The readiness of Vietnam’s enterprises for participation in the fourth industrisal revolution

HỘI THẢO QUỐC TẾ: PHÁT TRIỂN  
DOANH NGHIỆP NHỎ VÀ VỪA CỦA VIỆT NAM TRONG BỐI CẢNH CUỘC CÁCH MẠNG CÔNG NGHIỆP 4.0  
THE READINESS OF VIETNAM’S ENTERPRISES  
FOR PARTICIPATION IN THE FOURTH INDUSTRISAL REVOLUTION  
Dang Thu Thuy and Nguyen Thu Trang,  
Vietnam Academy of Social Sciences,  
Institute for Indian and Southwest Asian Studies  
Abstract:  
The Fourth Industrial Revolution (IR4.0) has been taking place more and more strongly  
in many countries around the world based on the link between the real world and the digital  
space that is fundamentally changing the world's manufacturing base. Although Vietnam does  
not belong to the Leading Group, which is strongly influenced by IR4.0, Vietnam will certainly  
not be outside the spiral of IR4.0 (WEF, 2018).  
By using the method of analyzing secondary documents from national statistical offices of  
Vietnam and the United Nations along with consulting with experts, the paper will examine the  
overall perspective of readniness to access to IR 4.0 in Vietnam. Aimed at assessing the level of  
readiness of enterprieses in Vietnam, this paper applied the method developed by the German  
Mechanical Engineering Industry Association (Verband Deutscher Maschinen- und Anlagenbau  
- VDMA). This assessment method is based on 6 pillars and 18 dimensions described for  
enterprises to self-assess readiness levels in IR 4.0.  
Key words: Industrial revolution 4.0, readiness, Vietnam enterprizes  
ĐÁNH GIÁ VỀ MỨC ĐỘ SẴN SÀNG THAM GIA CUỘC CÁCH MẠNG CÔNG  
NGHIỆP LẦN THỨ TƢ CỦA CÁC DOANH NGHIỆP VIỆT NAM  
Tóm tắt:  
Cuộc cách mạng công nghiệp 4.0 (CMCN 4.0) đang diễn ra ngày càng mạnh mẽ tại  
nhiều quốc gia trên thế giới dựa trên sự kết nối giữa thế giới thực và không gian số đang làm  
thay đổi căn bản nền sản xuất của thế giới. Mặc dù không nằm trong nhóm Dẫn đầu3 chịu ảnh  
hưởng mạnh mẽ của CMCN 4.0 nhưng Việt Nam chắc chẵn c ng sẽ không nằm ngoài vòng xoáy  
của CMCN 4.0 (WEF, 2018).  
Bằng phương pháp nghiên cứu phân tích tài liệu thứ cấp từ các cơ quan thống kê chính  
thức của Việt Nam và Liên hợp quốc, tham khảo ý kiến chuyên gia, bài viết sẽ xem xét ở góc độ  
3 Theo Báo cáo Sẵn sàng cho sản xuất tương lai năm 2018 của WEF cho thấy mức độ sẵn sàng ứng dụng CMCN 4.0  
có 4 nhóm: dẫn đầu, nhóm tiềm năng cao, nhóm di sản và nhóm sơ khởi.  
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tổng thể của sự sẵn sàng tiếp cận CMCN 4.0 ở Việt Nam. Việc đánh giá mức độ sẵn sàng tiếp  
cận CMCN 4.0 của doanh nghiệp (DN) Việt Nam dựa trên khung phân tích do Hiệp hội Kỹ thuật  
cơ kh  của Đức nghiên cứu - Verband Deutscher Maschinen-und Anlagenbau (VDMA). Phương  
pháp đánh giá này dựa trên 6 trụ cột và 18 chiều để các doanh nghiệp tự đánh giá mức độ sẵn  
sàng của mình vào CMCN 4.0.  
Từ khóa: Cuộc cách mạng công nghiệp 4.0, mức độ sẵn sàng, doanh nghiệp Việt Nam.  
