Using Fuzzy Approach to Model Skill Shortage in Vietnam’s Labor Market in the Context of Industry 4.0

Tien Ha Duong, My and Van Nguyen, Diep and Thanh Nguyen, Phong (2019): Using Fuzzy Approach to Model Skill Shortage in Vietnam’s Labor Market in the Context of Industry 4.0. Published in: Engineering, Technology & Applied Science Research , Vol. 10, No. 03 (31 June 2020): pp. 5864-5868.

Abstract

Human resources development is one of the main issues in the socio-economic development strategy and the transform of any region in the context of Industry 4.0. However, Vietnamese human resources have been poorly evaluated in the areas of quality, lack of dynamism, and creativity. Therefore, this paper presents a fuzzy logic approach to ranking seven skills shortage in Vietnam’s Labor Market, namely lifelong learning, adaptive capacity, information technology capacity, creativity and innovation capacity, problem-solving capacity, foreign language competency, and organizing and managing competency. The results showed that the problem-solving skill has the largest gap between an enterprise’s requirements and the actual response of employees.

• Item Type: MPRA Paper
• Language: English
• Keywords: fuzzy logic; industry 4.0; human resources; skill shortage; Vietnam
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B16 - Quantitative and Mathematical; F - International Economics > F6 - Economic Impacts of Globalization; J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology

References

[1] R. E. Lucas, “On the mechanics of economic growth”, Journal of Monetary Economics, Vol. 22, pp. 3-42, 1988

[2] L. Thames, D. Schaefer, Cybersecurity for industry 4.0, Springer, 2017

[3] P. T. Nguyen, P. C. Nguyen, “Risk management in engineering and construction: A case study in design-build projects in Vietnam”, Engineering, Technology & Applied Science Research, Vol. 10, No. 1, pp. 5237-5241, 2020

[4] M. Heikal, E. M. S. S. Ciptaningsih, P. T. Nguyen, E. L. Lydia, K. Shankar, “Role of electronic human resources management systems in the growth of web based business”, International Journal of Recent Technology and Engineering, Vol. 8, No. 2S11, pp. 3814-3817, 2019

[5] Q. L. H. T. T. Nguyen, P. T. Nguyen, R. Chauhan, W. Hashim, A. Maseleno, V. D. B. Huynh, N. B. Vu, L. P. Le, K. D. Vo, P. T. Phan, “International migration: Major challenges and analysis of human resource management for supply chains”, International Journal of Supply Chain Management, Vol. 8, No. 6, pp. 565-577, 2019

[6] K. Rezaei, M. Babaei, “Designing a model for knowledge socialization using sociability processes of human resource management: A case study”, Engineering, Technology & Applied Science Research, Vol. 7, No. 3, pp. 1699-1707, 2017

[7] H. Qodim, Herningsih, P. T. Nguyen, Q. L. H. T. T. Nguyen, A. Toding, “Educating the information integration using contextual knowledge and ontology merging in advanced levels”, International Journal of Higher Education, Vol. 8, No. 8, pp. 24-29, 2019

[8] L. Alfita, A. L. Kadiyono, P. T. Nguyen, W. Firdaus, I. S. Wekke, “Educating the external conditions in the educational and cultural environment”, International Journal of Higher Education, Vol. 8, No. 8, pp. 34-38, 2019

[9] D. H. Vu, P. T. Nguyen, Q. L. H. T. T. Nquyen, “Success factors framework for the implementation of e-learning systems in Vietnamese universities”, Journal of Critical Reviews, Vol. 6, No. 4, pp. 1-6, 2019

[10] Q. L. H. T. T. Nguyen, P. T. Nguyen, V. D. B. Huynh, “Roles of elearning in higher education”, Journal of Critical Reviews, Vol. 6, No. 4, pp. 7-13, 2019

[11] A. Maseleno, B. Ayshwarya, W. Hashim, P. T. Nguyen, K. Shankar, E. Prabowo, S. Abadi, M. Huda, A. V. Ochepovsky, A. Maseleno, “School now, pay later”, Revista San Gregorio, Vol. 1, No. 32, pp. 196-203,2019

[12] M. Huda, A. Hashim, K. S. M. Teh, K. Shankar, B. Ayshwarya, P. T. Nguyen, W. Hashim, A. Maseleno, “Learning quality innovation through integration of pedagogical skill and adaptive technology”, International Journal of Innovative Technology and Exploring Engineering, Vol. 8, No. 9S3, pp. 1538-1541, 2019

[13] C. D. Goldin, L. F. Katz, The race between education and technology, Belknap Press: An Imprint of Harvard University Press, 2009

[14] J. H. March, M. M. D. Peso, S. Leguey, “Graduates’ skills and higher education: The employers’ perspective”, Tertiary Education and Management, Vol. 15, No. 1, pp. 1-16, 2009

