Improving labour productivity acts as core factor in national competitiveness

October 15, 2025 - 07:53
Việt Nam is hosting Training Course on Development of Productivity Specialists (Advanced) from October 6 to 17, showing Việt Nam’s readiness to share experience with other member countries of the Asian Productivity Organization (APO). Trần Hậu Ngọc, vice president of Commission for the Standards, Metrology and Quality of Việt Nam under the Ministry of Science and Technology speaks to Vietnam News Agency about the event.

 

Trần Hậu Ngọc, vice president of Commission for the Standards, Metrology and Quality of Việt Nam. Photo courtesy of the commission

Việt Nam is hosting Training Course on Development of Productivity Specialists (Advanced) from October 6 to 17, showing Việt Nam’s readiness to share experience with other member countries of the Asian Productivity Organization (APO). Trần Hậu Ngọc, vice president of Commission for the Standards, Metrology and Quality of Việt Nam under the Ministry of Science and Technology speaks to Vietnam News Agency about the event.

As a State management agency, could you share the strategies and policies that the Commission for the Standards, Metrology and Quality has been implementing to promote national productivity in recent years?

In line with the goals of improving productivity set by the Party and the Government, many policies, programmes and activities to enhance productivity have been implemented across ministries, sectors localities and enterprises.

As a result, total factor productivity (TFP) has steadily improved, making an important contribution to the country's economic growth.

The Resolution of the 13th National Party Congress sets out key socio-economic development targets for the 2021–25 period, including an average annual GDP growth rate of around 6.5–7 per cent, the contribution of TFP to growth reaching around 45 per cent and an average annual increase in labour productivity of more than 6.5 per cent.

To realise this important resolution, the Government and the Prime Minister have issued and implemented mechanisms, policies, strategies and plans to promote productivity.

These include the Prime Minister’s Decision No 1322/QĐ-TTg dated August 31, 2020, promulgating the National Programme to Support Enterprises in Improving Productivity and Product Quality for the 2021–30 period (Programme 1322).

Its goal is to help enterprises enhance productivity and product quality through the application of standards, technical regulations, management systems and productivity and quality improvement tools, increasing the contribution of TFP to economic growth and enhancing the productivity, quality, efficiency and competitiveness of the economy.

Decision No 36/QĐ-TTg dated January 11, 2021, on the Master Plan for Enhancing Productivity Based on Science, Technology and Innovation for the 2021–30 period aims to make productivity a key driver of development across sectors by applying new scientific and technological achievements, adopting advanced management systems and productivity improvement tools and combining research, training and human resource development in line with the Fourth Industrial Revolution.

It also includes national-level science and technology projects supporting enterprises in research, innovation, technology transfer and application to improve productivity.

The Prime Minister’s Decision No 1305/QĐ-TTg dated November 8, 2023, on the National Programme on Labour Productivity Improvement to 2030 sets the goal of making labour productivity a key driver of rapid and sustainable growth by 2030.

The main pillars include improving the quality of market institutions, enhancing human resource quality, promoting regional linkages, and developing science, technology, innovation and digital transformation.

The Politburo’s Resolution No 57-NQ/TW dated December 22, 2024, on breakthroughs in developing science, technology, innovation and national digital transformation, targets a TFP contribution of over 55 per cent to economic growth and high-tech products accounting for at least 50 per cent of total export value by 2030.

How do you assess Việt Nam’s labour productivity and its growth rate compared with other Asian countries in recent years?

As we all know, improving and enhancing labour productivity is one of the core issues for promoting socio-economic development today.

In the context of international integration, digital transformation and intense competition, labour productivity is the decisive factor in the competitiveness of both the economy and enterprises.

According to the Việt Nam Productivity Institute, labour productivity growth averaged about 5.29 per cent per year during 2011–20 period.

In particular, between 2016 and 2020, labour productivity grew by 5.88 per cent annually, basically meeting the target set by the Party.

From 2020 to 2023, labour productivity growth slowed compared to the previous period due to the COVID-19 pandemic’s impact on production, as well as the Russia–Ukraine conflict that caused a global economic downturn and a decline in export goods.

However, by 2024, labour productivity had rebounded thanks to focused efforts on productivity improvement.

Through intensified international cooperation and macroeconomic stability strategies, improvements in the business environment and promotion of science and technology policies, especially digital transformation applications, production methods have been significantly transformed.

Việt Nam has recorded the highest productivity growth rate among ASEAN nations.

From 2016 to 2023, Việt Nam’s average annual labour productivity growth was 5.6 per cent, placing it among the regional leaders.

In comparison, the average growth rate of Singapore was 3.3 per cent, Malaysia 2.6 per cent, Thailand 2.6 per cent, Indonesia 2.4 per cent, the Philippines 2.8 per cent, Brunei 2.5 per cent, South Korea 3.8 per cent and Japan -0.2 per cent.

These achievements demonstrate Việt Nam’s strong progress in productivity growth over the past decade, gradually narrowing the gap with more advanced economies.

To achieve the goal of enhancing national productivity, what are Việt Nam’s strategic priorities to adapt to the new context as the country enters a new development era?

In recent years, especially in 2024, the Politburo’s Resolution No 57-NQ/TW has set specific targets, including raising the TFP contribution to over 55 per cent of economic growth.

To implement this, the Prime Minister issued Resolution No 03/NQ-CP, and the Ministry of Science and Technology has proactively developed an implementation programme.

The Commission for the Standards, Metrology and Quality has tasked the Việt Nam Productivity Institute with studying the input factors needed to achieve TFP growth in the coming years, contributing to sustainable socio-economic development.

The Directive No 38/CT-TW by the Party Central Committee's Secretariat on strengthening the development of standards, metrology and quality activities through 2030 provides long-term direction for the sector.

The National Assembly’s expected adoption of the revised Laws on Standards and Technical Regulations and on Product and Goods Quality in 2025 will create a stronger legal framework to improve product productivity and quality in the future.

The commission is also promoting international cooperation in productivity.

From October 6–17, the commission, in collaboration with APO, is organising an international workshop on training senior productivity experts under the APO Development of Productivity Specialists Programme, which is being relaunched in 2025 with two levels - basic and advanced.

The commission is also intensifying the implementation of Programme 1322, emphasising that training is a key factor in improving productivity and quality in the coming period. VNS

 

E-paper