Opportunities and advantages for oversea seafarers human resources development in Vietnam

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Opportunities and advantages
for oversea seafarers human resources development in Vietnam
Dinh Xuan Manh1, Dao Quang Dan2
1Vietnam Maritime University, Professor, Captain, Vice-Rector, dxmanh@vimaru.edu.vn
2Navigation Faculty, Vietnam Maritime University, daoquangdan@vimaru.edu.vn
Abstract: Despite of the increasing demand of seafarer markets in the world particular in Northern East
Asia, Singapore, European countries, the annual number of Vietnamese exported seafarers has just
fluctuated around 2,500 per year over last 20 years. It is the modest amount compared to Vietnamese
population and potential. There are a lot of limitations, difficulties and challenges in exporting
Vietnamese seafarers.
This paper presents fundamental problems and challenges. However, apart from these difficulties and
challenges, Vietnam has many advantages in developing labour resource for exporting Vietnamese
seafarers to the world labour market. Vietnam should take these advantages to overcome challenges and
dilemmas, otherwise these problems would turn into long–term problems which are really hard to
recover. This paper will focus on analyzing opportunities and advantages of Vietnam in developing
human resource for exporting seafarers.
Keywords: human resource, seafarers, seafarers export, opportunities, advantages, limitations,
challenges, STCW78/2010.
1. Introduction
Many researches, analysis which have been carried out by individuals, prestigious organizations in the
world maritime industry showed a serious concern related to the severe shortage of seafarers in the
international seafarers market, especially officers at present and in the future. [1],[2],[3],[4],[5].
In Asia, ASEAN is the large labour resource providing a considerable amount of seafarers to the
international seafarers market at present and in the future. There are many similar features between the
two ASEAN members, Vietnam and Philippines, such as population, GDP, economic-social
development rate. However, while Philippines occupies the biggest amount of exported seafarers over
the world, Vietnam, with many remarkable advantages in comparison to other countries in the region,
consisting such as the crucially strategic location; the golden population structure is predicted to last in
next 20 years (the population in Vietnam is 91 millions) and Vietnamese young seafarers desire to work
for the international prestigious shipping companies, particularly working onboard ships of large fleets
in developed maritime countries, has exported 2500 to 3000 seafarers annually over last 20 years, a
quite modest quantity compared with its potential.
Meanwhile, the quality of management and operation in Vietnamese shipping companies are limited
with many weakness and shortcoming. Additionally, these shipping companies suffered from income
losses, decreasing scope of business, even bankrupt due to economic crisis in recent years. These
problems which led to low salary, long-term delayed payment as well as poor compensation to seafarers.
The above-mentioned reasons result in increasing significantly the number of seamen who want to
abandon their career and the quality of seafarers is decreasing.
However, by ratifying and implementing MLC 2006 showed the determination of Vietnamese
government in developing seafarers resource and Maritime Transportation Industry.
Promoting seafarers export is really a right policy because, firstly, it will create more job opportunities,
improving economic-society condition and building up Vietnamese seafarer trade mark in the
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international seafarer labour market; secondly, it plays very important role in improving not only the
quality of Vietnamese seamen but also maritime transportation in Vietnam.
Vietnamese seafarers basically can meet all international ship-owners’ requirements because they are
trained, well educated and certificated in accordance with STCW 78/2010 standards. However, the
major reasons that the number of Vietnamese exported seamen is quite small and much lower than its
potential are the cutthroat competition from opponents when Vietnam merges deeply and widely into
the international economy, and on the other hand the Vietnamese seafarers is not so qualified.
Therefore, it is completely necessary and practical to study the potential of Vietnam in order to turn the
potential into opportunities and advantages in intensifying seafarers export issue.
2. SWOT Analysis
2.1. Strengths
- Vietnam in general and costal cities in particular are with abundant labour resources which meet not
only the demand of socio-economic development but also the demand of supplying overseas labour
including seafarers.
