Seizing opportunities for development

The 4^th industrial revolution has strong impacts on ASEAN and its member countries. Vietnamese Deputy Foreign Minister Bui Thanh Son talks about advantages for ASEAN in the 4^th revolution: “ASEAN is the world’s 6^th largest economies with 630 million people, of which 290 million are regular internet users. ASEAN has favourable foundation and large market for innovation and investment in a new business mode. The digital era and super smart connection technology have created opportunities for anyone to start a business.

The super smart connection environment has prompted a revolution in transactions and logistics and offer small and medium sized businesses opportunities to get involved in the global supply chain.”

The 4^th industrial revolution has created many challenges for ASEAN and Vietnam. The biggest challenge is in sectors that employ many workers. Automation has replaced a great many workers and led to adjustments in production and business models. The International Labor Organization estimates that about half of the work force in Malaysia, Indonesia, the Philippines, Thailand, and Vietnam are at high risk of replacement by modern technology in the next 2 decades.

Seeking solutions

In order not being left behind in the 4^th industrial revolution, ASEAN governments and businesses have promoted their self-reliance and sought ways to adapt to and prosper in a rapidly changing world. Singapore’s Smart Nation Initiative is about transforming Singapore through technology. Indonesia has incentive policies for technology incubators. Thailand has introduced “Thailand vision 4.0”. Vietnam is striving to obtain sustainable development with focus on improving growth quality, productivity, and competitiveness to advance in the global value chain.

At the World Economic Forum on ASEAN in Vietnam in September, countries will exchange ideas and good practices to tap opportunities and address problems arising from the 4^th industrial revolution.