In the context of the global economy undergoing a strong transformation towards smart and sustainable production models, how do you view the challenges currently facing Vietnam?

The goal of digital transformation in the economy has been firmly set forth by the Party and the government. However, there remain significant obstacles that make both digital transformation in general and technological transformation in particular highly challenging. In my opinion, there are three main reasons behind this situation.

First, the mindset within Vietnam’s administrative system remains slow and resistant to innovation. This is understandable, as innovation demands significant time, effort, and intellect to shift entrenched thinking. Many are still accustomed to traditional, outdated practices.

Second, investment in the transformation process is still limited. Public funding largely prioritizes transportation infrastructure, while digital infrastructure and new technologies receive minimal attention.

Third, while Vietnam has a large workforce, quality is still an issue. In digital technology, we lack true pioneers, those capable of serving as “chief architects” for strategic sectors or products driving the economy.

How would you assess the potential and role of automation in promoting smart and sustainable production?

Automation, when integrated into production and business operations, will certainly play a very positive role in green transformation, supporting both the digital and green transitions. Automation helps increase workplace productivity, while enabling systems to monitor and adjust output to minimize emissions, including greenhouse gases, as well as harmful liquid and solid waste.

However, with the development of AI, automation has advanced even further. It is no longer just the classical automation systems we have used in the past, but has now been made intelligent. Smart automation enhances product value and allows for environmental impact forecasting.

As often stated, AI doesn’t simply make an automation system smarter, it can also integrate information beyond a narrow scope or single field. It can synthesize global information.

What are some real-world applications of smart automation in manufacturing, and what conditions are needed for AI to be most effective?

We can already automate “made-to-measure” production, sometimes called the “customized economy”. An individual simply provides their measurements, and we can tailor‑make a shirt or a pair of shoes. But what fabric goes into the shirt, what type of leather into the shoes, at what cost, and from which source? All of that can be analyzed and evaluated by AI.

The system will then produce a shirt or a pair of shoes at the most reasonable price, with transparent origin, even calculating a carbon footprint matched to the user’s size and all in a very short timeframe.

AI combined with automation creates an intelligent automation system that integrates myriad parameters we may not yet fully gauge. As long as we have a sufficiently large, global-scale database, AI will deliver extremely smart and precise solutions.

Therefore, to drive smart, sustainable production with strong growth, the foundation must be smart manufacturing powered by AI. We can only produce effectively and achieve high added value if we harness AI. The prerequisite to best assist us is a large database.

If the data is incomplete, inaccurate, or insufficiently large, however, AI cannot build a smart production platform for us. Today, many people overuse AI, treating it as omnipotent, but we see that that isn’t entirely true, because AI operates on data. And incomplete data will inevitably yield flawed analyses and results.

How do you view the current readiness of Vietnamese enterprises to access and develop smart manufacturing?

Vietnamese enterprises certainly have the capacity, but they need an appropriate roadmap. First, we can adopt new and high technologies; next, integrate different technologies; and finally, Vietnamese businesses together with our domestic scientists can create core, foundational technologies developed by Vietnamese.

Of course, this requires a phased roadmap, and along the way we need major investment, not only from the State but from enterprises themselves and society, to build the capacity to execute.

In the current context, what are the biggest challenges facing Vietnamese manufacturers?

First, most Vietnamese businesses are small or micro-sized. Therefore, simply surviving in the market is already a major challenge, especially given today’s fierce competition from low-cost imports.

Second, trade wars between major economies have disrupted global supply chains, while tariff barriers are complicating import-export activities and hindering the trade balance of smaller and developing countries.

Third, although Vietnam’s macro-level policy system for businesses is relatively comprehensive, at the operational level, where businesses interact with local authorities, there are still many issues related to tax policies, land use regulations, and credit access. These continue to place tremendous pressure on enterprises.

As a result, many are now turning to imported technologies through purchasing machinery and equipment. However, they lack the capacity to fully exploit and master the technologies embedded in that equipment. They can only operate it, but owning, improving, or innovating technologies of their own is still out of reach, except for a few large corporations with sufficient human and financial resources.

How should the government play the leading role in promoting smart and sustainable manufacturing?

I believe the government’s leadership role is critical, particularly in areas where the private sector either cannot or is not permitted to act. In the context of developing smart and sustainable production, the State must focus on three main aspects.

First, it must build national data infrastructure and issue technical standards to integrate databases across businesses, organizations, and individuals. This database must be sufficiently large and accurate to effectively support digital technologies.

Second, the State must invest in digital infrastructure and new technologies. Businesses alone lack the resources to build national-level systems, and even internal digital transformation is already a major challenge. National digital infrastructure must be led and funded by the government.

Third, it should offer incentives and policies that help businesses access, master, and co-develop technologies. By collaborating with research institutes, universities, and scientists, Vietnamese enterprises can create core technologies owned by Vietnam.

Do you have any recommendations for a technology development strategy that could enable Vietnam to make a breakthrough in the near future?

Some believe that instead of continuing to imitate and study what the world has already done, we should select a specific next-generation technology field and concentrate our research and investment efforts there.

The challenge is that our research workforce lacks the capacity to pursue this without strong supportive mechanisms and State assistance. Drawing from international experience, building technological strength and strategic products requires State leadership through commissioning. If a product is vital to the economy and within our capability, the government should mandate its development, fund research and design, and support investment in production lines and equipment.

Additionally, the government should offer preferential policies on taxes, credit, and land to enable businesses to carry out these projects. While local production may initially cost more than imports, it is essential for resilience during global market disruptions. Following that, the State should also help businesses build markets for these products.

How crucial is timing in technological development, and what are the key factors for successful smart and sustainable manufacturing in Vietnam?

Any technology needs time to be refined, and it can only truly develop when there is a market. However, if the process takes too long, it may lose its impact. In today’s highly-competitive international environment, being one day late could mean losing the market altogether.

Therefore, once we decide to invest, we must invest “to the maximum” - meaning sufficiently and intensively - so that we can bring a competitive product to market in the shortest possible time. Only then will we have the strength to compete and avoid being squeezed out by other industries or countries before our products even have a chance to mature.

Ultimately, it comes down to the talent and vision of political leadership, knowing what to do and when to do it. Doing the right thing at the wrong time can still lead to failure. The question is simply “how much and when?”

The development of smart and sustainable manufacturing is not only a matter of technology, but also one of strategic vision, the ability to coordinate resources, and perseverance in execution. If we can achieve this, I believe Vietnam has the full potential to make a breakthrough in this new era.