- With young age structure and with tradition of hard-working and inquisitiveness, Vietnamese labour
will have abilities to meet the special requirements of exported seafarers at a large quantity if they are
educated and trained properly.
- The economy tendency of shifting to service operation in many regions in Vietnam releases a large
amount of agriculture labour that would be reserve labour force for seafarers resource as well as overseas
safarers. Higher salary for seamen working for international shipowners in comparision to those working
for domestic shipping fleet or those working in other careers is an advantage and a strong point in
attracting and developing overseas seafarers.
- Management system, policies system which support in developing seafarers resource and Maritime
Education Institutes, Maritime Training Centers has been completed and will promote its ability in the
stage of developing.
- Vietnamese seamen has mastered smoothly huge vessels owned by international shipowners including
Handy size, Panamax, Capsize size vessels. The number of seafarers working onboard these ships is
increasing, even there are crews who works onboard these vessels are all full Vietnamses. This is a clear
affirmation that Vietnamese seafarers h ... o recruit more highly qualified
seafarers for further development.
2.5. Building combined strategies S-W-O-T
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Combination between Strengths and Opportunities: With inherent strengths particularly young working-
age population, inquisitiveness, harmony, and a part of Vietnam seafarers has good experiences, has
proved their ability in operating many different types of extremely large vessels including ones owned
by international shipowners. Besides, the numbers of seamen who had been trained and educated is quite
large so it could provide for the global seafarers market a large amount of seafarers after a short time of
retraining. Furthermore, the desire of working for famous and prestigious shipowners that have strong
attraction to Vietnamese seafarers would last for a long time, at least over decades.
If Vietnamese seafarers force are properly oriented and invested, they will take this opportunities
effectively for developing the export seafarer resource quickly in order to meet the quality and quantity
of the international seafarers market demand. To achieve this goal under the condition of strength and
advantage mentioned above, both Vietnamese crew manning companies/agencies and seafarers need to
strengthen their position in the traditional markets as East-Northern Asia, Singapore, then expand to the
potential markets including Europe, North America.
Combination between Weaknesses and Opportunities: All Maritime Education Institutes, Maritime
Training Centers, crew manning companies/agencies and Vietnamese seafarers always eager to
cooperate with international reputable shipowners. These advantages will create a new direction for
Vietnamese seafarers and this tendency also help crew manning companies/agencies’ and maritime
officies’ operation to be more professional as well seafarers will gain better reputation. Although all
crew manning companies/agencies and seamen are willing to cooperate with foreign shipowners, they
haven’t well prepared in every aspects for a good cooperation results. If Vietnamese government and its
departments take full advantages of these opportunities to issue policies and to models supporting for
training and exporting seafarers, eliminate unprofessional factors in the seafarers supplying chain
operation, invest more money to enhance the human resource quality, it would be believe that
weaknesses could be minimized and no longer exist.
Combination between Strengths and Threats: Any labours including overseas seafarers always consider
two sides of the same coin when they made their decision to be a seafarer. They have to think about
whether the amount of money that they earn could be enough to afford their family’s life after resigning
from this career and whether this amount of money is better than that they could earn by doing other
jobs. With strengths, Vietnam will build up a model of export seafarers with good salary and
compensation which makes seafarers satisfied and attract more young and high qualification seafarers
to join export seafarer market. Apart from salary, compensation and allowancethat are provided by
the international shipowners, Vietnamese government also need to issue preferential policies to
encourage overseas seafarers. If these things could be done, it is ensure that seafarer export work would
be able to overcome all risks. Since, according to income and currently average development rate,
attraction of working for international famous shipowners to Vietnamese seamen would last in at least
several decades.
Combination between Weaknesses and Threats: In progress of developing and integrating into world
shipping, it can’t avoid elimination. Maritime Education Institutes Maritime Training Centers, crew
manning companies/agencies, and seafarers that are at low quality and poor competition will be
eliminated. Vietnamese organizations, crew manning companies/agencies and seafarers need to aware
clearly of this because joining the international market means that competitions with many rivals from
many regions in the world not only from Vietnam.
