The current status of production technology in our country nowadays
The Ministry of Industry and Trade has been working to eliminate hurdles and challenges facing Vietnamese businesses for a number of years in an effort to spur economic growth. This has facilitated Vietnamese businesses’ greater integration into the supply and production chains. worldwide reaction. [1] From there, support Vietnamese enterprises in connecting with, exchanging with, and conducting business with more prospective markets, like Europe, America, Japan, etc. Nevertheless, to achieve economic development Domestic businesses must actively enhance their operations if they are to be sustainable, particularly through incorporating and developing new modern technology into the manufacturing process. Additionally, firms should better comprehend the current status of production technology in our country nowadays in order to design a long-term strategic growth plan. Let’s find out with RX Tradex through the article below.
1. Overview of production activities in Vietnam today.
The manufacturing industry sector in Vietnam showed indications of growth in July 2023, according to figures from the Ministry of Planning and Investment, with an anticipated increase of 3.9% compared to June and a 3.7% increase compared to the same time in 2022. Vietnam drew about $16.24 billion in foreign direct investment in the first seven months of the year, while its exports totaled $195.4 billion, producing a trade surplus of more than $16.5 billion. [2] Considering the numerous obstacles and problems the Vietnamese economy has encountered both internationally and as a result of the effects of the global economic slump, they are very encouraging signs.
However, certain important Vietnamese sectors continue to confront difficulties in running their businesses and manufacturing processes. The General Statistics Office reports that several processing and manufacturing industry sectors have seen declines in production, including a 7.7% decrease in wood processing and wood product manufacturing, a 7.5% decrease in paper product manufacturing, a 6.8% decrease in the fashion and automobile manufacturing sector, a 4.7% decrease in machinery and equipment manufacturing, and a 4.6% decrease in metal and electronic product manufacturing. [3]
This demonstrates that while the home market is slowly improving, global supply chains are still being impacted, and shifting consumer expectations have caused a decrease in industrial activity. In order to recover their home economy in the wake of the global slump, several nations are now enacting more protectionist policies and trade barriers. As a result, in order to thrive, Vietnamese firms must continually update information, foresee market trends, and concentrate on investing in and applying production technologies in manufacturing processes in order to create long-term competitive advantages.
2. The current status of applying advanced production technologies in Vietnam.
2.1. Positive impacts of production technology application on Vietnamese businesses.
Today, the application of science and technology has helped restructure production processes and promote sustainable development in industrial and commercial sectors. By integrating modern machinery and equipment into production, businesses can increase output, enhance product value, and open opportunities to participate in the global supply chain, meeting global quality standards.
According to the Government Electronic Information Portal, Vietnamese businesses are increasingly adopting modern production technologies such as information technology, computer networking, and internet applications in their operations. Specialized software for design, manufacturing, management, and administration is changing the entire operation and production processes for many industries today. [3]
Specifically, many businesses have begun to implement production technology processes in conjunction with modern quality management systems, such as the ISO system in Europe, Japan’s TQM system, Lean, Six Sigma, Kaizen, and more. This step-by-step improvement of production lines is evident in various fields, including yogurt processing, export clothing, sanitary ware, steel core plastic doors, automotive electrical cable production, pre-engineered steel house frame design and manufacturing, beer production lines, compact light production, electronic assembly, motorcycle assembly, and more.
2.2. Modern technologies applied in exíting manufacturing processes in the Vietnam market.
Currently, it is clear how contemporary production technology processes contribute favorably to economic growth. Vietnamese companies are actively employing scientific and technological advancements to boost the effectiveness, caliber, and productivity of their manufacturing activities in order to stay up with market trends. Furthermore, encouraged by the Fourth Industrial Revolution, domestic producers are working to construct sustainable growth plans by integrating a number of cutting-edge technology into their manufacturing procedures, such as:
- Robotic arms: Replacing human labor in production lines.
- Artificial intelligence: Moving towards replacing human quality control processes, reducing production costs.
- 3D printing: Used in the development of new products.
- Internet of Things: Supporting businesses in planning, monitoring, analyzing, and optimizing production processes.
According to Dr. Đỗ Thị Hải Ninh from the University of Economics in Ho Chi Minh City, science and technology are now seen as essential tools to enhance the competitiveness and quality of all types of products and services. [5] This highlights the importance of continuous improvement and investment in modern production technology processes as a strategic direction to drive the development of the Vietnamese economy in the face of fierce competition in today’s market.
3. Solutions to improve production technology processes for Vietnamese businesses
As Vietnam engages in the global market during the Fourth Industrial Revolution, the science and technology sector is exerting its critical role in the economy more and more, according to Deputy Minister of Science and Technology Trần Văn Tùng. For Vietnam to provide a favorable legal environment for firms engaged in internal market transactions and international integration, legal norms, methods, policies, and transparency are crucial instruments. [6]
Additionally, a lot of Vietnamese companies are working along with multinational corporations from industrialized nations like Japan, South Korea, and the US to conduct projects that aim to advance production technology processes. According to information from VTV Electronic Newspaper, the Industrial Development Support Center, under the Ministry of Industry and Trade, launched a number of cooperation programs with significant foreign direct investment (FDI) companies in Vietnam at the end of 2022 to improve the production activities of domestic companies and improve the quality of human resources. For instance, Toyota Vietnam selected four businesses to collaborate with specialists to identify current problems in their manufacturing processes. These businesses are in the industries of stamping, casting, plastics, and rubber.
Additionally, the Vietnamese government, private companies, and organizations are seeking solutions to the problem of increased localisation in crucial industries. Dr. Nguyn Văn Hi, Director of the Institute of Strategic Policy Research at the Ministry of Industry and Trade, asserts that the only workable solution at this time is to create specific policies to ensure agreements between FDI investors and domestic businesses regarding technology transfer and participation in their supply chains. Due to this, restrictions on the transfer of production technological processes from FDI investors to Vietnamese enterprises must be put in place from the outset of the investment process in order to boost localization and strengthen integration into global supply chains.
4. Summary.
There are many potential for indigenous enterprises to grow in the current status of production technology in our country nowadays, but there are also many barriers to technology transfer and mastering. It is hoped that firms will be able to choose future strategic directions after reading this text. Additionally, in 2023, firms may take part in the Vietnam Manufacturing Expo international showcase, which is being held by RX Tradex Vietnam, if they are interested in learning more about innovative manufacturing technology. Additionally, in the near future, RX Tradex will serve as the host venue for important regional exhibits including NEPCON Vietnam, METALEX Vietnam, and Waste and Recycling Vietnam.
Note:
[1]: Hỗ trợ doanh nghiệp tham gia sâu hơn vào chuỗi sản xuất và cung ứng toàn cầu
[2]: Tình hình sản xuất công nghiệp tháng 7 và 7 tháng đầu năm 2023
[3]: Kinh tế 6 tháng: Chỉ số sản xuất công nghiệp tăng thấp do đơn hàng giảm
[4]: Giúp doanh nghiệp đổi mới công nghệ, đầu tư sản xuất mặt hàng thế mạnh
[5], [6]: Đưa công nghệ vào sản xuất góp phần tăng nội địa hóa và hỗ trợ doanh nghiệp
