In the 2000-2005 period, the automation sector gained successes with the implementation of many new projects. However, the fact shows that the sector has not yet met development demands, in particular those of international economic integration.
Landscape of automation projects
According to reports by the Ministry of Industry, in the 2000-2004 period, 23 projects with a total investment capital of VND 538 billion should have been implemented. In fact, only 18 projects were implemented with a total support capital of VND 65.4 billion. In 2005, 11 projects were implemented with a total investment capital of VND 296.3 billion, plus total support capital of VND 24.2 billion.
After five years of the implementation of automation projects, total support capital was equal to only 12.5 per cent of total investment capital. Since some projects have been implemented, the productivity and quality of products have improved, thus helping cut production costs. Also, old production lines can be used in combination with the application of automation technology. Exemplary projects include the application of automation technology in thermal treatment of the Dong Anh Mechanics Company and an automation project of IMI in manufacturing high-quality products. CNC-controlled cutting machines, automated coffee beans and rice selecting and separating devices have the same quality with imported products but are priced 50 per cent lower.
Trinh Dinh De, deputy head of the Office of Economic and Technical Programme on Automation, said that many projects had been equipped with modern technology but the more products they manufactured the more losses they suffered. In the meantime, Dong Nai province’s application of automation is average, but it has gained a high economic effectiveness. This proves that if it is applied in the right places, Vietnamese automation industry may generate good results. Otherwise, it may become a waste.
Shortcomings and difficultiesOne of the biggest shortcomings is the inactive implementation of annual plans due to the fact that master plan has not been approved yet. Support capital for the programme remains constrained, so it cannot meet the increased demand for automation application and development in Vietnam. The selection of project s remains difficult. In addition, the allocation of projects among industries remains improper. Localities’ proposed projects accounted for over 70 per cent of projects, but only 30 per cent have been carried out.
The second biggest difficulty is a lack of qualified human resources due to poor training quality, which is followed by a lack of equipment and capital for research and development activities. Localities have invested in modern technology and production lines but they are ineffective because of a shortage of qualified workers and technicians who can operate the production lines and technology. De said that to have a developed automation industry, there should be excellent project managers with excellent technical or managerial knowledge.
“A lack of a common language among enterprises is another difficulty, hampering the development of the Vietnamese automation industry. Enterprises are busy competing for small-sized projects, forgetting that projects valued at millions of US dollars are occupied by foreign investors,” De said.
Plans for the futureAccording to the Office of Economic and Technical Programme on Automation, in the 2006-2010 period, it is expected that 52 projects will be implemented with a total proposed support capital of VND 257 billion and a total investment capital of VND 1,294 billion.
De said that priorities would be given to the development of the technologies of CAD/CAM, SCADA, CNC, PLC and DCS… These technologies would be applied in engine manufacturing and precision devices in controlling automation systems of industrial production lines, and information processing and technology measuring.
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