The most recent statistics on labour productivity in Vietnam has placed the country at the bottom of countries in the Asian Pacific region, according to the International Labour Organisation (ILO).
Vietnam’s labour productivity lowest in Asia Pacific
According to the report, 20% of Vietnamese workers do not have a labour contract, the average reaching 45% for workers under the age of 25. Those working in insecure employment situations and low-income earners make up 63% of the workforce.
The report also concluded that the productivity of the average Vietnamese worker is about 15 times less than that of an average Singaporean worker. Compared to Japanese workers, Vietnamese are ten times less productive.
In the period between 2002 and 2007 Vietnam experienced an increase in productivity of around 5% per year, which has now fallen to 3.3%.
Mai Duc Chinh, Deputy General Director of the Vietnam Labour Union, confirmed that the lower labour productivity rates were reflective of the real situation. He said that, compared with other regional countries, especially Singapore, Vietnam is lagging behind.
The director of ILO in Vietnam, Gyorgy Sziraczki, said that labour laws in Vietnam should be revised in order to improve the situation.