The labor productivity of small, medium and micro enterprises plays an important role in the economy

VCN- According to Mr. Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry (VCCI), developing small and medium enterprises and improving productivity in this region will play an important role in improving national labor productivity.
the labor productivity of small medium and micro enterprises plays an important role in the economy Agriculture sector seeks solutions for sustainable development
the labor productivity of small medium and micro enterprises plays an important role in the economy Despite explosive export growth, the leather and footwear sector is still in weak productivity
the labor productivity of small medium and micro enterprises plays an important role in the economy Vietnam Annual Report underlines productivity enhancement in int’l context
the labor productivity of small medium and micro enterprises plays an important role in the economy

Could you please tell us the current situation of labor productivity in Vietnamese enterprises? What are the reasons of low labor productivity?

First of all, we must affirm that Vietnam is currently one of the countries having the lowest labor productivity in ASEAN. In the past few years, although we have made efforts to improve productivity, but the productivity gap between Vietnam and ASEAN countries is gradually widening, thus it is very difficult for us to catch up with the strongest economies in ASEAN.

Currently most of our workers are still working in the fields of agriculture, forestry and fisheries. In every economy, labor productivity in these sectors is always very low. Therefore, we need to promote by shifting labor from agriculture to the service industry through strong development of the business community in the coming time. At the same time, we are taking measures to help enterprises by improving the technology and increasing investment, catching up with technology 4.0 to improve productivity within the industry. These are very important solutions and if they want to achieve such orientations to improve labor productivity, they must continue to drastically reform institutions.

I think one of the very important directions is to formalize the individual business area and promote them into businesses. In addition, strengthening research and development, improving the quality of human resources by equipping the latest tools in manufacturing enterprises is also an important measure.

According to you, what difficulties are we facing when shifting the labor structure from agriculture to industry?

There are two reasons that is delaying the shift of labor from agriculture to the service industry. First of all, it is a market problem, this will depend greatly on the competitiveness of enterprises in the industrial sector. If we can expand the market we will be able to attract more workers to this area.

Secondly, it is the policy regime for enterprise development. We have been trying for a very long time to ease and untie the restrictions affecting business, facilitating the establishment of new businesses and the development of existing businesses. But administrative procedures, business conditions, specialized inspection procedures and inspection work are still barriers for the development of enterprises. In order to develop the service industry, the subject of this area is enterprises. Therefore, promoting business development, aiming to achieve the business development objectives set by a Resolution of the Party and Government, we can accomplish the task of shifting labor from the agricultural sector to service industry area that will enable improvement of the economy’s labor productivity.

Vietnam is one of the economies with many free trade agreements, so our market is on a global level, and this is also an opportunity for businesses to open their markets. Of course, it is accompanied by fierce competition. Businesses can only compete successfully in an open market if businesses improve their competitiveness by improving their labor productivity.

Can you tell us more about the responsibilities of businesses in improving productivity in the future?

In the new context of the open market economy, especially with the very strong impact of Technology Revolution 4.0, this requires businesses to reach international standards and apply modern technology to increase competitiveness. When businesses improve their competitiveness they can attract more workers, creating more jobs in the service industry. That is a way businesses contribute to improving labor productivity.

I think that the small and medium business sector are the main motivators for growth, the backbone of the economy, so upgrading the micro and even small and medium-sized business sectors to reach international standards is the foundational condition to improve productivity.

In every economy, the productivity of small and medium-sized enterprises is always lower than that of large enterprises, because the capital investment of smaller enterprises is much more limited. These smaller enterprises find it difficult to access leading technologies and participate in the chain of production to attain high labor productivity. But the small and medium business sector is a very important area because it can handle the largest labor force in the economy, so development and productivity improvement of small and medium-sized enterprises in the region will play a very important role in improving national labor productivity.

Therefore, it is necessary to abandon the concept that only large enterprises can afford to reach international standards, because now, even small and medium-sized enterprises have the conditions to reach full global standards. Not only big enterprises can join the global market, also micro and even small businesses and enterprises can reach out to the world markets with the help of e-commerce.

the labor productivity of small medium and micro enterprises plays an important role in the economy It is necessary to establish salary based on the actual productivity of the labor

VCN- How does the rising food prices increase labor productivity and higher wages than productivity growth effect ...

Participating in e-commerce, connecting to the global market, connecting with international standards will be basic orientation strategies for Vietnamese enterprises for improving labor productivity. Of course, the international standards that I speak of here are not only standards of technology and management, but also social responsibility, business culture.

It is necessary to improve labor productivity in leading enterprises, but on the other hand, there must be strong and widespread measures to improve labor productivity in small and medium-sized enterprises in the economy. Raising the productivity of labor to improve competitiveness must become a daily awareness for each small and micro enterprise and every employee.

Thank you Sir!