1. Introduction  
The term IR4.0 has just appeared in the modern economy due to its breakthrough and  
high-tech applicability. The reality shows that IR 4.0 gradually redraws the economic map of the  
world featured by the decline of power of countries because of resource exploitation and the  
increase of power of countries because of technology and innovation.  
Along with acceleration of the digital revolution, the link between the real world and the  
digital space known as the Fourth Industrial Revolution (IR4.0) has connected manufacturing  
with information technology to create products with high added value and is expected to bring  
about tremendous economic benefits. In Vietnam, despite recognizing the great opportunity of  
IR 4.0 to transform the economy to a higher level of development, the Government and  
enterprises have not built specific strategies and plans to remove "bottlenecks" in terms of  
institutions, technology infrastructure, and human resources yet. The objective of the paper is  
aiming at presenting the readiness of enterprise‗s to the four industrial revolution, identifying  
factors related to IR4.0 readiness levels of enterprises , pointing out the barriers which may  
possibly threaten enterprises in the effective achievement of a higher technological level.  
Industry 4.0 concept blurs the difference between human and machine work. While  
Industry 3.0 focuses on the automation of machinery, equipment and separate processes,  
Industry 4.0 is expected to concentrate on the connection between the physical world and cyber  
space. With three main features: high-speed internet, high-performance computing, sensors,  
cyber space is creating more value in economies. This is the most fundamental feature of IR4.0  
for carrying out the order, production, implementation and delivery of the product without  
human participation at any time during the process. If industrial companies desire to catch the  
trend, they need to invest in terms of modern technologies and management models.  
2. Vietnam in the context of IR 4.0  
In the Readiness for the Future of Production Report 2018 by the World Economic  
Forum (WEF, World Economic Forum, Report 2018), Vietnam ranks 48th out of 100 countries in  
the Structure of production (behind 5 ASEAN countries) and 53/100 countries in Drivers of  
production is due to the indicators of Technology and Innovation (90th), Sustainable resources  
(97th), Human capital (70th) and Institutional framework (53rd) (Ministry of Planning and  
Investment, 2019). In Southeast Asia, we only rank behind Malaysia (ranked 23/100 in  
technology and innovation and 21/100 in human resources), Thailand (respectively 41/100 and  
53/100).  
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Figure 1: Assessment of competitiveness 4.0 of ASEAN countries  
Source: World Economic Forum (2018)  
Regarding production potential, the WEF assessment shows that Vietnam's 4.0  
technology readiness is classified into the ―Nascent‖ (four groups which are the leading group,  
the high-potential group, the legacy group and the nascent group) because Vietnam is among the  
countries with a simple structure of production and unfavorable Drivers of production.  
Regarding the Structure of production, Vietnam ranks 48th, behind 05 countries ASEAN4  
and just standing over Cambodia (Worl Economic Forum, 2018). Regarding the Drivers of  
production, Vietnam ranks 53th, behind 03 countries which are Singapore (2nd), Malaysia (22nd),  
Thailand (35th) (Worl Economic Forum, 2018). Among the component indicators of innovation  
capacity, the indicators with a low performance include R&D spending in GDP (84/100), the  
number of scientific and engineerig publications (74/100). These are the issues that are  
considered Vietnam‘s shortcomings in a number of assessments such as the Global Innovation  
Index of the World Intellectual Property Organization (WIPO).  
Table 1: Comparison of Vietnam's innovation composition indexes  
period 2015-2018.  
2015  
2016  
2017  
2018  
(Ranking in  
(Ranking in  
(Ranking in  
(Ranking in  
141 countries 128 countries 127 countries 126 countries  
and  
and  
and territories)  
and  
territories)  
territories)  
territories)  
Indicators of innovation  
78  
101  
78  
79  
93  
74  
71  
87  
70  
65  
78  
66  
1. Institution/ Organization  
2. Human resources, research  
4 Regarding production structure, Vietnam is behind 5 countries: Singapore, Malaysia, Thailand, Philippines and  
Indonesia.  
