Vietnam does well, but...

Citation

(2008), "Vietnam does well, but...", International Journal of Productivity and Performance Management, Vol. 57 No. 4. https://doi.org/10.1108/ijppm.2008.07957dab.004

Vietnam does well, but...

Article Type: News From: International Journal of Productivity and Performance Management, Volume 57, Issue 4.

2007 saw Vietnam post an economic growth rate of 8.5 per cent high in comparison with regional and world trends. Contributing to this growth were value-added increases in the agricultural-forestry-fishery sector (3.5 per cent), the construction and industrial sector (10.6 per cent), services sector (8.7 per cent), imports (20.5 per cent) and exports (27 per cent).

At the Consultative Group meeting in December, the World Bank’s Vietnam director Ajay Chhibber said economic development was impressive and there should be deeper research into the nation’s development story so other countries could learn from the poverty reduction process.

In macro-economic regulations, the Vietnamese Government has paid special attention not only to the acceleration of growth, but also its quality and efficiency. However, some problems have arisen.

Low social labour productivity is a big weakness. Under a 2001-2005 research paper published by the Vietnam Economics Times, Vietnam’s productivity equals only 1.6 per cent of that of the USA, 2.35 per cent of Singapore, 28.73 per cent of Thailand and 63.37 per cent of Indonesia.

Social labour productivity depends on the sectoral productivity and economic restructuring. Eastern Asian countries have succeeded in industrialisation by rapid economic restructuring, reforming technologies and boosting social labour productivity.