Promoting national productivity from inherent advantages

Vietnam's 10-year Socio-Economic Development Strategy for 2021-2030 sets a target of increasing average social labor productivity by over 6.5% per year. Vietnam has identified its view on renewing the growth model in the direction of "Gradually shifting from relying on increasing the quantity of production input factors to relying on increasing productivity, labor quality, applying science, technology and innovation".

Recently, Resolution 57 of the Politburo on breakthroughs in science, technology, innovation and national digital transformation has set the target by 2030: The potential, level of science, technology and innovation will reach advanced levels in many important fields, among the leading groups in upper-middle-income countries; the level, capacity of technology and innovation of enterprises will reach above the world average; some fields of science and technology will reach international standards. To achieve this goal, solutions to improve productivity and labor quality must be implemented and put into practice soon.

Factors determining the competitiveness of the economy

According to Dr. Tran Hau Ngoc, Vice Chairman of the National Committee for Standards, Metrology and Quality, in the context of international integration and fierce competition, labor productivity is the decisive factor in the competitiveness of the economy and each enterprise.

Data from the Vietnam Productivity Institute (National Committee for Standards, Metrology and Quality) shows that in the three years from 2020 to 2023, the labor productivity growth rate has decreased compared to the previous period due to the impact of COVID-19 on business production, along with some political instability in the region as well as the world. In the period 2016 - 2023, Vietnam had an average labor productivity growth rate of 5.6%/year, which is recognized as having a productivity growth rate among the leading countries in the Asian region. During this period, the average labor productivity growth rate of some countries: Singapore was 3.3%/year, Malaysia increased by 2.6%/year, Thailand increased by 2.6%/year, Indonesia increased by 2.4%/year, Philippines increased by 2.8%/year, Brunei decreased by 2.5%/year, South Korea increased by 3.8%/year and Japan decreased by 0.2%/year.

According to Dr. Indra Pradana Singawinata, Secretary General of the Asian Productivity Organization (APO), Vietnam is currently facing many challenges in its development process, including the lack of human resources, limited management capacity, and modest investment in research and development (R&D). The master plan for improving labor productivity through science, technology and innovation has seen much growth, but there are still limitations.

According to Associate Professor, Dr. Vu Minh Khuong, Vietnam has made significant progress in promoting labor productivity growth. However, the current productivity growth rate is still slow and not commensurate with its potential. Without a significant acceleration in productivity growth, Vietnam will find it difficult to achieve high-income country status by 2045.

Making productivity the driving force for development

Dr. Indra Pradana Singawinata said that Vietnam has important foundations to continue to improve productivity and achieve more development achievements in the coming time: Hardworking and diligent people; political and social stability and economic development; the economy is developing well with effective plans and roadmaps to achieve development goals by 2030 and 2045.

In the coming time, Vietnam needs to take advantage of its inherent advantages; build policies to develop human resources, create a favorable environment for not only domestic enterprises but also foreign enterprises to develop. In addition, it is necessary to increase investment in research and development; strengthen the connection between research institutions and enterprises, support research and innovation activities. In addition, it is necessary to unify training programs, ensure access to quality and equal human resources, and increase transparency.

Vietnam also needs to build a national productivity improvement movement that is suitable for the new context, combining restructuring the content of the productivity program to suit the development stages: "Productivity awareness - Productivity improvement support - Self-investment in productivity improvement". On that basis, the authorities build a productivity improvement support program with the right focus and focus on funding to achieve the best results.

Sharing the strategies and policies that the National Committee for Standards, Metrology and Quality is implementing to promote national productivity, Dr. Tran Hau Ngoc said that in order to concretize the policies according to the Party Congress resolution, the Government and the Prime Minister have issued and organized the implementation of mechanisms, policies, strategies and plans related to promoting productivity. Specifically, the National Program to support enterprises in improving productivity and quality of products and goods in the period of 2021-2030 (issued under Decision No. 1322/QD-TTg of the Prime Minister dated August 31, 2020 - Program 1322) aims to support enterprises in improving productivity and quality of products and goods on the basis of applying solutions on standards, technical regulations, management systems, tools to improve productivity and quality; contributing to increasing the contribution of total factor productivity (TFP) to economic growth, improving productivity, quality, efficiency and competitiveness of the economy.

Along with that is the Master Plan to improve productivity based on science, technology and innovation for the period 2021-2030 (Decision No. 36/QD-TTg of the Prime Minister dated January 11, 2021) with the goal of making productivity an important driving force for development in industries and fields. At the same time, the National Program on increasing labor productivity by 2030 (Decision No. 1305/QD-TTg of the Prime Minister dated November 8, 2023) also sets the goal that by 2030, labor productivity will become an important driving force for rapid and sustainable growth, effectively exploiting the opportunities of the Fourth Industrial Revolution; in which, improving the quality of market economic institutions, improving the quality of human resources, promoting regional linkages, developing science and technology, innovation and digital transformation are the main pillars.

Recently, Resolution No. 57 of the Politburo has set out very specific goals in improving productivity and labor quality such as: The contribution rate of total factor productivity (TFP) to economic growth is over 55%. Currently, the Prime Minister has issued Resolution 03/NQ-CP implementing Resolution 57 of the Politburo. The Ministry of Science and Technology has also proactively proposed a program to implement this Resolution of the Government.

In addition, the National Committee for Standards, Metrology and Quality has assigned the Vietnam Productivity Institute to study input factors to achieve TFP growth in the coming time to contribute to sustainable socio-economic development. Regarding specific solutions to improve national productivity, Dr. Tran Hau Ngoc said that it is necessary to strengthen the work of building policy and legal institutions, including the Law on Technical Standards and Regulations and the Law on Product and Goods Quality. It is expected that the two Laws will be submitted to the National Assembly for approval at the 5th Session of the 15th National Assembly in 2025.

Source: https://doanhnghiepvn.vn/cong-nghe/thuc-day-nang-suat-quoc-gia-tu-loi-the-von-co/20250220101639908