Hanoi (VNS/VNA) – President of the WorldEconomic Forum (WEF) Børge Brende has highlighted ASEAN’s recent technological achievementsin an interview given to Vietnam News on the occasion of the WEF on ASEAN 2018taking place in Hanoi on September 11-13.

The following is the full text of the interview.

- Reporter: Industry 4.0 has been creating drastic and dramatic changes for ASEANcountries’ socio-economic development. How do you assess their achievements inthe context of fast-advancing science-technology applications?

Brende: We see that many ASEAN countries have developed strongnational-level plans for the digital economy, like the Smart Nation initiativein Singapore or Thailand 4.0. So far, the plans seem to focus on infrastructureroll-out, and that is not a bad thing; without the proper infrastructure, it isimpossible to compete. 

One country that does particularly well in this regard isSingapore. In our most recent “Networked Readiness” report, Singapore was theworld’s best-performing economy, meaning it uses ICT in the best possible wayto boost competitiveness and well-being. Since then, Singapore has continued tomake strides in this field, for example in its programmes to introduceautonomous vehicles in traffic. So, it is clearly a leader.

If we look at a country like Vietnam from the “networkedreadiness” angle, we see that there are strengths and opportunities. One verypositive element in Vietnam is the affordability of going online. The moreaffordable it is, the more people can be part of the Fourth IndustrialRevolution. Vietnam scores very well here. Its infrastructure, however,unfortunately still lags, and in terms of the economic impact and innovationenvironment, there is also room for improvement. 

Finally, what is also encouraging is that the region hasgenerated a number of highly successful technology unicorns in the past fewyears. These disruptive companies have really grasped the opportunities of theFourth Industrial Revolution. These include SEA Group from Singapore, Go-Jek,Bukalapak, Traveloka and Tokopedia from Indonesia, Grab from Malaysia and VNGfrom Vietnam. It is this kind of entrepreneurial and innovative spirit whichwill make or break ASEAN’s competitiveness in the Fourth Industrial Revolution.
 
- Reporter: The fast-changing science-technology applications have threatened theemployment rate of human labour. What do you think about this statement? Whichsector would suffer the most by those science-technology changes? Which sectorwould benefit the best?

Brende: I do share the concern that the Fourth IndustrialRevolution challenges a lot of the jobs, particularly in manufacturing,transport, and even many repetitive service sector jobs, such as the types ofjobs that are found in branches of local banks. In ASEAN, the manufacturingjobs are of particular concern. Alongside this fear is the need for jobcreation. There are 11,000 people entering the job market every day in the next15 years in ASEAN. This is probably the biggest challenge facing ASEAN leaderstoday. 

Ultimately, I believe that we’ll overcome this era ofreplacement, and that we will achieve an equilibrium of near-full employment,through the creation of many new meaningful jobs. Of course the best thing anycountry can do at this point is to make sure young people have the opportunityto be educated. STEM (Science, Technology, Engineering and Mathematics)education is certain to be a winning choice, but so is education geared to thecare or tourism sectors. 

Having said that, we see that high-end manufacturingcontinues to be a source of differentiation too. If ASEAN nations can set themselvesapart using their excellent manufacturing capabilities and high-skilled workerswhile continuing to build good trade relations with export partners like China,the EU, Japan and possibly North America, there is no need to panic about thecurrent jobs they attract in manufacturing.

- Reporter: What challenges will Industry 4.0 have towards theenvironmental protection and regional community? What could ASEAN countries doto balance their economic and social benefits when lacking financial resources?

Brende: This is an excellent question, especially given theincrease we’ve seen in extreme weather events in ASEAN and around the world.There is no doubt among those I consult, that this is related to climatechange, and that we need to do our very best to mitigate these effects. Wecannot continue down the path of unsustainable economic growth, and this willnot just be a major topic at the ASEAN summit, but also at the SustainableDevelopment Impact Summit we’re holding in New York at the end of this month.

The good news is that if we use technology for good, it can and will be a forcefor good, and fortunately, it doesn’t need to cost more than current solutions.We see people taking on challenges like “The Ocean Cleanup”, where some of thelatest technologies are used to clean up the ocean in an affordable way and ata fraction of the cost. Scientists continue to develop early warning systemsfor tsunamis with technology that is more reliable, faster and ultimately,cheaper.

In many fields, I believe that technological progress and environmentalprogress can go hand in hand. 

- Reporter: How do you evaluate the prospects of startupbusinesses in ASEAN as some of them have proven highly potential such as Graband GoJek? How would they help change the awareness of consumers in the region?

Brende: I’m very happy to see such high-profile successeslike Grab and GoJek, which are proof of the innovative and start-up potentialavailable in ASEAN. I should also point to fintech companies like Lenddo andOnlinePajak, both of which we have designated a “Technology Pioneer”, or toShoppee, a subsidiary of the SEA group.

All these companies provide services to consumers that help them get ahead inlife, while reducing the cost and time needed to get the service. 

Lenddo, for example, is providing credit to consumers andsmall businesses based on their creditworthiness, even if they don’t have acredit score or even a bank account. Shoppee allows small business owners toparticipate in an online marketplace. Grab, of course, is very successful atmoving people around cities with the help of its app.

What these companies do is create a virtuous cycle. Consumerswho use them realize the benefits of digital solutions, and start to use themmore. They often save time and money or are able to do more things thanpreviously. As a result, demand for digital infrastructure rises, more peoplebecome interested in IT and technology, and a whole society and economy rises.Having these kinds of success stories early on can help countries fully developtheir potential in the Fourth Industrial Revolution. 

It should be no surprise then that entrepreneurship is one ofthe central themes of our ASEAN meeting. To that end, we have invited theregion’s most dynamic start-ups and entrepreneurs to join us. We want toexplore how the region can strengthen its innovation ecosystems and nurturemore start-up success stories. We also want to learn more about their storiesof disruption and transformation, as well as connect them to establishedbusiness and government leaders to help them expand across the region.

- Reporter: What should ASEAN youth do to be a pioneer inentrepreneurship innovation and become a leader in the Industrial Revolution?

Brende: I’d of course encourage them to start their ownbusiness if they can, or to join a start-up and help it grow. None of the mostsuccessful social media companies, including Facebook, were around even 15years ago, and neither were some others of the world’s most valuable start-ups,including Grab or Uber. This is a time in which some of the most importantcompanies for the coming decades will be founded. 

I want young people to think about how they can use theirentrepreneurial spirit in other ways, including in the public sector.

The truth is that without agile governance models and regulation that isadapted to this time, the economy as a whole won’t be able to grow in theFourth Industrial Revolution. I see a lot of possibilities, and ASEAN nationscould be among the world’s leading nations in terms of governance entrepreneurship.

Finally, I’d say: Go and study, if you can. New STEM fieldsare being created now, and if you study to gain knowledge on artificialintelligence, machine learning, blockchain or other Fourth IndustrialRevolution sciences, you are certain to create a bright future for yourself,and also for your country.-VNS/VNA