CIEM Director Nguyen Dinh Cung (Photo: VNA)

Hanoi (VNA) – The Fourth Industrial Revolution, also known as the Industry 4.0, has the potential to bolster Vietnam’s economic output by a further 28.5-62.1 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 thanks to improvements in labour productivity and the increase in job creation, the report said.

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

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

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

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

Also, most enterprises have not paid due attention to high-tech application in their production lines, he said, adding that the shortage of capital for technological investment means that companies have failed to connect supply and demand.

The Government should change its business management mechanism, create space for technology development, supplement institutions for new industries, and exercise regulations on intellectual property to encourage innovation, Vinh recommended.

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 and Communications’ Department of Science and Technology, suggested branching out strategic IT and electronics-telecommunication products, and extended studies to ensure information safety in sectors with emerging challenges.

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