TVE higher education institutions have been rapidly expanding in the past two decades, but it has also been seriously affected by environmental changes last decade. The development of the department setting of the TVE higher education institutions is externally influenced by the development of the industries, the decreasing number of children and the aging of the population, the adjustment and reduction of the department, and the impact of competition with the universities; internally they may face the competition of the department setting between the TVE higher education institutions. This paper, therefore, aims to discuss the relationship between environmental changes and the department setting of TVE higher education institutions, and to put forward four challenges from TVE higher education institutions facing the department setting for reference.