Contribution of capital, labor, and total factor productivity to economic growth and enterprise value-added: A case study of Ha Tinh province, Vietnam

Abstract

The article focuses on researching and identifying the contribution of Capital, Labor, and Total Factor Productivity (TFP) to GRDP growth and the role of science, technology, and innovation in enhancing TFP in Ha Tinh province, Vietnam. The research results show that the role of TFP in the GRDP growth of Ha Tinh is increasingly important, particularly in the value-added (VA) of businesses, where TFP's impact is becoming more evident and contributes significantly to the increase in VA of enterprises. However, the contribution of science, technology, and innovation to TFP and the province's GRDP is showing a declining trend. This is due to a period of strong technological investment, during which businesses may have reached a saturation point where current technologies have fully exploited their potential. This could become a development barrier for the province, especially in the context of prolonged difficulties faced by enterprises, reduced investment in research and development (R&D), and challenges in attracting large technology companies to invest in the area. Based on these findings, the study proposes several indicators for science, technology, and innovation in the province by 2030, including enhancing the attraction and effective use of foreign capital in the field of science, technology, and innovation, and developing science and technology aimed at modern industry, comprehensive, and sustainable development in Ha Tinh province.