New industrial sectors emerging from the Fourth Industrial Revolution would become Vietnam’s main growth engines, while supporting other sectors to generate additional revenues and develop new services, according to Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM).
Overview of the conference. Source: Nguyen Tung.
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Vietnam, thus, is in need of formulating new policies supporting all economic components to take advantage of the Industry 4.0, Cung added.
Projections show that revenue of the e-commerce activities in Vietnam by 2030 would reach US$40 billion, artificial intelligence (AI) US$420 million, cloud computing US$2.2 billion, ride-hailing tech US$2.2 billion and smart agriculture US$1.7 billion, among others, which showed the importance of Industry 4.0 to Vietnam’s economy in the future, Cung stressed.
According to a CIEM report, comparing to a scenario of Vietnam’s economic reform without applying Industry 4.0 technologies, the Fourth Industrial Revolution would help increase Vietnam GDP by US$28.5 billion – 62.1 billion, equivalent to an additional growth of 7 – 16% of GDP by 2030, depending on each scenario.
As a result, the GDP per capital would increase by US$315 – 640 by 2030, thanks to improved productivity and new job creation.
“Industry 4.0 is predicted to help generate 1.3 – 3.1 million new jobs,” Cung added.
Toshio Iwamoto, president and CEO of Japan’s NTT Data, said the Industry 4.0 would form a linkage between enterprises operating in different fields through the cyber space in terms of information, production and distribution network. Additionally, with the support of technologies, fields such as energy, production and public policies, among others, have been connected, laying the foundation to a potential smart society.
In Vietnam, NTT Data Vietnam has been supporting smart and administrative reforms projects such as Vietnam Automated Cargo and Port Consolidated System (VNACCS). Moreover, the Nippon Automated Cargo and Port Consolidated System (NACCS) and Customs Intelligence Database System) (CIS) were developed to support Vietnam’s Customs for speedy yet precise customs clearance procedures.
“Industry 4.0 would pose a major opportunity, while failure to grasp this chance would result in being left behind,” Iwamoto said.
“Taking advantages of the Industry 4.0 is the shortest path for Vietnam in its quest for modernization and prosperity, transforming the country into an industrialized one in earliest period possible,” he added.
Iwamoto said Vietnam must create the best condition to encourage the development of innovative technology, while a national strategy for Industry 4.0 is a key measure for Vietnam to revise its growth model and restructure the economy.
CIEM’s Nguyen Dinh Cung said institutional reform and the digitalization of government’s operation both in terms of administrative mindset and instruments are required for the realization of Industry 4.0 in Vietnam.
During this process, Vietnam’s cooperation with other countries, research institutes, leading global hi-tech companies and scientists would help Vietnam advance faster, Cung stressed.
“The government must be proactive and remain steadfast on building a strong platform for Industry 4.0 realization,” Cung concluded.
