The Vanuatu Rural Development and Training Centres Association says one of the biggest challenges is youth unable to find employment once they have graduated.
There are 34 VRDTCA Training Centres around Vanuatu, focussing on addressing youth skill shortages in rural areas.
Its director, Kathy Solomon, says more and more students are returning to their communities with very limited skills.
She says they teach carpentry, construction, agriculture, hospitality and tourism but training is only part of the challenge.
"After them graduating, what next? that's our biggest challenge. Because you know in Vanuatu, there's not enough job for everyone. And them getting certificates from rural areas coming to the city, there's no job for them. I would say 20 percent of them would be able to find jobs, the rest it's still a challenge."
Kathy Solomon says in response, they have begun an employment fund which gives young people who want to start their own business a thousand dollars to kick start it.