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The paper begins with a brief overview of the socio-economic situation and the labour market in Vietnam. An outline of Vietnam's vocational education and training (VET) system is offered, looking in particular at management of the system and its achievments. However, there are important issues to be addressed. To implement the 2005 Educational Law and upgrade capacities of the VET system to meet vocational training for youth from 2006 to 2015, Vietnam will form the new vocational training system (VTS) covering three levels of competences: the vocational elementary level, secondary level and college level, and will establish a network of vocational training units including 1000 vocational training centers; 400 vocational secondary schools and 100 vocational colleges. The Vietnam VTS needs to look at the development of up-to-date, relevant programs, curriculum guides and instructional materials, the improvement of the outdated facilities and the development of a pool of qualified, skilled instructors. As well, policies need to be put in place that enlist and encourage the support of employers.