DECISION

APPROVING NATIONAL PROGRAM FOR INCREASING LABOR PRODUCTIVITY BY 2030

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015; the Law dated November 22, 2019 on Amendments to some Articles of the Law on Government Organization and Law on Local Government Organization;

Pursuant to the Government’s Decree No. 39/2022/ND-CP dated June 18, 2022 promulgating working regulations of the Government;

Pursuant to the Government’s Resolution No. 01/NQ-CP dated January 08, 2022 on main tasks and solutions for the implementation of the socio-economic development plan and the state budget estimate in 2022;

At the request of the Minister of Planning and Investment.

HEREBY DECIDES:

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I. OBJECTIVES

1. General objectives

By 2030, labor productivity is expected to become an important driving force for rapid and sustainable growth, effectively taking advantage of opportunities from the fourth industrial revolution. Improving the quality of market economy institutions; increasing the quality of human resources; promoting regional linkage; developing science, technology, innovation and digital transformation are treated as key pillars.

2. Specific objectives

a) The average labor productivity growth is set to reach over 6.5%/year; the labor productivity in the manufacturing and processing industry is to grow 6.5-7%/year and that in the agriculture, forestry, and fisheries industry and the services industry 7-7.5%.

b) The labor productivity growth rates in key economic regions and 05 central-affiliated cities will be higher than Vietnam’s average labor productivity growth rate during the 2023-30 period.

c) Vietnam strives to be in the top 03 ASEAN countries in terms of labor productivity growth by 2030.

d) The rate of businesses involved in innovation activities is projected to be increased by an average of 15%/year by 2025 and average of 20%/year until 2030.

dd) The rate of trained workers with degrees and certificates will reach 30% by 2025 and 35 - 40% by 2030.

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g) The contribution of science, technology and innovation to the growth will be increased, in which the contribution of total factor productivity (TFP) will be around 45% of GDP by 2025 and around 50% of GDP by 2030.

II. PRIMARY TASKS AND SOLUTIONS

1. Maintain macroeconomic stability, promote economic restructuring associated with innovating growth models by way of science, technology, knowledge, innovation and high quality human resources to create a stable and sustainable foundation for increased labor productivity.

a) Consolidate and stabilize the macro-economy, control inflation, promote growth, sustain major balances of the economy with a view to quick recovery and sustainable development. Work towards solutions for improving the business and investment environment, improve the quality, efficiency and competitiveness of the economy.

b) Promote economic restructuring, innovate growth models, enhance the application of science and technology, promote digital transformation, develop the digital economy, improve the competitiveness and resilience of the economy.

c) Continue to promote industrialization and modernization by way of science, technology, innovation and technological achievements of the Fourth Industrial Revolution. Develop prioritized service industries, improve competitiveness and service quality according to international standards and practices.

d) Prioritize the development of high quality human resources to facilitate the industrialization and modernization of the country, especially in key industries and sectors to build a stable and sustainable foundation. Take advantage of technological advances to promote innovation and digital transformation in education and training to improve the quality of human resources.

2. Complete the legal framework, create a favorable environment to facilitate the innovation and development by enterprises; mobilize and effectively use all resources, both internal and external, to improve labor productivity.

a) Build a startup and innovation ecosystem in a sustainable and competitive manner; perfect institutions to promote entrepreneurship and innovation.

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c) Increase the attraction of foreign investment in industries with high added value; promote global production and supply chain linkages and connections; transfer of technology and exchange of management skills between foreign-invested enterprises and domestic enterprises.

d) Complete the policy on private sector involvement in scientific research, technology development and innovation activities; promote the policy to commercialize the results of technology research, development and innovation.

dd) Promote the investment and improve the efficiency in investment in education, training, vocational education and training, scientific research and application and technology transfer; careers guidance, entrepreneurship and innovation.

3. Encourage initiatives for labor productivity improvement

a) Select a number of industries and localities to pilot the Program for increasing labor productivity, thereby expanding it to the entire economy.

b) Conduct a study and propose the establishment of a National Productivity Committee by way of learning by international experience and ensuring compatibility with Vietnam's practical conditions.

c) Hold policy dialogues on and share experience in labor productivity improvement. Regularly hold discussion and dialogues with business communities, investors and employees about requirements and barriers to the increase in labor productivity, thus proposing appropriate solutions.

d) Design communications program to disseminate information about productivity improvement and relevant experience in productivity improvement at national, local, corporate and public levels.

