"Not only will some industries absorb greater numbers of workers, it is expected that employers will require a higher level of skills ... and these countries still lack important skills such as English or other foreign language proficiency," the report said.

"Surveyed employers are also skeptical of the labor force's general problem-solving and behavioral skills, and there are perceived shortfalls in computer and information technology."

Institutions in Southeast Asia are more likely to cooperate with Chinese colleges and universities, compared with Western education institutions, as Western technology and know-how is too advanced for ASEAN countries, Xiang said.

"During cooperation with China in various industries, ASEAN countries find that the technologies offered by Chinese vocational education institutions are more suitable for their development and the cooperation cost is lower," he said.