03:47 (GMT +7) - Tuesday 13/11/2018

Vietnam Today

VET hosts CEO Forum 2018

Released at: 12:08, 14/04/2018

VET hosts CEO Forum 2018

Photo from vneconomy.vn

"Workplace Productivity - A Key Indicator of Economic Development" forum held as part of VET's Golden Dragon Awards.

by Ngoc Lan

Vietnam Economic Times held a CEO Forum in the lead-up to the Golden Dragon Awards entitled “Workplace Productivity - A Key Indicator of Economic Development” on April 13 at the JW Marriott Hotel Hanoi, in a bid to raise understanding and knowledge about workplace productivity among Vietnamese enterprises.

The forum discussed practical issues now urgently needed for businesses and industries to improve productivity to meet the government’s growth and development goals and the need to bolster competitiveness as Vietnam integrates internationally and moves towards Industry 4.0.

Problems in productivity were addressed after CEOs of enterprises such as Samsung Vietnam, the Garment 10 Company, Toyota Vietnam, the Sunhouse Group, and the Asanzo Electronic Company spoke of the situation at their companies and organizations and enterprises in auditing and human resources services shared their thoughts. Insights were given of specific enterprises’ strategies in responding to ongoing changes and the impact of Industry 4.0 as well as the requirements that result from Vietnam’s development.

Mr. Ngo Van Tuan, Deputy Head of the Party Central Committee’s Economic Commission, told the forum that workplace productivity has improved significantly during Vietnam’s process of economic reform and development.

Labor productivity in the economy as a whole in 2017 was estimated at  VND92.1 million ($4,100) per person, an increase of 5.9 per cent compared to 2016, which is much higher than the 4.5 per cent annual average during the 2011-2016 period and 3.45 per cent annual average during the 2006-2010 period.

Mr. Tuan expressed concern, however, that workplace productivity in Vietnam is quite low compared to the country’s development needs.

Specifically, with average productivity growth of 4.7 per cent in the 2011-2017 period, Vietnam is at risk of falling behind as this rate is lower than average GDP growth, of 6.21 per cent, in the same period and also lower than average real wage growth of 12.59 per cent per annum.

Agreeing, Mr. Nguyen Bich Lam, Director General of the General Statistics Office, confirmed that workplace productivity growth has been much lower than average wage growth.

At current prices, the average wage for employees at enterprises rose 16.9 per cent per annum during the 2007-2013 period, while average labor productivity increased just 12.9 per cent per annum.

Mr. Tuan proposed that Vietnam identify and adopt new strategies and directions in attracting FDI so the sector plays a more important role in transferring and capturing technology and increasing workplace productivity.

Mr. Lam suggested that improving productivity is one of the key issues facing Vietnam’s economy today. “Increasing productivity will be a decisive factor in the competitiveness of Vietnam’s enterprises and its economy,” he said. “High workplace productivity means rapid and sustainable development.”

Ms. Jan Clohessy, Executive Director, Engagement, at RMIT University Vietnam, told VET that through its Centre of Digital Excellence, opened in 2016, it has contributed to building capacity among teachers and trainers in Vietnam’s education sector, to help them develop expertise in contemporary approaches to digital learning and teaching.

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