Industrial revolution 4.0: Vietnamese enterprises gain head start by taking shortcut

The Hanoitimes – Industrial revolution 4.0 is near approaching, inevitably, it will affect our life in various way. As such, enterprises must understand the industrial revolution 4.0’s characteristics and impact for efficient operation and integrate in a new era.

Turning direction of business and production

On September 10, the conference of Industrial revolution 4.0 and strategy for Vietnamese enterprise has attracted more than 700 representatives, including experts and enterprises in Hanoi and other provinces. This has proved the industrial revolution 4.0 is near approaching Vietnam and we cannot sit back and wait.

Former Vice Chairman of the Office of National Assembly Nguyen Sy dung said, the industrial revolution 4.0 will bring massive benefits to customers, as well as increasing efficiency and productivity for production and business activities. However, for enterprises, directors and manager who are barely feel the impact of industrial revolution 4.0 as this process is going too fast. 

On the supply side, technologies create new way of supplying, which has greatly influenced the existing industry and value chain. For example, Uber when coming to Vietnam with creative operation has brought maximum benefits for customers, if traditional taxis do not change their ways of operation, they cannot survive in a new environment. As such, founders must find new business solution to replace the traditional way of thinking.

With the industrial revolution 4.0, leading enterprises can be defeated. As the advantage of technology connecting globally and new creative business plan can be winning strategy. Moreover, on the demand side, customers also change their behavior which is mainly depended on smartphone and social networks. Vietnam has 40 millions user connecting internet, in which the young customers do the shopping online. With this being said, Mr. Nguyen Sy Dung said, if Vietnamese enterprises do not join the current trend, they will be loser. Not to mention in the context of global transaction, the competition with other enterprises is fierce. “Enterprises must change the way of design, marketing, supplying goods and services. We have to think about the digital environment to compete and survive” – Mr. Dung said.

Enterprises to have vision

With challenges from the industrial revolution 4.0 for Vietnamese enterprises, Vice General Director of FPT Do Cao Bao said, at the moment, we can gain head start by taking shortcut to catch up with other competitors. Starting with failure and then success in globalize products, Mr. Cao Bao advised small and medium enterprise (SME) with limited capital, that first they must digitalize their management. In this new era, the most important factor is to be quick to win, but not be big to win. When we want to be quick, the management must be efficiently operated. For example, in the construction business, we only need a smartphone to search whether materials in storage are available or not, or the current status of capital. Sharing the same view with Mr. Bao, General Director of Vihajico Dao Ngoc Thanh – Ecopar project owner said: “market is the most decisive factor for the success of the enterprise. As such, our story is what to do, who is the customer and how much do we get”. 

While many people think with the industrial revolution 4.0, big enterprises will have advantage, but Chairman of board of  PTI Education organization Trinh Van Duong think otherwise. “small and micro enterprises will have big advantage, as they are more flexible. They should refine their operation, reduce expenses on human resources and facilities, as they do not need big facilities such as other leading companies”.  According to expert’s standpoint Nguyen Tat Thinh on enterprise restructuring, regardless of the scale of enterprises, newly established or long history, low capital or not, industrial revolution 4.0 is there for anyone to take advantage of. So enterprises should be flexible and intelligent to have a vision and prepare necessary capital.

Source: http://hanoitimes.com.vn/economy/2017/09/81E0B718/industrial-revolution-4-0-vietnamese-enterprises-gain-head-start-by-taking-short/