Hanoi (VNS/VNA) - Vietnam will launch a national programme to improve labour productivity, a critical factor for the middle-income country to enhance its competitiveness and develop.

This was highlighted in a directive Prime Minister Nguyen Xuan Phuc issued recently.

Labour productivity is a decisive factor for the economy’s and every enterprise’s competitiveness and Vietnam's is modest compared to other countries in ASEAN.

Several strategies and plans will be developed to boost labour productivity via the programme.

PM Phuc asked the Ministry of Planning and Investment to develop a plan to implement a national labour productivity campaign to boost national competitiveness.

A pilot programme of accelerating productivity will be held in several selected sectors and localities before being implemented nationwide.

A national strategy for developing technology enterprises would also be developed and proposed to the Government this year, with a focus on developing digital, hi-tech and innovation enterprises.

Besides, foreign direct investment (FDI) attraction strategy must create a boost to labour productivity, the PM said.

He also asked the ministry to develop a strategy to encourage private firms to extend their reach to regional and global markets.

The Ministry of Science and Technology would be in charge of developing a master plan to boost productivity based on science, technology platforms and innovations, together with a national programme about supporting enterprises to improve productivity and product quality.

The ministry must also raise measures to attract resources and investments in science, technology and innovation, especially from private firms.

In addition, the Ministry of Industry and Trade will raise measures to boost the development of e-commerce and focus on developing products with higher added value in the global value chain, especially of the manufacturing and processing industry, to create a transition of labour from agriculture to industry.

Within agricultural production, the transition from labour-based to technology-based production would be encouraged. The industrialisation of agricultural production must be strengthened, the Government leader asked.

Notably, the decree stressed accelerating national digital transformation would also be critical to enhancing labour productivity, which would include the development of e-government and national databases.

Opportunities from free trade agreements must be grasped to attract FDI, improve productivity and promote the transition of the economic structure.

In addition, credit policies will focus on production and business and direct the flow into sectors with high value.

Salary policies would be reformed to attract talents, according to the decree.

Institutional reforms and improving State management efficiency, business climate, infrastructure systems must be hastened to create the best conditions for businesses.

Statistics from the Asian Productivity Organisation showing that the per-hour labour productivity level of Vietnam was 5.2 USD, higher than Cambodia and Myanmar, but lower than Laos.

Vietnam’s labour productivity was equivalent to just 8 percent of Singapore's and 35.86 percent of Thailand's./.