How to Increase Productivity ?

INCREASE PRODUCTIVITY• According to Cobb-Douglas Equation we

have 3 ways to fasten Output of economy:  Y  =  AKa L1-a 1. Increase Capital Input (K)2. Increase Human Labor Input (L)3. Increase Total Factor of

Productivity (A)

Higher Wages

Through

Improved

Productivity

The WorkerThe Company

Improved Company

Performance leads to

Increased Profitability

The Country

Improved National

Growth results in

Better Services and

Infrastructure

The CitizenImproved Quality of

Life and Happiness

for all Citizens

The Productivity Cycle

8Barbados National Productivity Council

INCREASE PRODUCTIVITY

IMPROVING CAPITAL EFFICIENCY• Lower the price of capital input:- Reduce transportation cost and

energy cost (electricity, water)- Lower tax rate

• Improve the quality of infrastructure• Give more easier access to land

b. Improving technology• Implement suitable technique:- Machine- Process of production• Encourage innovation

c. Focusing on domestic private sector

• Simplify start up process• Giving private enterprise more

opportunity to provide service that used to provided by public company

Higher Wages

Through

Improved

Productivity

The WorkerThe Company

Improved Company

Performance leads to

Increased Profitability

The Country

Improved National

Growth results in

Better Services and

Infrastructure

The CitizenImproved Quality of

Life and Happiness

for all Citizens

The Productivity Cycle

8Barbados National Productivity Council

INCREASE PRODUCTIVITY

The most important factors in improving productivity is HUMAN RESOURCE

Improvement Productivity of Human Resource• Vietnam is facing middle-income

trap*:– GDP growth rate is slowing down.– Productivity is very low.

*middle-income trap: a economic development situation, where a country reach a certain income due to given advantages will get stuck at that level.

How to get out of middle- income trap?

Resource- driven growth on cheap labor and natural resources capital

Growth by on high productivity and innovation

Need of training in order to improve productivity

Suggested Solutions• A cohesive solution need actions

from all the stake holder from all the stake holder within VietnamSocietyGovernment & OrganizationsCorporations

Government & Organization Responsibility• Planning for human resource development in

sync with strategic development plans 2020 • Innovation in Education system & encourage

Socialize Education • Impose favorable policy to encourage

education development• Shifting Economic structure and Capital

structure toward knowledge economy

Corporations Responsibilities• Co-operations with education

organizations for mutual understanding

• Create trainee talent systems • Spot

Society• Stop bias about differentiation

between college and university• More awareness about productivity• More self-orientation in education