(VOVWORLD) - Labor productivity is the decisive factor in improving the capacity and competitiveness of an economy. Improving labor productivity is a core issue for Vietnam and is the shortest way to develop its economy quickly and sustainably to catch up with other countries.
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Vietnam's labor productivity has steadily increased, boosting national economic and social development. According to purchasing power parity (PPP 2017), Vietnam's labor productivity in the 2011-2022 period increased 5.3% per year, greater than the average annual growth of Malaysia, Thailand, and Singapore. Vietnam has narrowed the gap with ASEAN countries that have a higher level of development.
On November 8, 2023, Deputy Prime Minister Tran Hong Ha signed a decision approving a national program to increase labor productivity to 2030, with 5 major goals: make labor productivity a driving force for rapid, sustainable growth; take advantage of the opportunities of the 4th Industrial Revolution; improve Vietnam’s market economy and human resources; promote regional connectivity; and develop science, technology, innovation, and digital transformation.
Specific targets are to achieve an overall labor productivity growth rate of 6.5% per year, a labor productivity growth rate in the processing and manufacturing sector of 6.5-7% per year, in the agriculture, forestry, and fisheries sector of 7-7.5% per year; and the service sector of 7-7.5% per year.
From 2020 to 2030, the labor productivity growth rate of key economic regions and 5 centrally-run cities will be higher than the national average. Vietnam strives to be one of three leading countries in ASEAN for labor productivity growth by 2030.
 Economist Dinh Trong Thinh (Photo: vietstock.vn) |
Economist Dinh Trong Thinh said: “Vietnam has many opportunities with multinational corporations shifting their investment to Vietnam, especially in the electronic technology sector. We need to make breakthroughs and leapfrog to seize opportunities and develop the knowledge-based economy and digital economy in Vietnam in the fastest, most sustainable way.”
A study by the National Economics University showed that in the 2020-2030 period, the digital economy will contribute 7-16.5% of the overall labor productivity growth rate.
The digital economy contributes significantly to the productivity and efficiency of the economy, and is a driver of labor productivity growth. Economists say Vietnam should push IT and digital transformation to improve labor productivity and boost rapid, sustainable economic growth.