Vietnam’s labour productivity increases nearly 24pct in five years

05-Jan-2016 Intellasia | Vietnamnet | 6:00 AM Print This Post

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

The general Statistical Office (GSO) said that the productivity of the economy in 2015 reached VND79.3 million or about $3,660 per labourer. This figure is estimated to rise by 6.4 percent compared with 2014.

According to GSO, Vietnam’s labour productivity has improved significantly, with an average ratio of 3.9 percent per year for the 2006-2015 period. Compared to 2010, labour productivity increased by 23.6 percent, but still lower than the set target of 29-32 percent.

The GSO also said that Vietnam’s labour productivity was still at a low level compared to other countries in the region and it is uneven among sectors.

The differences in labour 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 labour and low productivity in agriculture. Besides, machinery, equipment and technological processes of Vietnam are outdated, and the quality, structure and efficiency of labour use don’t meet the requirements.

The issue of labour productivity was repeatedly discussed by authorities after a study by the International Labour Organisation (ILO) showed that the labour productivity index of Vietnam in 2013 was among the lowest in Asia – Pacific.

Specifically, Vietnam’s labour 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 labour 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 percent, higher than the previous two years.


Category: Economy, Vietnam

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