Monday, October 21 2019


Policies to blame for low productivity

Update: November, 29/2014 - 08:31
Workers at a motorbike components manufacturing factory in Noi Bai Industrial Park, Ha Noi. Viet Nam's productivity was reportedly one of the lowest in the 10 ASEAN nations. — VNA/VNS Photo Huy Hung.
HA NOI  (VNS) — Viet Nam's productivity was one of the lowest in the 10 ASEAN nations, said Nguyen Ba Ngoc, deputy director of the Institute of Labour Science and Social Affairs at a forum for Labour productivity on Thursday.

Ngoc said this indicated that the Government needed to improve its policies.

He said there were nearly 54 million labourers in 2013, and only 18.4 per cent of them were well educated and trained, an increase of one per cent over 2007.

Ngoc said that Vietnamese workers lacked necessary skills, including creativity, teamwork, and leadership, and seemed unable to acquire new technologies. This often led to low-quality work.

In addition, many employees were not working in the fields they were trained for and therefore could not perform well, the deputy director said.

Experts said other causes for low productivity included the Government giving advantage to low-productivity State-owned enterprises for investments and resources.

Le Dang Doanh, former director of Central Institute for Economic Management (CIEM) said that Vietnamese companies considered they did not have to improve their technologies and labour quality.

This was because their business depended on the relationship with management agencies which they could bribe to receive economic advantages.

He said that Vietnamese companies must change their business model to sustainable growth and invest in technology development, the Government should increase its efforts to fight corruption and revise education and training system to provide more skilful labourers for the market.

Pham Chi Lan, an economic expert, said labourers were not the only ones to blame for low productivity.

She said the Government should move some of its resources from the public sector to the private sector which had higher working productivity, invest in the fields with economic competitive advantages, and remove the barriers which prevented the labour force from moving among economic sectors and among geographic areas.

Nguyen Dinh Cung, CIEM director, said society should support new inventions and initiatives, which would motivate enterprises.

He also said that the Government should remove the current minimum wage and let the market decide the labour wage because companies often paid their workers the minimum wage, limiting their enthusiasm. — VNS

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