(PLO)- New resources for growth are productivity and quality of labor, creative capacity and potential of science and technology.
The General Statistics Office has just announced the results of Vietnam’s Labor Productivity for the period 2011-2020. Situation and solutions.
Labor productivity in Vietnam is not equal to Singapore and Thailand
In recent years, Vietnam has made many efforts to improve labor productivity, so there have been significant improvements in both value and speed. In 2020, the labor productivity of the whole economy at current prices is estimated at 150.1 million VND/worker, 2.1 times higher than in 2011 (70 million VND/worker).
On average, in the period 2011-2020, the labor productivity growth rate of the whole economy reached 5.29%. This is a result showing the remarkable success of Vietnam in its efforts to improve labor productivity.
In terms of purchasing power parity (PPP 2017), Vietnam’s labor productivity in the period 2011-2020 increased on average 5.4%/year, higher than Malaysia’s average growth rate (1.3%/year); Korea (1.5%/year); Singapore (1.7%/year)…
As a result, Vietnam has narrowed the gap with some ASEAN countries with a higher level of development.
Compared with some major Asian economies, the relative labor productivity gap between Vietnam and South Korea decreased from 6.1 times to 4.3 times; Japan from 6.8 times to 4.1 times.
However, the current level of labor productivity in Vietnam is still very low compared to other countries in the region, notably that the absolute difference continues to increase.
According to PPP 2017, Vietnam’s labor productivity in 2020 will reach 18.4 thousand USD, only 11.3% of the productivity level of Singapore; 59.1% of Thailand; 33.1% of Malaysia…
Labor productivity of Vietnam in Southeast Asia is only higher than that of Cambodia (2.4 times); Myanmar (1.6 times); Laos (1.2 times).
The absolute difference in labor productivity (PPP 2017) of Singapore and Vietnam increased from 130.4 thousand USD in 2011 to 144.1 thousand USD in 2020. Similarly, China from 6.1 thousand USD to 12.1 thousand USD. ; India from 1.3 thousand USD to 1.8 thousand USD…
This shows that the gap and challenges that Vietnam’s economy has to face in order to catch up with the level of labor productivity of more developed countries is quite large.
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Production worker at a food processing company |
Need to remove the salary policy for employees
According to the General Statistics Office, the industrial revolution 4.0 is taking place strongly, the advantage of abundant labor resources, cheap labor gradually loses its advantage. Instead, new resources for growth are productivity and quality of labor, creative capacity and scientific and technological potential.
To solve the problem of increasing labor productivity, it is necessary to have a strategy, an overall solution and some solutions need to be implemented. In which, promoting economic restructuring in association with renovating the growth model; science and technology development policy, enhancing innovation in enterprises.
In addition, it is necessary to remove financial barriers for businesses because of lack of capital, so enterprises do not make large investments to improve technology and apply digital technology.
The State needs to have solutions to perfect the financial system and capital market. Creating conditions for businesses to access capital easier to be able to borrow and invest in technology import.
In addition, wages and salaries are particularly important policies, directly related to macroeconomic balances, the labor market and the lives of wage earners, contributing to creating motivation to improve labor productivity.
Compared to other countries in the ASEAN region, in 2020 Vietnam’s minimum wage will reach 190 USD/month, much lower than the minimum wages of the Philippines (US$234), India (US$319); China ($1,521)…
Therefore, to increase wages and create motivation for employees to increase labor productivity, the state needs to have a specific salary policy.
For the public sector, it is necessary to design a new salary and bonus structure including basic salary, allowances and bonuses. Develop and issue a new payroll system.
For employees in enterprises, continue to improve the policy on regional minimum wages by month and by hour in order to improve the coverage of the minimum wage and meet the flexibility of the labor market; ensure the minimum standard of living of workers and their families.
Money in many countries depreciates, reducing labor income
(PLO)- Exchange rate fluctuations not only affect trade, import and export activities, but also significantly affect the income of foreign workers.
TU UYEN
