This paper attempts to address a long-standing debate on the functions of vocational education. The scope of interest of the paper is the internal efficiency of vocational education, and its discussion is focused upon the quality of teachers and the value orientation of participants in vocational education. As far as the two rural towns are concerned, vocational education should afford students a strong literary and numerary knowledge base, a basic understanding of the world, a healthy attitude toward work, and relevant vocational knowledge and skills. In the context of the rapidly changing rural towns, vocational education should also nurture students who are highly adaptable to the varying demands of the changing workplace. However, such expectations are not met in programs offered in the two vocational secondary schools of the rural towns. The internal efficiency of vocational education is not high because of shortage of appropriately trained teachers, low staff morale, absence of quality assurance, and low socio-economic status of teachers. In the context of the rural towns, the efficacy of vocational education in developing the local economy is therefore questioned. The national policy to broadly expand vocational education (at the expense of general education) should be further deliberated and reviewed.