10:46 (GMT +7) - Tuesday 27/06/2017

Business

Change is coming

Released at: 09:44, 17/05/2017

Change is coming

Photos: Viet Tuan / illustrations:Achiver

VET sought the opinions of business leaders on what the fourth industrial revolution has in store for Vietnam.

Mr. Benjamin Chow Yee,  CEO of Hitachi Systems Vietnam Company LimitedIn this current stage of the manufacturing sector, Vietnam is still behind Malaysia and Singapore, which are almost at the robotics or semi-automation level. Given the high cost, there is also a lack of awareness and understanding among Vietnamese companies in regard to the benefits that automation can bring. This is not a big problem, however, but rather an opportunity for companies like Hitachi Systems. I believe that once Vietnamese companies see the benefits over a long-term basis, they will be quick to adapt to the trend. 

I understand the Vietnamese Government is now looking at Industry 4.0 as a way to sustain the country’s competitiveness. However, the road for Vietnam to enter Industry 4.0 will differ from other countries. Many foreign companies still see Vietnam within the “China plus one” model, with many companies in China diversifying their operations by adding another location in Vietnam. Though Vietnam is on a good track, the country should not follow the same path China chose. Instead, it should come up with a different way to approach this revolution. 

As the market changes, the economy also has to change. At this point, the direct impact of the fourth industrial revolution on Vietnam’s labor market is still to be seen. If labor-intensive workers can receive proper training or those labor-intensive industries receive support from the government or the private sector, then workers could move from such jobs and into data management or automation. Eventually, of course, headcounts will be reduced, but those employed in these industries at the engineering level will end up at a higher technical level. 

Among ASEAN countries, Singapore is currently leading in terms of technology application, just as South Korea and Japan are in Asia. Japan has only started to look into Industry 4.0, so I believe it will take another five to seven years for Vietnam to actually enter Industry 4.0.


Ms. Nguyen Bich Trang, Director of CBRE Vietnam, Hanoi OfficeThe fourth industrial revolution will not have a direct impact on real estate but will have an indirect impact. Applications in office projects, housing, and other projects with smartphone systems have been used by some investors in Vietnam. CBRE has also implemented a number of working-space 360 projects in the Asia-Pacific region and the world, which use a large number of digitization technologies to create a better working environment for employees. In my opinion, shopping malls in the retail segment will also use digital technology to assist people when they come to shop, eat, and use services. On a global scale, supermarkets are now equipped with self-checkout machines, allowing customers to process their payment by themselves.

Industry 4.0 is a long process and requires Vietnam’s real estate sector learn from other countries around the world. However, we need to apply our own solutions based on our situation and what Vietnam has. 

CBRE always wants to apply advanced and trending technologies to guide and spread new ideas and trends in Vietnam’s real estate market. It wants both investors and customers to have access to new technology. Internally speaking, CBRE has implemented working-space 360, applying modern automation technologies, including at CBRE Vietnam. 

Vietnam’s real estate also faces many challenges from Industry 4.0. When digitizing a system at the global level, it initially requires a dense process and heavy workload for each component, especially the IT component, due to the system sometimes being faulty when applied. It’s also hard on human resources. We need human resources with sufficient knowledge and skills in technology.


Mr. Truong Gia Binh,  Chairman of the FPT GroupI think the first thing for Vietnam now is digital economic renovation. For example, the government needs to consider whether it permits Uber to official