Industry 4.0 to boost GDP by $62.1 billion: CIEM

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The benefits of Industry 4.0 may add between US$28.5 billion and $62.1 billion to Việt Nam’s gross domestic product (GDP) by 2030, according to a report by the Central Institute for Economic Management (CIEM).


The report was presented at CIEM’s conference held in Hà Nội on Tuesday to discuss international experiences and recommendations for Việt Nam in developing a national Industry 4.0 strategy.
Studying different scenarios in which Việt Nam implements only economic reforms or implements both economic reforms and an Industry 4.0 strategy, CIEM found that Industry 4.0 would increase GDP growth by 7 per cent in the worst-case scenario and even 16 per cent per year in the best-case scenario annually by 2030.
In addition, GDP per capita would increase by $315-640 by 2030, thanks to improvements in labour productivity and employment, according to CIEM.
Nguyễn Đình Cung, CIEM’s director, said that Việt Nam had a national goal of industrialisation and renovating its growth model, adding that science and technology were the most important factors for economic growth.
“It is necessary for Việt Nam to embrace Industry 4.0 and develop policies to participate and play a role in this new era.”
Đặng Quang Vinh, deputy head of CIEM’s Business Environment and Competitiveness Department, said that new industries emerging from Industry 4.0 would be the major drivers for growth in Việt Nam, changing and enhancing the competitiveness of other industries, such as manufacturing and processing, trade, retail, agriculture, finance and banking, and insurance.
However, a majority of firms in Việt Nam were small and medium sized enterprises and did not devote adequate attention to the application of new technologies, Vinh said. The State had a tight budget, and financing was often difficult to access, he added.
Vinh said that besides efforts to improve the business climate, it was important to create space for technology research and development, complete legal frameworks for new industries and enhance the enforcement of regulations related to intellectual property to encourage innovation.
Đinh Quang Trung, Deputy Director of the Ministry of Information and Communications’ Science and Technology Department, said that focus would be placed on the development of strategic IT products together with enhancing security.
Prime Minister Nguyễn Xuân Phúc in July asked the Ministry of Planning and Investment to implement three focuses for Industry 4.0.
These included the development of a national Industry 4.0 strategy expected to be reported to the Government at the end of this year, the development of the project for the foundation of a national innovation centre expected to start construction at the end of this year and building human resources for the Industry 4.0 strategy.