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88  
67  
40  
39  
90  
64  
72  
42  
77  
34  
73  
38  
78  
33  
66  
41  
3. infrastructure  
4. Market development level  
5. Business development  
qualification  
Output indicators of innovation  
6. Technology and knowledge  
output  
28  
62  
39  
52  
28  
52  
35  
46  
7. Creative output  
The rate of effective innovation  
9
11  
10  
16  
Innovation index  
52  
59  
47  
45  
Source: The Global Innovation Index (GII) in 2015, 2016, 2017 and 2018 of WIPO.  
According to the World Intellectual Property Organization (WIPO), in 2018, Vietnam's  
innovation index continued to improve its position, up 02 steps, up 16 places compared to 2016,  
to 45 / 126 countries / economies ranked. In particular, among the 7 pillars of Vietnam in GII  
2018, the pillar of ―Innovative output‖ increased by 6 places but the pillar of ―Technology and  
knowledge output‖ decreased by 7places , from 28 to 35 (Table 1 ).  
2. Assessment of the level of readiness of enterprises in vietnam’s participation in RI 4.0  
The VDMA method can be summarized as follows: Overall, the model evaluates  
enterprises‘ level of participation in IR4.0 based on six pillars: Strategy and Organization; Smart  
Factory; Smart Operation; Smart Product; Data-driven Service; Employee. Each pillar  
corresponds to 3-4 directions to assess the readiness of different businesses. The six pillars and  
18 dimensions (Figure 2) will give an overview of the readiness of Vietnamese enterprises  
according to points, percentages in Industry 4.0.  
Figure 2: VDMA methodology model of enterprises' readiness to participate in RI 4.0  
Source: VDMA (2015)  
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Table 2: Availability according to the pillars of the business  
Readiness level (%)  
Readiness level  
Score  
Top  
Performer  
Outsider  
Beginner Intermediate Experienced Expert  
Pillar  
0.53  
85%  
13%  
2%  
0%  
0%  
0%  
A. Strategy and  
0.14  
83%  
14%  
2%  
1%  
0%  
0%  
organization  
B. Smart factory  
C. Smart operations  
E. Smart products  
0.35  
1.47  
0.08  
0.43  
1.24  
65%  
13%  
93%  
67%  
11%  
18%  
26%  
4%  
14%  
56%  
2%  
2%  
4%  
1%  
1%  
0%  
1%  
1%  
1%  
2%  
1%  
0%  
0%  
0%  
2%  
1%  
F. Data-driven services  
G. Employees  
25%  
46%  
3%  
41%  
Nguồn: Bộ Công thương, 2019.  
Strategy and organization  
Table 3 shows that the average readiness leves of Vietnam enterprises of the entire sector  
is 0.53 (the ―outsider‖ level) and up to 85% of enterprises are at the ―outsiders‖ of IR 4.0.  
According to a survey of the Ministry of Industry and Trade in 2019, in Vietnam only 13% of  
surveyed enterprises are at the beginning level and only 2% of enterprises are evaluated as  
having "basic qualifications" ( intermediate, belonging to the group integrated), a very small  
number of enterprises are assessed at the level of experienced and experts, no enterprises are  
assessed as top performer.  
Table 3: Readiness level of companies for Industry 4.0  
in Strategy and implementation  
Readiness Level (%)  
No. of  
Samples  
Surveyed Industry  
Score  
Top  
Outsider Beginner Intermediate Experienced Expert  
Performer  
ALL  
SUBSECTORS  
2659 0,53 85% 13%  
2%  
0%  
0%  
0%  
BY SIZE  
538 0,88 61% 32%  
7%  
1%  
0%  
0%  
0%  
0%  
0%  
0%  
Large  
2121 0,51 91%  
8%  
Medium and small  
BY  
OWNERSHIP  
120 1,44 37% 47%  
1895 0,50 89% 10%  
282 0,46 88% 11%  
16%  
1%  
1%  
0%  
1%  
0%  
0%  
0%  
0%  
0%  
0%  
0%  
0%  
0%  
0%  
0%  
State-owned  
Non - State  
Private  
5
0,90 60% 40%  
Partnerships  
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1170 0,47 93%  
6%  
1%  
2%  
0%  
0%  
0%  
0%  
0%  
0%  
Limited liability  
Joint stock  
company with  
State-invested  
capital  
62 0,95 61% 37%  
Joint stock  
company with no  
State-invested  
capital  
With foreign-  
invested capital  
100% foreign-  
invested capital  
376 0,63 82% 14%  
4%  
3%  
0%  
0%  
0%  
0%  
0%  
0%  
644 0,60 81% 16%  
603 0,60 59% 16%  
2%  
5%  
0%  
2%  
0%  
0%  
0%  
0%  
41  
0,65 55% 20%  
Joint venture  
Source: Ministry of Industry and Trade, 2019.  
