• Home
  • About RSIS
    • Introduction
    • Building the Foundations
    • Welcome Message
    • Board of Governors
    • Staff Profiles
      • Executive Deputy Chairman’s Office
      • Dean’s Office
      • Management
      • Distinguished Fellows
      • Faculty and Research
      • Associate Research Fellows, Senior Analysts and Research Analysts
      • Visiting Fellows
      • Adjunct Fellows
      • Administrative Staff
    • Honours and Awards for RSIS Staff and Students
    • RSIS Endowment Fund
    • Endowed Professorships
    • Career Opportunities
    • Getting to RSIS
  • Research
    • Research Centres
      • Centre for Multilateralism Studies (CMS)
      • Centre for Non-Traditional Security Studies (NTS Centre)
      • Centre of Excellence for National Security (CENS)
      • Institute of Defence and Strategic Studies (IDSS)
      • International Centre for Political Violence and Terrorism Research (ICPVTR)
    • Research Programmes
      • National Security Studies Programme (NSSP)
      • Studies in Inter-Religious Relations in Plural Societies (SRP) Programme
    • Future Issues and Technology Cluster
    • [email protected] Newsletter
    • Other Research
      • Science and Technology Studies Programme (STSP) (2017-2020)
  • Graduate Education
    • Graduate Programmes Office
    • Overview
    • MSc (Asian Studies)
    • MSc (International Political Economy)
    • MSc (International Relations)
    • MSc (Strategic Studies)
    • NTU-Warwick Double Masters Programme
    • PhD Programme
    • Exchange Partners and Programmes
    • How to Apply
    • Financial Assistance
    • Meet the Admissions Team: Information Sessions and other events
    • RSIS Alumni
  • Alumni & Networks
    • Alumni
    • Asia-Pacific Programme for Senior Military Officers (APPSMO)
    • Asia-Pacific Programme for Senior National Security Officers (APPSNO)
    • International Strategy Forum-Asia (ISF-Asia)
    • SRP Executive Programme
    • Terrorism Analyst Training Course (TATC)
  • Publications
    • RSIS Publications
      • Annual Reviews
      • Books
      • Bulletins and Newsletters
      • Commentaries
      • Counter Terrorist Trends and Analyses
      • Commemorative / Event Reports
      • IDSS Paper
      • Interreligious Relations
      • Monographs
      • NTS Insight
      • Policy Reports
      • Working Papers
      • RSIS Publications for the Year
    • Glossary of Abbreviations
    • External Publications
      • Authored Books
      • Journal Articles
      • Edited Books
      • Chapters in Edited Books
      • Policy Reports
      • Working Papers
      • Op-Eds
      • External Publications for the Year
    • Policy-relevant Articles Given RSIS Award
  • Media
    • Great Powers
    • Sustainable Security
    • Other Resource Pages
    • Media Highlights
    • News Releases
    • Speeches
    • Vidcast Channel
    • Audio/Video Forums
  • Events
  • Giving
  • Contact Us
Facebook
Twitter
YouTube
RSISVideoCast RSISVideoCast rsis.sg
Linkedin
instagram instagram rsis.sg
RSS
  • Home
  • About RSIS
      • Introduction
      • Building the Foundations
      • Welcome Message
      • Board of Governors
      • Staff Profiles
        • Executive Deputy Chairman’s Office
        • Dean’s Office
        • Management
        • Distinguished Fellows
        • Faculty and Research
        • Associate Research Fellows, Senior Analysts and Research Analysts
        • Visiting Fellows
        • Adjunct Fellows
        • Administrative Staff
      • Honours and Awards for RSIS Staff and Students
      • RSIS Endowment Fund
      • Endowed Professorships
      • Career Opportunities
      • Getting to RSIS
  • Research
      • Research Centres
        • Centre for Multilateralism Studies (CMS)
        • Centre for Non-Traditional Security Studies (NTS Centre)
        • Centre of Excellence for National Security (CENS)
        • Institute of Defence and Strategic Studies (IDSS)
        • International Centre for Political Violence and Terrorism Research (ICPVTR)
      • Research Programmes
        • National Security Studies Programme (NSSP)
        • Studies in Inter-Religious Relations in Plural Societies (SRP) Programme
      • Future Issues and Technology Cluster
      • [email protected] Newsletter
      • Other Research
        • Science and Technology Studies Programme (STSP) (2017-2020)
  • Graduate Education
      • Graduate Programmes Office
      • Overview
      • MSc (Asian Studies)
      • MSc (International Political Economy)
      • MSc (International Relations)
      • MSc (Strategic Studies)
      • NTU-Warwick Double Masters Programme
      • PhD Programme
      • Exchange Partners and Programmes
      • How to Apply
      • Financial Assistance
      • Meet the Admissions Team: Information Sessions and other events
      • RSIS Alumni
  • Alumni & Networks
      • Alumni
      • Asia-Pacific Programme for Senior Military Officers (APPSMO)
      • Asia-Pacific Programme for Senior National Security Officers (APPSNO)
      • International Strategy Forum-Asia (ISF-Asia)
      • SRP Executive Programme
      • Terrorism Analyst Training Course (TATC)
  • Publications
      • RSIS Publications
        • Annual Reviews
        • Books
        • Bulletins and Newsletters
        • Commentaries
        • Counter Terrorist Trends and Analyses
        • Commemorative / Event Reports
        • IDSS Paper
        • Interreligious Relations
        • Monographs
        • NTS Insight
        • Policy Reports
        • Working Papers
        • RSIS Publications for the Year
      • Glossary of Abbreviations
      • External Publications
        • Authored Books
        • Journal Articles
        • Edited Books
        • Chapters in Edited Books
        • Policy Reports
        • Working Papers
        • Op-Eds
        • External Publications for the Year
      • Policy-relevant Articles Given RSIS Award
  • Media
      • Great Powers
      • Sustainable Security
      • Other Resource Pages
      • Media Highlights
      • News Releases
      • Speeches
      • Vidcast Channel
      • Audio/Video Forums
  • Events
  • Giving
  • Contact Us
  • instagram instagram rsis.sg
Connect

