Improve labor productivity at enterprises: Management model innovation

Enterprises have a particularly important position in the economy, are the main part to create the gross domestic product (GDP). However, for many reasons, including weak governance models, outdated labor skills and production technology, inequal business environments are considered the main drivers of low labor productivity at enterprise.

Have a lots of restrictions

According to the report of the Ministry of Planning and Investment at the National Conference on Improving Labor Productivity (labor productivity) in 2019, labor productivity in non-state enterprises reached the lowest. On the other hand, the gap in labor productivity of state-owned enterprises, FDI enterprises and non-state enterprises is widening. The main reason leading to low labor productivity of non-state enterprises compared to other types of enterprises is the low level of workers, the business environment and the market economy institutions still have the inequality between types of enterprises that foreign companies are most affected.

These obstacles have affected the labor productivity of non-state enterprises as well as the entire enterprise sector in our country. In addition, the majority of non-state enterprises are small-scale enterprises, thus limiting improving labor productivity due to difficulty in accessing and applying technology in production, limited access to official credit, lack of skilled labor. power. At the same time, it is difficult to participate and learn from the value chain led by FDI enterprises, which cannot exploit the economic efficiency thanks to the advantage of scale.

Meanwhile, foreign investment enterprises in the past period have always had a positive impact on improving labor productivity through these enterprises bringing advanced production technology and management into domestic investment. However, according to the World Bank’s 2017 Report, the proportion of FDI enterprises using raw materials as domestic inputs in Vietnam reached 67.6%, much lower than some countries such as: China ( 97.2%); Malaysia (99.9%) or Thailand (96.4%).

Solutions for businesses

Before finding solutions for businesses, according to economic experts, first of all, the Government should continue to promote institutional reforms, improve the efficiency of state governance, and improve the business environment and infrastructure. , reforming administrative procedures, creating favorable conditions for businesses to develop. The Government, ministries, branches and localities need to determine the creation and implementation of policies to improve labor productivity is the most important solution in promoting competitiveness and sustainable growth of the economy.

Meanwhile, businesses need to determine business strategies suitable to the actual situation and forte, financial capacity of enterprises. Selecting appropriate scale, developing new products with added value and high technology content. At the same time, businesses need to renew their thinking to improve productivity, quality, operational efficiency through the application of advanced management technologies in the world that are adjusted to suit the characteristics and culture of the Vietnam business.

In addition, Vietnamese enterprises need to have a strategy to improve labor productivity through focusing on growth based on knowledge and technology. Enterprises need to focus on investing in improving scientific and technological capacity and innovating, applying advanced technology, promoting the development of production and business solutions based on digitalization, integration of advanced technology. progress to simplify the production process, shorten time, eliminate waste in the production process but still ensure the ability to manage, product quality, innovate the corporate governance model to improve labor productivity and business efficiency of enterprises.

Enterprises need to improve the quality and innovate their management and administration measures as well as improve their management capacity and skills; dynamic, creative looking for new, effective working methods, timely grasping the needs of domestic and international markets.

Enterprises need to improve the quality and innovate their management and administration measures as well as improve their management capacity and skills; dynamic, creative looking for new, effective working methods, timely grasping the needs of domestic and international markets.

Productivity and Quality Office