Vietnam’s labor productivity increases nearly 24% in five years

VietNamNet Bridge – Compared to 2010, the average productivity per worker in Vietnam increased nearly 24%, but it was not enough to offset the gap in productivity with other countries in the region.

According to GSO, Vietnam’s labor productivity has improved significantly, with an average ratio of 3.9% per year for the 2006-2015 period. The General Statistics Office (GSO) said that the productivity of the economy in 2015 reached VND79.3 million or about $3,660 per laborer. This figure is estimated to rise by 6.4% compared with 2014.

According to GSO, Vietnam’s labor productivity has improved significantly, with an average ratio of 3.9% per year for the 2006-2015 period. Compared to 2010, labor productivity increased by 23.6%, but still lower than the set target of 29-32%. The GSO also said that Vietnam’s labor productivity was still at a low level compared to other countries in the region and it is uneven among sectors.

The differences in labor productivity between Vietnam and ASEAN countries with a higher level of development, such as Singapore, Malaysia, Thailand, and Indonesia, increased. The major causes for this situation, according to GSO, are the slow transformation of economic structure, the high rate of agricultural labor and low productivity in agriculture. Besides, machinery, equipment and technological processes of Vietnam are outdated, and the quality, structure and efficiency of labor use don’t meet the requirements.

The issue of labor productivity was repeatedly discussed by authorities after a study by the International Labour Organisation (ILO) showed that the labor productivity index of Vietnam in 2013 was among the lowest in Asia – Pacific. Specifically, Vietnam’s labor productivity was nearly 15 times lower than that of Singapore, 11 times of Japan, and 10 times of South Korea. The study also indicated the causes of this situation, including underdeveloped science and technology, the poor quality of the human resources and the problems of economic restructuring.

According to GSO, by early 2016, the labor force aged 15 years old and over in the country will be 54.6 million people, an increase of 185,000 people over the same period. The unemployment rate of workers in this age in 2015 was 2.31%, higher than the previous two years.

Source: Vietnam Breaking News