The root of the problem

(Baonghean) - What makes the difference and the gap between economies and countries in today's world is labor productivity (LP). And what makes the national economy fall into a situation where revenue is not enough to cover expenses and that we have to borrow, causing public debt to increase, is also partly due to LP. That is because our LP is too low compared to the general level in the world and in the region, leading to the reality that we consume more than what we produce.

Saying that does not mean that our people are lazy, but on the contrary, the working time of Vietnamese people is among the highest in the world, but the results are not high. The low results of labor are because manual, simple labor, using human power instead of machines is still popular. Currently, agricultural labor and freelance labor in Vietnam still account for more than 60% of the total employed labor force. Meanwhile, labor working in high-end manufacturing and service industries that create added value in Vietnam is still low. The rate of trained labor with degrees and technical certificates accounts for less than 20% of the total labor force. Workers lack knowledge and skills in using new technology and equipment. Most workers in export processing zones and industrial parks in our country go straight from the fields to factories and enterprises. Workers in rural areas just follow their predecessors, without any training, so low productivity is natural.

Recently, people have compared our labor productivity with that of other countries in the region and found that we are at the bottom of the list. It is not difficult to understand that workers in other countries work with machines, while our workers mostly work with their hands and feet. It is like a person walking on two legs and a person riding a motorbike or car. Of course, a person using mechanical means will achieve speed and efficiency better than a person without means. It has been calculated and shown that a country's labor productivity is affected by all three factors: capital density per unit of labor, labor quality, and total factor productivity. Capital density per unit of labor is the tools, means, machinery, and equipment provided to workers. A worker with many supporting machines and equipment will create more added value than a worker with fewer tools...

In 2012, Vietnam's capital density was only about 1/17 of Singapore or the US, 1/10 of South Korea, and 2/5 of China. Therefore, it is obvious that our country's labor productivity is far inferior to theirs. Without much access to modern equipment and facilities, and without much support from machinery, the three factors that make up labor quality cannot be high in terms of qualifications, skills, and health. Therefore, our labor quality is still considered low compared to many countries in the region. However, the difference in labor quality only contributes partly to the difference in labor productivity between Vietnam and other countries. The factors that play a more decisive role are capital density and total factor productivity. Total factor productivity is the level of technology and factors affecting the efficiency of the economy such as law, economic institutions, coordination capacity, business environment, macroeconomic stability, economic restructuring, urbanization...

Regarding this factor, I would like to quote the exact words of Mr. Vu Khoan, former Deputy Prime Minister in an article on this issue: "The 4th Congress held nearly 40 years ago, the scientific and technological revolution was identified as the key step, but it seems that it is not yet; our economic growth still mainly relies on the addition of capital and labor. And furthermore, nowadays, everywhere we see talk about "institutional innovation", but we rarely hear high-level ideas about fundamental and comprehensive innovation of institutions related to science and technology so that scientists and producers and businesses can connect and closely connect with each other, both sides "want" and "can" to bring modern machinery and scientific and technological achievements into production and business. To put it another way, in fact, there have been this institution and that institution, and there have been many "strategies" to develop this industry and that product, but it seems that the mechanisms and policies put forward have not yet become enough of a push. strong enough to generate a lot of fresh money, real rice..”

Through this, it can be seen that low labor productivity is the fundamental weakness of our country's economy. Therefore, to enhance the strength of the economy, it is impossible not to improve labor productivity, because "In the end, labor productivity is the most important and essential thing for the victory of the new social regime" (Lenin). Referring to the current situation, it can be understood that the cause of national renewal, the cause of industrialization and modernization of the country is successful and turns our country into an industrialized country in a modern direction or not..., all depend on whether labor productivity can be improved or enhanced or not. There is a rather inappropriate thing that in the National Assembly forum or in other forums, people are excitedly discussing solutions to solve public debt and bad debt, but very little is discussed about how to improve labor productivity. Meanwhile, improving labor productivity is the most optimal and effective solution to solve public debt and bad debt.

Therefore, in this National Assembly session, the people's representatives should spend time thoroughly discussing this issue to have practical measures to revive this "most important, most essential thing"! Because labor productivity is the root to solve all problems of the economy.

Duy Huong