Getting to RSIS

Map

Address

Nanyang Technological University
Block S4, Level B3,
50 Nanyang Avenue,
Singapore 639798

View location on Google maps Click here for directions to RSIS

Get in Touch

    Connect with Us

      rsis.ntu
      rsis_ntu
      rsisntu
    RSISVideoCast RSISVideoCast rsisvideocast
      school/rsis-ntu
    instagram instagram rsis.sg
      RSS
    Subscribe to RSIS Publications
    Subscribe to RSIS Events

    RSIS Intranet

    S. Rajaratnam School of International Studies Think Tank and Graduate School Ponder The Improbable Since 1966
    Nanyang Technological University Nanyang Technological University

    Skip to content

     
    • RSIS
    • Publication
    • RSIS Publications
    • ASEAN’s New Economic Player – Vietnam’s Industry 4.0: Opportunities and Challenges
    • Annual Reviews
    • Books
    • Bulletins and Newsletters
    • Commentaries
    • Counter Terrorist Trends and Analyses
    • Commemorative / Event Reports
    • IDSS Paper
    • Interreligious Relations
    • Monographs
    • NTS Insight
    • Policy Reports
    • Working Papers
    • RSIS Publications for the Year

    CO19097 | ASEAN’s New Economic Player – Vietnam’s Industry 4.0: Opportunities and Challenges
    Cung Vu

    15 May 2019

    download pdf
    RSIS Commentary is a platform to provide timely and, where appropriate, policy-relevant commentary and analysis of topical and contemporary issues. The authors’ views are their own and do not represent the official position of the S. Rajaratnam School of International Studies (RSIS), NTU. These commentaries may be reproduced with prior permission from RSIS and due credit to the author(s) and RSIS. Please email to Editor RSIS Commentary at [email protected].

