GREAT PROSPECT OF AUTOMATION IN INDUSTRIAL MANUFACTURING FIELDS IN VIETNAM

Automation has become a very important and inseparable part of business modernization and digitization, bringing great prospects to the industrial production sectors as well as helping Vietnam’s economy develop more sustainably.

Automation - The inevitable development trend of every manufacturing business

Where is Vietnam on the map of industrial revolution 4.0?

Vietnam has been taking advantage of the results of the 4.0 revolution and initially has had some results in a number of fields. In terms of enterprises’ ability to proactively apply automation, a recent study by the Ministry of Industry and Trade shows that only a small percentage of industrial manufacturing enterprises in Vietnam have started to apply typical automation solutions of 4.0 technology.

For example, in the application of artificial intelligence (Ai) technology, Vietnam has had a number of products such as an available data network system used by banks and businesses to position brands and statistical analysis of text data with a large number of billions of bytes, etc.

Similarly, in the application of internet of things (IoT) technology, Viettel is researching applications for traffic such as e-ticketing, monitoring transportation routes, etc. Bkav Technology Group invests in research and development of smart home solutions with devices and software controlled via the internet.

Viettel broadcasts 5G and put into operation the infrastructure of the connection of things in Ho Chi Minh City (Source: https://www.qdnd.vn/)

The process of national digital transformation is still slow and lacks initiative. Our country has not yet built a system of national standards and regulations for the application and development of foundational technologies of the 4.0 industrial revolution.

Currently, the rate of digital transformation and the rate of automation have become competitive factors, especially between industrial manufacturers and electronic enterprises. In order not to be left behind the rapid development of the 4.0 revolution, which is one of the main factors of the economy, businesses need to build automation systems that work effectively, are capable of improvement and can be integrated with specific technologies of Industry 4.0. This not only benefits businesses but also helps Vietnam move further on the global 4.0 map.

Great prospect of automation in industrial manufacturing in Vietnam

Industrial automation is being widely applied in many fields of industrial manufacturing in Vietnam, and depending on each field, it brings different prospects and development potentials.

1. Electronic component manufacturing industry

According to data from the General Statistics Office, Vietnam’s export turnover of computers, electronic products and components has grown continuously in the 2016-2020 period, with an average growth rate of 23.8%. /year. During this period, Vietnam’s electronics industry had a strong development, foreign direct investment projects in the electronics field are increasing, and many major electronics firms in the world have invested in building high-tech electronic product production bases in Vietnam such as Samsung, LG, Foxconn.

To meet the growing demand for electronic devices such as televisions, smartphones, smart watches and tablets, key brand names are also constantly racing on the path of advanced technology.

For example, in 2020, Foxconn has set up an automation plan for 30% of its production lines. Currently, the company can produce about 10,000 Foxbots/ year and all of these are used to replace human labor. Currently, some of Foxconn’s factories have moved into full automation.

Foxconn establishes automation in many production processes (Source: vneconomy.vn)

2. Automotive industry

According to statistics from the Department of Industry (Ministry of Industry and Trade), by the end of 2020, Vietnam’s automobile industry had about 40 enterprises engaged in the production and assembly of automobiles. A number of domestic enterprises have actively participated in the global automobile manufacturing chain. Total designed assembly capacity is about 755 thousand vehicles/year, of which foreign-invested sector accounts for about 35%, domestic enterprises accounts for about 65%.

Currently, Vietnam is one of the countries with the fastest growing personal car purchasing power over the past ten years. Therefore, in order to meet the increasing demand for vehicles and maintain their leading position, the “big guys” in this field have invested heavily in and put into operation a new robot and collaborative robot system with optimized flexibility.

One of the leading enterprises in Vietnam in the automotive industry oriented towards automation, that is, Vinfast – A chain of auto factories that synchronize with industrial robots. Investing in thousands of ABB’s industrial robotic arms, Vinfast deploys 4.0 technology application in smart manufacturing processes. The synchronization between automatic machines, automation equipment with robots and humans helps control and remote control. This helps to minimize unnecessary damage, increase production quality and productivity.

Vinfast automobile assembly plant is allowed to operate when certain standards are met (Source: vinfastauto.com)

3. Food and beverage manufacturing industry

Vietnam’s food and beverage (F&B) manufacturing industry is on a strong growth trend, gradually supplying many highly competitive products, dominating the domestic market and increasing exports. Currently, food accounts for the highest proportion in the monthly spending structure of Vietnamese consumers. The average growth rate of the industrial manufacturing index of the F&B manufacturing industry in the 2016-2020 period is 7%/year.

