The Fourth Industrial Revolution is becoming globally popular and powerhouses are putting so much effort into the technology race. Obviously, Vietnam will also be greatly influenced by the IR 4.0. Therefore, VietnamCredit is pleased to give you “Vietnam technological advance in 4.0 industry revolution” focused on analyzing the following 5 issues:
1. Big Data and AI
Big data relates to data sets that are so large and complex that traditional data processing software is unable to collect, manage and process in a reasonable amount of time. This field required a stronger and smarter device to soft and analyze, which probably is AI. On average, each minute Vietnam generates a data volume greater than 1 Terabyte, therefore, the amount of information loaded into the 27 Zettabytes system is very significant, therefore, Big Data and AI can be developed noticeably in this country.
2. Automation and Sensor
In Vietnam, the technology sector is being developed and the information- communication technology industry is expected to account for 10% of Vietnam's GDP by 2020. Application of AI in automation affects 25% of technology costs and stabilizes the operation of enterprises.
Traditional sensors in Vietnam is mainly used for many fields. However, according to statistics of the Ministry of Science and Technology, less than 2% of Vietnamese people integrate sensor systems with their smartphones (including electrical systems, household water systems, network information systems). This opens up a great opportunity for investors in this field in the future.
3. Machine learning and Social Listening
Machine Learning, which is an aspect of AI involves studying and building techniques that allow automated data-learning systems to solve specific problems require a high software index to be able to learn completely. However, at present, only a few enterprises in Vietnam are able to participate in this field, including FPT, Bkav, CMC.
Social Listening is listening and can only analyze data if consumers share their information, but it has the advantage of delivering results in real time and at low cost. With the great social interaction and high speed of development of Digital Marketing, the market for Social Listening in Vietnam is full of potential for investors, however, it poses huge challenges on privacy and great constraints of the Law.
4. Business 4.0
According to a report by Google and Temasek about the prospects of ASEAN digital economies, in 2018, Vietnam's non-traditional economy has a scale of about USD9 billion, reaching a growth rate of 35% / year in the period of 2015- 2018, accounting for 4% of GDP, which is the highest among ASEAN economies.
However, technology capacity in Vietnam is still weak. According to a survey by VCCI, in 2018, nearly 60% of Vietnamese enterprises are using over-6-year-old technologies. These technologies are mainly from developing countries (accounting for about 65%), of which 26.6% come from China. The proportion of technologies originating from developed countries such as the US, South Korea, Japan or the EU accounts for only about 32%, of which over 18% are technologies before 2005.
5. Labor 4.0
According to the statistics of the World Economic Forum on ASEAN in 2018, 56% of jobs in 5 ASEAN countries may be replaced by artificial intelligence and robots. Therefore, Vietnam needs to increase high technology human resources for technology development. In addition, the Government should take measures to solve the problem of brain drain.
In the future production readiness report made by the World Economic Forum in April 2018, Vietnam belongs to the group of countries that are not ready for the IR 4.0, ranked 70th/100 on human resources and 81/100 on highly qualified labor. According to the report, compared to Southeast Asian countries in terms of human resources, Vietnam ranked behind Malaysia, Thailand and the Philippines. Vietnam is only on par with Cambodia.
In conclusion, because of five compelling reasons mentioned above, Vietnam has great opportunities to improve its technological environment. However, there is still a big gap for this country to exit from the groups that are not ready for the IR 4.0.
Vietnam Country Report 2019 is a comprehensive analysis of Vietnam’s political, economic, socio-cultural and technological environment. It also provides forecasts about important economic and financial indicators. The report was produced and released in January 2019. This report is expected to support policy makers, researchers, investors and corporations to make better decisions.
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