The percentage of non-state enterprises (with an average readiness point of 0.50 which is  
lower than the all sector ‗average of 0.53) stands outside IR 4.0 at a very high level - 89%. The  
ratio of foreign-invested enterprises (with an average ready score of 0.60) is also quite high -  
81%, and of state-owned enterprises (with an average ready score of 1.44 much higher than the  
industry average) is 37%. The willingness of enterprises at the basic level is very low in which  
state-owned enterprises account for 16% as the highest rate, whereas, private enterprises  
account for only 1%.  
However, overall assessment, the readiness to participate in IR 4.0 of enterprises is still  
limited due to the difference in technology investment between state and private enterprises; the  
smaller the business is and the fewer employees it owns, the lower the readiness‘s point is; the  
situation of labor lacking technology skills; State budget investment in science and technology  
activities is still low, investment rate tends to decrease.  
The readiness level in terms of strategy and organization of all sector is very low  
because 81% of enterprises do not develop strategies, 95% of them do not have a set of  
indicators to evaluate the implementation, 50% of them do not have innovation activities and  
44% of enterprises do not invest in science and technology in the direction of Industry 4.0  
(Ministry of Industry and Trade, 2019). Sectors with a higher level of strategic and  
organizational readiness than average are oil and gas exploitation, electronic products, food and  
apparel. In particular, the proportion of enterprises investing in the creative processing sector is  
the highest, accounting for 47% of the enterprises investing over 10 billion dong, in the IT sector  
(up from 2% to 3%).  
Smart factory  
The Smart Factory pillar is defined as a factory equipped with automated machinery and  
processes, automated internal supply chains, automated plants, product development, and  
integrated information management systems (Lasi, 2014). A smart factory operates through  
using technologies such as artificial intelligence (AI), robots, analytics, big data and the internet  
of things (IoT) aimed at self-operation and self-adjustment inmanufacturing . One of the most  
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basic characteristics of a smart factory is the connectivity, linking of devices, machines and  
systems to provide the data needed to make real-time decisions.  
Figure 4: Business readiness in the Smart Factory pillar  
Source: Ministry of Industry and Trade, 2019.  
The readiness of enterprises in the Smart Factory pillar is basically still at a low point  
(Figure 4). The number of enterprises by all sector which is outside of smart factory is very high  
(about 65%), of which small and medium enterprises account for 72%. However, the level of  
readiness to participate of state-owned enterprises at the basic level accounts for 50%, the  
highest of all sector and foreign-invested enterprises only account for nearly 20%.  
According to the overall assessment, the factors affecting the readiness in the Smart  
Factory is proportional to the size of enterprise (the larger the size, the higher the level of  
participation). At the same time, other factors such as the rate of capital, the proportion of the  
labor force using a computer, earning bachelor degree or higher, the proportion of enterprise  
using the internet. Staffs of enterprises without vocational certificates, bachelor degree tends to  
participate in the field at a lower level. In addition, readiness level is inversely proportional to  
the age of the manager.  
The application of smart factory concepts has helped manufacturing businesses operate  
more efficiently. The smart factory will make the production system 30% faster and 25% more  
efficient; Manufacturing enterprises that have adopted and implemented smart factory techniques  
have continuously improved their efficiency (Koren, 2015). In addition, Shrouf (2014) also  
concluded that 82% of enterprises deploying smart factories have confirmed increasing  
production efficiency; 49% said that the number of defective products decreased; and 45% said  
that increased customer satisfaction.  