    SYNOPSIS

    Vietnam is trying to leap-frog to close the gap with other ASEAN countries by leveraging high-technologies to boost Vietnam economy. Not to be left behind other nations, Vietnam is riding on the Fourth Industrial Revolution to develop action plans to attract both technical domestic and foreign investors.

    COMMENTARY

    IN A recent Industry 4.0 summit in July 2018, the Vietnamese prime minister Nguyen Xuan Phuc stated that his administration was committed to creating a favourable environment for international organisations to collaborate in research and technology transfer with Vietnamese counterparts.

    He has directed the Ministry of Planning and Investment to complete the national strategy on Industry 4.0 and the Ministry of Science and Technology to develop innovation plans to achieve Vietnam’s 2035 goal. He also emphasised that manufacturing and businesses should be aligned with the digital economy.

    Vietnam’s Plan for Industry 4.0

    Vietnam is developing a strategy for science, technology and innovation guided by its vision Vietnam 2035 where technology will be applied to all industries and fields. Vietnam is also exploiting the potential benefits of the Internet-of-Things (IoT).

    Vietnam has a young workforce which adapts new technology very quickly. The Vietnamese government is encouraging the utilisation of Artificial Intelligence (AI) to build a prosperous Vietnam. The AI initiative would be comprehensive, a model for other nations to emulate.

    For example, a delegation from the Ministry of Planning and Investment, under the prime minister’s direction, went to the United States in April 2018 to meet with the Michael Dukakis Institute (MDI) and the Boston Global Forum (BGF) to discuss having their assistance in developing an artificial intelligence economic strategy for Vietnam.

    Vietnam is climbing up the skills ladder leveraging its growing tech industry. According to the Ministry of Information and Technology, software exports were worth US$2.5 billion in 2017. It was reported that US$291 million was invested in Vietnamese startups in 2017, up 42% from 2016.

    Exploiting Big Data and High-Tech

    Vietnam’s biggest private company, Vingroup, recently announced that it would invest in artificial intelligence, software development and big data. It also plans to create a high-tech park to bring entrepreneurs and developers together and to create two research institutes to develop big data and high-tech applications. Vingroup believes it will drive Vietnam’s high-tech industry into the world stage.

    In 2012, Vietnam launched the “Strategy for Science and Technology Development for the 2011-2020 Period”. It emphasised that Science and Technology play a critical and decisive role to innovate, enhance the competitiveness of the economy and speed up the country’s industrialisation and modernisation. It projected high-tech products and applications will make up 45% of gross domestic product (GDP) by 2020.

    Last year, Vietnam launched the “National Action Plan for Implementing the 2030 Programme for Sustainable Development”, It reiterated that Science and Technology is the foundation, the driving force for sustainable development of the country. It emphasised that the development of environmental technologies, clean technologies and high technologies are critical for sustainable development of the country.

    Current Challenges

    However, besides having a good strategy in science and technology and the desire to capitalise on the Industry 4.0 revolution, Vietnam still faces many challenges.

    In terms of human capital, even though Vietnam has produced a huge quantity of scientists and engineers, quality remains an issue. The rankings of research institutions and universities are lagging behind other ASEAN countries. Vietnamese scientists and engineers tend to excel in areas of mathematics and computing science where it requires little capital to establish a laboratory.

    The research institutions tend to conduct research alone with little or no collaboration with other domestic institutions. Quite often, university professors do not possess wide industry experience.

    In terms of management, there is not a clear policy or priority to set the direction in science and technology. For example, graduates from computer science are not sufficient to meet the demand in the high-tech areas such as Data Analytics, Internet-of-Things or Artificial Intelligence, while there is surplus of engineers/scientists in other fields.

