return icon

How can Vietnam renovate industry?

“Vietnamese are proud of their intelligence. But why can’t we renovate industry to improve competitiveness?” entrepreneur Mai Huu Tin said. He hopes that one day, Vietnamese businesses will take over large automobile manufacturers of the world.

In 1997, Tran Ba Duong started a small vehicle repair workshop in Bien Hoa City of the southern province of Dong Nai. To Thaco is now a large multi-field corporation in Southeast Asia, with smart factories assembling automobiles, and manufacturing mechanical accessories, said Thaco’s CEO Pham Van Tai at the recent Industry Innovation Forum 2022.

Another smart production model was cited at the forum by Pham Thi Ngoc Thuy of the office of the board for private economic development research (Board IV) - Samsung’s unmanned factory. The Korean group has about 60 such factories around the world.

Truong Ly Hoang Phi, president and CEO of IBP, said using technology to optimize production process has been used by Vietnamese enterprises for decades, but only a few can take full advantage of modern production, not only to promote efficiency but also create value and bring benefits to clients, workers, and tge environment.

Nguyen Anh Thi, head of the HCM City Hi-tech Zone Management Board, said that to build a self-reliant economy, the industrial sector has to make up at least 30 percent of the gross domestic product (GDP). 

Under Vietnam's economic development strategy, the figure is 40 percent and the manufacturing and processing industry accounts for 30 percent.

The added value that Vietnam strives for by 2030 in the manufacturing industry is $2,000 per head. 

Vietnam lags behind in productivity. Enterprises can import technology, but they cannot import innovation.

Mai Huu Tin, president of U&I, said businesses will not successfully carry out transformation if they don’t have suitable human resources.

Looking at the output of Vietnam’s schools and institutes, businesses find it difficult to use the resources. Most graduates need additional training, or they are used in combination with specialists from developed countries.

“We believe that we are proficient, clever and eager to learn. But why cannot we renovate industry to increase the competitiveness of the economy?” Tin questioned.

“We can be proud if one day, we can see Vietnamese enterprises in the automobile industry take over foreign enterprises, like China’s Geely over Swedish Volvo, or China over British Jaguar Land Rover,” he said.

According to Tin, the world is moving toward more ‘brain’ rather than ‘muscle’. If Vietnam’s enterprises only focus on production, this means that they only gather strength on developing muscle. It is necessary to think of developing a ‘brain’ to be able to compete with developed countries.

“We have been doing production for a long time. But if we continue to neglect the links which can create bigger added value, we will fail, though we are very clever,” he commented.

Thuy of Board IV told VietNamNet that the survey that the board conducted and is going to submit to the Prime Minister shows that the level of awareness and understanding of enterprises about digital transformation remains low. 

She said the awareness of business owners is not good enough. Therefore, Board IV plans to run specific programs with focus on human resources, to create the same level of consciousness about digital transformation among key personnel of enterprises. 

After that, detailed solutions about production and business activities will be discussed. 

At this moment, if enterprises are too hasty to make investment and seek digitization solutions, they will fail rather than succeed.

Tran Chung



Business association helps connect Vietnamese, Malaysian firms

PM’s Europe trip spreads message about strongly recovering Vietnam

Prime Minister Pham Minh Chinh’s trip to attend the ASEAN-EU Commemorative Summit and visit Luxembourg, the Netherlands, and Belgium from December 9 to 15 will extend a message of a strongly recovering Vietnam


PM’s trip to elevate Vietnam – EU to new height: diplomat

Vietnam changes rapidly after 25 years of Internet connection

The decision to connect to the Internet 25 years ago was a brave act, showing a long-term vision, contributing to comprehensive changes in the country, experts said at the 25th anniversary of Vietnam's Internet and Internet Day 2022 on December 7.

Policies needed to ensure sharing economy development is on-track

Sharing economy was not only creating opportunities to increase income but also opening up a new and flexible market, thereby creating a growth engine and increasing productivity for micro, small and medium – sized enterprises.

Some businesses are still paying high dividends

While many enterprises are facing difficulties, some plan to spend trillions of VND to pay dividends and buy treasury stocks.

Vietnamese box office smash to premier in Australia

According to Box Office Vietnam, The Girl from the Past has generated revenue of VND53 billion (US$2.2 million) after debuting in Vietnamese cinemas.

French Senate President arrives in Hanoi, beginning official visit to Vietnam

French Senate President Gérard Larcher arrived in Hanoi on December 8 morning, beginning an official visit to Vietnam at the invitation of National Assembly Chairman Vuong Dinh Hue.

Vietnamese film to compete at Golden Globe Awards

“Dem Toi Ruc Ro”, known as “The Brilliant Darkness” in English, a movie on domestic violence by American director Aaron Toronto, features in this year’s list of Golden Globe Awards’ nominees.

PM attends inauguration of Vietnam International Defence Expo 2022

Prime Minister Pham Minh Chinh and military officers pressed buttons inaugurating the Vietnam International Defence Expo 2022 at Gia Lam airbase in Hanoi on December 8.

Money borrowers face black credit traps on online lending apps

A lot of money borrowers have been recently cheated on online lending applications which seem to ask for simple procedures at first but then claim cut-throat interest rates.

Young scientist becomes first Vietnamese awarded by UK Royal Aeronautical Society

With the Young Persons’ Achievement Award, Dr. Nguyen Huyen Duc has become the first Vietnamese scientist to receive the prize from the UK’s Royal Aeronautical Society (RAeS).

Revelations of an e-cigarette seller

After exchanging text messages via social media, VietNamNet’s reporter, who acted as an e-cigarette buyer, decided to meet the seller and discovered many things that made him shiver.

Vietnam’s fruits enter choosy markets

In the domestic market, a red-flesh pomelo is priced at VND23,000-45,000/kg. In the US, it is VND535,000 per kilogram.

Vietnam imports nearly US$190 million of pork in Jan-Oct

Vietnam had imported 89,000 tons of pork products worth US$189.02 million in the year to October, contracting over 34% in volume and nearly 40% in value year-on-year, according to the Foreign Trade Agency under the Ministry of Industry and Trade.