Mutual Benefit between Rural Area and Business Sector from a Dual Vocational Training Program

From the lack of skilled technical labors, a Dual Vocational Training or DVT program is developed to alleviate the problem.

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I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.

  • Yes, I'm eligible

Preferred language

  • English

Organization name

Nestle (Thai) Co., Ltd. - Navanakorn Factory

Year founded

2015

Initiative stage

  • Established (the solution has passed the previous stages and demonstrated success)

Annual budget in 2017 (USD)

  • $10k - $50k

Number of beneficiaries impacted so far

  • 10 - 50

Organization type

  • For-profit

Secondary Focus Area

  • Rural development

Headquarters location: Country

  • Thailand

Headquarters location: City

Bangkok

Location(s) of impact

Thailand: Nakorn Ratchasrima Province

Problem: What problem is this initiative trying to address?

The number of skilled technical labors in Thailand is insufficient. Moreover, only a small number of vocational graduates acquire the right technical skills to meet this ever-changing business environment. Most of them are usually graduated from renown vocational institutes in greater Bangkok. On the other hand, vocational students from rural or provincial areas still could not acquire such skills due to education inequality. Thus, this makes them fairly left out from modern industry.

Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?

Having identified the problem, we came up with Dual Vocation Training or DVT program. This program aims to recruit vocational technical undergraduates from rural area, Nakorn Ratchasima Province in this case, and offers them a one-year credited training in Nestle Navanakorn Factory. This means that students do not have to repeat the courses they miss during the year since this program counts as a training course with college credits. During the period, technical competencies are developed through both classroom and on-the-job trainings. In addition, students also have an opportunity to gain various experiences from different technologies since they have to rotate between different plants. Upon the end of the year's program, the students are equipped with technical knowledge that they can apply in a real world. Subsequently, the number of vocational graduates from rural area with high technical competencies is increased. This leads to a positive change in their home village.

Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work

Since the launch of this program in October 2015, there are 14 students in total who have joined this program so far. Although this is small in numbers, the impact of this program, in fact, affects far more people than it seems. Not only that the students have acquired technical knowledge and skills but upon their return to their college and hometown, a new atmosphere is created. To illustrate, their experiences from this Nestle DVT program have inspired their classmates and the locals to be more open to opportunities and to seriously take education as their main concern. This program proves that anyone, even from a rural area with less skills, can achieve his dream if he is willing to take an opportunity. Last but not least, there are 3 out of 4 students, who had joined the first DVT program, coming back to our factory and currently working as our full-time technicians after their graduation. The number is expected to increase since 2016 DVT students are still in their senior year.

Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?

In term of finance, the only cost this program uses is the one for students remuneration which comes solely from Nestle Navanakorn recruitment budget. Hence, the financial sustainability is certainly not a concern in this case.

Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?

What makes this program different from the others would be our students selection process. Instead of recruiting them from famous vocational institutes (hence, a higher chance to acquire more skilled students), this program only chooses students from an institute in rural area so that they can be developed further to meet market's requirements. Additionally, this program does not use students GPA or any test scores as a selection criterion. Instead, it selects students from their enthusiasm.

Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.

During the moment of this program's conceptualization, there was a hesitation to launch it due to the stories from previously failed DVT attempts in other factories which resulted from the lack of participation from both the students and their institutes. However, we realized that those DVT programs usually selected students from institutes in greater Bangkok area where opportunities were more likely to come by. Hence, we contacted a vocational institute in a rural area in Pak Thong Chai, Nakorn Ratchasima province to see if the students were more enthusiastic to take this opportunity. The result from the contact assured us that we could expect a full participation and the program's effectiveness. Eventually, we decided to initiate the program.

Where did you hear about the Nestlé Creating Shared Value Prize?

  • Social media

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Photo of MARCELA SOLIS GAONA

Good reference of linking the private company with young people and their problems in order to develop their skills and find or generate their own jobs, success greetings from Oaxaca to southern Mexico.

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