Hanoi (VNA) – The Fourth Industrial Revolution, also known as the Industry4.0, has the potential to bolster Vietnam’s economic output by a further28.5-62.1 billion USD, equivalent to the GDP growth of 7-16 percent by 2030,according to a report by the Central Institute for Economic Management (CIEM).

The per capita income is expected to rise by an additional 315-640 USD thanksto improvements in labour productivity and the increase in job creation, thereport said.

Addressing a forum held in Hanoi on November 27, CIEM Director Nguyen Dinh Cungsaid that as a lower middle-income nation, Vietnam is focusing its efforts onshifting its growth model and accelerating the digital industrialisationprocess.

Rational policies should be put in place so that Vietnam can soon get involvedwith Industry 4.0 as science and technology are deemed as the leading driversfor economic growth, he noted.

Meanwhile, deputy head of the CIEM’s Department of Business Environment andCompetitiveness Dang Quang Vinh said that besides serving as a primary motivefor economic expansion, new industries will support other sectors in enhancing theircompetitive edge, increasing revenue, and developing new services.

Manufacturing, processing, trade, retail sale, agriculture, finance, banking, andinsurance will be among the Industry 4.0 beneficiaries, he underlined.
Despite recent improvements in the business climate, Vietnam’s market economyinstitution has not been able to provide a sufficient legal corridor forinnovation, while business regulations still lag behind technology and markettrends, Vinh pointed out.

Also, most enterprises have not paid due attention to high-tech application intheir production lines, he said, adding that the shortage of capital fortechnological investment means that companies have failed to connect supply anddemand.

The Government should change its business management mechanism, create spacefor technology development, supplement institutions for new industries, andexercise regulations on intellectual property to encourage innovation, Vinhrecommended.

As part of efforts to improve the capacity of gaining access to Industry 4.0,Dinh Quang Trung, deputy head of the Ministry of Information andCommunications’ Department of Science and Technology, suggested branching outstrategic IT and electronics-telecommunication products, and extended studiesto ensure information safety in sectors with emerging challenges.

Meanwhile, veteran economist Le Dang Doanh described the facilitation ofbusiness conditions as the most important factor that should be included in thenational strategy on Industry 4.0. –VNA