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Chinese undergraduates shows that general self-efficacy exerts both direct and indirect
effects on employability via achievement motivation and occupational aspirations (Tan, Li,
& Yi, 2025).
Overconfidence and underconfidence biases can distort students' assessments of
their own competencies relative to employer requirements. Social norms and peer effects
further shape career perceptions in ways not captured by standard models. These
behavioural factors are particularly pertinent in the Vietnamese context, where rapid
societal change creates tensions between traditional career expectations and the
opportunities of the digital economy. Path analysis of business graduates also indicates
that self-efficacy has a significant positive effect on both competency levels and
employability, reinforcing its central role in employability development (Kassa, 2023)
2.4. Labour market and higher education in Vietnam
Vietnam's labour market presents a distinctive combination of strengths and
challenges. The economy expanded at 6.6% in 2025, with the World Bank emphasising
the need to build human capital and nurture high-tech talent. Vietnam's HDI has surged
by 53.5% since 1990, reflecting sustained investments in health, education, and income
growth. However, Vietnam’s ICT workforce of approximately 1.8 million (only 1.1% of
total employment) often lacks practical skills and English proficiency, with only
approximately 300 AI experts available nationally.
A 2025 study on human capital in Vietnam's digital economy identified critical
challenges including a low proportion of workers with professional qualifications, limited
digital skills, a skills gap between urban and rural areas, and a shortage of foreign
language proficiency. Only approximately 30% of annual IT graduates immediately meet
job requirements; the remaining 70% require further training. The OECD (2025) Economic
Survey recommended greater investment in tertiary education, stronger university–
industry linkages, and more competitive conditions to boost productivity.
The government has set ambitious targets: the digital economy should contribute
over 20% of GDP, with major investments in AI and semiconductor capabilities. A
conceptual framework integrating university and TVET pathways has recently been
proposed for graduate employability in developing economies, underscoring the growing
scholarly attention to this issue. Recent PLS-SEM evidence from engineering technology
graduates in Vietnam confirms a four-construct employability model comprising technical
knowledge, technical skills, generic skills and attitude, which closely parallels the tripartite
structure adopted in this paper (Pham et al., 2024)
3. Proposed conceptual framework
3.1. Overview
Building on the theoretical foundations reviewed above, this paper proposes a four-
layered conceptual framework for graduate employability in the digital economy,
specifically contextualised for emerging economies such as Vietnam. The framework
integrates insights from human capital theory, signalling theory, the CareerEDGE model,
and behavioural economics.
3.2. Layer 1: University training and institutional context
The first layer represents the educational and institutional environment: curriculum
quality and relevance, opportunities for work-integrated learning (internships, industry
projects), career development services, digital infrastructure, and institutional reputation,
which functions as a signal in the labour market. In the Vietnamese context, this layer is
shaped by heterogeneity in institutional quality, the degree of university–industry

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