Industry 4.0 changing Vietnamese business

15:56 | 28/05/2018 Science - Technology

(VEN) - The Fourth Industrial Revolution or Industry 4.0 has a strong impact on automation, transportation, financial and banking, education, health and agricultural industries and opens up opportunities for countries and territories worldwide, including Vietnam.

industry 40 changing vietnamese business
Enterprises should invest in technology to adapt to Industry 4.0

Productivity through automation

Pham Thiet Hoa, Director of the Investment and Trade Promotion Center of Ho Chi Minh City (ITPC), said this wave of new technology or Industry 4.0 helps businesses improve their competitiveness, renovate products and services, minimize fuel and material consumption and production costs, and better satisfy customer needs.

Trinh Thanh Nhon, General Director of ICC, a cosmetics manufacturer, said his company previously used 150 workers, and the new technology has now enabled it to accomplish a workload triple its previous one with a staffing of only 50 workers. In 2018, ICC will import an automated washing powder production line to improve competitiveness, Nhon said.

Nguyen Lam Vien, General Director of the Vinamit Joint Stock Company, said over the past five years, Vinamit has been studying biotechnology application in making dried yogurt that has become one of his company’s major products in 2018. Huynh Dung Sang, Deputy General Director of the Duhal Industrial Lighting Equipment Co. Ltd, said intensive technological investment and continuous optimization of production processes have enabled his company to increase revenues to over VND1 trillion in 2017, 30 percent of which was export value. Duhal has become a strategic partner of the Republic of Korea’s Samsung Group and set targets to reach annual revenues of US$250 million and quintuple production capacity by 2020.

Concerns

Lieu Hung Tien, Sales Director of the Haravan Technology Corporation, said many Vietnamese companies have advantages in distribution and retail, but haven’t foreseen the risk they would face when foreign goods flow into Vietnam through e-commerce. Sixty percent of the Vietnamese population use the internet and are online 25 hours per week, while 600 million other people worldwide are non-boundary consumers, Tien said. Technology is changing many areas, e-commerce is changing the behavior and habits of consumers, and that is the challenge faced by Vietnamese manufacturers, he added.

Associate Professor Dr. Le Hoai Quoc, Head of the Saigon Hi-Tech Park Authority, said Vietnam should transform its growth model toward higher quality, support enterprises in reducing labor-intensive workforces, and adopt policies geared to making foreign invested enterprises develop domestic supply chains and encouraging domestic enterprises to develop and join domestic supply chains.

In May 2017, Prime Minister Nguyen Xuan Phuc issued an instruction on strengthening the country’s digital capabilities to adapt to the Fourth Industrial Revolution. The Prime Minister asked ministries, sectors and localities to strive for breakthroughs in infrastructure, in applying information and communication technology (ICT) and training human resources for these fields. The directive also urges improvements in the business environment, adoption of strategies for digital transformation, smart governance, digital technology development, smart agriculture, smart tourism and smart urbanization, and promotion of startups.

Ngoc Thao