Labor productivity and brand value (Part 1)

When approaching the “value”, the brand’s approach (brand approach) should be used rather than the product approach.

Labor productivity is a vicious problem. High productivity, low selling prices due to not controlling the market, low profits, low wages, workers have to work harder, life is more miserable, etc.

And “product value” is the concept of market and marketing, market research and the need to make the right product with a high competitive advantage. It is the process of linking production – circulation – consumption, branding and distribution system, market ownership, product value increase and high profit.

Identify productivity and value

Businesses and policy makers should focus on clearly delineating three basic concepts: Cost (Production Cost) – Selling Price (Selling Price) – and Value (Product & Brand Values).

The lack of clarity between these 3 concepts has implications for the Vietnamese economy during the subsidy economy with outdated arguments that have been abandoned by the world. Basically marketing – the basic theory of a market economy, the same product can be sold at different prices (depending on the segment, depending on the time of sale) so the “value” varies. The same product has different brand values, so it can make a different profit and this doesn’t depend on the plant’s productivity or the productivity in the field.

Labor productivity – is a misleading definition because the “glorious labor” era that emphasized manual labor, rice agriculture and heavy industry, etc. The current productivity formula is Labor productivity = Total GDP / (Total population) is not essentially the Volume (Volume) but the Revenue (Revenue) a concept that goes hand in hand with value.

Firstly, the economic structure does not attach much importance to encouraging the share of high value products, such as processing of agricultural products and food, the content of gray matter in industry, or the high value segments in the global value chain.

Second, it is the passive in business from the business itself, and third, the important is the manipulation of large state-owned enterprises to make losses. For example, the shipbuilding + shipping industry has suffered for decades since Vinalines, Vinashin neglected more than 80% of the shipping market for foreign shipping lines. The garment and footwear industry, despite its large output, more than 80% of its production is processed with unit prices accounting for only 10-20% of the final value.

Market economy – that is marketing

Although it is possible to recognize the response and innovation from some localities, namely the recent Provincial Competitiveness Index (PCI) program such as Quang Ninh, Hue and Dong Thap; Some ministries and agencies have positive strategies and effects, such as agriculture and tourism. However, a clear lack of labor productivity (output) and product value (profits, surplus value) is a common mistake today.

Programs to convert “economic model” to privatization of SOEs, key infrastructure such as highways to be upgraded, Tan Son Nhat airport, seaports for the Mekong Delta, to increase the value of labor-intensive industries such as apparel, unnecessary payroll of social organizations, merger of state agencies, etc all proceed very slowly.

In recent conferences in Hue, Hue was called to be a high-tech, clean and beautiful city, and agriculture in Thua Thien Hue must be organic. These flows of thought, if really spread in a province, to people of every enterprise, large or small,… can persistently lead to a change in the whole local economy.

Marketing is a pure market language. But marketing often has many ideas and solutions that seem to be indirect or “irrelevant” such as communication, community activities, forums, etc. But it is sure and really effective, but effective. very broad thanks to the participation of the masses from product sales, sales distribution links, to cooperation to enhance value chains and growth solutions or investment connections.

Productivity and Quality Office