In addition, Vietnamese IT companies are deeply involved in global value chains through  
global partnerships and technology transfer. For example, CMC has also signed a cooperation  
agreement to implement smart factory solutions with Samsung SDS - a subsidiary of Samsung  
Group focused on IT services. Viettel Media Company, a subsidiary of Viettel, is allowed to use  
Qualcomm patents to manufacture and sell 3G / 4G devices in a deal worth US $ 100 million.  
This agreement is expected to help promote Vietnam's smartphone and IoT industry.  
Smart operations  
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The readiness point in the Smart Operations pillar as 1.47 is the highest among the  
pillars with 56% of businesses rated as "basic" or higher. In order to improve readiness for Smart  
Operations activities, industrial enterprises need to meet the criteria about cloud computing  
services, management and operations automation. It is noteworthy that the percentage of  
enterprises at “outsider‖ level in this pillar is quite low with 4% for other transportation  
vehicles. The proportion of enterprises at ―intermediate‖ level is rather high (50% to more than  
60%) and the number of firms in the “leaders‖ group (comprising readiness levels of  
“experienced‖, ―expert‖ and ―top performer‖) is the highest compared to other pillars.  
Figure 5: Share of enterprises by readiness level in smart operations pillar  
by size and ownership  
Source: Ministry of Industry and Trade, 2019.  
The readiness for large-scale and state-owned enterprises is significantly higher than that  
of small and medium-sized enterprises and other types of ownership (Figure 5). Large  
enterprises with basic qualifications account for 60%, especially foreign-invested enterprises  
account for the highest of about 70%.  
The difference in availability between businesses is due to the barrier to assess readiness  
in the Smart Operator pillar, which is the lack of automated control. The main criteria of Industry  
4.0 is the process of automatic production control, the production department automatically  
moves to the next processing stations, determines the path and sequence with production  
parameters for devices. specialized. Also affected by low system integration, external sales  
integration can help reduce costs and improve efficiency.  
Table 4: Application of typical technologies of IR 4.0 in Vietnamese industrial enterprises  
There are no  
Technology  
Applying Will apply  
plans to  
apply  
Irrelevant  
Total  
15,1  
12,4  
9,8  
4,5  
4,7  
65,6  
14,8  
12,6  
21,0  
100,0  
Cloud computing  
Connect the device to the  
device / product  
6,1  
68,9  
100,0  
100,0  
64,6  
Sensor technology  
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Mobile terminal  
technology  
4,0  
1,7  
1,3  
4,1  
3,5  
1,9  
70,1  
72,2  
58,7  
21,8  
22,7  
38,1  
100,0  
100,0  
Real-time positioning  
technology  
Identification technology  
by radio waves  
100,0  
100,0  
100,0  
1,3  
0,9  
3,0  
72,8  
51,4  
22,9  
45  
Artificial intelligence  
3D printing technology  
2,7  
Analysis and data  
management Big Data  
0,5  
4,0  
14,1  
81,5  
100,0  
Source: Nguyen Thang (2018)  
Readiness in using cloud computing functions and services is not a compulsory factor for  
starting Smart Operations, but is a factor that affects the ability of a business to elevate its  
readiness level from the “learners” to “leaders” group. One reason for the low rates was only  
15% of enterprises used cloud computing, 65% of enterprises do not have a plan to apply. For  
Artificial Intelligence (AI) and Big data, the application rate is quite low, equivalent to 1.3% and  
0.5% of enterprises are applying. Thanks to Big Data, AI technology is capable of transcending  
human limits and to automate complex tasks through processing large volumes of data.  
However, many difficult problems for Vietnamese businesses in developing artificial  
intelligence such as a team of high-quality engineers need the company's resources as well as the  
state investment because of the required funding and resources. is very big. In addition, a  
challenge is the quality and accuracy of the data, otherwise called labeled data. The percentage  
of enterprises using 3D printing technology is also very low (about 0.9%) due to high initial  
investment costs.  