4. Consistently implement measures to improve the quality of education, training and human resources

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b) Boost the efficiency in state management of education, training, vocational education and training; accelerate digital transformation and modernization of infrastructure and equipment, and innovation of training programs and methods; improve quality and open up opportunities for access to education and training, treat learners and teachers as the center of the digital transformation process. Closely associate education, training and vocational education and training with enterprises and labor market.

c) Conduct studies and promulgate policies to promote innovation activities and new education and training models based on digital platforms and technology; develop and execute programs to provide training for experts, high quality human resources and technical workers; mobilize the participation and develop a network of overseas Vietnamese consultants and experts for digital transformation in education and training.

d) Studying mechanisms and policies to generate motivation for increasing labor productivity in the public sector.

5. Vigorously develop research, development and application of science and technology, innovation and digital transformation

a) Focus on integrating solutions to increase labor productivity into programs, mechanisms and policies to build digital government, digital economy and digital society.

b) Develop the science and technology market, encourage the formation of an innovation ecosystem; carry out extensive digital transformation in each industry, each field, and each enterprise.

c) Build and develop innovation capacity suitable for each stage of development; promote the role of the National Innovation Center, create an enterprise-centered National Innovation System.

d) Develop, provide guidance on, organize and supervise the implementation of solutions using digital technology, digital data, and digital transformation to increase labor productivity; focus on digital transformation for enterprises and assist enterprises in applying digital technology solutions.

6. Promote the restructuring of the economic space and improve the competitiveness of industries

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b) Complete institutions and policies to restructure the agricultural industry associated with building new rural areas, improving productivity, quality and efficiency of production and business.

c) Improve regulations on industrial development and formulate the Law on Industrial Development. Review the spatial structure for industrial development; complete regulations and policies on developing industrial clusters and strategies to improve competitiveness for domestic industrial enterprises.

d) Effectively implement orientations for development of prioritized service industries; improve competitiveness and service quality according to international standards and practices; form regional and world-class service centers in terms of trade, tourism, finance, and logistics in several large cities.

dd) Complete the system of statistical indicators to monitor and evaluate changes in labor productivity associated with innovation and digital transformation.

III. FUNDING FOR EXECUTION

Funding for execution of the Program is covered by the state budget, enterprise capital, international sponsorship and other legal sources according to the provisions of law.

IV. IMPLEMENTATION

1. The Ministry of Planning and Investment shall:

a) Preside over and cooperate with ministries and central authorities in properly coordinating the macro-economy and promptly advising the Government and Prime Minister on appropriate solutions and policies to maintain macroeconomic stability, control inflation, promote growth, and maintain major balances of the economy.

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c) Preside over and cooperate with ministries, central and local authorities in effectively implementing the tasks and solutions mentioned in the Government's Resolution No. 54/NQ-CP dated April 12, 2020 on Action Program to implement the National Assembly’s Resolution on the Plan for Economic Restructuring in the 2021 - 2025 period; Resolution No. 57/NQ-CP dated April 21, 2022 on the tasks and solutions for completing institutions for connection of socio-economic regions.

d) Continue to work towards solutions for improving the business and investment environment, improve the quality, efficiency and competitiveness of the economy; cut and simplify business regulations and administrative procedures, reduce business costs for businesses; develop the private sector into an important driving force of the economy.

dd) Cooperate with ministries, central and local authorities in selecting and proposing initiatives for boosting labor productivity within the scope of management by central and local authorities; consider piloting the Program for increasing labor productivity, thereby expanding it to the entire economy. Assist enterprises in digital transformation and application of digital technology solutions.

e) Consider proposing the establishment of the National Productivity Committee by way of learning by international experience and ensuring the suitability for practical conditions in Vietnam, and submit the proposal to the Prime Minister in 2025.

g) Preside over studying mechanisms and policies to attract domestic and foreign investment projects that use advanced technology, involve modern management, connect global production and supply chains and have added value high, especially those in the field of semiconductor technology and development of new energy sources such as green hydrogen.

h) Effectively implement tasks and solutions set out in the Comprehensive Strategy for Development of Vietnam's Service Sector in 2021 - 2030 period, with a vision to 2050 promulgated under the Decision No. 531/QD-TTg dated April 01, 2021; study mechanisms and policies to form international financial centers in potential urban areas.

i) Study and perfect policies to develop innovation centers.

k) Preside over holding policy dialogues, conferences and seminars, and share experience in increasing national labor productivity in the new context.

l) Complete the system of statistical indicators to monitor and evaluate changes in labor productivity at the national, regional and industry levels.

