Demand, Capability and Perspectives on Mobilizing Investment Capital for Developing Human Resources for Vietnam Tourism in International Economic Integration to 2020

+ Regarding foreign language and computer proficiency: By 2020, universalize foreign language and computer proficiency equivalent to level C for all managers and administrators at department level and equivalent or higher, those who have direct contact with foreigners, ensuring the use of foreign languages and computer skills to meet work requirements.

+ Regarding regional distribution: Restructuring the regional distribution of human resources in the tourism industry, the number of human resources in remote areas and ethnic minority human resources.

3.2. NEEDS, ABILITIES AND PERSPECTIVES ON MOBILIZING INVESTMENT CAPITAL FOR DEVELOPING VIETNAM'S TOURISM HUMAN RESOURCES IN INTERNATIONAL ECONOMIC INTEGRATION TO 2020

3.2.1. Investment capital needs for human resource development in Vietnam tourism by 2020

According to the Master Plan for Vietnam's tourism development to 2020, with a vision to 2030, the total investment capital demand for tourism development is 1,931 trillion VND (equivalent to 94.2 billion USD at current prices). Of which, state budget capital accounts for 8-10% (including ODA capital) and capital from the private sector accounts for 90-92% (including FDI capital). By investment period, from now to 2020, the investment capital demand is 854 trillion VND (equivalent to 42.5 billion USD), accounting for 44.2%, from 2020 to 2030, the investment capital demand is 1,077 trillion VND (equivalent to 51.7 billion USD), accounting for 55.8% [9].

The demand for investment capital for the development of human resources for tourism by 2020 is part of the demand for investment capital for tourism development. The determination of investment capital demand must be based on the target of human resources for tourism development, the proportion of state budget expenditure for human resources for tourism and the ability to mobilize capital outside the state budget, mainly from contributions from learners. Investment capital demand is synthesized from the capital demand of each stage, field, solution and project for human resources for tourism development.

3.2.1.1. Capital investment needs for regular expenditure

Investment capital to meet regular expenditure needs for NNLDL development is determined based on the number of employees and the regular expenditure level per employee.

Capital investment needs for regular expenditure

Number of tourism employees

Average Regular Cost

for 1 person

(3.1)

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Number of tourism human resources by 2020

Table 3.1. Number of tourism human resources by training level by 2020

Education level	Number of tourism staff (people)
1	Doctoral training	366
2	Master's training	5,734
3	University	71,775
4	College	23,490
5	Intermediate professional	111,969
6	Vocational college	35,235
7	Vocational college	1.131
8	Primary	194,000
9	Below primary, secondary	426,300
10	Total	870,000

Source: Institute of Tourism Research and Development

According to the Tourism Human Resources Development Plan to 2015 [10], the number of direct tourism human resources is about 620,000 people and the growth rate to 2020 is 7%/year with the structure of training levels shown in the table.

3.1. Thus, in the total demand for tourism human resources by 2020, trained human resources account for about 51%, untrained human resources (from below primary level, unskilled labor) account for 49%. Human resources trained in tourism profession need a certain amount of capital investment (initial training, retraining).

Average regular cost for 1 tourism worker

From the formula: Tuition = Minimum regular cost - State support [65, p. 103], the average regular cost for 1 tourism worker is determined based on the formula:

Regular expenses = Tuition + Government support (3.2)

Therefore, when determining regular expenses, it is necessary to determine the tuition level and the level of state support for regular expenses.

The average regular expenditure per employee generally depends on the GDP per capita in each period. Vietnam's GDP per capita by 2020 is about 3,000 USD, at comparable prices, about 2.2 times that of 2010 [64]. Thus, by 2020, Vietnam will be a lower middle-income country (according to the World Bank's classification). According to the Fundamental Innovation in Finance for Vietnam's Higher Education, the average expenditure per university student in the coming period will account for about 80% of GDP per capita [52]. Thus, with this calculation, the average expenditure per university student will be 2,400 USD in 2020. However, if this figure is achieved, the state support rate must be reduced and tuition fees must increase according to the ratio between the state - learners - community of 25% - 60% - 15% [52].