Thus, we are also changing rapidly, positively and actively in only a very few areas, the  
rest of the others are sluggish, even worrying, conservative. There are many difficult areas,  
embarrassing behavior before new situations, new and non-traditional business methods, from  
agriculture to industry, transportation, commerce and services. . However, due to the relatively  
large initial investment, partly because of small and strong farming and farming practices,  
whoever they do, partly because of weak planning, lack of practicality and many other causes,  
the development High-tech agriculture did not go as expected.  
Smart product  
The readiness point in the Smart Products pillar was lowest (0.08) of the six pillars  
assessed with the percentage of outsiders being 93% is the highest among the 6 evaluation  
pillars. This pillar has an important impact on the readiness level in terms of response to IR4.0.  
The level of importance is only behind the Strategy and Organization pillar accounting of 18.5%  
in identifying the readiness level . Elements of readiness in the Smart Product pillar are  
expressed through the additional information technology function of the product and the level of  
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data analysis collected during the use period. One of the important requirements for smart  
products is to collect information about product data associated with IT.  
Figure 7: Share of enterprises by readiness level in smart products pillar  
Source: Ministry of Industry and Trade  
In this pillar, the proportion of enterprises that stand outside the business accounts for a  
high percentage. According to a UNDP‘s survey of 2659 enterprises in Vietnam, the proportion  
of enterprises that stand outside the market with smart products such as oil and gas (70%),  
electronics (80%), electricity-gas-steam ( eighty seven%). In general, the proportion of  
enterprises that are outside business in the pillar of smart products is very large with the  
proportion of all sector is 92%, state enterprises also account for 42%, especially small and  
medium enterprises account for 92% (Figure 7). The basic level of enterprises when applying  
smart products in manufacturing is only 3% (state sector) and 2% for foreign-invested  
enterprises.  
The reason affecting the readiness level in the Smart Products pillar is due to the positive  
correlation between the size of the business and the product's ability to add IT features; the large  
size of the labor force (from 300 to 1000 employees) and the rate of investment.  
For example, at the national level, Germany has set its goal to become a Smart Nation,  
actively innovating and exploiting technology to promote labor productivity and improve the  
quality of life. A Smart Country needs smart products. The action plan "High-tech strategy until  
2020" identifies the "10 future projects" of Industry 4.0 through a sum of EUR 200 million to  
encourage the development of "smart products" based on German strengths (Kagermann, 2016).  
German is aware that innovative products are the factors that promote prosperity and support the  
quality of life.  
Japan is the third largest economy in the world and has a variety of industries. Besides,  
the Japanese also acknowledge the explosive era of Industry 4.0. As a result,in 2015, "Council of  
initiative to revolutionize robots" (RRIC) was founded with the participation of 200 enterprises  
to expand their work through using smart machines and products in the manufacturing, supply  
chain, construction and healthcare industries, boosting robot sales from USD 4.9 billion annually  
to USD 21 billion (DeWitA, 2015).  
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Data-driven services  
The readiness level of enterprises for Industry 4.0 in the field of Services based on  
numerical data has an increasing number of experienced businesses. This is the pillar with great  
potential for Vietnam‘s development in the future . The readiness point of the Data-driven  
Services pillar is low (0.42) due to the poor level of providing data services that integrate  
production process and product usage data.  
Figure 8: Share of enterprises by readiness level in data-driven services pillar  
Source: Ministry of Industry and Trade  
Businesses need to use IT in changing the focus of their business models, digitizing  
traditional business models to benefit from data collection and analysis. Up to 67% of businesses  
in the whole industry are out of the question of providing data-based services, 25% of startups,  
3% at the basic level and a number of businesses in Leading group (UNDP, 2019). In particular,  
in the state sector, the proportion of newly started businesses accounted for nearly 20%,  
equivalent to large, medium and small enterprises, respectively 24% and 22%.  
