Creativity – the key to increased labour productivity

Vietnam’s low labour productivity is attributed to workers’ limited capacity for innovation and creativity, according to experts.
creativity the key to increased labour productivity

Vietnam’s low labour productivity is attributed to workers’ limited capacity for innovation and creativity, according to experts.

Prime Minister Nguyen Xuan Phuc is set to hold a direct dialogue with labourers from the Red River Delta province on May 5 to discuss ways to improve labour productivity, increase welfare for workers, and clear up queries about trade unions and employment.

Reasons for low labour productivity

According to the General Statistics Office (GSO), Vietnam’s labour productivity has seen remarkable improvement year by year. The country is one of ASEAN member states nations with the highest rates of labour productivity growth.

In the 2007-2016 period, the Southeast Asian country’s overall labour productivity growth based on purchasing power parity in 2011, rose by 4.2% on average per year, higher than the average rates of Singapore, Malaysia, Thailand, Indonesia, and the Philippines. However, Vietnam’s labour productivity remains below that of other nations in the region.

Nguyen Bich Lam, GSO Director General says the main reasons for Vietnam’s low labour productivity, compared to other nations in the ASEAN region, is the slow progress being made in the transition towards economic restructuring while industrial and service sectors, and especially the spearhead industries such as finance, credit, and tourism have made up a small proportion.

Despite having a large number of labourers in the agricultural industry, its labour productivity is below par due to outdated machinery and equipment.

Most of the country’s businesses, especially private ones are using outdated equipment compared to the average level around the world. The quality, restructure effective use of labourers remain low, along with poor management, and ineffective use of human resources as well as limitations in business administration.

Mr Lam emphasizes that improving labour productivity is one of the core issues for Vietnam’s national economy. Increasing labour productivity is considered as a decisive factor for businesses’ competitive edge and for the sustainability of the national economy.

He notes that high labour productivity proves the country’s rapid and sustainable development compared to the other regional nations. To avoid the pitfalls of low labour productivity, Vietnam can learn from the lessons learned by other regional countries.

For example, the experiences of the Republic of Korea, Taiwan, and Singapore have shown that creativity is the key factor behind economic growth and these economies have focused on investing in infrastructure, capital accumulation, human resource development, and orientations for export.

Vietnam can develop its human resources through promoting education in science, technology, vocational training, talent attraction, and learning experiences from overseas Vietnamese and foreigners, Lam says

Bottlenecks need to be removed

Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry highlights labour productivity as the key to for for Vietnam’s national development and underlines the importance of removing bottlenecks in terms of the institutions, human resources, and infrastructure which are hampering efforts to increase labour productivity.

Additionally, domestic businesses need to sharpen competiveness and adapt themselves to the fast changing technologies to keep up with modern business models and trends in economic growth around the world.

Nguyen Thi Thanh Huyen, general director of Garment 10 Joint Stock Company (Garco 10) stresses that there should be mechanisms which will lead to improvements in labour productivity.

However, businesses should be active and self-reliant when it comes to facing tough competitions, she adds. Businesses need to develop the available human resources and equip them with a good command of foreign languages and technological adeptness in order to to seize every opportunity of the fourth industrial revolution.

Relevant ministries and agencies should consider businesses as the centre of the national economy and organise regular meetings with businesses to ensure the path to progress is cleared of difficulties and hindrances, Huyen says.

According to experts, Vietnam’s low labour productivity is intertwined with the capacity for innovation and creativity of labourers, who have not had the opportunity to work in an environment which encourages creativity and innovation.

They underlines the importance of building a creative society to increase labour productivity, and dealing with difficulties in infrastructure and intensifying technological investment to improve product value.

Source: VOV

Related News

Vietnam hopes for stronger labour ties with US

Vietnam hopes for stronger labour ties with US

Deputy Minister of Labour, Invalids and Social Affairs Nguyen Thi Ha has called on the US to enhance labour cooperation with Vietnam during a recent meeting with visiting US Trade Representative (USTR) Katherine Tai.
Customs sector fosters reform, creativity and makes strong breakthroughs in administrative reform

Customs sector fosters reform, creativity and makes strong breakthroughs in administrative reform

VCN – The General Department of Vietnam Customs (GDVC) has issued Resolution No. 131/NQ-CP of the Government to promote reform of administrative procedures and modernize performance methods to serve people and businesses.
Resolution aims for sustainable development of labour market

Resolution aims for sustainable development of labour market

The Government has issued a resolution on boosting the flexible, effective, sustainable and integrated development of the labour market, aiming to speed up socio-economic recovery.
Boosting labour productivity key to economic development

Boosting labour productivity key to economic development

Việt Nam placed great importance on improving its labour productivity, said policymakers and economists during a conference in Hà Nội yesterday.

Latest News

Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.

More News

Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Rice export prices drop, but decline expected to be short-term

Rice export prices drop, but decline expected to be short-term

Việt Nam’s rice export prices have declined, reaching their lowest level in three years.
Key agro products expected to maintain export growth this year

Key agro products expected to maintain export growth this year

At present, agricultural exports, such as rice, coffee and seafood, have steadily secured a stable place in major global markets.
EU issues 12 warnings against Việt Nam’s food and agricultural exports

EU issues 12 warnings against Việt Nam’s food and agricultural exports

The Việt Nam SPS Office has reported that some Vietnamese export products failed to meet the EU’s stringent standards.
Việt Nam to impose VAT on low-value express-imported goods

Việt Nam to impose VAT on low-value express-imported goods

Việt Nam will end a previous policy that exempted imported goods valued under VNĐ1 million (US$39.4) from taxes when shipped via express delivery.
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Read More

Your care

Latest Most read
Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.
Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Mobile Version