According to a report by the Central Institute for Economic Management (CIEM).
The Fourth Industrial Revolution (4IR), also known as the Industry 4.0, has the potential to bolster Vietnam’s economic output by $28 ~ $62 billion USD by 2030, equivalent to GDP growth of 7% ~ 16%.
The CIEM also expects that per capita income will rise by an additional $315 ~ $640 USD thanks to improvements in labor productivity and the increase in job creation.
Nguyen Dinh Cung, Director of the CIEM said at a forum in Hanoi on November 27th that as a lower middle-income nation, Vietnam is focusing its efforts to shift the country’s growth model and accelerate the digital industrialization process.
Nguyen noted that rational and practical policies should be put in place as soon as possible so that Vietnam can get involved with Industry 4.0 and move forward with initiatives related to science and technology since are deemed as the leading drivers of economic growth.
Dang Quang Vinh, Deputy Head of the CIEM’s Department of Business Environment and Competitiveness said that he believes that new industries will support other sectors in enhancing their competitive edge, increasing revenue, and developing new services. Agriculture, banking, finance, insurance, manufacturing, processing, retail will be among the Industry 4.0 beneficiaries.
Vinh pointed out that despite improvements in the business climate, a problem facing companies and industries in the 4IR era is that Vietnam’s legal framework, institutions and regulations lag behind market trends and technology and that Vietnamese regulators need to “catch-up” to the realities of the 4IR era.
Another issue that effects Vietnamese companies is that most enterprises have not paid attention to high-tech applications being developed for their businesses and that many companies lack the capital and knowledge base for technological investment.
Participants in the forum voiced the opinion that the Government should change its business management mechanism, create space for technology development, supplement institutions for new industries, and exercise regulations on intellectual property to encourage innovation.
Dinh Quang Trung, Deputy Head of the Ministry of Information and Communications’ Department of Science and Technology, said that companies should expand their strategic IT and electronics-telecommunication products.
Economist Le Dang Doanh described the facilitation of business conditions as the most important factor that should be included in the national strategy on Industry 4.0.