A World Economic Forum (WEF) report says that Vietnam ranks low in terms of education, human resources, innovation and technology and that as the world enters the Fourth Industrial Revolution, the country faces a number of challenges because it is not prepared for the future.
According to WEF’s analysis, Vietnam ranks low in terms of education, human resources, innovation and technology, which are all crucial factors for the Fourth Industrial Revolution.
In its “Readiness for the Future of Production Report 2018,” the WEF analyzes 100 countries and economies that represent over 96% of global Manufacturing Value Added (MVA) and over 96% of global Gross Domestic Product (GDP). Its analysis is based upon 59 indicators across the Drivers of Production and Structure of Production components.
According to the WEF, on a scale of one to 10, Vietnam scores 4.9 in Drivers of Production and 5.0 in Structure of Production, behind Singapore, Malaysia, Indonesia and Thailand.
The country’s ranks:
Technology & Innovation 90th
Technology Platform 92nd
Quality of Vocational Training 80th
Quality of Universities 75th
Ability to Innovate 70th
Human Capital 70th
Math & Science 68th
In May 2017, Nguyen Xuan Phuc, the Prime Minister of Vietnam issued a directive to strengthen the country's ability to access the Fourth Industrial Revolution. In December 2017, the Prime Minister said that Vietnam needed to provide further technical training for its workers and a comprehensive information technology system to serve a digital economy. He also said, the country needs to set a target of recruiting more than one million highly skilled workers for the digital technology sector.
Prime Minister Phuc directed the different components of the government to focus on how they can develop the infrastructure for information technology systems, while encouraging businesses to invest in technology innovations that will allow them to seize opportunities in the Fourth Industrial Revolution and minimize its negative impacts.
In education and scientific research, the government will focus on basic science, information technology, mathematics and physics. Research at government-funded universities will focus on advanced, innovative technologies that will boost the quality of intellectual property and production.
The government will give high priority to biology and sciences and will seek government and private-sector development for this industry.
In communications and technology, Vietnam is expected to have complete and stable 4G networks by 2018. Research and development of 5G technologies will also be set into motion to meet the requirements for an Internet of things as soon as possible. The country will also invest in additional land and underwater Internet cable systems to create a stable Internet environment.
The Fourth Industrial Revolution is creating advances and business opportunities across a variety of technologies including Artificial Intelligence, Biological and Chemical technologies, Blockchain, Fintech and the Internet of Things. Development in these industries and many more are taking place all over the word and are already having a strong impact on all aspects of socio-economic life.
The Fourth Industrial Revolution is leading to a change in production methods, work forces and the nature of jobs and work. Of the 100 economies included in the WEF's assessment, only 25 from Europe, North America and East Asia are in the best position to benefit from the changing nature of production, said the report.
They are Austria, Belgium, Canada, China, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Ireland, Israel, Italy, Japan, South Korea, Malaysia, Netherlands, Poland, Singapore, Slovenia, Spain, Sweden, Switzerland, the U.K. and the U.S.
As one indicator of technology, 70% of the sales of robots are taking place in just four countries – China, Germany, Japan and the Republic of Korea, with China being the fastest growing market.