepening, and ageing population pressures. Reforms targeting productivity, formal jobs, and inclusive social protection are key for sustained, equitable prosperity.

Vietnam’s rapid economic growth has also increased demand for a skilled workforce, yet the vocational education and training (VET) system has not kept pace with labour market needs. Historically perceived as a lower-status pathway, VET remains stigmatised, uneven in quality, and challenging to access for disadvantaged youth, especially those in rural, remote, and ethnic minority communities. These groups face additional barriers such as language differences, limited school completion, and restrictive gender norms that reduce young women’s participation. At the same time, fast-growing sectors like hospitality and tourism report shortages of job-ready workers, underscoring a persistent mismatch between national economic opportunities and the inclusiveness and effectiveness of existing VET systems.

The Objectives

Through its Holistic 24-Month Hospitality Vocational Training Program, KOTO directly addresses the needs of disadvantaged and underrepresented groups by:

1. Equipping them with tools to overcome systemic barriers and achieve economic empowerment. It provides a comprehensive solution by offering free 24-month holistic, internationally accredited hospitality training designed to equip disadvantaged Vietnamese youth aged 18-24 with the skills necessary for sustainable employment. The program addresses the critical need for quality vocational training and life skills education, which are often inaccessible to this demographic.
2. By combining technical training with personal development, the program ensures that participants are not only job-ready but also emotionally and socially prepared to navigate life’s challenges. The program’s live-in model provides a safe and supportive environment, fostering a sense of community and belonging. Upon completion, the project guarantees job placement, breaking the cycle of poverty and giving youth the tools to build a better future.
3. At the systemic level, the project engages a range of stakeholders, including hospitality and tourism employers, community organisations, and VET system actors. By leveraging these partnerships, the project fosters a culture of inclusion that benefits individuals and strengthens the broader hospitality and tourism ecosystem.