Industrial Revolution 4.0: Enterprises need to be active and understand themselves

Update: 16:22 | 14/09/2018
In the phase of Industrial Revolution 4.0, there are a lot of opportunities that are not easy to implement, at the same time challenges exist but does not mean it will easily crush enterprises.
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That is the comment of Dr. Nguyen Minh Phong on Vietnamese enterprises in the context of international economic integration and Industrial Revolution 4.0 (IR 4.0) that is becoming a wave affecting the operation of enterprises today.

What is your comment on the meaning of WEF ASEAN 2018 with the theme of “Enterprise spirit and the revolution of the 4th IR”?

This is the initiative of Vietnam, also the first time WEF has held in our country. This event expresses the spirit of an active Vietnam, especially more meaningful in the context of the Government’s launching the spirit of national start-up and welcoming the initial achievements of the IR 4.0.

industrial revolution 40 enterprises need to be active and understand themselves
Dr. Nguyen Minh Phong.

Thus, it can be said that the meaning of WEF ASEAN theme this year is doubled with the combination of start-up and IR 4.0, which is corresponding with the current context. Start-up and innovation is the promotion of new, promising or risky industries with new technologies, suitable for young countries, young generations with young industries like Vietnam.

However, not once has the meeting finished, the problem is that the outcomes of the Conference must be put into WEF and other countries’ action programs. It is also necessary for Vietnam to concretize and plan its action, from Government level to ministries, sectors and mass organizations level, especially among the youth.

In addition, enterprises and state management agencies must also look towards this spirit, so as to create a pioneering playing ground for young enterprises, for young startups, to facilitate them from school to work, particularly those who work in enterprises should also be facilitated, not just start-ups.

What are the opportunities and challenges that IR 4.0 brings about to Vietnamese enterprises?

IR 4.0 is the evolution originating from the IR 3.0 and is combining the three previous industrial revolutions and adding the features that the three previous ones did not yet have. Therefore, IR 4.0 is very special with two sides for many countries, but as for Vietnam, it is clearer.

On the one hand, IR 4.0 allows Vietnam to exploit the opportunities from IR 2.0, IR 3.0 and have the opportunity to capture the next achievements.

On the other hand, IR 4.0 allows Vietnam to go directly to the high-tech industries that Vietnam possesses as well as many potential advantages, especially industries that do not need foreign inheritance and without receiving technology from outside to switch and replace. For example: autonomous industry, artificial intelligence, jobs associated with high quality services, information technology.

However, IR 4.0 also has limitations since it removes old opportunities, if we do not know how to exploit and grasp, it will create challenges with new opportunities. Moreover, IR 4.0 requires us to master the information technology platform. At the moment, we depend on everything from outside, from the internet, servers, and technology sources... For these things, Vietnam is not available. This is a real challenge. In addition, enterprises also need capital to operate, but high technology implementations need a lot of capital. Enterprises need coordination to form the chain and the involvement of government. These are the decisive factors.

In your opinion, what should enterprises do to remove those knots and take full advantage of the IR 4.0’s achievements?

With IR 4.0, enterprises must be very active, better know their capacities and what they should do; Ability to match with what you have, low cost investment, what to do to fit the chain, create consuming markets and especially future prospects.

Secondly, enterprises need to redefine their management structure and model. Once they have identified the key and long-term investment orientation, they must restructure themselves from inner side, both in capital and management structure, governance, technology and especially upgrading standards, in accordance with international standards, because if Vietnam has its own standard, it cannot connect with others.

Additionally, enterprises need to have a smart capital plan, since its own capital is significant but safe capital exploitation is also essential.

Finally, the development of high quality human resources is the most important for enterprises. In the current context, human resources are the greatest and most available “capital sources” for enterprises and also the most sustainable and long-term “capital sources”, so forming the team of people with similar passion, enabling them to “fire” and resonate, that is the art of enterprises.

However, I believe that by exploiting the spirit of start-ups, the opportunity and community connectivity, especially the overseas Vietnamese community,... I hope that the enterprises will take appropriate steps.

Thank you, Dr.!

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