The reason for the percentage of enterprises that are outside data pillar is still low  
because the proportion of enterprises providing data-based services is proportional to the size of  
the labor force, especially the labor and experience, if businesses have less than 300 employees,  
the level of participation is lower. Firms with a university degree or higher with a higher capital  
ratio are more likely to have a higher readiness point, while enterprises with a lower percentage  
of trained workers for less than 3 months are likely to get a lower score.  
EMPLOYEES  
The willingness of enterprises to Industry 4.0 in pillars of workers with a very high  
percentage of people who know and are willing to participate in the technology application  
industry. Readiness score in the Employees pillar (1.24) is the second highest following the  
Smart Operations pillar and is at ―beginner‖ level. Particularly 11% of enterprises have not  
equipped their employees with any knowledge and skills to cope with IR4.0, whereas, the  
percentage of enterprises having sufficiently equipped employees with knowledge and skills is  
still low (2-4%). It is important to promote workers through appropriate and regular training for  
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them to adapt to changes. People's readiness is determined by analyzing labor skills on many  
stages of production and business and efforts of enterprises in equipping employees with skills.  
Enterprises with labor trained fewer than 3 months and businesses with a lower percentage of  
employees aged 46-55 own lower point of readiness.  
Figure 9: Share of enterprises by readiness level in employees pillar  
Source: Ministry of Industry and Trade  
State-owned enterprises and large-scale enterprises outperform small and medium-sized  
enterprises in the proportion of enterprises achieving the basic level of readiness and above,  
respectively 70% and 33% (Figure 9). Notably, the basic level of state-owned enterprises 2.5  
times higher than non-state enterprises, and 2 times higher than foreign-invested enterprises.  
This can be explained by the fact that businesses or grassroots administrations focus on  
providing necessary skills for people in terms of access to Industry 4.0. Enterprises with  
management level of university or higher and enterprises with a large scale of labor-intensive  
training will have a higher level of readiness.  
The analysis results show that raising people's readiness requires attention, increasing  
investment, qualified managers and visions, as well as the ability to promote and create a  
learning environment. lifelong, access to new skills of people.  
3. Policy suggestions for Vietnam  
The general context of Vietnam's economy today shows that the private sector is still  
relatively small, small and medium enterprises account for a very high proportion (with 64.5% of  
businesses with less than 10 employees, 19% from 10 - 24 employees, only 0.4% of businesses  
have more than 1,000 employees) (UNDP-VASS, 2016), labor migration from low productivity  
areas such as agriculture to services and industry contributes primarily to labor productivity  
growth. On the other hand, Vietnamese small and medium enterprises are facing many barriers  
and obstacles, mainly limited participation in global value chains, limited business capacity,  
capital investment and technology , access to financial resources, efforts to improve readiness for  
Industry 4.0. The Industrial Revolution 4.0 is an inseparable part from industrial policies,  
business development, investment attraction, production development ....  
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HỘI THẢO QUỐC TẾ: PHÁT TRIỂN  
DOANH NGHIỆP NHỎ VÀ VỪA CỦA VIỆT NAM TRONG BỐI CẢNH CUỘC CÁCH MẠNG CÔNG NGHIỆP 4.0  
Among 6 pillars assessing the readiness to access to Industry 4.0, the Strategy and  
Organization pillar is very low. Currently, businesses need to take measures to build a labor  
restructuring strategy, standardize production techniques, apply resource management models,  
supply chain management, and exchange information about the production process.  
manufacturing and products. This paper proposes some suggestions for enterprises that need to  
upgrade existing strategies into Industry 4.0 strategy, upgrading departmental connectivity to  
operational linkages of the whole industry. In addition, it is necessary to focus on investing in  
renovation of modern technology equipment, applying diffusion technology with low costs such  
as cloud technology and digitization.  
Pillar Smart products have the lowest and weakest ready points of the business.  
Businesses need to focus on integrating IT features in products and production processes to  
analyze data to optimize production processes or product development during consumption. In  
the pillar of Smart Factory, enterprises need to plan, monitor and adjust to maximize the  
production and business process. In addition, it is necessary to have solutions to connect  
infrastructure, machinery and equipment with modern IT to automate the timely production  
process and low cost.  
