Greg Wallis Senior Trade Commissioner Australian Trade Commission (Austrade) Bangkok, Thailand

1. Productivity and skills - an imperative in an Integrated AsiaAustralia and Human Capital and Skills Development in Thailand Greg Wallis Senior Trade Commissioner Australian Trade Commission (Austrade) Bangkok, Thailand

2. Skills and productivity issues in Thailand • ASEAN Economic Community in 2015 • Declining labourforce growth; aging population • Skills mismatch and skills shortages • Most vocational students extend their studies to higher vocational and bachelor’s degrees (social value), causing a shortage of skilled workers. • Quality of education: students lacking skills in IT, English, analysis and creativity

3. Skills shortage situation in Thailand (by sector) Source: A Survey by Bank of Thailand, 2011

4. Thailand Automotive Production Forecast (as of October 2012) Source: LMC Automotive Ltd, 2012

5. Forecast of Manpower Required for the Automotive Parts Industry Source: A survey of members of the Auto Parts Club and Thai Auto-Parts Manufacturers Association, July 2011

6. YESTERDAYAustralian vocational education reforms in retrospect

7. TODAYAustralian capabilities in skills and education • Technical and Further Education (TAFE) institutes and private registered training organisations (RTOs) • Designed to provide hands-on skills and experience • Industry-led • Competency-Based Training (CBT) • Flexible Based Learning (FBL) • Recognition of Prior Learning (RPL) between education sectors • Recognisedby the OECD, UNESCO and the ILO for its capacity to meet industry needs Vocational Education and Training (VET)

8. Industry Skills Councils (ISCs) • Provide industry intelligenceto the VET sector. • Support nationally recognisedtrainingproducts and services Source: http://www.isc.org.au/

9. ASEAN Human Capital and Skills Development Initiative by Austrade Thailand Perspective

10. Austrade’s Human Capital and Skills Development Initiative – Automotive sector in Thailand QUESTION: Which skills are needed in the Automotive sector? ANSWER:      1) Production skills      2) Aftersales Service skills     3) Soft Skills     4) English Language skills Both pre-employment and employment level • Identify skills development issues • High level discussions with industry players and education & training providers. • Positive feedback from the sectors on Australian capabilities to fill in the gap. • Link local companies and institutions with Australian education providers and companies • Establish partnerships

11. Other examples • BlueScope Steel working with TAFE NSW to deliver a roof plumbing and fixing program in Thailand • Australian company, Foodstream, has worked with Thailand’s Kasetsart University (Food Research & Product Development Institute) to offer professional development courses

12. Why Australia? International Standards and Policy Framework Capabilities and know-how Assistance and Advice

13. Summary • Thailand faces a critical industry skills shortage. • This will be most acute in the manufacturing sector. • Australia has developed practical vocational educational & training capability to match industry needs. • Austrade is working with government & industry in Thailand to scope needs and suggest options, especially in the automotive sector and also food, hospitality and personal services. • Co-operation is underway at institutional level; opportunity now for individual needs delivery.

14. Contact the Australian Trade Commission • Contact us Australian Trade Commission (Austrade) Australian Embassy, 37 South SathornRoad, Bangkok 10120, Thailand T +66 2 696 4800 | F +66 2 696 4801 • Visit www.austrade.gov.au • Visit www.exportawards.gov.au • Visit www.businessclubaustralia.com.au • Visit www.studyinaustralia.gov.au • Visit www.dfat.gov.au