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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INTERNATIONAL CONFERENCE: DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES
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
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2. DeWitA (2015), Smart Construction, Creative Destructio and Japan‘s robot Revolution. The
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3. Hidayat, R. & Akhmad, S. (2016). Effects of the enterprise resource planning (ERP) on
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4. Kagermann H, Anderl R, Gausemeier J (2016), Industrie 4.0 in a Global Context: Strategies
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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
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