Challenges and opportunities of the manufacturing industry before technology 4.0
Currently, the achievements of technology 4.0 are being applied in many fields of industrial production. This is expected to be an inevitable trend in business model innovation to improve competitive advantages in the market. However, in the present time, in order for Vietnamese enterprises to catch up and bring advanced technologies into production activities, there are many difficulties and obstacles. In today’s article, join RX Tradex to learn about the challenges and opportunities of the manufacturing industry before technology 4.0 and the direction for businesses in the digital age.
1. Technology 4.0 is a revolution that changes the entire manufacturing industry.
It can be said that technology 4.0 is creating a revolution in industrial production, changing the entire global economy. Currently, technology 4.0 blurs the lines between physical, digital and biological, creating many breakthrough products, affecting many business lines. In a developing country like Vietnam, technology 4.0 will be a springboard for businesses to reach out to the big sea, catch up with the global economy and build sustainable development strategies.
At the same time, for the manufacturing industry in Vietnam to catch up with these technology trends. The Government has directed all levels, departments and sectors to promote the application and development of science, technology and innovation. Since then, Vietnamese enterprises can improve production capacity, proactively approach and deploy advanced techniques and equipment into business models.
Currently, some popular and widely applied 4.0 technologies in Vietnam are:
- Technology 4.0 in the digital field: Artificial Intelligence (AI), internet of things (IoT), big data (Big Data) ,…
- Technology 4.0 in the field of biology: Clean agriculture, food processing equipment, renewable energy,…
- Technology 4.0 in the field of physics: New generation autonomous robots, 3D printers, self-driving cars, new materials (graphene, skyrmions), nanotechnology,…
- …
2. Challenges of the manufacturing industry before technology 4.0.
According to Mr. Nguyen Van Cong – Deputy Administrator of Ninh Thuan province, the flip side of Industry 4.0 is that it will lead to inequality and economic instability. Changes in the way people communicate in the virtual world put people in many financial and health risks. [1] Therefore, with the rapid change and development of current technology trends, in addition to opportunities, the manufacturing industry will face many challenges that need to be solved, including the following issues.
2.1. Challenges in technology management.
In order to catch up with the trend of technology 4.0, manufacturing enterprises in Vietnam are required to make changes and improvements not only in the process but also in the management apparatus. With the key role in planning a development strategy for the whole company, management levels need to determine which 4.0 technologies will be the mainstay in production activities.
At the same time, businesses also need to understand the pros and cons of that technology, avoid wasting the budget because if the investment is not effective, it will affect the whole business model. Therefore, one of the core points when applying 4.0 technology to the manufacturing industry is the ability to manage and use effectively of enterprises.
2.2. Technical infrastructure and equipment have not yet met the change in production.
Along with improvements in technology, equipment and infrastructure also need to innovate to respond to changes in production, bringing the highest efficiency. Currently, technical infrastructure systems of information technology, data centers and application software have been popular in most businesses.
However, there are still certain bottlenecks in small and medium production units, many factories and factories have not been invested in equipment to meet the standards for digital transformation. In addition, capital constraints are also one of the reasons why the improvement of production machinery and innovation of production processes takes place quite slowly in Vietnam.
2.3. Lack of high-quality personnel to apply 4.0 technology to the production process.
Currently, the human resource problem is also a significant challenge for the manufacturing industry in the story of applying 4.0 technology to business operations. Vietnam has long been famous for its economy with cheap labor, abundant labor resources in recent years, making our country one of the world’s leading processing and assembly factory locations. However, it comes with the problem of shortage of highly skilled personnel, able to operate modern machinery and equipment in production activities.
For example, in the automobile industry, Vietnamese enterprises can almost only produce simple parts such as seats, glass, tires,… Our country has to net import most of the groups of supporting industry products with high technology content such as brake system, clutch, gearbox, steering system,… [2] Most are products that need to apply high technology 4.0 to production.
2.4. The manufacturing industry in Vietnam is still passive to new development trends.
Technology 4.0 has really opened up new directions, helping businesses create breakthrough opportunities and rise in today’s increasingly competitive market. However, many small and medium-sized manufacturing enterprises, especially family companies, with a long history of business operations are still passive to the current rapid changes. Many businesses are gradually short of breath or not ready for innovation and creativity in business at the moment.
In addition, in Vietnam, there are still not many opportunities for businesses to access and experience advanced technologies in the world. To keep up with global trends, businesses need to join big playgrounds and learn about advances in science and technology. Since then, Vietnamese enterprises can take the initiative in applying 4.0 technology to production.
3. Opportunities of the manufacturing industry before 4.0 technology trends.
3.1. Improve product quality, improve competitive advantage.
With the application of 4.0 technologies such as 3D printing, artificial intelligence, cloud computing,… In production activities, enterprises can improve the quality of product output. From there, the business unit can build a competitive advantage by bringing products with outstanding performance to consumers. Above all, with a fierce market like today, improving product quality is key, helping businesses develop sustainably in the future.
3.2. Optimize production processes and reduce business operating costs.
Technology 4.0 has now become one of the leading trends, affecting almost all areas of business and production. Currently, enterprises have been able to apply modern equipment and machines to automate the production process, typically such as: Robot arms, self-operating robots, automatic assembly lines,… Thereby, production units can aim to optimize processes, improve work productivity to reduce operating costs and increase profit margins.
In addition, the application of 4.0 technology in business helps the production process faster, reduces dependence on labor and builds an effective management data system. It can be said that technology 4.0 is the foundation for the manufacturing industry to develop and improve continuously in recent years, bringing success to businesses that know how to make good use of this trend.
3.3. Participate in the global supply chain.
Today, businesses can apply 4.0 technology to supply chain management and logistics in trading with international partners. Technologies such as smart warehouse, e-commerce, IoT systems,… Open up opportunities to work with customers from anywhere in the world. Thereby, manufacturing enterprises can participate in the global supply chain, improve product distribution and expand trade networks in the world, opportunities to bring businesses to the international level.
4. Summary.
Above is an article about the challenges and opportunities of the manufacturing industry before technology 4.0. It can be said that, besides the current difficulties and limitations, Vietnamese enterprises are facing a great opportunity to put technology into breakthrough development strategies in the future. And this year, to help businesses find new directions, RX Tradex Vietnam will organize the Vietnam Manufacturing Expo to help connect trade partners and promote trading activities. In addition, in 2023, RX Tradex will also organize other leading exhibition events such as NEPCON Vietnam, METALEX Vietnam and Waste and Recycling Vietnam.
Note:
[1]: Industrial Revolution 4.0 – Opportunities and challenges