    The imbalance in supply and demand may drive young students to study anything else other than the technical fields. The technology transfer between researchers and investors is weak and mechanisms to foster the linkage are highly needed.

    Future of Vietnam’s Industry 4.0

    Vietnam needs to set a clear vision for its Industry 4.0 and develop a strategy to implement and realise that vision. Transparency is a must. As Vietnam recognises the importance of the Industry 4.0, it must revitalise education and training in concert with business development. It should focus more on the market pull rather than the technology push.

    In addition, Vietnam must provide adequate resources and finance to invest in research facilities and create an environment where innovation is encouraged. This could mean increased level of research flexibility, autonomy and transparency in career development.

    Furthermore, it should leverage on the international academia and multilateral organisations to transfer advanced knowledge to local research institutions.

    Multilateral bodies such as the World Bank, Asian Development Bank, United Nations, European Union as well as multinational corporations should also be sought for assistance. This should include financial support to create the business environment to allow high-tech entrepreneurs to drive not only the high-tech industry in Vietnam but also to boost the competitiveness of the Vietnamese economy in ASEAN.

    About the Author

    Cung Vu PhD is a Visiting Senior Fellow at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University (RSIS), Singapore. He is also a consultant for the Hawaii Natural Energy Institute, University of Hawaii and has served as Associate Director at the Office of Naval Research Global in Singapore. This is the second in a two-part series on Vietnam’s rise as a regional economic player.

    Categories: Commentaries / Country and Region Studies / International Political Economy / East Asia and Asia Pacific / South Asia / Southeast Asia and ASEAN

    Last updated on 15/05/2019

    comments powered by Disqus
    RSIS Commentary is a platform to provide timely and, where appropriate, policy-relevant commentary and analysis of topical and contemporary issues. The authors’ views are their own and do not represent the official position of the S. Rajaratnam School of International Studies (RSIS), NTU. These commentaries may be reproduced with prior permission from RSIS and due credit to the author(s) and RSIS. Please email to Editor RSIS Commentary at [email protected].

    SYNOPSIS

    Vietnam is trying to leap-frog to close the gap with other ASEAN countries by leveraging high-technologies to boost Vietnam economy. Not to be left behind other nations, Vietnam is riding on the Fourth Industrial Revolution to develop action plans to attract both technical domestic and foreign investors.

    COMMENTARY

    IN A recent Industry 4.0 summit in July 2018, the Vietnamese prime minister Nguyen Xuan Phuc stated that his administration was committed to creating a favourable environment for international organisations to collaborate in research and technology transfer with Vietnamese counterparts.

    He has directed the Ministry of Planning and Investment to complete the national strategy on Industry 4.0 and the Ministry of Science and Technology to develop innovation plans to achieve Vietnam’s 2035 goal. He also emphasised that manufacturing and businesses should be aligned with the digital economy.

    Vietnam’s Plan for Industry 4.0

    Vietnam is developing a strategy for science, technology and innovation guided by its vision Vietnam 2035 where technology will be applied to all industries and fields. Vietnam is also exploiting the potential benefits of the Internet-of-Things (IoT).

    Vietnam has a young workforce which adapts new technology very quickly. The Vietnamese government is encouraging the utilisation of Artificial Intelligence (AI) to build a prosperous Vietnam. The AI initiative would be comprehensive, a model for other nations to emulate.

    For example, a delegation from the Ministry of Planning and Investment, under the prime minister’s direction, went to the United States in April 2018 to meet with the Michael Dukakis Institute (MDI) and the Boston Global Forum (BGF) to discuss having their assistance in developing an artificial intelligence economic strategy for Vietnam.

    Vietnam is climbing up the skills ladder leveraging its growing tech industry. According to the Ministry of Information and Technology, software exports were worth US$2.5 billion in 2017. It was reported that US$291 million was invested in Vietnamese startups in 2017, up 42% from 2016.