[15] M. H. Nguyen, “Determinants of firm growth in employment in Vietnam”, TMC Academic Journal, Vol. 5, No. 2, pp. 34-50, 2011 [16] Cedefop, Insights into skill shortages and skill mismatch: Learning from Cedefop’s European skills and jobs survey, Publications Office Luxembourg, 2018

[17] World Economic Forum, The global human capital report 2017, WEF, 2017

[18] A. Kearney, Readiness for the future of production report 2018, WEF, 2018

[19] B. McCaig, N. Pavcnik, “Export markets and labor allocation in a lowincome country”, American Economic Review, Vol. 108, No. 7, pp. 1899-1941, 2018

[20] C. Bodewig, R. B. Magnusson, Skilling up Vietnam: Preparing the workforce for a modern market economy, The World Bank, 2014

[21] S. McGuinness, L. Ortiz, “Skill gaps in the workplace: Measurement, determinants and impacts”, Industrial Relations Journal, Vol. 47, No. 3, pp. 253-278, 2016

[22] J. J. Heckman, “Policies to foster human capital”, National Bureau of Economic Research, Article ID 7288, 1999

[23] B. P. Sutjiatmo, A. Erwinsyah, E. L. Lydia, K. Shankar, P. T. Nguyen, W. Hashim, A. Maseleno, “Empowering internet of things (IoT) through big data”, International Journal of Engineering and Advanced Technology, Vol. 8, No. 6, pp. 938-942, 2019

[24] A. Muruganantham, P. T. Nguyen, E. L. Lydia, K. Shankar, W. Hashim, A. Maseleno, “Big data analytics and intelligence: A perspective for health care”, International Journal of Engineering and Advanced Technology, Vol. 8, No. 6, pp. 861-864, 2019

[25] L. D. Long, D. H. Tran, P. T. Nguyen, “Hybrid multiple objective evolutionary algorithms for optimising multi-mode time, cost and risk trade-off problem”, International Journal of Computer Applications in Technology, Vol. 60, No. 3, pp. 203-214, 2019

[26] J. Ramakrishnan, M. S. Shabbir, N. M. Kassim, P. T. Nguyen, D. Mavaluru, “A comprehensive and systematic review of the network virtualization techniques in the IoT”, International Journal of Communication Systems, Vol. 33, No. 7, Article ID e4331, 2020

[27] M. Clarke, “Rethinking graduate employability: The role of capital, individual attributes and context”, Studies in Higher Education, Vol. 43, No. 11, pp. 1923-1937, 2018

[28] M. Miharja, R. Sacipto, Q. L. H. Thuy To Nguyen, P. T. Nguyen, T. P.Usanti, “How interactional justice within organisations impacts counterproductive work behaviours and self-efficacy in the presence of performance appraisal satisfaction”, International Journal of Innovation, Creativity and Change, Vol. 10, No. 11, pp. 459-477, 2020

[29] Y. Sari, A. Muhtarom, Q. L. H. T. T. Nguyen, P. T. Nguyen, Ansir, “Predictors of job performance: Moderating role of conscientiousness”, International Journal of Innovation, Creativity and Change, Vol. 11, No. 6, pp. 135-152, 2020

[30] H. M. Nguyen, C. Nguyen, T. T. Ngo, L. V. Nguyen, “The effects of job crafting on work engagement and work performance: A study of vietnamese commercial banks”, Journal of Asian Finance, Economics and Business, Vol. 6, No. 2, pp. 189-201, 2019

[31] N. M. Ha, H. L. Tam, “Attitudes and purchase intention towards counterfeiting luxurious fashion products in Vietnam”, International Journal of Economics and Finance, Vol. 7, No. 11, pp. 207-221, 2015

[32] N. M. Ha, N. V. Luan, “The effect of employers' attraction and social media on job application attention of senior students at pharmaceutical universities in Vietnam”, International Journal of Business and Society, Vol. 19, No. 2, pp. 473-491, 2018

[33] Organisation for Economic Co-operation and Development, Technical report of the survey of adult skills (PIAAC), OECD, 2013

[34] M. Pellizzari, A. Fichen, “A new measure of skill mismatch: Theory and evidence from PIAAC”, IZA Journal of Labor Economics, Vol. 6, No. 1, Article ID 1, 2017

[35] B. Bui, B. Porter, “The expectation-performance gap in accounting education: An exploratory study”, Accounting Education: An International Journal, Vol. 19, No. 1-2, pp. 23-50, 2010

[36] V. D. B. Huynh, Q. L. H. T. T. Nguyen, P. V. Nguyen, P. T. Nguyen, “Application partial least square structural equation to develop a job search success measurement model”, Journal of Mechanics of Continua and Mathematical Sciences, Vol. 13, No. 5, pp. 50-59, 2018

