The development of vocational skills is considered by many governments in the region as an effective instrument to develop human capital that emphasises the economic purposes of education and training and aligns education to the 'real world' - the world of economy. Within this framework, TVET is viewed as an instrument for HRD that can be effective in increasing economic competitiveness and reducing poverty by improving productivity and employability. In this respect, many countries have introduced a competency-based curriculum into TVET to ensure appropriate adaptation to the quickly changing needs of enterprises. The article argues that this overwhelming reliance on the competency-based approach to TVET training could limit TVET opportunities for responding to the need to address education for sustainable development (ESD) that requires pedagogy of engagement. The importance of developing students' attitudes, general knowledge, character, the need to go beyond training of technical skills has been argued in the article, and in that respect, the importance of addressing issues of teacher training for ESD inclusion in TVET has been highlighted. The article refers to the teacher training program in China that was based on action research.