In spite of abundant number of seafarers and good qualification, Vietnamese seafarers are not so at
unprofessional manner which is represented by skills and working-attitude. Vietnamese seafarers’
working attitude and attitude towards shiponwers is not really good. Because of skills, especially
attitudes, the quality of Vietnamese seamen is not high, just stopping at a passing-level. To meet the
requirements of foreign shipowners, it is essential to set up inadequate mind and attitudes towards
shipowners and operators among seafarers. Seamen must recognizes that their benefits and rights are
attached closely to that of shipowners, operators. They should consider vessels as their own house.
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Vietnamese seafarers’ low awareness and attitude are at restriction in their perception. To create
overseas seafarer force which could satisfy foreign shipowners’ requirements and prove Vietnamese
seafarers’ trademark in the global market, it is necessary for Maritime Education Institutes especially
Maritime Training Centers and Crew manning companies/agencies to reform training and education
syllabus in order to enhance seafarers’ professional manner and improve their onboard working skills
and attidutes. Establishing an internationally professional mind in seafarers’ thought will overcome
weakness, control threats and finally improve strengths.
3. Advantages in developing seafarer resource for exporting in Vietnam
Apart from mentioned strengths and opportunities, Vietnam is holding unique overwhelmed factors in
developing overseas seafarers recource that can’t be found in other countries.
3.1. Geographical location of Vietnam
At location of the west of Eastern Sea, with more than 3,260 km coastline, Vietnam is contiguous to
seas in the East, South and South West, from Mong Cai in the North to Ha Tien in the South West. The
expanded area to the East and South East in the East Sea which belongs to Vietnam’s sovereign. It has
continental shelf, islands and archipelagos. Vietnam also has sea area of more than 1,000,000 square
meter with it’s sovereign, sovereign right and jurisdiction. The sea area is 3 times bigger than land area.
Additionally, the Eastern Sea is an important sea area with a strategic location of region and in the world.
where main shipping routes passing through with the goods value of 5,000 billion USD transported
annually. Eastern Sea have played an important role in developing strategy of the East Sea countries as
well as other powerful maritime countries in the world.
Every year, about 70% of imported oil and 45% of exported commodities in Japan; about 60% of
imported-exported goods in China have been carrying through this route. Especially, Singapore
economy mostly depends on the Eastern Sea.
3.2. Golden population
According to Vietnamese Statistic Directorate, as of 01/01/2016, Vietnamese population is in “golden
period”. The workforce aged 15 years old and above is 54,61 million which was 185,000 people higher
than that in the same period of 2014, consisted of 51.7% male, 48.3% female. Vietnam is one of countries
having the youngest population in the world, the workforce aged 15-39 years old is 51.0% including
26,7% in group aged 15-29 and nearly 15% in group aged 15-24 [4]. This group is believed to be highly
potential to learn new knowledge and skills in order to be high quality workforce.
3.3. Political issue
Vietnam is a country which is always has a good stability in politics- society. It is the essential factor to
help Vietnam being consistent with economic developing policy and having a long lasting peace.
Meanwhile, most countries in ASEAN, except Singapore, have dealt with many political problems that
caused serious loses in economy of these countries. It is, therefore, obviously that Vietnam’s stable
politics is a great guarantee for remarkable success in process of reforming in Vietnam.
3.4. The Vietnam young workforce
With hard-working, studiousness, enthusiasm and ambition, Vietnamese young generation is now quite
willing to take risks to learn and start new things.
Vietnamese workforce and seafarers are highly competent to meet strict requirements given by
international employers as well as shipowners when Vietnam is merging widely and deeply into global
economic community. This is clearly proven by impressive performances of Vietnamese seafarers on
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huge vessels and number of Handymax, Panamax and Capsize vessels with full Vietnamese crew is
increasingly significant.
