Objectives of the "National Program on increasing labor productivity until 2030" in Vietnam

Objectives of the "National Program on increasing labor productivity until 2030" in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On November 8, 2023, the Prime Minister issued Decision 1305/QD-TTg approving the "National program on increasing labor productivity until 2030".

Objectives of the "National Program on increasing labor productivity until 2030" in Vietnam

Specifically, in the "National Program on increasing labor productivity to 2030", the Prime Minister has set the following goals:

(1) General objective

By 2030, labor productivity will become an important driving force for rapid, sustainable growth, effectively taking advantage of the opportunities of the Fourth Industrial Revolution; including improving the quality of market economic institutions, improving the quality of human resources; and promoting regional connectivity; Science and technology development, innovation, and digital transformation are the main pillars.

(2) Specific goals

- The average labor productivity growth rate is over 6.5%/year, of which; the average labor productivity growth rate in the processing and manufacturing industry reaches 6.5 - 7.0%/year; the average labor productivity growth rate in agriculture, forestry, and fisheries reaches 7.0 - 7.5%/year; and the average labor productivity growth rate in the service sector reaches 7.0 - 7.5%/year.

- The labor productivity growth rate of key economic regions and 05 centrally run cities is higher than the national average labor productivity growth rate in the period 2023–2030.

- Strive to be in the group of 3 leading countries in ASEAN in terms of labor productivity growth rate by 2030.

- The proportion of enterprises with innovation activities increases on average 15%/year until 2025 and increases on average 20%/year until 2030.

- The rate of trained workers with degrees and certificates will reach 30% by 2025 and 35–40% by 2030.

- The proportion of workers working in the agricultural sector will reach less than 30% by 2020 and less than 20% by 2030.

- Increase the contribution of science - technology and innovation to growth in which the contribution of total factor productivity (TFP) will reach about 45% of GDP in 2025 and about 50% of GDP in 2030.

To develop and submit Law on Industrial Development to the National Assembly in 2024 in Vietnam

During the implementation phase of the "National Program on increasing labor productivity until 2030", the Prime Minister has proposed the following contents that need to be implemented by the Ministry of Industry and Trade:

- Continue to improve institutions and policies related to industrial development, shifting industrial structure to foundation industries, priority industries,
spearhead industry towards a strong national industry with new production capacity, autonomy, adaptability, and high resilience.

- Preside over the development of the Industrial Development Law and submit it to the National Assembly in 2024.

- Effectively implement the Project on restructuring the Industry and Trade sector for the period to 2030 issued in Decision No. 165/QD-TTg dated February 28, 2023.

- Preside over research and review of industrial development space structure; Complete institutions and policies on developing industrial clusters and strategies to improve competitiveness for domestic industrial enterprises.

- Perfecting institutions and restructuring the fields of e-commerce and logistics based on modern technology. Research, promulgate, and deploy new outstanding and highly competitive mechanisms and policies to promote the formation of a number of regional and international logistics centers.

To research and propose the establishment of the National Productivity Committee in Vietnam

Specifically, in the task of strongly promoting initiatives to increase labor productivity, the Prime Minister has requested to research and propose the establishment of a National Productivity Committee based on summarizing international experience and ensuring compatibility with Vietnam's practical conditions.

At the same time, carry out the following solutions:

- Carry out policy dialogue activities and share experiences on increasing labor productivity. Regularly exchange and dialogue with the business community, investors, and workers about requirements and barriers to improving labor productivity and recommend appropriate solutions.

- Develop a communication program to disseminate knowledge about productivity, productivity improvement, and typical experiences in productivity improvement at the national, local, enterprise, and community levels.

- Select a number of fields and localities to pilot the Program to promote increased labor productivity, thereby expanding it to the entire economy.

More details can be found in Decision 1305/QD-TTg, which takes effect from the date of signing.

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