[37] Y. Budiasih, C. F. B. Hartanto, T. M. Ha, P. T. Nguyen, T. P. Usanti, “The mediating impact of perceived organisational politics on the relationship between leadership styles and job satisfaction”, International Journal of Innovation, Creativity and Change, Vol. 10, No. 11, pp. 478-495, 2020

[38] S. Kemp, F. Martin, P. Maier, I. Williams, “A gap analysis of student employability profiles, employer engagement and work-placements”, Planet, Vol. 21, No. 1, pp. 16-20, 2009

[39] I. M. Suarta, I. K. Suwintana, I. F. P. Sudhana, N. K. D. Hariyanti, “Employability skills required by the 21st century workplace: A literature review of labor market demand”, International Conference on Technology and Vocational Teachers, Yogyakarta, Indonesia, September 28-28, 2017

[40] N. Dawson, M. A. Rizoiu, B. Johnston, M. A. Williams, “Adaptively selecting occupations to detect skill shortages from online job ads”, IEEE International Conference on Big Data, Los Angeles, USA, December 9-12, 2019

[41] R. K. Ablhamid, B. Santoso, M. A. Muslim, “Decision making and evaluation system for employee recruitment using fuzzy analytic hierarchy process”, International Refereed Journal of Engineering and Science, Vol. 2, No. 7, pp. 24-31, 2013

[42] Q. L. H. T. T. Nguyen, P. V. Nguyen, P. T. Nguyen, V. D. B. Huynh, “Using fuzzy logic to develop employees’ competency ranking model”, The Journal of Social Sciences Research, Vol. 5, No. 4, pp. 888-891, 2019

[43] N. T. Phong, V. N. Phuc, T. T. H. L. N. Quyen, “Application of fuzzy analytic network process and TOPSIS method for material supplier selection”, Key Engineering Materials, Vol. 728, pp. 411-415, 2017

[44] P. T. Nguyen, T. A. Nguyen, Q. L. H. T. T. Nguyen, V. D. B. Huynh, K. D. Vo, “Ranking project success criteria in power engineering companies using fuzzy decision-making method”, International Journal of Advanced and Applied Sciences, Vol. 5, No. 8, pp. 91-94, 2018

[45] N. L. H. T. T. Quyen, P. T. Nguyen, V. D. B. Huynh, “Prioritization of social capital indicators using extent analysis method”, International Journal of Advanced and Applied Sciences, Vol. 4, No. 10, pp. 54-57, 2017

[46] P. V. Nguyen, P. T. Nguyen, Q. L. H. T. T. Nguyen, V. D. B. Huynh, “Calculating weights of social capital index using analytic hierarchy process”, International Journal of Economics and Financial Issues, Vol. 6, No. 3, pp. 1189-1193, 2016

[47] H. Beheshti, M. Alborzi, “Using fuzzy logic to increase the accuracy of e-commerce risk assessment based on an expert system”, Engineering, Technology & Applied Science Research, Vol. 7, No. 6, pp. 2205-2209, 2017

[48] K. Vahdat, N. J. Smith, G. G. Amiri, “Fuzzy multicriteria for developing a risk management system in seismically prone areas”, Socio-Economic Planning Sciences, Vol. 48, No. 4, pp. 235-248, 2014

[49] M. Celik, A. Kandakoglu, I. D. Er, “Structuring fuzzy integrated multistages evaluation model on academic personnel recruitment in MET institutions”, Expert Systems with Applications, Vol. 36, No. 3, pp. 6918-6927, 2009

[50] L. Bonekamp, M. Sure, “Consequences of Industry 4.0 on human labour and work organisation”, Journal of Business and Media Psychology, Vol. 6, No. 1, pp. 33-40, 2015

[51] V. D. B. Huynh, P. T. Nguyen, Q. L. H. T. T. Nguyen, N. B. Vu, “Elearning evolution and development from the perspectives of technology, education, and economy”, Research in World Economy, Vol. 11, No. 1, pp. 11-19, 2020

[52] Q. L. H. T. T. Nguyen, P. T. Nguyen, V. D. B. Huynh, L. P. Le, “International experience and trends in e-learnmg development in world economy”, Research in World Economy, Vol. 11, No. 1, pp. 259-267, 2020

[53] H. M. Nguyen, L. D. Nguyen, “ The relationship between urbanization and economic growth: An empirical study on ASEAN countries”, International Journal of Social Economics, Vol. 45, No. 2, pp. 316-339, 2018

[54] N. M. Ha, “The effect of firm's growth on firm survival in Vietnam”, International Business Research, Vol. 6, No. 5, pp. 142-156, 2013