Domestic firms need development strategies for Industry 4.0

11:03 | 05/07/2019 Science - Technology

(VEN) - Vietnamese businesses need to create their own development strategies based on the foundations of the fourth industrial revolution (Industry 4.0). These strategies must be new, flexible, and able to help businesses adapt to changes.

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Tran Viet Hoa, director of the Department of Science and Technology under the Ministry of Industry and Trade, said the Ministry of Industry and Trade conducted a survey to assess Vietnamese industrial firms’ level of preparation for Industry 4.0 and the results painted a troubling picture.

The survey indicates that the critical disadvantage of domestic businesses is that 70 percent of them have equipment that cannot be controlled by IT or connected with other equipment types, while 75 percent of businesses have no single digital technical model.

Vietnam’s ability to approach Industry 4.0 continues to be hampered by a series of basic issues. The first is limited capacity for digitalizing and connecting data within businesses, among businesses, and between businesses and their partners. This has led to a very low rate of only two percent of businesses that conduct at least partial self-operation and self-governance.

The second problem is that most Vietnamese businesses have not gained access to smart products, which are integrated with functions of information technology (IT) and digital technology. Smart products help businesses collect data from the use of their services and provide insight on how their customers shop, creating favorable conditions for the development of new business services and models. Only five percent of businesses have models of data-based corporate governance.

The rate of industrial businesses applying technologies, such as 3D printing, television wave-based identification and big data, remains very low at two percent, while the figure is about three percent for those utilizing artificial intelligence (AI) and real-time location.

To make the most of opportunities provided by Industry 4.0, Tran Viet Hoa said businesses must be active in creating their own development strategies based on the foundations of Industry 4.0, in addition to the state support they enjoy. In addition, they need to start considering science and technology an integral part of their investment plans.

Once their strategies have been developed, businesses need to invest in equipment-to-equipment connection.

According to Tran Viet Hoa, to increase the readiness level, businesses should boost their digital transformation processes and focus on developing smart products. This is also an important foundation for businesses to develop data-based services. In addition, businesses need to prioritize investment in the training of human resources and the development of human skills suited to Industry 4.0.

Quynh Nga