    Exploiting Big Data and High-Tech

    Vietnam’s biggest private company, Vingroup, recently announced that it would invest in artificial intelligence, software development and big data. It also plans to create a high-tech park to bring entrepreneurs and developers together and to create two research institutes to develop big data and high-tech applications. Vingroup believes it will drive Vietnam’s high-tech industry into the world stage.

    In 2012, Vietnam launched the “Strategy for Science and Technology Development for the 2011-2020 Period”. It emphasised that Science and Technology play a critical and decisive role to innovate, enhance the competitiveness of the economy and speed up the country’s industrialisation and modernisation. It projected high-tech products and applications will make up 45% of gross domestic product (GDP) by 2020.

    Last year, Vietnam launched the “National Action Plan for Implementing the 2030 Programme for Sustainable Development”, It reiterated that Science and Technology is the foundation, the driving force for sustainable development of the country. It emphasised that the development of environmental technologies, clean technologies and high technologies are critical for sustainable development of the country.

    Current Challenges

    However, besides having a good strategy in science and technology and the desire to capitalise on the Industry 4.0 revolution, Vietnam still faces many challenges.

    In terms of human capital, even though Vietnam has produced a huge quantity of scientists and engineers, quality remains an issue. The rankings of research institutions and universities are lagging behind other ASEAN countries. Vietnamese scientists and engineers tend to excel in areas of mathematics and computing science where it requires little capital to establish a laboratory.

    The research institutions tend to conduct research alone with little or no collaboration with other domestic institutions. Quite often, university professors do not possess wide industry experience.

    In terms of management, there is not a clear policy or priority to set the direction in science and technology. For example, graduates from computer science are not sufficient to meet the demand in the high-tech areas such as Data Analytics, Internet-of-Things or Artificial Intelligence, while there is surplus of engineers/scientists in other fields.

    The imbalance in supply and demand may drive young students to study anything else other than the technical fields. The technology transfer between researchers and investors is weak and mechanisms to foster the linkage are highly needed.

    Future of Vietnam’s Industry 4.0

    Vietnam needs to set a clear vision for its Industry 4.0 and develop a strategy to implement and realise that vision. Transparency is a must. As Vietnam recognises the importance of the Industry 4.0, it must revitalise education and training in concert with business development. It should focus more on the market pull rather than the technology push.

    In addition, Vietnam must provide adequate resources and finance to invest in research facilities and create an environment where innovation is encouraged. This could mean increased level of research flexibility, autonomy and transparency in career development.

    Furthermore, it should leverage on the international academia and multilateral organisations to transfer advanced knowledge to local research institutions.

    Multilateral bodies such as the World Bank, Asian Development Bank, United Nations, European Union as well as multinational corporations should also be sought for assistance. This should include financial support to create the business environment to allow high-tech entrepreneurs to drive not only the high-tech industry in Vietnam but also to boost the competitiveness of the Vietnamese economy in ASEAN.

    About the Author

    Cung Vu PhD is a Visiting Senior Fellow at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University (RSIS), Singapore. He is also a consultant for the Hawaii Natural Energy Institute, University of Hawaii and has served as Associate Director at the Office of Naval Research Global in Singapore. This is the second in a two-part series on Vietnam’s rise as a regional economic player.

    Categories: Commentaries / Country and Region Studies / International Political Economy

    Last updated on 15/05/2019

    Back to top

    Terms of Use | Privacy Statement
    Copyright © S. Rajaratnam School of International Studies. All rights reserved.
    This site uses cookies to offer you a better browsing experience. By continuing, you are agreeing to the use of cookies on your device as described in our privacy policy. Learn more
    OK
    Latest Book
    ASEAN’s New Economic Player – Vietnam’s Industry 4.0: Opportunities and Challenges

    SYNOPSIS

    Vietnam is trying to leap-frog to close the gap with other ASEAN countries by leveraging high-technologies to boost Vietnam economy. Not to be left ...
    more info