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2. The Ministry of Labor, War Invalids and Social Affairs shall:

a) Preside over, monitor and expedite the implementation of tasks and solutions for developing a flexible, modern, effective, sustainable and integrated labor market with a view to rapid socio-economic recovery set out in Resolution No. 06/NQ-CP dated January 10, 2023.

b) Continue to effectively implement tasks and solutions mentioned under the Vocational Education and Training Development Strategy in 2021 - 2030 period with a vision to 2045 approved under the Decision No. 2239/QD-TTg dated March 30 December 2021; Digital Transformation Program in vocational and training education sector in 2021 - 2025 period, with orientation to 2030 approved under the Decision No. 2222/QD-TTg dated December 30, 2021.

c) Preside over reviewing and re-arranging vocational education and training institutions to form high-quality schools, schools that function as regional centers, and national centers for high-quality vocational training on large scale with outstanding industry, profession and quality playing a leading role in the vocational education and training system to meet the need for highly skilled human resources for national development in each period.

d) Preside over and cooperate with ministries, local and central authorities in consistently implementing solutions for digital transformation in the vocational education and training sector; develop digital infrastructure, platforms, equipment and learning resources. Review and standardize vocational training qualifications according to national and international vocational skills standards, enabling workers to access the domestic and international labor market.

dd) Study mechanisms and policies to encourage global vocational education and training organizations to invest in Vietnam; prime vocational education institutions to connect and cooperate with enterprises in offering vocational training courses and promoting the application of the “business engagement in education” model.

3. The Ministry of Education and Training shall:

a) Consider proposing the formulation of a Strategy for enhancing investment in educational infrastructure and facilities towards synchronization, standardization and modernity.

b) Accelerate the formulation for the Planning for the network of higher education and pedagogical institutions in period 2021 - 2030 period, with a vision to 2050.

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d) Diversify training methods; encourage online education, pilot advanced teaching and learning models on digital platforms, develop shared digital learning resources; recognize educational certificates to develop the labor market to meet the needs of the Fourth Industrial Revolution.

dd) Promote the linkage between businesses and higher education institutions in training highly qualified human resources; conduct researches and apply research findings to production to improve labor productivity to meet social requirements.

4. The Ministry of Science and Technology shall:

a) Review and propose amendments to legislative documents related to productivity and innovation to remove difficulties and create a favorable environment for businesses, especially small and medium-sized start-ups.

b) Continue to effectively implement the National Program to support businesses in improving productivity and quality of products and goods in 2021 - 2030 period; Comprehensive productivity improvement plan based on science, technology and innovation in 2021 - 2030 period; National strategy for research, development and application of artificial intelligence and scheme for scientific, technological and innovation solutions for improving labor productivity.

c) Preside over studying and developing policies to attract talents, cooperate with large organizations and businesses across the world for research, development and innovation; promote linkage and cooperation in research and technology transfer among research institutes, universities and businesses.

d) Preside over studying and developing policies to encourage research, development and application of new technologies of the Fourth Industrial Revolution to the production and business process in Vietnam.

dd) Preside over formulating and perfecting the policy on private sector involvement in scientific research, technology development and innovation activities; perfect the policy to promote commercialization of results of technology research, development and improvement.

5. The Ministry of Agriculture and Rural Development shall:

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b) Preside over research into and promote the transfer and application of science, technology and innovation to agricultural development; apply biotechnology, information and communications technology, and automation technology to build smart, safe, circular, efficient and sustainable agriculture, promoting the advantages of tropical agriculture.

c) Research and deploy agricultural economic models, production chains, value chains of categories and products with high economic value, contributing to linking agricultural development and new rural area construction.

d) Effectively implement the Plan to provide agricultural vocational training for rural workers in 2022 - 2025 period. Speed up the implementation of breakthrough schemes and priority solutions in the Strategy for developing agricultural mechanization and processing of agriculture, forestry and fishery products to 2030 approved under the Decision No. 858/QD-TTg dated July 20, 2022.

