THE PRIMEMINISTER | | THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness |
No. 07/CT-TTg | | Hanoi, February 4, 2020 |
DIRECTIVE
On solutions to improve national labor productivity[1]
After over 30 years’ renewal under the Party’s leadership and the Government’s direction and administration, with great efforts of the entire political system, business community and people throughout the country, Vietnam has successfully escaped the state of underdevelopment and become a middle-income country. The size and potential of the national economy have remarkably grown, international integration has become wider and profounder, social security and welfare have been ensured and people’s income and living standards have been increased.
In the course of national development, labor productivity is decisive to improving competitiveness of the entire economy and every enterprise. Improving labor productivity is key to rapid and sustainable development. Over the recent years, Vietnam’s labor productivity has seen remarkable improvements which, however, do not match expectations. The country’s labor productivity by purchasing power parity (PPP) remains moderate compared to some ASEAN countries.
To address the above limitations and successfully realize the National Assembly’s Resolution No. 24/2016/QH14 dated November 8, 2016, on the Plan on economic restructuring during 2016-2020, and Resolution No. 05-NQ/TW dated November 1, 2016, of the 4thplenum of the Communist Party of Vietnam Central Committee (the 12thNational Congress), on a number of major undertakings and policies to further renew the growth model and improve growth quality, labor productivity and competitiveness of the economy, the Prime Minister requests ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees to base themselves on their assigned functions and tasks to direct synchronous and effective realization of major reform guidelines to increase the country’s labor productivity, including organization of a network and improvement of state administration capacity, national competitiveness and business environment; acceleration of the shift of labor from agriculture to industry and services, especially from labor of low added value to that of higher added value; reform of finance and banking sector, giving priority to capital flows into fields of higher productivity; radical reform of state enterprises and provision of greater support for the private economic sector, particularly innovative startups; selective attraction of foreign direct investment; and continued intensive international integration. To concentrate on synchronously and effectively implementing the following solutions:
1. The Ministry of Planning and Investment
a/ To work out a plan on launching the “National labor productivity” movement; to choose a number of fields and localities for pilot implementation of the program on improvement of labor productivity before multiplying successful models to the entire economy.
b/ To formulate a national strategy for development of technology enterprises, with priority given to digital-technology and hi-tech enterprises engaged in engineering, innovation and manufacture in Vietnam, then submit it to the Prime Minister in 2020.
c/ To formulate a strategy for attraction of foreign investment capital in support of improvement of national labor productivity, then submit it in September 2020 to the Prime Minister for consideration and decision.
d/ To formulate a strategy to encourage and support private enterprises to reach the regional and global markets, then submit it to the Prime Minister in 2020.
dd/ To direct accelerated implementation of the Prime Minister’s Decision No. 999/QD-TTg of August 12, 2019, approving the Scheme on promotion of sharing economy.
2. The Ministry of Science and Technology
a/ To study and work out a general plan on improvement of labor productivity on the basis of science, technology and innovation, then submit it in October 2020 to the Prime Minister for consideration and approval.
b/ To formulate a national program on support for enterprises to improve productivity and quality of their products and goods through 2030, then submit it in June 2020 to the Prime Minister for consideration and decision.
c/ To study and formulate a scheme on attraction of social resources for investment in scientific, technological and innovative activities, especially from enterprises, then submit it in August 2020 to the Prime Minister for consideration and approval.
d/ To expeditiously implement productivity projects of the Asian Productivity Organization (APO), particularly projects on certification of productivity experts, and participate in APO’s outstanding projects; to formulate and implement a research project on productivity improvement in the course of economic restructuring.
3. The Ministry of Industry and Trade
a/ To review, study and improve e-commerce institutions; to concentrate on developing manufacture of products of high added value and export value with application of high and automation technologies, while gradually reducing sectors that use large volumes of natural resources and minerals and employ unskilled labor.
b/ To devise solutions for improving labor productivity in industry and trade sectors, deeper joining in and upgrading stages with higher added value in the global value chain, focusing on processing and manufacturing sectors with a view to shifting labor from agriculture to high-value industry; to shift labor within the industry sector from labor-intensive production to technology-based production of goods of high added value.
c/ To continue stepping up the implementation of the Plan on industrial restructuring during 2018-2020, with a vision toward 2025, which was approved by the Prime Minister under Decision No. 598/QD-TTg of May 25, 2018; to concentrate on implementing solutions to improve industrial competitiveness and narrow down the industrial competitiveness gap between Vietnam and the ASEAN-4 countries; to increase proportions of hi-tech industries and improve the role of the private economic sector in processing and manufacturing industries.
d/ To formulate a program on improvement of productivity and quality of products and goods of the manufacturing industry through 2030, then submit it to the Prime Minister in October 2020.
