Friday, 20 Sep 2019

Vietnam's labor productivity improves, but still lags behinds Asian peers

Updated at Wednesday, 02 Jan 2019, 14:48
The Hanoitimes - Vietnam’s total labor productivity in 2018 increased by 5.93% compared to 2017, on average, an increase by 5.75% / year in the period 2016-2018.
Labor productivity in Vietnam has improved over the past years, but still stays far behind several regional countries, according to the General Statistics Office (GSO).

The GSO said that labor productivity in the Vietnamese economy is estimated at VND102 million (US$4,512) per worker in 2018, up VND8.8 million (US$346) from the previous year.
Illustrative photo
Illustrative photo
Calculated at constant prices in 2010, Vietnam’s total labor productivity in 2018 increased by 5.93% compared to 2017, resulting in an increase of 5.75%/year on average in the 2016-2018 period.

The GSO stated that Vietnam's labor productivity has improved remarkably in recent years, helping record a high labor productivity growth in the ASEAN region.

In the period of 2008-2017, Vietnam's labor productivity with purchasing power parity was equivalent to the benchmark year 2011 (PPP 2011) with an annual average increase of 4%/year, higher than the average increase of Singapore (0.9%/year), Malaysia (1.1%/year), Thailand (2.6%/year), Philippines (3.3%/year), Indonesia (3.4%/year).

However, Vietnam's labor productivity level is still very low compared to other countries in the region. According to PPP 2011, Vietnam's labor productivity in 2017 is US$10,232, only equal to 7.2% of Singapore's, 18.4% of Malaysia's, 36.2% of Thailand's, 43% of Indonesia's and 55% of the Philippines'.

The labor productivity gap between Vietnam and other countries in the region is still widening, the GSO noted.
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