Investment News

Labor productivity in Vietnam



 Vietnam will establish a national productivity committee, while authorities and localities will regularly communicate with businesses, investors, and workers about barriers to solve problems that cause low labor productivity.

The program will also focus on developing research, applying science and technology, fostering innovation and digital transformation, and improving the competitiveness of industries by facilitating regional development, regional integration, and international-level trade, tourism and finance centers in big cities.

The program aims to make labor productivity an important driving force for rapid, sustainable growth, effectively taking advantage of opportunities from the fourth industrial revolution.

The country will improve the quality of institutions in the market economy while developing human resources, science, technology and innovation.

Vietnam’s labor productivity growth rate was 5.1% in the 2011-20 period, higher than the ASEAN average.

In 2021, the year most-severely affected by the Covid pandemic, the country’s labor productivity growth rate was still 4.7%, the highest in the regional bloc. However, Vietnam’s overall labor productivity is still lower than Singapore and Thailand.