Vietnam’s Manufacturing depends on AI for productivity boost

Vietnam's manufacturing sector is increasingly reliant on artificial intelligence (AI) and digital transformation to drive growth and competitiveness, as outlined in Zebra Technologies Corporation's 2024 Manufacturing Vision Study. The study highlights that 46% of manufacturers in the Asia Pacific (APAC) region expect AI to spur growth by 2024, rising to 68% by 2029. This rapid surge underscores the crucial role of AI in enhancing productivity and improving quality in manufacturing processes.

Challenges in Adopting Digital Technologies

Manufacturers face big challenges when trying to adopt digital technologies. Globally, 30-40% of those surveyed say the main problems are high labor costs, a lack of skilled workers, and difficulties in combining information technology (IT) with operational technology (OT). In the Asia Pacific region, these challenges are even greater due to the sector's rapid expansion and the need for continual reskilling of the workforce.

Vietnam’s Ambitious Manufacturing Goals

Vietnam's government has set ambitious goals for its manufacturing sector, targeting a 30% contribution to GDP and an annual labor productivity growth rate of 7.5%. With the manufacturing sector expected to grow by more than 8.5% per year, adopting AI and other advanced technologies is critical. FDI has been pivotal, with the sector attracting $20 billion in 2023, accounting for over 60% of Vietnam’s total FDI. This influx has strengthened Vietnam's position as a manufacturing hub, particularly in electronics and textiles.

Real-Time Data and AI Integration

The report emphasizes that real-time data visibility is key to driving digital transformation in manufacturing. By integrating AI-powered analytics, manufacturers can enhance data management, track performance, and address issues immediately. This allows for better decision-making, predictive maintenance, and quality control, leading to greater efficiency and reduced downtime.

Conclusion

In conclusion, Vietnam's manufacturing sector stands at a crucial juncture, where embracing AI and digitalization will be essential for sustaining growth and competitiveness. With global and regional manufacturers increasingly prioritizing these technologies, Vietnam’s push towards a digitally-enabled manufacturing environment is expected to play a critical role in achieving the sector's ambitious growth targets.

Source: Vietnam Economic News