The tuition fee represents the real sharing of training costs between the state and learners, enough to cover salaries and gradually ensure regular expenses, the rest of the regular expenses and all investment expenses are undertaken by the state. According to the Project on innovation of education financial mechanism for the period 2009 - 2014, the tuition fee for the 2014 - 2015 school year will first cover salary costs, then the tuition fee will gradually increase to cover regular expenses.

Capital requirements for regular expenditure

Applying the above “cost sharing” method, the USD/VND exchange rate is about 21,000 and the adjustment coefficient for the tuition ceiling for

For vocational secondary schools, colleges, master's and doctoral training in Decree No. 49/2010/ND-CP of the Government, the tuition fee (capital demand mobilized from people's contributions) is forecasted according to Table 3.2.

Table 3.2. Capital demand mobilized from people's contributions (tuition fees) for NNLDL development by 2020

Training system	Tuition fee per employee (million dong)	Capital requirement from public contribution (tuition fee) (Billion VND)
1.	Doctoral Training	75.6	28
2.	Master's Training	45.36	260
3.	University	30.24	2,170
4.	College	24,192	585
5.	Intermediate professional	21,168	2,370
6.	Vocational college	17,5392	6,180
7.	Vocational college	15.12	17
8.	Primary	9,072	2
9.	Below primary	3,024	1,289
10.	Total		12,901

(Source: Author's calculation)

Table 3.3. Investment capital needs for regular expenditure on NNLDL development by 2020

Content	Capital needs by 2020 (billion VND)
1	Capital needs from people's contributions	12,901
2	Capital needs from the state budget	5,376
3	Total	18,277

(Source: Author's calculation)

With the sharing ratio between the state - learners - community being 25% - 60% - 15% [52], the regular capital expenditure demand for NNLDL development is summarized in Table 3.3.

3.2.1.2. Capital needs from socialization for NNLDL development

With the cost sharing between the state - learners - community is 25%

- 60% - 15% [52], the regular capital demand accounts for 85% and from the community (socialization) for NNLDL development accounts for 15%. From table 3.3 and according to the above ratio, the capital demand from socialization for NNLDL training is 3,225 billion VND, of which 50% calls for foreign investment capital.

3.2.1.3. Investment capital needs to complete the policy system, management institutions and support for the development of NNLDL

The system of policies, institutions for managing and supporting the development of human resources is a legal regulation, orienting the standards, conditions and support activities to facilitate the promotion of human resources development.

Investment capital needs are determined through Table 3.4

Table 3.4. Investment capital needs for the policy system and management mechanism for NNLDL development by 2020

Content	Investment capital requirement (billion VND)
	Total	State budget	Outside the state budget
	Total	State budget	Domestic	Overseas
1	Perfecting the system of policies and management mechanisms NNLDL development theory	10	5	2	3
2	Building a database development of NNLDL	20	8	8	4
3	Total	30	13	10	7

(Source: [10])

Investment capital needs to complete and innovate the policy system and management mechanism for developing NNLDL.

In order to improve the efficiency and quality of NNLDL development, the funding requirement for this activity is 10 billion VND, including:

1) The state budget is 5 billion VND, accounting for 50% through the annual state budget, local budget, and budget through the national action program on tourism.

2) Participating enterprises contributed 2 billion VND, accounting for 20%

3) Call for international support of 3 billion VND, accounting for 30% through projects funded by the European Union (EU), supported by the World Tourism Organization (UNWTO) and other international organizations.

Investment capital needs for building a database for developing human resources.

