Vietnam market ripe for automation

Vietnam’s plastics industry is sustaining its growth momentum, according to the report "Vietnam Plastic Comprehensive Report Q1 - 2018" released by ResearchAndMarkets.com. The report stated that total plastic manufacture yield in 2017 reached 6.7 million tonnes, up slightly by 1.05% compared to 2016. Production of plastics continuously grew in the period of 2009-2017 with CAGR of 9.6% and the trend is expected to continue.  

 

It is predicted that the main export markets of Vietnam plastic industry in 2018 are Japan and the US. But other markets such as China, Laos, Cambodia, Myanmar, etc are being targeted by Vietnamese manufacturers who want to branch out to the international markets. 

 

 

Surging demand for automation
Frost & Sullivan estimates that the total automation and control market in Vietnam will be worth $184.5 million by 2021.

 

Present in the country since 2016, Universal Robots (UR) distributes cobots through its Vietnamese technology distributor and system integrator partners - Servo Dynamics Engineering and Tan Phat Automation JSC. In Vietnam, cobots are deployed in industries such as automotive, electronics, textile, footwear and food processing industries.

“Cobot demand is rising in Vietnam as businesses are recognising the importance of employing advanced technology and robotics to maintain a competitive advantage. Furthermore, the government has made Industry 4.0 a top priority, developing action plans to accelerate the adoption of new automated technology, and attract more foreign investors,” says Shermine Gotfredsen, General Manager, Southeast Asia and Oceania.

 

“Cobots provide endless benefits for businesses of all sizes, as they increase productivity, improve output quality and enhance workers’ wellbeing. Early adoption of such automation will allow manufacturers to stay ahead of the curve, equipping them to tackle various issues such as rising operational costs, delivering a working environment that is more sympathetic to workers’ health and safety and human rights issues, and the need for businesses to expand globally to remain competitive,”she added. 

 

In Vietnam, UR cobots are improving production efficiency and workers’ safety at Meiko Trading and Engineering Co., Ltd Vietnam, a PCB board manufacturer. “The cobots’ small footprint, flexibility and safety relieved our operators from repetitive and strenuous tasks, providing ease of use and raising the level of work satisfaction in the company,” says Tuan Anh Tran, Deputy Manager, Automation & Sales, Meiko Trading and Engineering Co., Ltd, Vietnam.

Deployment of robots in Vietnam is still low in the region. In Southeast Asia, robot density is led by Singapore with 488 units per 10,000 employees, followed by Thailand and Malaysia with 45 units and 34 units each.

 

Early this year, Vietnam was named among the countries least prepared for the Fourth Industrial Era by a World Economic Forum report, ranking low in terms of innovation and technology. Refuting this claim, the government has been aggressively focusing on developing initiatives and legislations to speed its progress in the era.

 

Among the efforts include the 2011-2020 Strategy for Science and Technology Development to enhance economic competitiveness and speed up industrialisation, prioritising the importance of industrial robots and hi-tech automation.

 

The Vietnamese economy is one of the fastest growing in the world. The country recorded a 6.8% increase in GDP last year on the back of a humming manufacturing sector. The economy in 2017 was worth $223 billion.