Today: 26/02/2021 07:20:54 (GMT+7)

Digital economy expected to increase labour productivity

Vietnam needed to invest in the digital economy and seize the opportunities it provided to improve labour productivity.

The information was released at the annual Vietnam economic evaluation report released by the National Economics University on April 20. The annual report aims to provide an overall evaluation of the economy and prospects for upcoming years.

Digital economy, labour productivity, economic evaluation report,  economy and prospects,  important role, manufacturing and processing industry

Many firms would have been forced to close down if there were no electronic transaction floors or online distribution channels amid Covid-19.

The report showed that the digital economy could contribute 7 to 16.5 percent a year to labour productivity growth from 2020-30. This means the digital economy could play an important role in the productivity and effectiveness of the economy.

Researchers from the university said the digital economy would influence the productivity of sectors relating to science and technology, finance, banking, insurance, real estate and information.

It was forecast that the industrial and construction sector would contribute 56 percent to the country’s labour productivity growth in the next decade. Of which, the manufacturing and processing industry would take the lead for labour productivity growth in the country.

Prof Tran Tho Dat, chairman of the university’s council and a member of the Prime Minister's Economic Advisory Group, said this was the first research in Vietnam to quantify the impacts of the digital economy on labour productivity, whilst looking towards 2030.

The report includes research from both official and unofficial economic sectors as well as household businesses. In addition, it also looked at the impacts of Covid-19 on the economy and policy suggestions in response to the pandemic.

To Trung Thanh, head of the university’s Science Management Department and co-editor of the report, said the main message of the publication was that in the context of the economy being hit by big shocks like Covid-19, it was time to review the foundations of the economy. It would be an opportunity to restructure, he added.

Labour productivity in Vietnam was at a very low level and increasingly lagging behind other countries in the region and around the world. Incentives for productivity growth had also been exhausted and ineffective.

It was the reason that digital economy would be an opportunity for improving labour productivity, thus achieving sustainable development and at the same time withstand shocks from the outside.

Nguyen Kim Hung, deputy head of the Science Institute on Small-and-medium Enterprises Management (SISME), said Covid-19 had hit production and business activities, especially the tourism, transport and restaurant sectors. Of which, many companies had seen a sharp decline in turnover and zero profit. In the first quarter of the year, 35,000 more businesses halted operations than new operations were established.

However, Hung said it was time to screen more qualified businesses and help them change management and business methods using a digital transformation platform.

Do Hoai Nam, chairman of UPGen Vietnam, said Vietnam was hard to compare with other countries in terms of science and technology, but it had a pretty big market.

Digital platforms have contributed an important part to creating a favourable business environment, especially in technology services such as map apps and website design, he said.

Online sales revenue of some supermarkets in Hanoi had increased by 20 percent amid the Covid-19 outbreak. Specialists in the e-commerce sector said many firms would have been forced to close without electronic transaction floors such as Tiki, Lazada and online distribution channels.

Vu Tu Thanh, deputy regional managing director of the US-ASEAN Business Council in Vietnam, said the Government should manage companies doing business on digital platforms based on the number of transactions, then calculate the benefit sharing ratio of said parties. This would form the basis to calculate taxes, fees and the responsibilities of related parties.

Recruitment in tech sector grows with digital transformation
A survey on salary by Robert Walters said that recruitment in Vietnam posted growth last year. The technology sector continued to grow rapidly, while industrial enterprises continued to promote digital transformation. The manufacturing industry also showed a great demand for talents as many companies shifted production to Vietnam.
ASEAN launches Cultural Heritage Digital Archive Website
The ASEAN Secretariat launched the ASEAN Cultural Heritage Digital Archive (ACHDA) website at a ceremony at the Secretariat’s headquarters in Jakarta on February 27.
Singaporean outlet names Vietnam fastest growing digital economy
Vietnam is the fastest-growing digital economy in the region, largely due to investment inflow which is still on an unprecedented rise, The Business Times has reported.
PM signs directive to promote digital enterprises
Prime Minister Nguyen Xuan Phuc has signed a directive to promote the development of digital enterprises in Vietnam with a target of developing 100,000 tech firms by 2030.
Documents on national e-doc platform are required to be digitally signed
Deputy PM Vu Duc Dam has ordered that all documents sent and received on the national electronic document exchange platform must be digitally signed and authenticated in line with a circular on the use of digital signatures in government agencies.

Source: VNA

Digital economy, labour productivity, economic evaluation report, economy and prospects, important role, manufacturing and processing industry
New comment has just been added. Click here
Sort:NewBest News