Promising forces to leverage Vietnam’s supply chain sector

Tiếng Việt

Promising forces to leverage Vietnam’s supply chain sector

Artificial Intelligence (AI), Internet of Things (IoT) and big data analytics (BDA) have emerged as go-to technologies among supply chain firms in Vietnam, said researchers from RMIT University in Vietnam and other universities.

Collaborative research entitled ‘The changing landscape of digital transformation in supply chains: Impacts of Industry 4.0 in Vietnam’, conducted by RMIT University Vietnam’s researchers - Associate Professor Seng Kiat Kok, Dr Nguyen Manh Hung and Dr Abel Duarte Alonso, and James Cook University’s researcher Dr Reza Akbari, provides valuable insights on the current level of adoption and investment in Industry 4.0 technologies in supply chains in Vietnam.

Industry 4.0 holds several benefits and advantages for enhancing operations and supply chains, not only through efficiencies but overall effectiveness also. Industry 4.0 technologies, which encompass a range of cutting-edge advancements like AI, IoT, blockchain, and BDA, offer transformative potential for supply chain firms. These technologies can significantly improve operations by streamlining processes, optimising resource utilisation, and enhancing decision-making capabilities. By embracing these technologies, companies can achieve higher levels of efficiency, reduce costs, and gain a competitive edge in the market. However, the adoption rates of Industry 4.0 technologies vary across different industries and organisations.

Alt Text is not present for this image, Taking dc:title 'news-1-promising-forces-to-leverage-supply-chain-sector-in-vietnam'

Industry 4.0 holds several benefits and advantages for enhancing operations and supply chains, not only through efficiencies but overall effectiveness also.

AI recorded the highest predicted impact (61 per cent), helping improve not only the performance of tasks, but also reducing inefficiencies and replacing manual work. One of the abilities of the technology is to increase customer sales, but more interesting is its ability to create new jobs. This is opposite to the usual thinking of it as a threat to jobs rather than job creation. AI is followed by the IoT, which recorded a predicted positive impact of 22 per cent, helping improve real-time management of operations and supply chains, and predictive maintenance and forecasting potential which are vital aspects of the technology. BDA was also considered a game changer, not only in predictive potential but in developing client base segmentation and from this, targeted marketing, new business insights and the recognition of new opportunities.

Aligned with the impact that these innovative technologies might bring to the sector, the team also examined the volume of investment as an indicator of the potential adoption of Industry 4.0 technologies. Advanced robotics was at 31 per cent, being recorded as the highest volume of investment, with a particular focus on informal/ad hoc education and training, followed by the hiring of experts. AI and Autonomous Vehicles (AVs) were documented similar investment trends at 12 per cent each, with the former focused on developing skills and knowledge and the latter more operationalised measures of cost savings in fuel, drivers and reduction in pollution. Two interesting areas with a sizeable percentage of some investment were blockchain (34 per cent) and the IoT (33 per cent), where funding was utilised in skills training, knowledge development and partnerships, suggesting potential avenues for its future usage.

There were also strong links between certain technologies, such as IoT with 3D printing and IoT with robotics, suggesting that there may be synergies to be gained from combining the IoT with other technologies in the field of manufacturing and supply chain management. By leveraging the power of the IoT to enhance other technologies, businesses may be able to improve efficiency, reduce costs and achieve better outcomes overall.

It’s noteworthy that the predicted technology impact is not always the same as the predicted future investment. Out of the various technologies scrutinised, Vietnamese supply chain experts anticipate that AR/VR, blockchain and AVs will have the least impact over the next decade and consequently receive the least investment.

Researcher and RMIT Vietnam Dean of Students, Associate Professor Seng Kiat Kok emphasised, “what was clear from the results of the study is that industry is already mobilising and prioritising the technologies it sees will have the most potential and the most opportunity for the future”.

“The inherent complexities in global supply chains and in the infrastructure required for each technology create a myriad of concerns that must be addressed before their advantages can be fully realised,” Associate Professor Kok said.

“It highlights the need for comprehensive planning, strategic partnerships, and investment in skills development to effectively leverage the benefits of Industry 4.0 technologies in supply chain operations.”

Story: Ha Hoang

Business and management

06 November 2023