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How Industry 4.0 affects the vietnamese labour market

by PV29 April 2017 Last updated at 19:33 PM

photo: VOV
photo: VOV

VTV.vn - The phenomenon of "Industry 4.0" or the fourth industrial revolution, which involves the digitalisation of production processes, has been spreading around the world.

These developments have become a threat to job security in many developing countries, which have their advantages in their cheap labor workforce. According to a recent report from the International Labor Organization (ILO), about 68% of Vietnamese labourers working in the garment and textile industry will be affected by Industry 4.0. In  an automated production line for cell-phone screens, for example, after every shift, the system resets its software via a wifi network. Each worker's task is to monitor and adjust the production line through several simple moves. Previously, this system needed 8 people to operate but now it needs just one. A level-2 worker is able to operate this system. When businesses strengthen automation, humans become just one part of the production line. After 2 hours of operations, the whole system will be stopped for checking and reseting. All workers will also be stopped for about 10 minutes. The factory´s 500 workers are now dependant on machines for their work.

In many industrial parks here in Vietnam, there is an issue that businesses are focusing too much on young labourers that don't have a lot of skill.

Soon, as automated production lines are implemented in majority of businesses, manual labor may no longer be needed.

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