By Xuan Thao/ Quynh Lan

Related News

VCCI Deputy Secretary General Dau Anh Tuan: Customs-Business Partnership has dramatic changes

VCCI Deputy Secretary General Dau Anh Tuan: Customs-Business Partnership has dramatic changes

VCN - Deputy Secretary General, Director of Legal Department of Vietnam Federation of Commerce and Industry (VCCI) Dau Anh Tuan assessed that 10 years of Customs sector implementing Customs-Business Partnership has created dramatic changes.
Note for businesses when converting green and digital

Note for businesses when converting green and digital

VCN - Green transformation and digital transformation have been identified by businesses as a mandatory path if they want to develop long-term. However, there are many issues that businesses need to pay attention to right from the start of the transformation if they want to achieve efficiency.
Opportunities for growth model innovation are available

Opportunities for growth model innovation are available

VCN- According to Associate Professor, Dr. Bui Quang Tuan, former Director of the Vietnam Economic Institute, the economy can make a breakthrough thanks to innovation. The more innovative and drastic the implementation, the higher the growth quality will be, and the faster and more sustainably the economy will develop.
Exports in the second half of the year promised to be vibrant

Exports in the second half of the year promised to be vibrant

VCN - With export earnings of more than US$189.5 in the first 6 months of 2024, up 14.2% over the same period in 2023, the Ministry of Industry and Trade forecasts that exports will continue to grow positively in the second half of 2024.

Latest News

Mekong Delta promotes clean agricultural production to achieve Net Zero

Mekong Delta promotes clean agricultural production to achieve Net Zero

Localities in the Mekong Delta region have been progressively developing roadmaps for clean agricultural production as an effort to gradually guide Vietnam's agricultural sector towards the goal of "Net Zero" by 2050.
Wood export target of 15.2 billion USD feasible, challenges remain

Wood export target of 15.2 billion USD feasible, challenges remain

Despite market recovery, the wood industry needs to overcome formidable challenges to realise the export revenue target of 15.2 billion USD for the whole year, according to insiders.
Serious shortage and many impacts on seaport human resources

Serious shortage and many impacts on seaport human resources

VCN - According to the assessment of seaport enterprises in Vietnam, from 2024-2028, human resources at seaports will have strong changes in demand, due to the impact of technological trends to meet the task of developing the seaport economy in Vietnam.
Exports gain momentum

Exports gain momentum

VCN - With a highly open economy like Vietnam, exports are an important driving force for economic growth. In many major markets, the recovery in year-end consumption of goods creates more room for industries to contribute to export turnover.

More News

The driving force for businesses to "sprint" at the end of the year

The driving force for businesses to "sprint" at the end of the year

VCN - Although the economy has shown many signs of recovery and business results are positive, the difficult period has not yet passed, forcing businesses to continue to make efforts to "sprint" in the last months of 2024.
Binh Duong: Export enterprises regain growth momentum

Binh Duong: Export enterprises regain growth momentum

VCN - Import-export activities in Binh Duong are on the path of recovery and growth. Notably, key export products have recorded positive signals with abundant orders.
Vietnam

Vietnam's furniture products introduced at UK fair

Furniture products of 15 Vietnamese businesses are introduced at the Source Garden Fair in Birmingham, UK, from September 10-12.
Foreign trade expected to set new record this year

Foreign trade expected to set new record this year

A sharp rise has been recorded in foreign trade over the past few months, and if this upward trend is sustained, this year’s foreign trade turnover is likely to break the record of 732 billion USD set in 2022.
Bewaring of international trade fraud

Bewaring of international trade fraud

VCN - If export enterprises are careless, they will be at risk of being negligent when approaching and drafting contracts and falling into the trap of trade fraud.
Việt Nam promotes green logistics

Việt Nam promotes green logistics

The country's logistics industry has recorded a growth rate of 13-15 per cent each year, making it an important service industry and boosting the nation's socio-economic development.
US association appreciates Việt Nam

US association appreciates Việt Nam's semiconductor industry

Việt Nam has emerged as a new export market, especially in the field of information technology products while many countries are currently applying trade barriers to these products.
Nearly 110,800 new firms established in eight months

Nearly 110,800 new firms established in eight months

Nearly 110,800 new enterprises with total registered capital of nearly 994.7 trillion VND (40.3 billion USD) were established in the first eight months of 2024, a year-on-year increases of 4.4% in the number of businesses and 0.7% in the capital, according to the General Statistics Office (GSO).
Mobilizing finance for low-emission rice value chains

Mobilizing finance for low-emission rice value chains

VCN - Capital is still the biggest difficulty for cooperatives and rice production enterprises, especially those participating in the high-quality, low-emission rice project in the Mekong Delta. This requires strong participation from banks, investment funds and international financial institutions.
Read More

Your care

Latest Most read
Mekong Delta promotes clean agricultural production to achieve Net Zero

Mekong Delta promotes clean agricultural production to achieve Net Zero

Localities in the Mekong Delta region have been progressively developing roadmaps for clean agricultural production as an effort to gradually guide Vietnam's agricultural sector towards the goal of "Net Zero" by 2050.
Wood export target of 15.2 billion USD feasible, challenges remain

Wood export target of 15.2 billion USD feasible, challenges remain

Despite market recovery, the wood industry needs to overcome formidable challenges to realise the export revenue target of 15.2 billion USD for the whole year, according to insiders.
Serious shortage and many impacts on seaport human resources

Serious shortage and many impacts on seaport human resources

According to the assessment of seaport enterprises in Vietnam, from 2024-2028, human resources at seaports will have strong changes in demand
Exports gain momentum

Exports gain momentum

VCN - Although the global economy in 2024 is assessed to still face many risks and unpredictability, Vietnam's key export industries such as textiles, footwear, wood and products, electronics, etc.
The driving force for businesses to "sprint" at the end of the year

The driving force for businesses to "sprint" at the end of the year

VCN - According to the Ministry of Planning and Investment, in the first 7 months of the year, the industrial production index of the whole industry is estimated to increase by 8.5% over the same period last year, only lower than the 8.6% of 2022 in the 2
Mobile Version