Ericsson supporting Vietnam’s smart manufacturing dream

Vietnam’s manufacturing sector is experiencing an industrial revolution to further improve productivity and sustainably drive the next wave of socioeconomic development and growth, enabled by 5G and the Internet of Things (IoT), with more manufacturers trending to invest more in automation, with TH Group, Vinamilk, Tan Hiep Phat, and VinFast being outstanding examples.

Manufacturing companies are betting on 5G to deliver ultra-low latency, high bandwidth, and reliable communication. As the fastest and most reliable connectivity enabler, 5G will deliver an array of innovative use cases to increase factory capabilities and boost agility, freeing operations from wired dependency. 5G-enabled facilities will benefit from sensors placed throughout, monitoring production processes and collecting data to feed back to machines and production managers. This will greatly enhance the speed of operations, improve maintenance capabilities, and increase safety.

According to experts, smart manufacturing is an inevitable trend globally. And Vietnam, where 5G is planned to be commercialised in 2022, is not an exception. Factories and warehouses must leverage IoT and digitalisation to become much more efficient and stay competitive.

According to a recent Ericsson Industry Lab Future of Enterprises report, most manufacturing enterprises expect to be at least 80 per cent automated within 10 years, with many expecting to see at least a two-fold rise in the use of ICT-enabled tools within the next five years. Such tools include AI software, video recognition, AR and VR, automated guided vehicles, and exoskeletons.

Manufacturers believe that in the long-term, automating all elements of work is going to be possible and economically viable. Three-quarters of decision-makers agree that automation has increased the speed of production; 68 per cent believe that it has or will lead to reduced costs; and 71 per cent believe that it has reduced dangerous tasks that carry the risk of accidents and wear-and-tear injuries.

While industries have automated many processes, secure wireless connectivity empowers factory automation, making industrial automation possible on a much larger scale. By creating a digital foundation, industrial automation will increase productivity and performance. For instance, Ericsson’s factory in Estonia has demonstrated that with AR troubleshooting, the average fault detection time reduction combined with better ergonomics and faster information sharing, can boost productivity by up to 50 per cent.

As a technology leader in 5G, Ericsson is actively supporting the development of smart factories in Vietnam and beyond. The company recognises the need to lead the market in forging strategic 5G ecosystem partnerships that include cross-industry players, bringing them together with mobile service providers to deliver compelling digital transformation engagements and new revenue streams.

Ericsson’s cellular technology is empowering manufacturers to create agility through operating more flexible and advanced operations by allowing efficiency-boosting technologies like AR and autonomous mobile robots, and unlocking intelligence by transforming data into actionable insights that raise productivity.

For instance, Ericsson US’ 5G Smart Factory is part of a new wave of manufacturing plants that has the potential to add between $1.5-2.2 trillion to the global economy annually by 2023.

In Vietnam, Ericsson is planning to invest in various smart initiatives, partnering with other Swedish companies as well as mobile operator customers. Its ambition is further sharpened by the expectation that over two-thirds of global manufacturers will relocate to Asia-Pacific by 2025, with Vietnam clearly attracting a high number of these manufacturing opportunities. And Ericsson is supporting Vietnam in becoming a regional and global smart manufacturing hub.

Ericsson is working with Vietnam’s mobile network operators to expand 4G IoT capabilities across the country, as well as preparing for future 5G capabilities and the broader IoT ecosystem.

“We have proudly partnered with MobiFone, Vinaphone, and Viettel in providing the 5G experience to the Vietnamese people across selected geographic areas in Hanoi and Ho Chi Minh City. Ericsson is well-positioned to enable service providers to seamlessly and efficiently transition from 4G to 5G,” said Denis Brunetti, president of Ericsson in Vietnam and Myanmar. “Our strategic partnership within the IT industry in Vietnam aims to accelerate the adoption of Industry 4.0, digitally transforming industries, including manufacturing, agriculture, transport, and energy.”

Vietnam is accelerating National Strategy for Industry 4.0, focusing on increasing the positive impact of the digital economy, industry digitalisation, smart city development, high-tech foreign investment, elevated labour productivity growth rates, and cybersecurity.

5G mobile network capabilities could play a pivotal role in achieving this vision, supporting an accelerated adoption of Industry 4.0 across the nation. Vietnam has taken the right approach by aiming to initially deploy 5G in major urban areas and high-growth industry zones, eventually bringing the benefits of digital transformation to key industries such as manufacturing, transport, energy, healthcare, and agriculture.

The processing and manufacturing sector is now the most attractive to foreign-invested enterprises (FIEs) in Vietnam. According to statistics from Vietnam’s Ministry of Planning and Investment, in the year to May 20, the country attracted $11.71 billion worth of foreign direct investment, equal to 83.7 per cent of the same period last year.

Among 18 sectors, FIEs invested most in the processing and manufacturing sector with $6.8 billion, making up 58.2 per cent of the country’s total foreign investment.

Vietnam Investment Review will host a talk show on June 24 themed “Digital Transformation with 5G – the Path to Smart Factories in Vietnam”, which will be available to watch on VIR’s Facebook and YouTube channels.