International Economics - This Industrial Revolution in Vietnam

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ACKNOWLEDGEMENT

This research was conducted by our group members. We thank our teacher Mr Dang Quoc Long from Hanoi University who provided insight and expertise that greatly assisted the research, although he may not agree with all of the interpretations/conclusions of this paper.

We would also like to show our gratitude to our seniors for sharing their pearls of wisdom with us during the course of this research. We are also immensely grateful to our classmates for their comments on an earlier version of the manuscript, although any errors are our own and should not tarnish the reputations of these esteemed people.

ABSTRACT

The industrial revolution 4.0 has undoubtedly substituted most of the traditional notions on how the world had initially functioned especially in term of business sector and communication for instance. In the recent years, by employing advanced technological achievements, a new trend of conducting business which is called ‘startup’ has actively joined the global market. This research paper mainly aims at simplifying the Vietnamese government’s role including supportive actions as well as visible obstacles in its policy over the prosperity and endurance of the country’s youthful startup enterprises. Additionally, the situation in which a significant amount of original Vietnamese startup companies tend to choose Singapore rather than Vietnam as their mother land will also be discussed.

Table of content

Acknowledgement…………………………………………………………………………………………………………………3

Abstract………………………………………………………………………………………………………………………………..4

1. Introduction………………………………………………………………………………………………………………………..6
2. Discussion of finding……………………………………………………………………………………………………………7

1. The Fourth Industrial Revolution and Startup……………………………………………………………….7
2. Current trend of startup in Vietnam……………………………………………………………………………..8

1.  The trend of Startup in Vietnam…………………………………………………………………………….8
2.  Performance/achievement of Vietnamese startups recently……………………………..…9
3.  Opportunities of Vietnamese startups to attract investors………………………………….12

1. Vietnamese government’s policies in supporting startups………………………………………..…13
2. Challenges for Startups and Vietnamese government in Industry 4.0…………………………16

1.  Main challenges for Vietnam with Industry 4.0……………………………………………………16
2. Challenges for Vietnamese startups……………………………………………………………………..18
3. Challenges for Vietnamese government……………………………………………………………….19

1. Recommendation……………………………………………………………………………………………………….20
2. Case study:

Why do Vietnamese startups favor Singapore as mother land over home country…….21

1. Conclusion………………………………………………………………………………………………………………………….26

References………………………………………………………………………………………………………………………………28

1. Introduction

In the digital era where the world has accepted the involvement high technologies including robotics, artificial intelligence and automation in manufacturing process as well as on a daily basic, the role of technological development is considered as one of the determining factors for the future of the Industry 4.0.  As regard the movement of industrial innovation, it is necessary to mention briefly about three successful industrial revolutions which has not only laid the foundation for many important industries but also been in charge of building up steady steps for the dominance of the fourth one. During the period between the late 18th and early 19th century, humans witnessed an emergence of mechanization in which for the first time some certain animal or human labor could be altered by mechanical labor, specifically by water and steam power. Next, the second industrial revolution, took place between the late 19th to early 20th century, was led by the principle of mass production together with assembly lines, and also recognized as the dawn of electricity and divergence of labor. Then, taking the advantages of the existing automation from the previous revolution, the third one aimed at minimizing as much input costs as possible via application of electronics and IT achievements. In the recent decade, it can be seen that the fourth industrial revolution has been either unfolding or contributing to a scale of global economic growth in specific, also the social movement in general by employing robotization in accordance with the implication of cyber-physical system as tools to generate added value for manufacturing process.

In response with the rise of the industrial revolution 4.0, startup is perceived as one of the most updated trends with both surprisingly creative theme of business core ideas and the implication of advanced technological achievements. In case of Vietnam, according to President of FPT – Mr. Truong Gia Binh stated that although Vietnam has missed the previous three industrial revolutions but for the civil revolution 4.0. “If Vietnam does catch up with the trend , it is easy to fall into the ‘status  of being both old and poor’, ‘a person must raise 4 people’ not to mention many other problems. The only way is to catch the rhythm of the industrial revolution 4.0“. Therefore, whether the country could cope with the revolution depends partly on the growth of startup communities.

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