For pillars with higher level of readiness such as Workers, enterprises need to focus on  
investing in equipment and training from basic to professional aspects related to Industry 4.0  
access. In addition, the leading enterprises need to promote and support other enterprises in  
participating in Industry 4.0, for example, enterprises leading to appoint experts to support or  
provide short-term internships for enterprises with available levels. lower readiness, holding  
workshops and joint training to develop basic training skills at the sector-wide level.  
In addition, the paper also proposes some specific policy:  
Regarding the construction of digital connection infrastructure, safety, network security  
and information and communication technology development  
With relatively rapid advances in IT and communications development in recent years,  
Vietnam has gradually recorded on the world digital technology map. However, the  
telecommunications infrastructure is still inadequate, especially, in the trend of more and more  
services and transactions of enterprises applying cloud computing technology, the dependence of  
businesses on the Internet connection is greater than ever. Enterprises also face the threat of attacks  
from hackers from home and abroad when the law does not have specific protection measures, nor  
sanctions against acts of unauthorized data breach. It is essential to increase public awareness  
about the great benefits and necessity of open data mining. Exploiting open data infrastructure not  
only brings greater transparency and publicity of government to citizens and businesses, but also  
provides more employment, income, and a platform to develop connected things.  
Regarding education, training and vocational training to develop human resources  
capable of absorbing new production technologies of Industry 4.0  
Reforming education and human resource training in the direction of changing the  
approach of education, developing creative and entrepreneurial skills. It is necessary to have  
policies to train students with skills and technology knowledge right from the school chair and to  
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IN VIETNAM IN THE CONTEXT OF INDUSTRIAL REVOLUTION 4.0  
practice accessing technology quickly. In addition, businesses also want the State to organize  
seminars and training courses on technology knowledge when applying 4.0 technology and how  
to overcome barriers to technology access. Create conditions for experts, engineers and  
technology users to have access to advanced technology, to participate in short-term but  
practical, effective training courses that are practical.  
Regarding technology transfer, application and research and development of RI 4.0  
In the field of commodity production, businesses need to apply automation technology,  
the Internet of Things, big data processing, artificial intelligence in production and business.  
Enterprises should base on their existing efforts, upgrade their existing strategies into the  
Industrial Revolution 4.0 strategy, upgrading and connecting all activities. In addition, the State  
needs to support businesses to invest in technological innovation, prioritize upgrading and  
application of highly diffuse and low-cost technologies such as cloud technology ... To optimize  
business production process, it is necessary to have a solution to connect infrastructure,  
machines and equipment with information technology system to automate the adjustment  
process flexibly. For example, in the service sector, especially banking services, commercial  
banks are expected to reduce the traditional network of operations (branches, transaction offices)  
in big cities to promote the development of electronic services such as Mobile banking, Internet  
banking, electronic wallets, branches / automated transaction offices.  
REFERENCE  
1. Lalic, B., Majstorovic, V., Marjanovic, U., Delic, M. & Tasic, N. (2017). The Effect of  
Industry 4.0 Concepts and E-learning on Manufacturing Firm Performance: Evidence from  
Transitional Economy. International Federation for Information Processing.  
2. DeWitA (2015), Smart Construction, Creative Destructio and Japan‘s robot Revolution. The  
Asia-Pacific Journal.  
3. Hidayat, R. & Akhmad, S. (2016). Effects of the enterprise resource planning (ERP) on  
competitive advantage and performance of manufacturing firms. Journal of Engineering and  
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DOANH NGHIỆP NHỎ VÀ VỪA CỦA VIỆT NAM TRONG BỐI CẢNH CUỘC CÁCH MẠNG CÔNG NGHIỆP 4.0  
8. World Economic Froum (2018), Readiness for the Future of Production Report 2018,  
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using laserscanners. Procedia Manufacturing, Vol. 10.  
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11. Ministry of Planning and Investment (2019), The fourth draft of national strategy on  
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