return icon

Productivity of private sector ranks lowest: report

The state-owned economic sector ranks first in terms of productivity, followed by foreign invested companies. The productivity of the private sector is the lowest.

The General Statistics Office (GSO) has released a report about the productivity of enterprises of different economic sectors in 2017. If calculating in accordance with current prices, the average productivity is VND298.7 million per worker.



The productivity of state-owned enterprises (SOEs) is VND678.1 million. It is VND330.8 million for FIEs, and VND228.4 million for non-state economic sector.

The General Statistics Office (GSO) has released a report about the productivity of enterprises of different economic sectors in 2017. If calculating in accordance with current prices, the average productivity is VND298.7 million per worker.

Mining has been leading in terms of productivity for many years.

Bui Trinh, an economist, noted that the productivity of mining, electricity production and distribution, and real estate trading is15.9-19 times higher than the average productivity of the whole economy.

The mining sector has the highest productivity because this is a special industry and the value of products includes value of natural resources.

Commenting about the high productivity of SOEs, VEPR Institute pointed out that this is not because SOEs perform better or have outstanding features, but because they can access preferences in capital and technology and enjoy a monopoly.

Mai Duc Chinh, former deputy chair of the Vietnam Labor Union, also said SOEs’ productivity is high because the enterprises have advantages in resource allocation, especially natural resources.

As for the foreign invested economic sector, analysts say, though the capital use efficiency of the sector is high, its contribution to the national economy remains modest.

FIEs are the major driving force for Vietnam’s exports as most exports are from FIEs. However, analysts said the exports mostly benefit foreign countries.

The average GDP growth rate in 2007-2017 if calculating based on current prices is 22 percent, while the cash outflow is 32 percent, which means that the ratio of GNI to GDP decreased from 97.2 percent in 2000 to 95.2 percent in 2017. So, while the GDP has increased, the country’s resources have been lost.

Chinh said FIEs make up 70 percent of total exports, mostly from Samsung and some large corporations. However, the proportion of locally made input materials that enterprises use is much lower than in other regional countries.

Meanwhile, the private sector comprises small and micro enterprises, uses backward technology and has low management level. The economic sector has only received support from the state in recent years.

Mac Van Tien from the Ministry of Labor, Ward Invalids and Social Affairs (MOLISA) noted that though the state-owned economic sector has the highest productivity, it still incurs losses in many business fields, especially in power, petroleum and minerals.

Thanh Lich


Raising labour productivity is the key in development

Raising labour productivity is the key in development

Nguyen Bich Lam, director general of the General Department of Statistics, talks to Việt Nam News Agency about measures to improve labour productivity.

Intra-industry productivity rise essential to boost efficiency

Intra-industry productivity rise essential to boost efficiency

Vietnam’s labour productivity remains low, making it difficult for firms to perform. Nguyen Bich Lam, general director of the General Statistics Office, talked about what is needed to foster a competitive labour force in the country.


Boosting international railway transport investment

The initial successes of the railway container transport network from Vietnam to Europe have inspired engagement with the international railway network.

Entertainment and cultural events of the week (November 28-December 4)

Upcoming entertainment and cultural events in Vietnam's major cities on November 28-December 4.

Wood manufacturers on alert for unpredictable new year prospects

While the United States is nearing a stance on imported wood that will affect Vietnam, domestic producers are being urged to modernise to survive.

Planning and Investment Ministry releases round-up of business results

The Ministry of Planning and Investment (MPI) has just released the Enterprises White Book 2022, which confirmed the ratio of loss-making foreign-invested enterprises (FIEs) is much more than other sectors.

Putting Vietnamese silk on the world map

VN has a long tradition of silk production and silk weaving. However, the Vietnamese silk brand is faint on the world map, a silent shadow behind foreign big brands.

Facilitating capital flows

Vietnam’s stock and property markets are struggling with volatile capital flows. If the situation is not properly tackled, dire consequences would be unavoidable.

Young singers entertain fans with new content

Young Vietnamese singers have been busy bringing new music content to audiences from now to the year end.

PM inspects infrastructure projects in HCM City

PM Pham Minh Chinh on November 27 inspected a number of infrastructure projects in HCM City, including the expansion of Binh Hung waste treatment plant, the construction of Ben Luc-Long Thanh expressway and the upgrading of National Highway 50.

Tiny traditional houses provide cultural model

To teach future generations about the symbolic meaning of the traditional house, an artisan in Plei Kte Village in the central province of Gia Lai has weaved many miniature communal houses from bamboo wicker.

Authentic Korean flavour in Hanoi

Dalgoogi Makchang is located in the Nam Trung Yen urban centre in Cau Giay District, which is dubbed as “little Korea”, about 10km from central Hanoi.


Vietnam, UK yet to tap potential of trade deal

Vietnam’s products make their brands

Vietnam is considered one of Southeast Asia’s most booming high-end product markets, worth nearly US$1 billion. Recent years have seen the domination of foreign products through official agents and hand-carried goods.

Van Long Lagoon in pristine beauty

As the largest wetland nature reserve with imposing mountain ranges amid a vast lake, Van Long Lagoon in Ninh Binh Province has been recognized as “the largest natural picture in Vietnam” by the Vietnam Book of Records.


NA Standing Committee to consider important issues at 17th session

UN official visits Vietnam Department of Peacekeeping Operations

UN Under-Secretary-General for Peace Operations Jean-Pierre Lacroix on November 26 visited the Vietnam Department of Peacekeeping Operations as part of his visit to Vietnam.