Economic Sector

Last updated: Monday, April 22, 2019


Challenges to Industry 4.0

Posted: Thursday, August 30, 2018

The Industrial Revolution 4.0 is an unstoppable and undelayable trend. In Vietnam, although the Industry 4.0 has emerged, it is still low, small and not universal, said Vietnamese Prime Minister Nguyen Xuan Phuc at a recent Industry 4.0 Summit and Exhibition 2018.

Four issues to be resolved
Knowing that before the advent of the Industry 4.0, Vietnam will face a plenty of issues, such as low access level, small scale and unpopularity. Thus, the Prime Minister pointed out four issues needed to be resolved.
Firstly, Vietnam must change its perception of the Fourth Industrial Revolution in a clearer and deeper way. Then, it will have rational steps to go and appropriate actions to do. That is the change in manufacturing, service and digital economy. Vietnam must change technology solutions, not just apply traditional technologies.

Secondly, after it changes the perception, how will Vietnam act? This is very important. Therefore, it is necessary to develop a rational and effective legal policy to develop the Industry 4.0 better, higher.

Thirdly, human resources must be a major concern. Many researches show that 40 per cent of the Vietnamese workforce are manual workers. For that reason, the education system must adapt to equip necessary skills for workers in the Industry 4.0 Era. How will Vietnam tackle labour redundancy caused by the Industry 4.0?

The final is technological development, especially information infrastructure. To succeed in the Industry 4.0, we need to deal with the downside of this wave, so that no one will be left behind.

Challenge and motivation
To enable Vietnam to quickly catch up with the Fourth Industrial Revolution, Vietnam must change its current growth pattern that has reached the natural limit and the Industry 4.0 is a good chance for this, said economic specialist Le Dang Doanh.

Every business, with its creativity and dynamism, can enter the Fourth Industrial Revolution in its own way. For example, a shop can completely use the 4.0 technology to connect customers to examine and maintain products or a roadside eatery can also apply the 4.0 industry to provide door-to-door delivery.

However, to catch the wave of the Industry 4.0, governmental policies and mechanisms need to be changed drastically, he said. According to experts, new technological trends of the Industrial Revolution 4.0 will open up opportunities for enterprises, especially small and medium enterprises (SMEs), to launch innovative businesses to enter niche markets with many ground-breaking products and services.

SMEs currently constitute about 97 per cent of the Vietnamese business force. Therefore, the Industrial Revolution 4.0, featured by new technologies such as internet of things (IoT), artificial intelligence (AI), advanced robots, nanotechnology, additive manufacturing (3D printing), is expected to greatly impact business operations.

SMEs, characterised by limited technology, financial capacity and governance, are the most vulnerable but they are also the most dynamic and adaptable. Therefore, it is necessary to care and actively support SME development in order to expand the scale, promote technological innovation, raise productivity and make important contributions to socioeconomic development.

Importantly, businesses need to digitise and improve their capabilities. If they know how to apply their technological prowess, they will have outstanding competitiveness. In contrast, shutting the door to the Fourth Industrial Revolution, they will be eventually eliminated for sure.

Opportunity with the industry 4.0 is enormous
Dr Tran Dinh Thien, Member of the Prime Minister’s Economic Advisory Team
The opportunity of the Fourth Industrial Revolution is endless because it will fundamentally change everything in today's life. The first concept, once mentioned the Industrial Revolution 4.0, is connectivity regardless of time and place.

The opportunity is enormous but the challenge is immense, too, because the Industry 4.0 is tied to artificial intelligence. In a large part of the wealth made in the society, the share of creative intelligence accounts for a rising share of GDP. Thus, to adopt the Industry 4.0, people must have the wisdom to join the production process.

Challenge to human resources
Dr Nguyen Van Nhu, BRICKIN'UP Company (France)

In the Industrial Revolution 4.0, the labour market will be severely challenged between the supply side and the demand side as well as the labour structure. A highly automated and innovative economy requires workers to adapt quickly to production changes or otherwise, to be redundant or out of work.

Vietnam necessarily takes advantage of its people’s diligence, its basic science strengths and domestic and global creativity. At the same time, it needs to restructure the education and training system based on the national level framework, professional skill standards and soft skills standards suitable to the national context and regional and global trends.


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