Econ
Breakthrough in industrial revolution 4.0: Key is human resources
At the conference “Competitiveness and inclusive development in the context of industrial revolution 4.0” held by the Ministry of Foreign Affairs on November 17, representatives discussed solutions for Vietnam to overcome challenges and making breakthrough in industrial revolution 4.0.
Director of the World Economic Forum (WEF) in Asia – Pacific Justin Wood said, Vietnam has progressed significantly since 1980. Form a low income level country, Vietnam has become a middle income country. Justin Wood shared the impact of the industrial revolution 4.0 will change the development direction of the industrialization process, as well as the price competitiveness of labor force. The market will focus in the quality of the labor force, instead of the price component, and change the direction of economic development in the future.
With the population of 93 million and in golden age, high rate of internet access and better access to high quality education, Vietnam will have advantages to catch up with advanced countries in the industrial revolution 4.0. However, on the contrast, the industrial revolution 4.0 are posing challenges on raising competitiveness and inclusive development for Vietnam. As such, specific measures are proposed by the Deputy Prime Minister Vuong Dinh Hue as follow: new business models, automation causing disruption and replacement for large scale labor force in production and manufacturing in Vietnam. These business models are based on the trans-border digital platform, which set up issues with regard to fair competition and financial obligation such as the recent competition between traditional taxis and ride hailing apps.
But the questions are how Vietnam can overcome challenges and make breakthrough in the industrial revolution 4.0? How Vietnam can become a high income level country and avoid the middle income trap? Justin Wood said, Vietnam is facing numerous difficulties in becoming a high income level country. This is also a similar story for other countries to avoid the middle income trap. According to representatives, in the context of the industrial revolution 4.0, Vietnam has to focus on the quality instead of cheap labor force. “High productivity is key to improve living standard of the people” – Justin Wood shared and stated WEF will continue supporting Vietnam to raise competitiveness. At present, study groups of WEF are cooperating with administrative agencies and ministries such as the General Department of Vietnam Customs, the Ministry of Agriculture and Rural Development, and the Ministry of Labor – Invalids and Social Affairs.
From the perspective of an enabling government, the Deputy Prime Minister Vuong Dinh Hue stressed the Vietnam’s government will communicate regularly and closely cooperate with the business community, experts from Vietnam and abroad to identify and remove barriers and inefficient regulation. With this being said, the government will continue finalizing the legal framework, creating mechanism and developing necessary action plans. Besides, the government will strongly encourage the development of start-up ecosystem, especially start-up based on Vietnam’s science & technology. At the same time to promote social responsibilities of enterprises, encouraging enterprises to participate in social development in the principle of benefit harmonization between the government, enterprises and citizens.
In the context of the industrial revolution 4.0, Vietnam has to focus on the quality instead of cheap labor force.
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But the questions are how Vietnam can overcome challenges and make breakthrough in the industrial revolution 4.0? How Vietnam can become a high income level country and avoid the middle income trap? Justin Wood said, Vietnam is facing numerous difficulties in becoming a high income level country. This is also a similar story for other countries to avoid the middle income trap. According to representatives, in the context of the industrial revolution 4.0, Vietnam has to focus on the quality instead of cheap labor force. “High productivity is key to improve living standard of the people” – Justin Wood shared and stated WEF will continue supporting Vietnam to raise competitiveness. At present, study groups of WEF are cooperating with administrative agencies and ministries such as the General Department of Vietnam Customs, the Ministry of Agriculture and Rural Development, and the Ministry of Labor – Invalids and Social Affairs.
From the perspective of an enabling government, the Deputy Prime Minister Vuong Dinh Hue stressed the Vietnam’s government will communicate regularly and closely cooperate with the business community, experts from Vietnam and abroad to identify and remove barriers and inefficient regulation. With this being said, the government will continue finalizing the legal framework, creating mechanism and developing necessary action plans. Besides, the government will strongly encourage the development of start-up ecosystem, especially start-up based on Vietnam’s science & technology. At the same time to promote social responsibilities of enterprises, encouraging enterprises to participate in social development in the principle of benefit harmonization between the government, enterprises and citizens.
