Vietnam’s labour productivity increases in 5 years
Updated : Thursday, May 10, 2018 8:49 AM (GMT+0700)

Theaverage labour productivity in Vietnam increased from 1,700 USD per laborer in2006 to 2,672 USD in 2017, according to the Vietnam Institute for Economic andPolicy Research (VEPR). 

 
Delegates at a meeting on labour productivity held in Hanoi on May 8 - Source: VNA

In 2017, Vietnam's laborproductivity doubled that of low-income countries, but met only 50 percent ofmiddle-income countries and 18.3 percent of high-middle-income countries. 

Assoc. Prof. Dr. Vu MinhKhuong, a lecturer at the Lee Kuan Yew School of Public Policy, NationalUniversity of Singapore, said the decline in labor productivity was the causeof the slowdown in Vietnam's GDP growth from 2005 to 2013 with the productivityof agriculture, forestry and fishery recorded the lowest growth while themanufacturing industry maintain a modest rate.

“Vietnam’s productivity inall sectors is not higher than in any other ASEAN countries, even in somesectors it is lower than that of Cambodia”, said Assoc. Prof. Dr. Nguyen DucThanh, VEPR Director said.

Vietnam’s labor productivityin 2015 was the lowest, ranking behind Cambodia in the three most importantsectors of the economy, including manufacturing, construction andtransportation, and warehousing.

For agriculture,electricity, water, gas, wholesale, retail and repair, Vietnam's laborproductivity was ranked second lowest among ASEAN member countries, only higherthan Cambodia.

In contrast, Vietnam hashigher labor productivity than some countries in three sectors, includingmining, finance, real estate and office services. 

According to Assoc. Prof.Dr. Vu Minh Khuong, besides output, internal productivity factor is veryimportant. The indicators are high in some industries such as pig breeding,food production, and industrial crops. However, the value is lower than quantity.

 Assoc. Prof. Dr.Nguyen Duc Thanh emphasized a current issue that wages are rising faster thanproductivity which will gradually affect profits of the businesses.

 Economist Pham Chi Lansaid wages must be based on labor productivity. Therefore, the most basic thingis to solve the problem of labor productivity, especially in the public sectorwhere labor productivity is not high but the labor force is large.

Source:VNA

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