Econ
Enterprises are indispensable to productivity improvement
Low productivity of Vietnam is being discussed recently. The head of Vietnam Productivity Institute Nguyen Anh Tuan said, it is part of the responsibility of the employee, however, the main reason is from the enterprises.
The head of Vietnam Productivity Institute Nguyen Anh Tuan.
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We adjust the minimum wage to ensure the living condition for employees. As such, the overall efficiency of the society is not high. The story about wage is that employees must have sufficient means for living. However, the problems lie at the low productivity of Vietnam. In addition to the responsibility of employee, employer has also bear the responsibility. It means, for a long time, enterprises do not pay attention to improve productivity. Despite enterprises do not want to increase wage, but in long term, it will put pressure on enterprises to use employees efficiently and improve productivity. It is a waste of time to discuss the wage is low or high, as such, employees and employers should find the solution to the common goal, which is to increase wage and productivity.
What is the productivity of Vietnam compared with neighbor countries?
At present, productivity of Vietnam is lower than high productivity countries such as Singapore, Japan, Korea from 10 – 15 times. However, in compare with our competitors such as Philippines, Thailand, Indonesia, it may be a concern for us. Despite the increasing rate of productivity of these countries is the same as Vietnam, but in the coming time, the gap between productivity of Vietnam and other countries may be widen. For lower productivity countries such as Laos, Cambodia and Myanmar, the gap is being narrowed. The problem of increasing productivity in Vietnam has been discussed for many times, however we do not have efficient solutions to solve this problem.
In order to improve productivity in industrial revolution 4.0, there are opinions that enterprises should invest in robot?
This should be their decisions whether purchasing robot will bring efficiency or not. There are works robot can do, but others will require the intelligences and flexibility of human. For Vietnam, improving productivity but at it is essential to create jobs for employees at the same time. It would be meaningless to increase productivity but with a high rate of unemployment. I think, the process of industrial revolution 4.0 application in Vietnam must be gradual.
For small and medium enterprises (SME), what is the solution to increase productivity in the coming time?
Many enterprises have weak production organization, if it is not the majority. If enterprises do not reorganize production and remove obsolete technologies, productivity can increase from 15-20%, if not more. For SME, the first thing to do is to innovate organization and production to ensure efficiency. Second, it is necessary to focus on research to innovate production, in turn choose products with high value. If enterprises do not care for investment, production will stay the same.
According to regulation, since January 1 2018, social insurance payment will be based on income. This causes concern for a lot of enterprises as expenses increase, what do you think about this?
At first, it will be difficult for enterprises and employees. However, in long term, paying social insurance based on income will bring benefits for employees. As such, enterprises want to protect employee’s rights and want them to stay at the enterprises must accept this.
Thank you!
