The Victorian Government is launching a major blitz to crackdown on "dodgy" training providers and lift standards in sector.

A review of the state's vocational education and training system found more than 10,000 students failed to gain adequate qualifications.

Minister for Skills and Training Steve Herbert said there were cases where people were doing training that should take two years, in as little as 20 to 30 weeks.

He said the Government was spending $9 million on auditing, interviewing students, ensuring the paperwork was right and make sure they were getting "high-quality" training.

"The priority is to crackdown on providers who are doing short course delivery who we know there have been complaints about who we suspect are not providing quality training," he said.

"It's unfair for students who lose their government entitlement but it's also unfair for business and industry who can't rely on the quality of a qualification when someone fronts up for a job."

Initially the crackdown will target any area of training where students need to have high-quality skills to guarantee safety, such as civil engineering.

New providers who access government funding would be licensed through a P-plate system.

"New providers will be limited to the number of courses they can deliver to ensure that before they really get full access to government funding, they prove they can provide high quality training," Mr Herbert said.

One of Australia's largest training providers, Evocca College, was forced to make significant changes to its business model to remain in the industry peak body, the Australian College of Private Education and Training.

Bruce McKenzie, the former chief of Holmesglen TAFE, is conducting a review.

The review will look at all TAFEs and other registered training organisations.

Mr McKenzie's review will put out a consultation paper in two weeks' time.

He said work needed to be done in the private system.

"You can trust TAFE institutions. I don't have any doubt about that. TAFE institutions are the cornerstone of the system. That's been universally recognised in our consultations," Mr McKenzie told 774 ABC Melbourne.

"What our focus is on is trying to incentivise [private] providers to improve [and] to be better performers than they are. And I think that can be achieved."