Assessing the Industry 4.0 Readiness of Manufacturing Sector: A Vietnam Perspective

Abstract

Manufacturing sector has been playing a crucial role as the driving force for Vietnam's economic development. In the meantime, the birth of Industry 4.0 brings both opportunities and challenges to all economic activities, especially for the manufacturing sector. This study makes an attempt to develop a model for measuring Industry 4.0 readiness in manufacturing sector, hinging on 5 pillars: (i) The importance of manufacturing sector; (ii) Human resource; (iii) Technology; (iv) Entrepreneurs; and (v) Policy framework. Doing so will help to identify pillars that Vietnam’s manufacturing sector needs to improve the degree of Industry 4.0 readiness when compared to 19 other economies, including developed economies and ASEAN-7 countries.