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Despite having a large number of labourers in the agricultural industry, its labour productivity is below par due to outdated machinery and equipment.

Most of the country’s businesses, especially private ones are using outdated equipment compared to the average level around the world.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

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version