Vietnam “not to miss the train” from the Industrial Revolution 4.0

08:01 | 19/08/2017 Science - Technology

(VEN) - Addressing the seminar “Industrial Revolution 4.0 – trends and impacts on the export of Vietnam", which took place on August 18 in Hanoi, Deputy Minister of Industry and Trade Do Thang Hai affirmed “Ministries and sectors are deploying tasks assigned by the Prime Minister to make the best preparations, ensuring that “Vietnam will not to miss the train” from the Industrial Revolution 4.0”. The seminar was jointly organized by the Import-Export Department, the Industry and Trade Review under the Ministry of Industry and Trade, and the Vietnam Private Sector Forum.

Deputy Minister of Industry and Trade Do Thang Hai addresses the seminar - Photo: baocongthuong

Basic solutions for production development

Deputy Minister of Industry and Trade Do Thang Hai said, export is an important activity of the economy, contributing greatly to economic development in general and to the growth of the business community in particular. Vietnam’s export revenue has seen strong growth in recent years, posting an average rate of 17.5 percent in the 2011-2015 period. In 2016, Vietnam’s export reached US$176.6 billion. Statistics released from the World Trade Organization (WTO) showed that Vietnam ranks 26th in the world’s economies with the highest export revenues. In 2017, the country’s export turnover is
projected to exceed US$200 billion.

Export growth has made important contributions to job creation and income for millions of workers, balancing trade balance, stabilizing exchange rates as well as the macro economy.

The seminar was jointly organized by the Import-Export Department, the Industry and Trade Review under the Ministry of Industry and Trade, and the Vietnam Private Sector Forum - Photo: baocongthuong
The seminar attracts attention from experts and large businesses in Vietnam

With increased integration and an open economy like Vietnam, developing sustainable export is a top priority now. This requires us to have a basic solution for production development and economic restructuring, focusing on improving productivities and quality of export products, while still saving natural resources and environmental protection.

In that context, Deputy Minister Hai said that the Industrial Revolution 4.0 with new technologies such as artificial intelligence, robots, Internet of Things, nanotechnology, molecular bio-technology, and genetic technology... opens up the possibility to meet these requirements. The Revolution 4.0 facilitates the creation of "smart factories"; or "digital factories"; where smart devices communicate via a network, constantly sharing information about shipments, materials and changes in orders, or about problems or errors.

Consequently, the supply chain has the highest efficiency in terms of processing time, storage time, productivity, cost savings and materials. Exports of agricultural produce will also have breakthroughs with new crop varieties that can adapt to drought, salinity or be pest-resistant, and have high quality and productivity thanks to molecular bio-technology.

In addition, when export transactions are done online, then the State policies on import export activities also need reviewing and adjusting in the new period, to ensure the set targets but still in line with international treaties that Vietnam has involved in.

Economist Can Van Luc shares about solutions of Vietnamese businesses in the Revolution 4.0

Which directions for businesses?

To capitalize on advantages of the Industrial Revolution 4.0, along with support policies of the Government, each business needs to show their determination and efforts. At the seminar, presentations by speakers, economists, and scientists, and their discussions on the impact of the Revolution on Vietnam’s exports to some extend met the participant’s
queries.

Economist Can Van Luc said that in the next 10 years, about 60% of import and export transactions, especially in telecommunications sector and materials will be digitalized. This requires changes from businesses, particularly investment in information technology development, workforce, corporate governance and human resource training. In addition, businesses should coordinate with ministries and sectors to build and perfect policies relating to the 4.0 Revolution.

Also at the seminar, most speakers said that businesses need to study advanced technologies of the Industrial Revolution 4.0 and apply them to improve their positions in value chains. In the future, technological innovation will create a "miracle"; for supply service delivery, and improve productivity in the long run. Accordingly, businesses will have to flexibly adjust products to meet consumer’s demand, integrate advanced technologies (semi-automatic robots, cloud computing, etc.) to simplify production process, reduce delivery time, shorten life cycle of products but still ensure their abilities to manage production and product quality, and increase competitiveness.

Deputy Minister of Industry and Trade Do Thang Hai: The Ministry of Industry and Trade always listens to opinions of businesses.

“With the role of State management in import-export activities, MoIT always wishes to listen to opinions and shares of practical experience of Vietnamese businesses regarding what they apply from the Industrial Revolution 4.0 in trade activities and methods for them to grasp the advantages from this Revolution”.

Nguyen Huong & Kim Chi