6. The Ministry of Industry and Trade shall:

a) Continue to improve institutions and policies related to industrial development and conversion from industrial structure to foundation industry, priority industry, and spear-head industry towards a strong national industry with new production capacity, autonomy, high adaptability and resistance.

b) Preside over the formulation of the Industrial Development Law and submit it to the National Assembly in 2024.

c) Effectively implement the Scheme to restructure the Industry and Trade sector by 2030 issued under the Decision No. 165/QD-TTg dated February 28, 2023.

d) Preside over research and review of space for industrial development; complete institutions and policies on developing industrial clusters and strategies for improving competitiveness for domestic industrial enterprises.

dd) Improve institutions and restructure the fields of e-commerce and logistics based on modern technology. Study, promulgate and implement new outstanding and highly internationally competitive mechanisms and policies to promote the formation of several regional and international logistics centers.

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a) Continue to effectively implement tasks and solutions set out in the National Digital Transformation Program by 2025, orientation to 2030 promulgated under the Decision No. 749/QD-TTg dated June 03, 2020; National strategy for digital economy and digital society development by 2025, orientation to 2030 promulgated under the Decision No. 411/QD-TTg dated March 31, 2022; prioritize the development of data and online public services, develop platforms and ensure network security and information safety.

b) Preside over and cooperate with ministries and central authorities in formulating the Law on Digital Technology Industry, and submit it to the National Assembly in 2024. Preside over the development and effective implementation of the Digital Technology Industry Development Strategy by 2025, with a vision to 2030.

c) Study, develop, provide guidance on, organize the implementation and supervision of digital transformation-related activities and specific solutions applying digital technology, digital data, and digital transformation. Strive to increase the proportion of online activities by at least 50% of activities in each agency and organization.

d) Provide guidance on digital skill standards for workers and provide training in and improve digital skills for workers.

8. The Ministry of Finance shall:

a) Continue to review and amend tax incentives to support investment; study, formulate, propose and implement tax policies to encourage the development of science, technology and innovation in accordance with the goal of developing and applying new and priority technologies.

b) Preside over and cooperate with the Ministry of Planning and Investment and relevant ministries and central authorities to provide regular funding for executing the Program according to regulations and within the capacity for balancing the state budget in each period. .

9. The Ministry of Home Affairs shall:

Continue to conduct researches and recommend the innovation of mechanisms for managing officials in the public sector and public employees in public service providers to contribute to generating motivation for increasing labor productivity.

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Proactively study and propose practical and sustainable activities to contribute to creating a labor productivity raising movement and culture associated with large socio-economic projects with the participation of ministries, central and local authorities, aiming to create a spillover impact of labor productivity on industries and localities.

11. Ministries and agencies affiliated to the Government shall:

a) Integrate and implement the tasks of the National Program for Increasing Labor Productivity by 2030 with other programs, schemes and projects within their jurisdiction to mobilize and make the best use of resources for execution thereof. Study and propose digital transformation solutions in industries and sectors under their management.

b) Intensely perform tasks according to their assigned functions of state management to increase labor productivity by approaching and applying the Fourth Industrial Revolution, give priority to studying, reviewing and relevant legislative documents and request competent authorities to amend them.

c) Provide funding and mobilize legal sources of capital to implement solutions for raising labor productivity according to the provisions of law on state budget and related legal regulations.

d) Regularly hold dialogues and exchange with business communities, investors and workers to share good experience, learn about difficulties and obstacles in the process of building and implementing mechanisms and policies for increasing labor productivity, thereby producing solutions therefor or request competent authorities to consider and promptly resolve them.

12. People’s Committees of provinces and central-affiliated cities shall:

a) Integrate and implement the tasks of the National Program for Increasing Labor Productivity by 2030 with other programs, schemes and projects under their management to mobilize resources for execution thereof.

c) Proactively provide funding and mobilize legal sources of capital to implement solutions for raising labor productivity on annual basis as per regulations of law.

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d) Proactively approach and apply the Fourth Industrial Revolution to boost labor productivity; determine priority industries and groups of priority industries to promote local labor productivity associated with regional economic development and regional linkages to work out appropriate solutions.

Article 2. This Decision comes into force from the date on which it is signed.

Article 3. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, units and organizations concerned are responsible for the implementation of this Decision.

PP. THE PRIME MINISTER
THE DEPUTY PRIME MINISTER




Tran Hong Ha