INDUSTRY 4.

0 AND ITS EXPECTED INFLUENCES

TO FUTURE OF JOBS IN VIETNAM

Do Thi Dong
National Economics University
 CONTENTS

• Rational of the study

• Overview of Industry 4.0
• Methodology
• Changes in future of jobs in Vietnam
• Implications
 RATIONAL OF THE STUDY

• Industry 4.0 had been recently recognized with

significant achievements in genetics, artificial
intelligence, robotics, nanotechnology, 3D printing and
biotechnology.
• Application of these technologies has made foundation
of the revolution comprehensive, leading to significant
and unpredictable changes in daily life of people.
• Since pattern of consumption and production changed,
requirements of workforces also changed.
 Need to predict changes in jobs under influences of
Industry 4.0
 CONTENTS

• Rational of the study

• Overview of Industry 4.0
• Methodology
• Changes in future of jobs in Vietnam
• Implications
 OVERVIEW OF INDUSTRY 4.0

• Industry 4.0 known as the fourth industrial revolution

was first introduced in 2011 at the Hanover Fair in
Germany.
• Germany was the first country to recognize Industry 4.0
and then had strategy to react to the revolution.
• Industry 4.0 has become the common concern since
January 2016 when the World Economic Forum was
held in Switzerland with the theme “Mastering the
Fourth Industrial Revolution”.
 OVERVIEW OF INDUSTRY 4.0

Figure 1: Four industrial revolutions

1st INDUSTRIAL 2ndINDUSTRIAL 3rdINDUSTRIAL 4thINDUSTRIAL

REVOLUTION REVOLUTION REVOLUTION REVOLUTION
Water and steam Electricity Automation Cyber- physical
power systems (CPPS)
20th century 1970s
18th century Today
 OVERVIEW OF INDUSTRY 4.0
• Trends in Industry 4.0
– People and the internet;
– Computing, communications and storage everywhere;
– The Internet of Things: Sensors are being introduced in
everywhere. Everything can be connected;
– Artificial intelligence (Al) and big data:
– The sharing economy and distributed trust;
– The digitization of matter: 3D printing creates physical
objects. This technology benefits manufacturing factories and
medical organizations. It is also useful for people’s health.
 OVERVIEW OF INDUSTRY 4.0
• Survey by The WEF revealed 21 new products (816 respondents)
Table 1: Time new technologies are expected to occur
2018 2021 2022 2023 2024 2025 2026 2027
Storage for Robot and The internet Implantable Ubiquitous 3D printing Driverless Bitcoin and
all service of and for technologies computing and cars the
things consumer blockchain
Big data for 3D printing products Al and
decisions and human decision-
Wearable health Al and making
internet Vision as white- collar
the new The jobs Smart cities
interface connected
3D printing home The sharing
and Our digital economy
manufacturi presence
ng
Government
and the
blockchain

A
supercompu
ter in your Source: WEF (2015, 6,7)
pocket
 CONTENTS

• Rational of the study

• Overview of Industry 4.0
• Methodology
• Changes in future of jobs in Vietnam
• Implications
 METHODOLOGY
• Objective: examine the fourth industrial
revolution’s influences to jobs in the future in
Vietnam;
• Data collection: desk research and indepth
interview.
 CONTENTS

• Rational of the study

• Overview of Industry 4.0
• Methodology
• Changes in future of jobs in Vietnam
• Implications
CHANGES IN FUTURE OF JOBS IN VIETNAM
• Reduction in need for human labour, espacially
for unskilled workers.
• Increase in demand for new jobs, especially in
IT field.
• Change in the way people work.
• Organization al culture need to be innovated.
CHANGES IN FUTURE OF JOBS IN VIETNAM
• Reduction in need for human labour, espacially
for unskilled workers.
– Application of some technologies such as wearabe and
implantable internet, IoT, connected home, big data, artificial
intelligence, robotics, blockchain, sharing economy, ect. will
create new business models.
– Vietnam has high risk of automation (jobs done by human can
be processed by machine)
 CHANGES IN FUTURE OF JOBS IN VIETNAM
• Reduction in need for human labour, especially for unskilled
workers.
Table 2: Expected percentage of risk of automation
Country Expected percentage of risk of automation
Cambodia 57
Indonesia 56
Phillippines 49
Thailand 44
Vietnam 70

• In 2015, jobs in manufacturing in Vietnam are about 17% of total

jobs. In industrial sector, jobs in textile and garment and leather
industries are about 2.6 million, making up to 36% of the
industrial jobs.
CHANGES IN FUTURE OF JOBS IN VIETNAM
• Increase in demand for new jobs, especially in
IT field.
– There will be a need of information, communication,
connectivity, data, energy and sensor spacialists;
– In Vietnam, number of IT jobs has increased 47% annually
whereas the IT graduates increased only 8%. It is expected
that there will be a shortage of 100,000 IT experts annally
until 2020.
 NEW REQUIREMENTS TO WORKFORCE
• Good knowledge of information technology and ability run
applications in internet;
• Ability to work with cyber- physical system, to run software, to
work with intelligent equipment and to process data;
• Qualifications, ability to understand the products/ services and
the environment;
• Ability to communicate in English;
• Soft skills such as team work, commutation, strategic thinking
and problem solving, managing change, creativity and innovation
capability;
• Opening mindset and understanding of customer requirements;
• Ability to independently and rapidly making decision.
 CONTENTS

• Rational of the study

• Overview of Industry 4.0
• Methodology
• Changes in future of jobs in Vietnam
• Implications
IMPLICATIONS TO TRAINING IMPLICATIONS
Table 2: Education index rank in 2013
HDI Rank Country 2013
2 Australia 0.9265
15 Korea (Republic of) 0.8645
17 Japan 0.8080
9 Singapore 0.7677
15 Hong Kong, China (SAR) 0.7673
88 Fiji 0.7665
62 Malaysia 0.6705
117 Philippines 0.6099
91 China 0.6096
89 Thailand 0.6079
108 Indonesia 0.6031
121 Vietnam 0.5134
136 Cambodia 0.4951
139 Lao People's Democratic Republic 0.4358
150 Myanmar 0.3705
Source: UNDP, 2014
IMPLICATIONS TO TRAINING IMPLICATIONS
Table 3: ICT access and ICT use indexes in 2015
Country ICT access rank ICT access value ICT use rank ICT use value

Hong Kong (China) 3 9.32 18 7.55

Korea 9 9.00 4 8.42
Japan 11 8.85 10 7.98
Singapore 14 8.64 15 7.61
Australia 16 8.37 16 7.58
New Zealand 22 8.08 14 7.63
Malaysia 55 6.61 54 4.76
China 75 5.25 63 3.84
Thailand 77 5.20 60 4.28
Mongolia 81 4.97 75 3.20
Indonesia 84 4.60 95 1.79
Vietnam 89 4.43 78 3.01
Philippines 90 4.39 68 3.55
Cambodia 101 3.77 108 0.78
Myanmar NA NA NA NA
Laos NA NA NA NA
Source: Cornell University, INSEAD, and WIPO, 2016