4. The Ministry of Agriculture and Rural Development
a/ To adopt policies to restructure agriculture associated with building of a new countryside, and renovate the structure of crops and livestock to suit practical conditions, meet market demands and adapt to climate change.
b/ To step up industrialization of agricultural production in the stages of production, processing and marketing of products.
c/ To intensify the application of scientific advances, particularly biotechnology, to serve agricultural development.
5. The Ministry of Education and Training
a/ To expeditiously finalize and submit to the Prime Minister for promulgation a plan on implementation of the Communist Party of Vietnam’s Secretariat’s Conclusion No. 51-KL/TW dated May 30, 2019, on further implementation of the Resolution of the 8thPlenum of the Communist Party of Vietnam’s Central Committee (the 11thNational Congress), on substantial and comprehensive reform of education and training.
b/ To review and improve policies to develop non-public training institutions to suit global trends, and prioritize investment in development of training in a number of important sectors and occupations, particularly those with great impacts on socio-economic development and planning of national development policies.
c/ To study and develop as soon as possible the network of high-quality higher education and vocational education institutions; to set standards for and step by step build an open educational system.
d/ To expeditiously plan and organize the education system associated with socio-economic development master plans; to raise efficiency of scientific research and technology transfer in education institutions, and closely combine research with training in service of production, business and international cooperation.
6. The Ministry of Labor, Invalids and Social Affairs
a/ To expeditiously perform tasks assigned under the Government’s Resolution No. 107/NQ-CP dated August 16, 2018, on the Government’s Program of Action to implement Resolution No. 27-NQ/TW dated May 21, 2018, the 7thPlenum of the Communist Party of Vietnam’s Central Committee (the 12thNational Congress), on reform of salary policies toward cadres, civil servants, public employees, personnel of armed forces and employees of enterprises.
b/ To improve policies to encourage enterprises to participate in vocational education activities; to continue implementing vocational education training and evaluation programs and methods, associating training with enterprises, labor-employing units and sustainable employment; to step up training and retraining of workers and training of high-quality technical workers capable of participating in smart production and business based on modern technologies.
c/ To study and propose to the Government or Prime Minister policies to improve quality of operation of job placement centers; to concentrate on effectively making forecasts and providing information about the labor market, and connecting labor supply and demand; to improve effectiveness of unemployment insurance policies.
7. The Ministry of Information and Communications
a/ To speed up the improvement of institutions on building and development of the e-government; to urge complete development of national databases that need to be completely developed first under the Prime Minister’s Decision No. 714/QD-TTg dated May 22, 2015, promulgating the list of national databases that need to be developed first; to establish platform information systems to serve the development of the e-government.
b/ To step up the national digital transformation in order to improve labor productivity and promote socio-economic development, including comprehensive digital transformation in operation of enterprises, key sectors, state agencies and activities of the people, and develop platform elements to facilitate national digital transformation.
c/ To connect information and communications technology (ICT) enterprises with agriculture and forestry enterprises in creating and applying new technologies to their production and business operations with a view to improving labor productivity.
d/ To direct public information and communication to raise awareness and sense of responsibility of the entire population about/for improvement of labor productivity.
8. The Ministry of Finance
a/ To step up the formulation and improvement of policies on restructuring of the state budget according to its tasks assigned under the Government’s Resolution No. 27/NQ-CP of February 21, 2017, promulgating the Government’s Program of Action to implement aforesaid Resolutions No. 05/NQ-TW and No. 24/2016/QH14.
b/ To step up the improvement of the framework of financial and state budget institutions so as to take advantage of Vietnam’s position in the ASEAN market and opportunities brought about by free trade agreements (FTA) for efficiently attracting foreign direct investment and promoting improvement of labor productivity and economic restructuring.
c/ To actively restructure the financial market under aforesaid Resolution No. 05/NQ-TW.
d/ To improve the legal framework regulating the financial and financial services market in order to enhance the State’s macro-regulation and effectively supervise activities on the market; to promote in-depth development of the system of financial markets on the basis of diversifying financial institutions and commodities on the financial market.
dd/ To adjust existing financial mechanisms and policies and formulate new ones in conformity with provisions and multilateral, regional and bilateral commitments as well as Vietnam’s socio-economic conditions; to take the initiative in making policies on effective and consistent financial integration based on commitments on financial integration level and schedule.
e/ To cut Vietnam’s import tariffs under schedules committed in the concluded FTAs between ASEAN - China (2020), ASEAN - the Republic of Korea (2021), ASEAN - Australia - New Zealand (2022), ASEAN - India (2024), ASEAN - Japan (2025), Vietnam - Japan (2026), Vietnam - Eurasian Economic Union (2027), Vietnam - Chile (2029), Vietnam - the Republic of Korea (2029), and CPTPP; to prepare Vietnam’s import tariff cut schedules in the FTAs for which negotiations have been completed or which have been concluded but not yet come into force and are about to be implemented.
