Vice President of the Asian Development Bank (ADB) Stephen P. Groff (Source: World Economic Forum) Hanoi (VNA) – The theme proposed by Vietnam for the World Economic Forumon ASEAN (WEF-ASEAN) this year, “ASEAN 4.0: Entrepreneurship and the Fourth Industrial Revolution (IR4),”is very relevant and timely, said Vice President of the Asian Development Bank(ADB) Stephen P. Groff.
In an interview granted to the Vietnam News Agency (VNA) on thesidelines of the WEF ASEAN 2018, which is taking place in Hanoi from September11-13, the ADB official talked about prospects of development for Vietnam andthe ASEAN Economic Community in the context of the IR4.
He noted that technologicaladvances are happening at unprecedented speed, and such rapidtechnological change will have major implications for education, training andskills development in ASEAN countries, including Vietnam, and countries will needto align the supply of skills with the demands of the new economy.
Accordingto Groff, there is a clear need for appropriate public interventions to achievequality education so new entrants to a transforming labour market are ready forthe challenges and opportunities it presents. He said this is particularly importantfor economies such as Indonesia, Philippines, Thailand and Vietnam, which arelikely to face labour market disruptions due to automation and robotization ofmanufacturing.
“Byadopting an entrepreneurial mindset, countries like Vietnam will be able toproduce a new generation of confident and proficient workers able to embrace“industry 4.0” technologies and the opportunities they bring,” he said.
For Vietnam, one of the clear challenges will be acquiring world-class IT infrastructure,Groff said, noting that Vietnam’s companies don’t have this at the moment, andgovernment agencies are also not well equipped with modern IT. “4IR requires thatexisting installations be adapted and even entirely new types of ITinfrastructure introduced. Cost is therefore a key challenge for governmentagencies, large firms, and small and medium-sized enterprises,” he said.
A second challenge facing governmentagencies, large firms, and SMEs is the lack of skilled workers specializing inIT related jobs, the ADB Vice President said, noting that creative workingprocesses demanded by 4IR, such as strategic planning of research anddevelopment, will impose greater needs for new skills to identify, introduce,and implement new and innovative business opportunities.
To overcome those challenges, hesuggested that the Government of Vietnam can help to build an enablingenvironment that makes better use of digital technologies.
“Solid ICT infrastructureis crucial,” he said, adding that policies to support public and private sectorinvestment in telecommunications infrastructure and internet connectivity wouldcreate the digital backbone needed for a healthy digital economy.
Second, buildinghuman resources with the right skills is a key driver of digitaltransformation. According to Groff, digital literacy is essential for people totake full advantage of new job opportunities and benefit from services thatwill become available on digital platforms.
Third,enabling policies and regulatory environments are needed for digitaltransformation. “Enabling policies can also promote data sharing with privacy protections;protect consumers against cyber-crimes and fraud; prevent illegal activitiessuch as money laundering and terrorist financing; and enhance cybersecurity toprevent cyber-attacks and hacking,” he said.
Aboutprospects of the ASEAN Economic Community, the ADB Vice President said ASEAN has been a model of cooperation and integration,keeping itself open to the rest of the world and well-integrated in regionalvalue chains.
According to him, remaining challengesinclude the more politically sensitive areas of reform, such as labour policy,competition policy, and intellectual property rights. Looking ahead, the bigtest for AEC is the ratification and implementation of agreements, given itslimited means of enforcing compliance.
Job creation remains a huge challenge with so many youngpeople entering the workforce, as these new workers will need the right skillsto prosper in a rapidly-changing labour market, Groff said, adding that furtherefforts are needed also to address the development divide separating the ASEAN’snewer members from the six original ones.
“We are confidentASEAN can meet these challenges,” the ADB official said. He went on to say thatthe AEC allows the region to capitalize ondiverse resource endowments, comparative advantages of geography, factors ofproduction, and distinct levels of human capital--both in terms of educationand demographically. While each member pursues its own national reform agenda,collectively they offer all the ingredients for an AEC that can benefiteveryone.
Askedabout ADB’s plan to assist the countries in Asia and the Pacificin general and ASEAN countries in particular to overcome the challenges posedby the IR4, Groff said ADB supportscountries by introducing digital technologies across a range of sectors, while helpingto develop the skills and expertise needed to use these technologies.
“For the poor and underprivileged, we work withgovernments to strengthen social protection systems. We are also focusing onthe application of digital technologies in sectors such as agriculture, wheremany poor people earn their livelihoods,” he stated.-VNA
VNA