Vietnamese seafarers have ability to learn new professional knowledge, foreign languages, and to adapt
themselves to be harmony with other seafarers who come from different countries and have different
cultures. All things they need to do now is being confident to learn and use the existing potential which
maritime education and training centers provide and to gain necessary knowledge to prove that
Vietnamese seafarers would be able to compete against with other countries in seafarer market.
It is used to say that the cheap labour cost of Vietnamese seafarers was one of competitive factors.
However, it is no longer suitable nowaday. Vietnam is now competing against with countries which
have good reputation in maritime field such as Philippines, India. Furthermore, seafarers coming from
China and Myanmar who could provide the international labour market with skilled, disciplined and
low cost seafarers are raising as remarkable rivals. For these reasons, Vietnam should uphold its inherent
advantages so called inner ability which is existing in each Vietnamese seafarer. Inner ability factor,
creativity and adaptability, optimist that are typical characteristic of Vietnamese.
Nowadays, in Vietnam, not only students who just graduate from Maritime Universities or Colleges but
also experienced and skillful seafarers desire to work for foreign shipping companies and shipowners.
According to the survey carried out by group of researchers in Vietnam Maritime University, Maritime
College No.1 and other Maritime Training and Education units, all students and learners really want to
work onboard vessel owned by prestigious foreign shipowners after graduating because of deserved
salary, professional working environment, and equitable in evaluating their performance and in
promoting. Maritime students, who are well trained and educated, eager to study new cutting-edge
technologies. They would be optimize their ability when working in professional environment.
Therefore, all students who just graduated from Maritime Universities or Colleges, desire to work in
professional and disciplined working environment in the beginning of their career. This will give them
good opportunities to practice what they have studied and to gain valuable experiences, knowledge and
receiving good salary deserved to their effort.
There is a trend now in Vietnam economy that service sectors are increasing. This release a large amount
of labours from agriculture which is a good reserved workforce source for exporting seafarers. Seafarer
working overseas or for foreign shipowners would get higher payment to those one working on board
domestic vessels. This is really a great advantage to attract more and more labour for exporting seafarers.
4. Conclusion
By making use of opportunities and advantages to overcome difficulties, challenges toward to further
successes, Vietnam is completely able to be a major seafarers supplier to the international seafarers
market. Otherwise these advantages will be passed and these obstacles would grow up and become long-
term problems that it would be very difficult to recover. Vietnam used to miss these opportunities and
might miss once again a good chance to create jobs for young and intelligent labour who is willing to
be trained and educated to become high quality labour. The period of golden population will last 25
years, and then Vietnam will be entering the period of the old population. Therefore, if Vietnam makes
use of these opportunities effectively, it will have sufficient accumulation for social security to meet the
increasing demand when the population gets old. Conversely, Vietnam will deal with many difficulties
and challenges when the golden population opportunity ends and the old population period begins.
Developing the Vietnamese seafarers resource for exporting will play crucial part not only in enhancing
the quality of Vietnam seamen but also in developing a sustainable sea transportation industry in
Vietnam in accordance with deeply and widely merging into the international economy.
Opportunities and advantages in exporting Vietnamese seafarers are scientifically analysed which will
enable Vietnam to build up a strategy for improving seafarer export resource. Furthermore, these
analysis help seafarer employers, particularly international shipowners have reliable information to
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evaluate situation and to make decisions on investing in the potential Vietnamese seafarers market in
order to solve the problem of seafarer shortage effectively, economically and sustainably.
References
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Maritime Science. 2012
[2] Study on EU Seafarers Employment, Final Report, European Commission, May 20th 2011.
[3] Japan International Transport Institute and The Nippon Foundation, “Future Global Supply and
Demand for Seafarers and Possible Measures to Facilitate Stakeholders to Secure a Quantity of
Quality Seafarers”. May 2010.
[4] General Statistics Office of Viet Nam
[5] https://www.bimco.org/
[6] Lloyd’s Register, QinetiQ and University of Southampton. Global Marine Technology Trends
2030. First Printed: August 2015