Improving Productivity - The Core Issue in National Competitiveness

In the context of a rapidly changing and deeply integrated global economy, improving productivity and quality is not only a choice but also a vital factor for each country, organization and enterprise. Productivity is not only a measure of efficiency but also a measure of progress.

Mr. Tran Hau Ngoc, Vice Chairman of the National Committee for Standards, Metrology and Quality, Ministry of Science and Technology. Photo: Thu Hang/VNA

Vietnam was selected to host a series of international seminars on training high-level productivity experts from October 6 to 17, affirming the increasingly proactive role of the National Committee for Standards, Metrology and Quality (STAMEQ) in regional productivity initiatives in the context of digital transformation and sustainable development. The event also showed Vietnam's willingness to share experiences with member economies of the Asian Productivity Organization (APO). Vietnam News Agency reporters had an interview with Mr. Tran Hau Ngoc, Vice Chairman of the National Committee for Standards, Metrology and Quality, Ministry of Science and Technology, on this issue.

As a state management agency, can you share the strategies and policies that the National Committee for Standards, Metrology and Quality has been implementing to promote national productivity in recent times?

Implementing the productivity improvement targets of the Party and Government , many policies, programs and activities to improve productivity have been implemented in ministries, branches, localities and enterprises. Accordingly, total factor productivity has continuously improved, making an important contribution to the country's economic growth.

The Resolution of the 13th National Party Congress orients the main targets for socio-economic development in the 5-year period 2021 - 2025, in which the average economic growth rate (GDP) in the 5 years reaches about 6.5 - 7%/year; the contribution of total factor productivity (TFP) to growth reaches about 45%; the average social labor productivity growth rate is over 6.5%/year. This is an important resolution. To concretize the Resolution, the Government and the Prime Minister have issued and organized the implementation of mechanisms, policies, strategies and plans related to promoting productivity. These are: Decision No. 1322/QD-TTg of the Prime Minister dated August 31, 2020 on promulgating the National Program to support enterprises in improving productivity and quality of products and goods in the period 2021-2030 (Program 1322). The goal is to support businesses in improving productivity and quality of products and goods based on applying solutions on standards, technical regulations, management systems, and tools to improve productivity and quality, contributing to increasing the contribution of total factor productivity (TFP) to economic growth, improving productivity, quality, efficiency and competitiveness of the economy.

In addition, Decision No. 36/QD-TTg of the Prime Minister dated January 11, 2021 on the Master Plan to improve productivity based on science, technology and innovation for the period 2021-2030 aims to make productivity an important driving force for development in industries and fields, through the application of new achievements of science and technology, applying advanced management systems and productivity improvement tools, combining research, training and fostering human resources, in line with the trend of the Fourth Industrial Revolution; implementing national science and technology tasks, supporting enterprises in research, innovation, technology transfer and application to improve productivity...

Along with that, Decision No. 1305/QD-TTg of the Prime Minister dated November 8, 2023 on the National Program on increasing labor productivity by 2030 with the goal that by 2030, labor productivity will become an important driving force for rapid and sustainable growth, in which, improving the quality of market economic institutions; improving the quality of human resources; promoting regional linkages; developing science and technology, innovation and digital transformation are the main pillars. In addition, Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science and technology development, innovation and national digital transformation, the goal by 2030, the contribution of TFP to economic growth will be over 55%; the proportion of high-tech product exports to the total value of exported goods will reach at least 50%...

How do you evaluate the labor productivity and labor productivity growth rate of Vietnam and some Asian countries in recent years?

As we know, improving and promoting labor productivity is one of the core issues to promote socio-economic development in the current context. Especially, in the context of international integration, digital transformation and fierce competition, labor productivity is the decisive factor in the competitiveness of the economy and enterprises.

According to the report of the Vietnam Productivity Institute (National Committee for Standards, Metrology and Quality), the growth rate of Vietnam's labor productivity in the period 2011-2020 is about 5.29%/year. In the period 2016-2020, labor productivity increased by 5.88%/year, basically achieving the target set in Resolution 05-NQ/TW, the 4th Conference, the 11th Party Central Committee on a number of major policies and guidelines to continue to innovate the growth model, improve growth quality, labor productivity, and economic competitiveness.

From 2020 to 2023, the growth rate of labor productivity has decreased compared to the previous period, due to the COVID-19 pandemic affecting business production, in addition, the conflict between Russia and Ukraine has caused the global economy to decline, leading to a decline in export goods. However, by 2024, labor productivity has reached a high growth rate, thanks to efforts to focus on improving productivity. From activities to promote international cooperation, many development opportunities have been opened up, along with the strategy of stabilizing the macro economy, improving the investment and business environment and promoting science and technology policies, in which digital transformation applications have significantly changed production methods.

Regarding labor productivity in Vietnam and some Asian countries in the past decade, Vietnam's labor productivity is considered to have the highest growth rate among ASEAN countries. In the period 2016-2023, Vietnam's average labor productivity growth rate reached 5.6%/year, which is recorded as one of the leading countries in the region, while the average labor productivity growth rate of some countries: Singapore increased by 3.3%/year, Malaysia increased by 2.6%/year, Thailand increased by 2.6%/year, Indonesia increased by 2.4%/year, Philippines increased by 2.8%/year, Brunei decreased by 2.5%/year, Korea increased by 3.8%/year and Japan decreased by 0.2%/year. Efforts to improve productivity over the past decade have helped Vietnam achieve encouraging results in productivity growth, creating opportunities to gradually narrow the productivity gap compared to countries with more advanced economies.

Students of Eastern International University (EIU) learn to operate automated robots in factory production to improve labor productivity. Photo: Chi Tuong/VNA

To achieve the goal of improving national productivity, what are Vietnam's strategic priorities to adapt to the new context as the country enters a new era, an era of growth, sir?

It can be said that in recent years, especially in 2024, Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo on breakthroughs in science, technology, innovation and national digital transformation has set specific targets, in which the contribution of total factor productivity (TFP) to economic growth is at over 55%. The Prime Minister has issued Resolution 03/NQ-CP implementing Resolution 57-NQ/TW of the Politburo, the Ministry of Science and Technology has proactively proposed a program to implement the Government's resolution.

In addition, the National Committee for Standards - Metrology - Quality has assigned the Vietnam Productivity Institute to study input factors to achieve TFP growth in the coming time to contribute to sustainable socio-economic development. Along with that, Directive No. 38/CT-TW of the Secretariat on strengthening the development of standards - metrology - quality work until 2030 is the orientation for the standards - metrology - quality industry in the next 10 years. In particular, the National Assembly's approval of the Law on Standards and Technical Regulations (amended) and the Law on Product and Goods Quality (amended) in 2025 will create a legal corridor, contributing to improving productivity and product quality in the coming time.

In addition, the National Committee for Standards, Metrology and Quality also promotes international cooperation in the field of productivity. In particular, from October 6 to 17, the National Committee for Standards, Metrology and Quality coordinated with the Asian Productivity Organization to organize an international workshop on training senior productivity experts within the framework of the "APO Productivity Expert Development Program", which was restarted in 2025 with two levels: basic and advanced. Along with that, the National Committee for Standards, Metrology and Quality promoted the implementation of Program 1322, showing that training is also a key factor to improve productivity and quality in the coming time.

Thank you very much!

Source: https://baotintuc.vn/kinh-te/nang-cao-nang-suat-van-de-cot-loi-trong-canh-tranh-quoc-gia-20251013114358860.htm