Prime Minister Nguyen Tan Dung has expressed his concerns and ordered changes after learning about the low rate of labour productivity in Vietnam.
Prime Minister Nguyen Tan Dung
The International Labour Organisation (ILO) recently announced that productivity in Vietnam is among the lowest in the Asia-Pacific region. A survey conducted last year showed that it was 15 times lower than Singapore, 11 times lower than Japan, and 10 times lower than the South Korea. It was just five times less Malaysia and two-fifths that of Thailand.
On October 2, Hoang Quoc Vuong, the chairman of EVN, reported to the prime minister that their productivity is 20% less that similar firms in Malaysia, 70% lower than Japan and 90% lower than South Korea.
The prime minister said, "If it's the lack of technology then buy it. I believe that Vietnamese people can learn and do it all," he said. He directed state agencies to improve training programmes and cut redundant staff to improve productivity. He also urged on the continued restructuring trend. He said that equitisation is an important process which will create better management, bring about more efficient use of resources and will lessen corruption.
"The key is not how much money the state will get from selling shares, but that Vietnamese enterprises will be more productive and competitive," he said. The prime minister also showed his disapproval of the fact that 70% of workers are in state-owned firms, which only generate 15% of the GDP.
As Vietnam joins the globalisation process, it needs to change outdated systems such as complicated administrative procedures. The prime minister told the Ministry of Industry and Trade to create more favourable conditions for firms so as to attract investment. He said, "If you put your feet in their shoes you'll see that there are many problems doing business here, and these problems can be fixed without spending money."