With that momentum, in 2020, many food processing enterprises have expanded production, expanded markets, boldly invested in more automated machinery and production lines in the process. manufactured at the factory to digitally transform the F&B industry, meeting the stricter requirements of customers in 2021 and the following years.

With that development momentum, in 2020, many food and beverage manufacturing enterprises have expanded their production and markets, boldly investing in more automated production lines into the factory production process to digitally transform the F&B industry, meeting the stricter requirements of customers in 2021 and the following years.

Specifically, Vinamilk has raised the level of production with automation technology. Vinamilk is one of the enterprises in the field of F&B manufacturing, deploying an automatic production system with AGV robot and automated production line very early in order to speed up production activities to help Vietnamese dairy brand Vinamilk reach out to the world. Currently, Vinamilk is implementing automation into production processes such as dairy farms by applying 4.0 technology to dairy farm operations, building a smart factory, a smart warehouse, etc.

Vinamilk raises the bar for automated production line technology in plants (Source: vinamilk.com.vn)

4. Textile and garment industry

Textile and garment is one of Vietnam’s key export industries, contributing about 16% of the country’s export share in 2019.

The Vietnam Textile and Apparel Association has set a target to export the textile and garment industry to USD 55 billion by 2025. To achieve this goal, businesses must focus on investing in restructuring, applying advanced technologies, improving productivity, product quality, multilateral cooperation, joint ventures and linkages between domestic textile and garment enterprises, promoting raw materials – semi-finished products (OEM/FOB), original design items (ODM), etc. In which, applying automation technology  to the production process is becoming an inevitable trend for Vietnam’s textile and garment industry.

For example, Viet Thang Jean Co., Ltd (VitaJean) is a pioneer and actively invests in 4.0 technology in the field of fashion to replace traditional production technology. In order to improve production capacity, innovate products and services, reduce fuel consumption, reduce production – operating costs, and at the same time more accurately meet customers’ needs. Each stage such as Sewing, Washing, Laser, Scrubbing, etc. are installed with modern, high-quality machinery and equipment, ensuring the productivity as well as the quality required by customers. A highlight technology being applied in Vitajean’s manufacturing, which cannot be ignored, is Laser technology that helps products with high aesthetics, almost absolute accuracy, delicate and sharp edges and edges, diverse and rich product design images, and quick execution time.

VitaJean's Laser Technology (Source: http://vitajeans.com/)

5. Plastic industry

Nowadays, automation solutions have been applied in almost all fields such as: manufacturing industry, agricultural production, mechanical engineering, automobile, pharmaceutical, automatic assembly, medical, electrical electronics, etc. Especially the field of plastic industry is also a potential market for the application of automation in production.

The plastic industry is a petrochemical by-product processing industry that is a production field with a very large growth rate (average of 16-18% /year) in the period 2010 – 2020. Compared with other countries in the region, the speed of development and automation of Vietnam’s plastic industry is ranked second in Southeast Asia.

Automation in plastic production lines using robotic arms, inverters for plastic injection machines, automated production lines, etc. to improve production as well as ensure the synchronization of finished products when shipped. Thanks to the participation of automation solutions, the finished products have a much higher accuracy than human manipulation. This is an option to increase the quality of the finished product – which means that the value of the product will also be enhanced.

For example, Hanoi Plastics Joint Stock Company is one of the leading modern and advanced plastic manufacturing companies in Vietnam, the leader in the North of Vietnam in terms of technology to produce high quality industrial engineering plastic products according to international standards. The company’s plastic factory is equipped with a system of modern and synchronous production workshops, lines and equipment imported from the US, Western European countries, Japan and some newly industrialized countries (NIC) have a relatively high level of mechanization and automation to meet the current market demand.

Hanoi Plastics factory is supported by foreign experts to design and install automated production lines according to strict standards (Source: https://www.hanoiplastics.com.vn/)

Autotech Machinery JSC. - Specialized in providing leading industrial automation solutions in Vietnam

Autotech Machinery JSC. is proud to be one of the leading companies in Vietnam specializing in machine manufacturing, automated assembly line and automation equipment in industry and supporting industries for domestic and international manufacturers and investors.

Autotech engineers are implementing the Robotic project for customer

With a professional working style with a team of experienced engineers who have participated in implementing many automation projects for many famous enterprises in Vietnam such as Samsung Display Vietnam, Cannon, Mitsubishi, Vinfast, Vinasoy, etc. Autotech is confident and ready to accompany your business in implementing factory digitization projects as well as consulting automation solutions suitable for your business.

Autotech leadership in meeting with Mr. Lee Sang Ryool - CEO of Samsung Display Vietnam

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