9. The State Bank of Vietnam shall continue reviewing and evaluating the implementation of solutions to concentrate credit facilities on production and business fields, particularly prioritized ones as specified by the Government, directing capital flow into high-productivity fields and facilitating access of enterprises and people to bank loans.
10. The Ministry of Home Affairs
a/ To expeditiously reform the salary policies for cadres, civil servants, public employees and personnel of armed forces (public sector) according to its tasks assigned under the Government’s Resolution No. 107/NQ-CP dated August 16, 2018, on the Government’s Program of Action to implement Resolution No. 27-NQ/TW dated May 21, 2018, of the 7thPlenum of the Communist Party of Vietnam’s Central Committee (the 12thNational Congress), on reform of salary policies for cadres, civil servants, public employees, personnel of armed forces and employees of enterprises.
b/ To assume the prime responsibility for, and coordinate with related ministries and agencies in, reviewing and improving mechanisms and policies to attract and employ talented people and high-quality human resources.
c/ To direct accelerated retraining and improvement of professional skills of cadres, civil servants, public employees and workers to be fully qualified for operation of e-administrations.
11. The Commission for the Management of State Capital at Enterprises
a/ To accelerate the reorganization of groups and state corporations under the Commission and enterprises under the State Capital Investment Corporation as appropriate to their governance and administration capacity in order to raise their operation efficiency and competitiveness in a number of leading sectors and fields and bring into play their comparative advantage.
b/ To study and implement the scheme aimed at developing every group or state corporation into an innovation center.
c/ To review, and propose amendments and supplementations to, mechanisms and policies to ensure autonomy of state enterprises in their production and business operations under market rules and corporate governance up to modern standards.
12. The Vietnam General Confederation of Labor
a/ To direct trade union organizations at all levels in proactively coordinating with employers in carrying out communication among trade union members and other employees in order to raise their awareness about their benefits from and responsibilities for improving labor productivity; to further step up the effective deployment of emulative movements “outstanding work, creative work” in enterprises and “good advices, good services” in administrative and non-business units; to bring into full play the role and intellect of trade union members so as they come up with initiatives and innovations to improve production processes and apply scientific and technological advances for improving labor productivity. To focus on implementing the program titled “Vietnamese Trade Union assists the Government in improving national competitiveness and promoting sustainable national development during 2019-2023”.
b/ To take the initiative in coordinating with the Ministry of Labor, Invalids and Social Affairs in drafting legal documents detailing the 2019 Labor Code and organizing the implementation of labor policies.
13. The Vietnam Chamber of Commerce and Industry and business associations
a/ The Vietnam Chamber of Commerce and Industry shall assume the prime responsibility for launching and organizing the national productivity movement among enterprises in order to encourage enterprises to improve their productivity through better corporate governance, digital transformation, business model and technological renewal, and upgrading in value chains, etc.
b/ Business associations shall actively respond to the national productivity movement among enterprises and continue to lead and support enterprises in improving their labor productivity.
14. The Vietnam Cooperative Alliance shall, within the ambit of its functions and tasks, intensify the implementation of solutions to renew and develop, and raise operation efficiency of, collective economy and cooperatives; focus on renewing training and further training of human resources; build and multiply cooperative economy models and new-style cooperatives capable of joining in domestic and global value chains; apply scientific and technological advances to production and business operations to improve labor productivity of the cooperative economic sector and cooperatives.
15. Ministries, sectors and provincial-level People’s Committees
a/ To step up institutional reforms, raise effectiveness of state administration, improve the business environment and infrastructure system, reform administrative procedures, and create favorable conditions for enterprises to develop and improve their labor productivity. For a number of fields, to allow application of models of trial implementation of legal institutions and policies within specified scope and periods of time.
b/ To implement economic policies on tax and credit incentives for enterprises that use hi-tech and modern production lines; to encourage enterprises to invest in renovation, innovation, application of sciences and technologies in production and deeply participate in global value chains with a view to improving productivity, especially with policies to support early application of automation and investment in automation technology and digital infrastructure facilities in order to grasp opportunities brought about by the Fourth Industrial Revolution.
16. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and heads of related agencies and units shall organize and direct the implementation of this Directive.-
Prime Minister
NGUYEN XUAN PHUC
Vietnamese
Directive 07/CT-TTg DOC (Word)
Directive 07/CT-TTg PDF (Original)
