Training high quality workers at Hưng Yên Province's University of Technology and Education. VNA/VNS Photo

HÀ NỘI - After nearly four decades of reform, Việt Nam has emerged as a middle-income country and is pushing forward with industrialisation and modernisation.

The nation's socio-economic development strategy for the 2021-30 period set a target of achieving an average social labour productivity growth rate of at least 6.5 per cent a year, marking a significant shift from quantity-based to quality-driven growth.

According to Dr Trần Hậu Ngọc, deputy chairman of the Commission for Standards, Metrology, and Quality of Việt Nam, labour productivity is the decisive factor in determining the economy’s competitive edge, amid international integration and fierce competition.

Data from the commission’s Việt Nam Productivity Institute revealed that while productivity growth slowed during 2020-23 due to COVID-19 impacts and global political instability, Việt Nam maintained an impressive average productivity growth rate of 5.6 per cent annually from 2016 to 2023. This placed Việt Nam among the leading nations in Asia for productivity growth, outpacing regional peers such as Singapore (3.3 per cent), Malaysia (2.6 per cent), Thailand (2.6 per cent), the Republic of Korea (3.8 per cent), and Japan (0.2 per cent).

Secretary-General of the Asian Productivity Organisation (APO), Dr Indra Pradana Singawinata, pointed out that Việt Nam faces several challenges in its development process, including human resources shortages, limited management capacity and modest R&D investment. However, he emphasised Việt Nam's strong foundational advantages such as industrious population, political and social stability, and robust economic development trajectory until 2030 and 2045.

While acknowledging the country's significant progress in boosting labour productivity, Associate Professor Dr Vũ Minh Khương from the National University of Singapore warned that the current growth rate falls short of the nation's potential. He stated that without substantial acceleration in productivity growth, Việt Nam will struggle to achieve the status of becoming a high-income nation by 2045.

Legal frameworks needed

Indra Pradana Singawinata recommended Việt Nam capitalise on its advantages, build human resources development policies while enhancing connections between research agencies and enterprises regarding research and innovation activities. He stressed that the country should improve national productivity in accordance with the new social environment and devise effective support programmes.

Meanwhile, Ngọc said that the Government has issued and carried out multiple mechanisms, policies and strategies to boost productivity, including the national programme to support businesses in improving productivity and product quality and the master plan for productivity improvement through science, technology and innovation for 2021-30. In addition, labour productivity is envisaged to become an important driver for rapid and sustainable growth under the national programme on improving labour productivity until 2030.

Most recently, the Politburo issued Resolution No. 57 on breakthroughs in science, technology, innovation and national digital transformation, setting specific targets in increasing the total factor productivity (TFP) contribution to economic growth to over 55 per cent.

With a view to achieving the target, it is necessary to strengthen institutional frameworks, Ngọc said, adding the draft law on standards and technical regulations and another bill on product quality will be submitted to the National Assembly for approval at its upcoming session in May. VNS