Econ
National strategy on fourth industrial revolution under construction
The government is building up the national strategy on the fourth industrial resolution as it is the best measure to enhance the country’s labor productivity, Minister of Planning and Investment Nguyen Chi Dung said.
Labor productivity is a key factor in improving the quality of growth and accelerating the innovation of growth, Dung said.
The capitalization of opportunities from the Revolution 4.0 is considered to be the most effective solution to increase labor productivity, he said, adding that this is considered a rare opportunity to take advantage.
“If we do not take advantage of this opportunity, it will take us many years to get that chance again," Dung stressed.
Based on that, the government is developing a national strategy of the industrial resolution 4.0, considering it the most important and decisive factor to create a breakthrough in the economy.
According to General Director of the General Statistics Office Nguyen Bich Lam, the productivity of the whole economy at current prices in 2017 is estimated at VND93.2 million per worker (equivalent to US$4,159 per worker).
Based on the prices in 2010, the productivity of the whole economy in 2017 has increased by 6% compared to 2016 and the average productivity in the 2011-2017 period rose by 4.7%.
According to Lam, Vietnam's labor productivity has improved significantly over the past years and has seen a high productivity growth rate among the ASEAN region, but Vietnam's labor productivity remains low compared to many other countries in the region.
Notably, the productivity gap between Vietnam and other countries continues to increase. Calculations based on the purchasing power parity in 2011, Vietnam's labor productivity in 2016 reached US$9,894, equivalent to 7% of the labor productivity of Singapore; 17.6% of Malaysia; 36.5% of Thailand; 42.3% of Indonesia; 56.7% of the Philippines and 87.4% of Laos.
Lam said that the fourth scientific and technological revolution has created the trend of automation and exchange of data in production which may put Vietnam at risk of being left behind by the developed countries. Economists said that if Vietnam did not make much progress, it would never catch up with developed countries, which is one of the biggest challenges for Vietnam.
GSO stated that management agencies, ministries and local authorities should continue to reform institutions and business environment with the top priorities given to improving labor productivity and grasping the 4.0 revolution to integrate into the world.
However, local productivity at advanced manufacturing facilities, especially at foreign-invested ones, is approaching the global level.
As comparing labor productivity of Vietnam and South Korea, Deputy general director of Samsung Vietnam Bang Hyun Woo remarked at a recent forum that Vietnamese workers’ productivity is equivalent to 99% of that of workers at Samsung production facilities in other countries.
Regarding skilled personnel at Samsung factories, Woo said, the expertise and productivity of Vietnamese engineers is lower than South Korean peers. But after getting trained in one or two years, Vietnamese engineers are quite comparable to those from South Korea.
“I see potential of Vietnamese people. I do not think their productivity is low, but human resource training and management play a role,” said the Samsung Vietnam executive. He added that Vietnamese workers can increase productivity if they get a good boss.
Sharing the view, chairman of education firm Egroup Nguyen Ngoc Thuy said that it is employers that determine labor productivity of their own businesses. Managers must take full responsibility for labor productivity at their businesses. It is essential that managers create a healthily competitive environment with fair compensation and incentives to attract and retain talent.
The capitalization of opportunities from the Revolution 4.0 is considered to be the most effective solution to increase labor productivity, he said, adding that this is considered a rare opportunity to take advantage.
The Revolution 4.0 is the most effective solution to increase labor productivity
|
Based on that, the government is developing a national strategy of the industrial resolution 4.0, considering it the most important and decisive factor to create a breakthrough in the economy.
According to General Director of the General Statistics Office Nguyen Bich Lam, the productivity of the whole economy at current prices in 2017 is estimated at VND93.2 million per worker (equivalent to US$4,159 per worker).
Based on the prices in 2010, the productivity of the whole economy in 2017 has increased by 6% compared to 2016 and the average productivity in the 2011-2017 period rose by 4.7%.
According to Lam, Vietnam's labor productivity has improved significantly over the past years and has seen a high productivity growth rate among the ASEAN region, but Vietnam's labor productivity remains low compared to many other countries in the region.
Notably, the productivity gap between Vietnam and other countries continues to increase. Calculations based on the purchasing power parity in 2011, Vietnam's labor productivity in 2016 reached US$9,894, equivalent to 7% of the labor productivity of Singapore; 17.6% of Malaysia; 36.5% of Thailand; 42.3% of Indonesia; 56.7% of the Philippines and 87.4% of Laos.
Lam said that the fourth scientific and technological revolution has created the trend of automation and exchange of data in production which may put Vietnam at risk of being left behind by the developed countries. Economists said that if Vietnam did not make much progress, it would never catch up with developed countries, which is one of the biggest challenges for Vietnam.
GSO stated that management agencies, ministries and local authorities should continue to reform institutions and business environment with the top priorities given to improving labor productivity and grasping the 4.0 revolution to integrate into the world.
However, local productivity at advanced manufacturing facilities, especially at foreign-invested ones, is approaching the global level.
As comparing labor productivity of Vietnam and South Korea, Deputy general director of Samsung Vietnam Bang Hyun Woo remarked at a recent forum that Vietnamese workers’ productivity is equivalent to 99% of that of workers at Samsung production facilities in other countries.
Regarding skilled personnel at Samsung factories, Woo said, the expertise and productivity of Vietnamese engineers is lower than South Korean peers. But after getting trained in one or two years, Vietnamese engineers are quite comparable to those from South Korea.
“I see potential of Vietnamese people. I do not think their productivity is low, but human resource training and management play a role,” said the Samsung Vietnam executive. He added that Vietnamese workers can increase productivity if they get a good boss.
Sharing the view, chairman of education firm Egroup Nguyen Ngoc Thuy said that it is employers that determine labor productivity of their own businesses. Managers must take full responsibility for labor productivity at their businesses. It is essential that managers create a healthily competitive environment with fair compensation and incentives to attract and retain talent.
