Thanks to noticeable improvements in recent times, Vietnam has been considered a high labour productivity growth country in ASEAN. However, the country’s labour productivity still remains low. Experts said Vietnam should focus on improving productivity to boost the economy and overcome the middle income trap.

During 2016-2018, Vietnam’s labour productivity climbed an average of 5.75 percent a year. The high growth has helped the country become a nation which has the highest labour productivity growth in ASEAN. However, experts said the growth is unsustainable. Over the past years, labour density in agriculture, forestry and fishing dropped from 55.1 percent to 44 percent. This is a high figure compared to other countries in the region. Increased productivity is vital to Vietnam’s GDP growth. It contributes 89 per cent of GDP this year, up from 66 per cent in the 1990-2000 period, and 61.9 per cent in the 2000-2012 period. Experts have said improving productivity is a crucial requirement for Vietnam. Boosting labour productivity is an essential condition for the country to achieve its target to become a middle income country in 2035./.