Why Vietnamese labor productivity is rated low
A recent report from the World Bank said Vietnam’s labor productivity increased by 64% during the 2010-20 period, faster than any other country in Asia. But data from the Asian Productivity Organization shows that in 2020 Vietnam’s labor output per hour was only US$6.4, less than half of Thailand’s $14.8 and just a 10th of Singapore’s $68.5.
These figures have sparked heated debate since their release, with some casting doubts on their accuracy and others claiming they reflect the country’s workforce.
Nguyen Quoc Viet, deputy director of the Vietnam Institute for Economics and Policy Research, believes that labor productivity figures do not accurately reflect a workforce’s competitiveness or potential. Nevertheless, he acknowledges that the quality of Vietnamese workers is average or even low. Since the country has only recently shifted from agriculture to industry, unprofessional mindsets and habits persist, he explains.
Phan Duong
