Economic Sector

Last updated: Tuesday, February 19, 2019


Industry 4.0: Challenges and Opportunities

Posted: Saturday, April 21, 2018

The Ministry of Planning and Investment in partnership with the Ministry of Science and Technology recently hosted the Knowledge Sharing Talk on the Industry 4.0 with the aim of seeking new directions for economic development by grasping tremendous opportunities derived from the Fourth Industrial Revolution in Hanoi.

According to Minister of Planning and Investment Nguyen Chi Dung, technology trends and the Fourth Industrial Revolution provide a marvellous opportunity for development if we know how to unlock potential advantages and strengths of Vietnam. This is a golden opportunity for Vietnam to narrow the gap with developed countries in the world. Up to now, the development of the Vietnamese economy has been quite slow relative to that of the world. Without a solution to speed up, Vietnam would be another step behind when the world advances to the Industry 5.0 era. “If this opportunity is missed, it remains unknown when Vietnam has another chance,” he said.

He said the Government of Vietnam is pursuing an economic development model for higher productivity, quality and efficiency. Therefore, this is a very good foundation for the economy to evolve with the Fourth Industrial Revolution because the main content of this revolution is to increase productivity, quality, efficiency and global competitiveness.

Deputy Minister of Science and Technology Pham Dai Duong said that the term “Industry 4.0” has spread and become quite popular in the media since late 2016. This is also a certain tendency of incorporating science and technology to change old production methods and create new production tools and forms for high value and productivity.

Mr Dam Bach Duong, Director of the High Technology Department under the Ministry of Science and Technology, said, this revolution poses numerous challenges to the Vietnamese economy. Firstly, the labour market of Vietnam will be affected since it loses the advantage of cheap human resources. However, other sectors such as health and tourism are considered having strong momentum for development.

In addition, Mr Nguyen The Trung, General Director of DTT Technology Joint Stock Company, Member of E-Government Advisory Group - the Government Office, said that one of major impacts of the Fourth Industrial Revolution is employment and redundancy. In the future, simple repetitive jobs will disappear by 2030. From then on, new jobs will be developed, focusing on big data, project analysis and consultancy. Most of above jobs require workers to have a high expertise level. According to the forecast of the World Economic Forum (WEF), in Vietnam, automation technology can replace up to 47 per cent of current jobs. According to the International Labour Organisation (ILO), this rate is projected at 86 per cent for the textile and garment industry in Vietnam. This is also one of the most labour-intensive sectors in Vietnam up to the present time. Therefore, this sector also needs to change its strategy to avoid being harmed when deeply joining the Industry 4.0.

He added that being aware of this importance, the Government also issued Directive 16/CT-TTg dated May 4, 2017 on improving access to the Fourth Industrial Revolution.

The Government also requested the Ministry of Planning and Investment to support the Ministry of Science and Technology to develop application research programmes in the Industry 4.0, focus on developing innovative ecosystems by taking creative innovations as a heart and enhance PPP activities, assist localities to approach the Industry 4.0 in the spirit of Directive 16, and move towards the formation of a digitalised government.

On this task, Minister Nguyen Chi Dung said that the Ministry of Planning and Investment reported to the Prime Minister for permission to develop a national strategy for Industry 4.0-based economic restructuring. The Ministry of Planning and Investment will play a role of directing what the Government does and leading how the economy moves with this revolution.

In addition, Deputy Minister Pham Dai Duong informed that the Ministry of Science and Technology asked the World Bank (WB) to conduct deeper studies on the Innovation Programme of the 2035 Vietnam Report based on the Fourth Industrial Revolution to have best policies on business supports for technological upgrades and innovative start-ups.

Anh Phuong

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