Building a database for developing human resources is to improve the effectiveness of developing human resources through the application of information technology. The capital investment requirement for building the database is 20 billion VND, of which: capital from the state budget is 8 billion VND, accounting for 40%, capital from support funds from international organizations is 4 billion VND, accounting for 20%, the rest is from the contributions of training institutions, organizations and parties participating in the system is 8 billion VND, accounting for 40%.

3.2.1.4. Investment capital needs for enhancing capacity for NNLDL development

Table 3.5. Investment capital needs

for strengthening the capacity of developing human resources by 2020

Content	Investment capital requirement (billion VND)
	Total	State budget	Outside the state budget
	Total	State budget	In water	Outside water
1	Developing tourism training network	2,090	730	1,050	320
2	Training of lecturers, teachers, trainers tourism	500	150	150	200
3	Develop training programs and content tourism training	60	20	20	20
4	Total	2,640	900	1,200	540

(Source: [10])

Strengthening the capacity to develop tourism human resources requires focusing on: i) developing a tourism training network; ii) training lecturers, teachers, and tourism trainers; iii) developing training programs and content in tourism.

Determining investment capital needs to enhance NNLDL development capacity is a synthesis of investment capital needs for each of the above stages.

Investment capital needs for tourism training network development

Developing a tourism training network including primary, intermediate, college and university tourism training facilities to ensure modernity, high-quality training that is widely recognized domestically and internationally, and distributed appropriately to the requirements of tourism development throughout the country. The objectives of developing a tourism training network are: 1) to establish a number of new tourism training facilities to ensure that they are suitable for human resource requirements in terms of occupations and training levels to meet the tourism development requirements of each tourism region; 2) to strengthen the infrastructure and capacity of tourism training facilities, ensuring modernity, sufficient conditions for high-quality training and regional integration; 3) to create close links between tourism training facilities in training, curriculum development, and to promote the dynamism and effectiveness of the tourism training network.

The investment capital demand for developing the tourism training network is 2,090 billion VND, of which the state budget is 730 billion VND, accounting for 35%, mainly for investment in building schools, the source of funds mobilized from foreign funding is expected to be 15% equivalent to 320 billion VND and mobilized from other sources of association, contributions from enterprises, training facilities... equivalent to 50% equal to 1,050 billion VND [10].

Investment capital needs for training lecturers, teachers, tourism trainers

To develop tourism, it is necessary to build a team of qualified tourism teachers, lecturers and trainers with professional qualifications and teaching methods specializing in tourism theory and practice to ensure basic requirements.

Modern tourism training facilities and teaching at regional training facilities.

The estimated investment capital requirement is 500 billion VND; of which 380 billion VND is for tourism professional training (accounting for 76%), 120 billion VND is for teaching methods and foreign languages (accounting for 24%). The investment capital from the state budget is 150 billion VND (accounting for 30%), foreign funding is 200 billion VND (accounting for 40%) and the rest is calling for the participation and contributions of businesses, training institutions, individual lecturers and teachers, 150 billion VND (accounting for 30%) [10].

Investment capital needs for program development and training content in tourism

From the perspective of innovation and international integration, equipping a basic framework of programs, training content and training for tourism majors corresponding to management title standards, professional title standards in the tourism industry and suitable to practical requirements for application in tourism training institutions. By 2020, ensuring that 80% of tourism training institutions from vocational, intermediate to college and university levels use a unified training and training program framework and content, and 80% of tourism training majors at tourism training institutions achieve regional standards in training program content, at least 50% of tourism training institutions are recognized by the ASEAN region for training programs, training quality and training results according to diplomas and certificates.

The investment capital requirement for developing the program and training content in tourism is estimated at about 60 billion VND, of which the state budget capital is 20 billion VND (accounting for 33%), mobilizing foreign funding through providing experts is 20 billion VND (accounting for 33%), mobilizing funding and contributions from domestic participants is 20 billion VND (accounting for 33%) [10].

3.2.1.5. Capital investment needs for retraining and fostering human resources

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