Vietnam's Unions Set 8% Income Growth Target as 400,000 Worker-Led Innovations Aim to Reshape Economy

Vietnam’s largest labour federation has outlined a sweeping national strategy that ties wage increases directly to workplace productivity improvements. The campaign, branded “Excellent Work, High Productivity, Good Income,” demands that workers propose no fewer than 400,000 improvement projects every year through 2031.

Of those annual submissions, between 500 and 700 will earn a special creativity certificate. The economic payoff from these innovations is forecast to hit at least 20 trillion Vietnamese ??ng (VND) by 2026, with annual gains of 10 to 15 percent in subsequent years. Participating enterprises are expected to lift average labour productivity by 8.5 percent annually, while employees see their earnings climb by more than 8 percent.

The Vietnamese General Confederation of Labour (VGCL) launched the competitiveness drive as part of a broader push to unlock the nation's workforce potential. The initiative merges technological upgrades with hard financial metrics — a departure from more symbolic labour campaigns of the past.

Regional successes already emerging

In the central city of Da Nang, the local union has set a target of at least 50,000 implemented initiatives during the coming term. The preceding period already generated more than 185 billion VND in value from technical solutions proposed by workers.

In the northern province of Tuyen Quang, the strategy emphasises digital readiness. Officials want 75 percent of employees to be confident users of information technology. Average per-capita income there has climbed from 59 million VND in 2020 to a projected 130 million VND in 2025 — more than doubling in five years.

Defence sector and union expansion join the push

The Vietnamese Ministry of Defence awarded its first Army Union Creativity Prize on 13 June, honouring 99 projects from military personnel. The VGCL also presented creativity certificates to the most successful project leaders across civilian sectors.

The productivity campaign is backed by institutional growth. In the first half of this year alone, 11 new grassroots unions were established in Viet Hung district, strengthening the VGCL's presence at factory level.

Broader economic picture

The productivity offensive sits atop a stable macroeconomic trajectory. Vietnam’s gross domestic product is forecast to expand by 8.02 percent in 2025, with total output exceeding 514 billion US dollars. Against this backdrop, Hanoi has rejected international criticism of its labour standards, noting that it has ratified 25 International Labour Organization conventions and enshrined a constitutional ban on forced labour.

The VGCL’s ultimate target is to secure more favourable collective bargaining agreements in over 80 percent of enterprises covered by the campaign.

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