Draft National Strategy on Industry 4.0: Gov’t targets to expand 5G coverage nationwide by 2030

The following is key content of the draft strategy:

Backgrounds

The 4^th Industrial Revolution is transforming socio-economic activities, delivering immense opportunities as well as challenges to economies. Many countries have developed or implemented strategies and policies to harness advatanges and overcome challenges from the 4^th Industrial Revolution to advance economic growth and sharpen competitiveness.

According to Boston Consulting Group (BCG), the Vietnamese economy may be able to reap significant benefits if the nation could makes use of the 4^th Industrial Revolution. Specifically, the country’s GDP may rise by US$28.5-62.1 billion by 2030 depending on the level of technology put into use by businesses, or equipvalent to an increase of between 7-16% of the GDP.

The 4^th Industrial Revolution is likely to generate from 1.3 to 3.1 million jobs though it may change job structure in the national economy. By 2030, productivity/GDP may increased by US$315-640.

The Party and the State have introduced a number of policies and programs to facilitate the country’s participation in the 4^th Industrial Revolution, which lay focus on application and development of science and technology, innovation, improvement of the quality of human resources.

They include Resolution No. 23-NQ/TW dated March 22, 2019 of the Political Bureau on policy-making orientations for national industrial development by 2030 with a vision to 2045; Resolution No. 52-NQ/TW dated on September 27, 2019 of the Political Bureau on some guidelines and policies for active participation in the 4^th Industrial Revolution; and Decision No. 999 dated August 12, 2019 of the Prime Minister approving the project on promoting sharing economy model.

Under the Resolution No. 52-NQ/TW, the Government is assigned to issue the National Strategy for 4^th Industria Revolution.

The Ministry of Planning and Investment envisages specific targets by 2030

1. Viewpoints

- Improve public awareness of the 4^th Industria Revolution. Timely grasp and effectively harness opportunities from the 4^th Industrial Revolution in order to increase productivity, effectiveness and competitiveness of the economy through research, transfer and application of the advances of the 4^th Industrial Revolution in various socio-economic areas. Simutaneously, stay active in preventing and coping with negative impacts of the 4^th Industrial Revolution to ensure national defense, security, safety, social equality and sustainability throughout the cause of national development.

- Implement the 4^th Industrial Revolution through: (i) accelerating research and development and application of technologies in businesses and State governance, considering development of digital Government a breakthrough; (ii) considering education of high-quality workforce, research and taking command of several technologies as core factors; (iii) considering reform and improvement of economic institutions and cyber security and safety as premises.

- Apply Industry 4.0 technologies in e-Government development towards formulation of a digital Government for smarter, faster, more transparent, more effective governance; reduce operational costs as well as time for policy-making; improve effectiveness of supervising the enforcement of laws and policies to better serve people and businesses.

- Application of Industry 4.0 technologies to upgrade and transform the existing business and production systems in orer to optimize resource allocation, facilitate fast development of new products and services, and heighten productivity of businesses in particular and the whole economy in general.

2. Specific targets

By 2025:

- Improve the quality of institutional environment, speed up innovation and application of science and technology:

Maintain its position in the top three ASEAN countries in the Global Innovation Index rankings of the World Intellectual Property Organisation (WIPO);

The institution pillar is expected to rank among top 60 countries on the Global Competitiveness Index rankings of the World Economic Forum;

The cybersecurity is expected to rank among top 40 countries in the Global Cybersecurity Index rankings of the International Telecommunication Union;

- Improve the capacity of research and innovation of businesses and the economy towards mastering some of major technologies

The innovation pillar is expected to rank among top 50 countries on the WEF Global Competitiveness Index rankings;

At least 20% of total businesses apply at least one of Industry 4.0 technologies. In priorities industries, the figure is expected to reach at least 30%;

- Digital economy is projected to account for around 20% GDP; average productivity is expected to increase by over 7% annually. Total social investment for research and development is expected to account for at least 1.5% GDP.

- Development of qualified workforce

  Skills pillar is expected to rank among 60 top countries on WEF Global Competitiveness Index rankings;

- Complete development of e-Government, towards formulation of digital Government

Become one of top 4 ASEAN countries on the United Nations’ e-Government rankings;

Broadband internet covers 100% communes; 100% State agencies complete digital transformation and provide level-4 online public services;

Have at least three smart cities across the nation;

By 2030:

- Improve the quality of institutional environment, speed up innovation and application of science and technology

Maintain its position in the top three ASEAN countries in the Global Innovation Index rankings of the World Intellectual Property Organisation (WIPO).

The institution pillar is expected to rank among top 40 countries on the Global Competitiveness Index rankings of the World Economic Forum;

The cybersecurity is expected to rank among top 30 countries in the Global Cybersecurity Index rankings of the International Telecommunication Union;

- Improve the capacity of research and innovation of businesses and the economy towards mastering some of major technologies

The innovation pillar is expected to rank among top 40 countries on the WEF Global Competitiveness Index rankings;

- Digital economy is expected to account for around 30% GDP; average productivity is expected to increase by over 7.5% annually. Total social investment for research and development is expected to account for at least 2% GDP;

- Development of qualified workforce

Skills pillar is expected to rank among 40 top countries on WEF Global Competitiveness Index rankings;

- Complete development of digital Government, improve digital infrastructure

Become one of top 3 ASEAN countries on the United Nations’ e-Government rankings

Expand 5G coverage nationwide./.

By Quang Minh