Monday, 16/03/2015 13:41

Innovation needed to increase productivity

Enterprises should standardise their administrative methods, innovate technology and train their employees to optimise production and enhance labour productivity.

 

Average labour productivity in Viet Nam is half that of ASEAN, according to an official who spoke at a conference on production and productivity optimisation held in Ho Chi Minh City last week.

The conference was organised by the Business Association of High Quality Vietnamese Products, the Leading Business Club (LBC) and the Centre of Business Studies and Assistance.

In 2014, labour productivity in the textile and garment sector averaged US$1.5 per hour, while Thailand's and Indonesia's were $3 per hour, according to HR company Le & Associates (L&A).

A survey of 100 Vietnamese enterprises showed that 85 per cent do not regularly update or improve their processes. Ninety-eight per cent spent less than 48 hours per year training employees.

Ngo Dinh Duc, general director of L&A, said changes in administration were critical during this period of integration in the business community.

Along with administration, innovation could enhance labour productivity, Duc said. In term of industrial producing process, enterprises should focus on durability of machines and equipment, and making sure workers could operate the machines. 

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