We are on the cusp of the 4th Industrial Revolution, or Industry 4.0. This revolution is expected to impact all disciplines including manufacturing, cultural and social activities, national defence and security, creating many opportunities and challenges for all nations worldwide.
Till date, more than 40 countries including developing ones in the region have come up with a national roadmap to drive Industry 4.0 such as Thailand 4.0, Making Indonesia 4.0 and National Industry 4.0 Framework of Malaysia.
Vietnam is trying to leapfrog to close the gap with other ASEAN countries by leveraging on high technologies to boost its economy. With a great determination to embark on Industry 4.0, Vietnam will achieve a great leap towards its economy and science technology development, creating a fundamental change in the growth model in the upcoming time and climbing up the global value chain ladder. This is also the main theme that was discussed by the country leaders at the Industry 4.0 Summit held in Hanoi earlier this month.
At the summit, Head of the Party Central Committee (PCC)'s Economic Commission Nguyen Van Binh introduced the Politburo’s Resolution No. 52-NQ/TW, with a number of guidelines and policies to ensure active participation in Industry 4.0.
The resolution aims to urge the National Assembly, the Ministries and government agencies to jointly participate in implementing concrete action plans to drive Industry 4.0 nationwide and achieve the following economic goals:
- By 2025, to maintain Vietnam’s position in the top 3 ASEAN countries in the Global Innovation Index (GII) rankings
- By 2025, to build the digital economy to account for 20% of GDP
- By 2025, to increase labour productivity on average over 7% per year
- By 2030, to be among the top 40 countries in the working in the GII rankings
- By 2030, to build the digital economy to account for over 30% of GDP
- By 2030, to increase labour productivity on average over 7.5% per year
Pioneers in Industry 4.0
Vietnam has seen many pioneers embarking on the Industry 4.0 journey.
PetroVietnam (PVN) and its subsidiaries are stepping up efforts in digital transformation to improve competitiveness and business efficiency by applying information technology, digital technology, automation technology to their production and business activities, including: ERP, software upgrade, robots in operations, maintenance, repair and other special services with some hazard level that humans have difficulty delivering.
PVN also invests heavily in training their human resources and equipping them with necessary digital skills to be able to operate new technology applications.
At the core of Industry 4.0 is the model of the smart factory. The implementation of this model has been considered as a strategic move of many enterprises who aim to achieve sustainable development, increasing manufacturing productivity and quality, as well as bringing more positive changes for environment protection. Vinamilk has been progressively implemented the model of Smart Factory to become one of the first names for this revolution in Vietnam.
At Vinamilk’s Mega Smart Factory, packaging materials and finished products are handled by autonomous laser-guided vehicles (LGV) systems, resulting in optimal quality control at efficient costs. Additionally, virtualisation technology is applied in TPM production control system, creating the premise for big data usage in analysing and processing data to improve production efficiency and minimise the risk of production interruption.
IoT application is also seen in Vinamilk’s livestock activities. Systems used for these activities are linked together to help monitor and manage individual cows in real time from birth to elimination, help the farm manage information and operate easily and effectively with the daily reporting system from smart systems that can access information properly and sufficiently and promptly.
MNCs like Coca-Cola also contribute to drive Industry 4.0 in Vietnam. Coca-Cola has been known for the use of IoT in various parts of the supply chain. Besides the use of sensors in their vending machines and coolers, Coca-Cola also connects its fleet of cold drink equipment found in convenience stores and other retail outlets to track product inventory, monitor energy efficiency and more – with the goal of ultimately driving drink sales.
Taking into consideration the important role of SMEs in its operations, Coca-Cola has focused on creating opportunities for them to become part of its global supply chain through programs in capacity building and improving competitiveness. To promote and enhance the confidence of SMEs, Coca-Cola also enables them to leverage on technological advancement of the new industrial revolution to improve business efficiency and be able to quickly join the global value chain.
Senior representatives including Chief Information Officer from Vinamilk, PetroVietnam and Coca Cola Vietnam will be sharing their digital transformation initiatives as well as challenges that they face while embarking on this journey at the 33rd Edition of Asia IoT Business Platform held on 18&19 November 2019 in Ho Chi Minh City.
If you'd like to be involved in the Industry 4.0 discussions in Vietnam, feel free to drop me a note at email@example.com.