Industry 4.0 era boost via high-tech partnerships

At the 54th conference of the World Economic Forum (WEF) last week in Switzerland, Ho Chi Minh City People’s Committee and the WEF inked a partnership agreement on establishing the Fourth Industrial Revolution Centre in the city. In September 2023, both sides signed a cooperation statement that covered some content for the establishment of the centre.

According to Vietnam’s Ministry of Foreign Affairs, the centre will be part of the WEF’s global 4.0 network, and will increase cooperation with other centres of the types throughout the world in order to study proper solutions and breakthrough priorities for the city and for Vietnam as a whole. It will also be able to mobilise resources and capital to support the government and enterprises to apply the world’s latest technologies.

The cooperation means that Vietnam is being considered by the WEF as a focal point in Industry 4.0 policy in the region. The country will take the lead in developing relevant policies and be used for piloting new technologies, and applying public-private partnership models in order to create breakthrough products amid Industry 4.0.

Also last week, Vietnamese Prime Minister Pham Minh Chinh met with Klaus Schwab, founder and executive chairman of the WEF, proposing that it help Vietnam attract high-tech investment, especially for the energy transition, digital transformation, and strategic infrastructure.

PM Chinh also proposed that the WEF support Vietnam in policy consultancy in order to improve national competitiveness as well as the business and investment climate in line with global trends and regulations. Schwab underlined the WEF’s strong commitment to cooperating with Vietnam.

The WEF is the rendezvous of thousands of global groups, from Apple and Siemens to Mitsubishi and GE.

Vietnam and the WEF are currently implementing a public-private partnership agreement signed in 2017, becoming the first country in the world to ink such a deal with the forum. Under the pact, the WEF helps connect Vietnam with its top businesses, provides Vietnam with policy consultation on economic restructuring, high-tech agriculture, national competitiveness and climate change, and receives Vietnamese officials as apprentices at WEF units.

On the sidelines of COP28 in the United Arab Emirates in December, WEF president Børge Brende told PM Chinh that Vietnam is becoming a magnet to global investments thanks to its improved business climate.

A recent survey showed Vietnam is one of the world’s leading economies in attracting foreign direct investment, along with India and Mexico, Brende added.

The World Bank suggests that to tap into opportunities from Industry 4.0 in 2024 and beyond, Vietnam needs to grasp integrated digital solutions. Specifically, the government should adopt a holistic approach to how technology can support reforms for impact and transform its development outcomes.

For example, Estonia exploited Industry 4.0 opportunities at the start of its digital journey known as e-Estonia, and as a result has gained 2 per cent in its GDP. The system enables an Estonian to establish a company in just 18 minutes. With over 99 per cent of states services online, Estonia boasts of saving 800 hours of working time every year through the strategy.

Various opportunities in prominent fields in the country could help solidify the decision of Vietnamese living abroad to return to contribute to their homeland.

Chairman of Ho Chi Minh City People's Committee Phan Van Mai has invited US corporations to invest in the sustainable and high-tech sectors, aligning with the city's green growth strategy for 2030 and beyond to 2050.

Many companies are selecting offices with green certifications that cater to health, wellbeing, and environmental protection to meet and keep up with changing employee demands.

South Korean groups are seeking to reinforce their footprints in a wide range of green and high-tech ventures in Vietnam.