Article by Mr. Đinh Hồng Kỳ published in the VIEWPOINT section on the vnexpress.net electronic newspaper on November 30, 2019.
We have factories in all three regions: North, Central, and South. After every long holiday, the leadership teams at all three locations face serious headaches regarding labor productivity.
Our group has nearly 1,000 workers, and our employees are paid based on their output, with individual daily earnings ranging from about 300,000 to 600,000 VND depending on productivity. Due to fluctuations in the global market, there were periods when export orders dropped significantly. We tried every possible solution but ultimately had to decide to let workers take days off on some weekends. Many were very sad and kept asking the factory managers, “Boss, when can we go back to work?”
Our management was not happy either. The break started before the Lunar New Year, when workers needed money for the holiday, and after Tet, they needed money to make up for a long vacation and heavy expenses. They returned to the factory with a wait-and-see mindset. Fortunately, the productivity drop lasted only about four months. When we announced they would return to work on Saturdays as usual, their faces lit up: “Boss, please don’t let us have to take days off again!”
During the breaks, most workers went home to their hometowns, socialized, ate out, and spent money. Those staying in the city did the same—partying and traveling. Many came back to the office or factory looking extremely tired. Our February payroll is always the lowest of the year, obviously because it has only 28 days and includes the long Tet holiday. But more importantly, when they returned to work, worker productivity dropped by 30% to 50%, and their income fell accordingly, even though this is the month when their families spend the most.
Few people say this openly, but as an employer, we dread the periods before and after long holidays because labor productivity and work quality drastically decline. Workers mentally prepare for the break and get ready to party, causing distraction. For example, during the Lunar New Year, workers typically get 7-10 days off, but their mindset actually “rests” for a whole month before and after.
One month before Tet, workers no longer focused on production. Absenteeism rose sharply and sick leaves increased. Output dropped 40%-50% compared to usual, even though attendance remained normal. On the first days back, 30% of workers arrived late. Productivity only returned to normal from late March to early April.
Other holidays like Hung Kings’ Commemoration Day, April 30 – May 1, or September 2 are not as severe as Tet but still cause noticeable productivity drops. Also, during all holidays, traffic accidents related to travel and alcohol increase, leading to more worker absences.
I have a Japanese architect friend who invested in a 100% Japanese company in Ho Chi Minh City. He wants to invest and live here long-term but is most frustrated by the habit of being late for meetings—small or large—among Vietnamese workers. This is not just his company; he says being late has become a custom in Vietnam, including weddings. This wastes time and money and harms the event’s content, causing other invisible and meaningless losses.
I don’t oppose increasing the number of national holidays for justified economic management reasons. Compared to advanced Western countries, Vietnam’s total number of holidays is not high; it’s even less. However, as an exporter to 60 countries frequently working internationally, I notice Vietnam’s labor productivity is low not only compared to Western countries but also neighboring Asian countries with similar cultures like China, Malaysia, and Thailand. Their daily productivity is much higher than Vietnamese workers because they work seriously during work time and rest fully during breaks, unlike many Vietnamese who mix work with play.
Labor quality in Vietnam is frequently discussed but remains an unsolved issue. Employers like us know improving productivity and quality requires investing in machinery and technology to increase output, reduce reliance on manual labor, and lower production costs to enhance competitiveness. But besides these objective factors, the working attitude of Vietnamese workers is a major issue affecting organizational productivity and the entire economy. Even for skilled workers, attitude matters more than qualifications.
A Korean friend living in Ho Chi Minh City told me that decades ago, Koreans had the same habits of lateness and lackadaisical attitudes as many Vietnamese now. However, over the last half-century, one key to South Korea’s economic miracle has been the “ppalli-ppalli” culture, meaning “hurry hurry.” Fast work pace and high efficiency have driven strong business growth. “Ppalli-ppalli” became a golden rule not only for businesses but also for the Korean government. It’s deeply ingrained in daily life as a fundamental value. Thanks to this fast-paced economy, Korea made huge progress in a short time.
Some might wonder why I’m not happy to pay workers less or accuse employers like us of exploiting labor. I’m not glad because that doesn’t improve workers’ lives. Reduced incomes, weakened competitiveness of businesses, and a declining economy all go hand in hand. Lower worker incomes also mean less personal income tax and other taxes collected by the state, combined with decreased productivity and increased social instability caused by drinking and traffic accidents, forcing the government to spend more on remedies. Employers wanting to maximize labor use have many options, not just by cutting working hours or holidays.
No need to look far abroad: comparing local Vietnamese companies with foreign-invested enterprises in Vietnam already shows the difference. Foreign companies give weekends off but have much longer and more intense weekday working hours. In my office building, some Japanese and Korean companies must give Vietnamese workers days off on Vietnamese holidays, but foreign staff still work normally and cheerfully. The desire to work, contribute, and express social value, plus extra income, is an important human need.
Building an effective work culture and positive attitudes among both officials and workers is the key foundation for the economic, business, and workforce vitality.
Dinh Hong Ky
