Industry 4.0 can beget new billion dollar industries in Vietnam

It says that the application of Industry 4.0 technology in production could boost Vietnam’s GDP by between $28.5 billion and $62.1 billion from now until 2030, a growth of 7-16 percent.

The Central Institute for Economic Management (CIEM) also says in a new report that per capita GDP could rise by $315-640, thanks to increased employment and productivity.

Minister of Planning and Investment Nguyen Chi Dung said at a recent conference that Vietnam’s GDP per capita had surged by 27.4 times in the last 30 years to almost $2,590 last year.

The Fourth Industrial Revolution can create 1.3-3 million new jobs, the CIEM estimates, noting that while some jobs will be lost, many more will be created.

Nguyen Dinh Cung, director of CIEM, said Industry 4.0 will create new billion dollar industries, which will drive economic growth, raise productivity and competitiveness, and create new services.

The institute predicts revenue generated from Vietnam’s e-commerce to grow to $40 billion, cloud computing, $2.2 billion, ride hailing technology $2.2 billion, smart agriculture $1.7 billion, and fin-tech $1.5 billion by 2030.

However, Vietnam currently lacks the support mechanisms to develop these platforms, Cung said.

"Overall, Vietnam’s market and economic systems are generally not geared towards innovation. Business laws are slow to change in response to changes in technology and market trends," he added.

The director of CIEM said he believed that Vietnam needs to have high-quality and large-scale innovation centers to nurture and develop startups.

More importantly, the government should give such establishments the freedom to innovate and not hold them back with obsolete regulations or administrative procedures.

"These centres should be run by great CEOs with competitive salaries," Cung said.

The institute also proposed policies to further institutional reform, digitize government functions, upgrade management tools and generate new management thought.

"This is a prerequisite for implementing the Industrial 4.0 revolution in Vietnam," Cung said.