5G applications in smart industry

5G technology is playing a key role in promoting innovation and improving efficiency in many industries such as manufacturing, smart factories, seaports or industrial internet of things (IoT). Vietnam is entering the era of broadband and IoT when domestic network operators have officially deployed 5G commercially nationwide. Applying 5G technology will help Vietnam catch up with the world in important manufacturing sectors of the economy .

Booth introducing advanced technology solutions applying 5G of VNPT .

According to experts, 5G and automation based on artificial intelligence (AI) are breakthrough technologies with great potential to revolutionize the manufacturing industry. Effective application of these two technologies will help businesses improve operational efficiency, increase productivity, reduce costs and increase competitiveness in the global market. Opportunities and challenges intertwine "The survey of an automobile factory in Spain applying 5G and new technologies to production and business activities showed that the operating costs of this enterprise were reduced by about 10%, the rate of detecting product errors increased by about 30% and customer service response time was also reduced by 50%,...", Deputy Head of Technology Department of Vietnam Posts and Telecommunications Group (VNPT) Nguyen Quoc Khanh shared. 5G combined with other technologies such as cloud computing, AI, Big data, etc. are creating a system of products, services as well as new models serving many fields and aspects of the economy. The official provision of 5G services will be an opportunity for VNPT to explore new business spaces. Head of Digital Transformation Department of MobiFone Telecommunications Corporation Nguyen Tuan Huy agrees that network operators will have many opportunities with 5G, but the accompanying challenges are also very large. Accordingly, ARPU (average revenue per customer) for individual customers using 5G at the world's network operators only increased by 1% on average, which is insignificant. Meanwhile, 20% of revenue growth comes from corporate and government customers. We must identify 5G as being used by the government and businesses. However, Vietnam's current manufacturing industry is mainly outsourcing to the world and does not have many smart factories. According to a survey by the Vietnam Software and Information Technology Services Association (VINASA) in industrial and export processing zones in Ho Chi Minh City, 61% of enterprises have not fully automated; 25% have only partially automated. In the smart sector, the rate is much lower. There is still a lot of room for smart factories in Vietnam, but businesses' awareness of this story is also very low. "5G is just a connection technology, but to build a smart factory, it is necessary to implement a digital transformation project with large investment resources. Enterprises with factories in operation, now investing in a new factory like Rang Dong (a business that has successfully transformed digitally), are they ready or not, and more importantly, do they have the financial resources to do digital transformation like Rang Dong?" Mr. Huy raised the question. Another example is that Vietnam currently has nearly 300 seaports, some of which have applied the ePort electronic port system, but in reality, the level of modernity compared to the world is still limited. To invest in a truly smart port, it is almost necessary to completely renovate. At that time, with the price of a smart crane being about 1 million USD, a self-driving car in the port being about 200,000 USD, who will be willing to spend money on these investments? 5G is just a catalyst, a connection technology. Will the port be willing to spend money on such a digital transformation project? In other countries, the Government has many policies to support businesses in digital transformation. South Korea has spent 1.96 billion USD to invest in supporting businesses in this field. They have made direct investments in a number of pilot models; research institutes and universities also have national policies on using 5G as a catalyst for economic development. Similarly, China has issued many "sail" policies to promote businesses to apply 5G such as tax incentives, free frequencies, etc. However, in Vietnam, this is not the case, so Vietnamese businesses still have to fend for themselves. Vietnamese network operators have invested heavily in 5G but have not seen the output; there are many opportunities but also great challenges. Promoting cooperation From the reality of deploying technology application solutions for industrial parks, Director of Automation Solutions of TNtech Joint Stock Company Ho Anh Thang assessed that the demand for applying 5G to factories and smart industrial parks in Vietnam is currently very large. TNtech is currently managing about 550 businesses in industrial parks. Sharing from these businesses shows that FDI companies from Europe, the US, Japan, and Korea have a great demand for automation and connectivity solutions to serve management and optimize operations to reduce costs, improve product quality, and improve competitiveness in the market. However, applying 5G to production is also facing a big challenge in terms of infrastructure deployment costs, while businesses require reasonable investment costs, otherwise production costs will increase. For example, in an old industrial park that needs to be renovated, TNtech calculated that "running" fiber optic cables for the entire camera system is very expensive and time-consuming. Therefore, at some points, the company used 4G to transmit data to the control center, but the monthly subscription fee is too high, calculated for the whole year, it can equal the cost of investing in fiber optic cables. Therefore, network operators need to have policies to support businesses in the early stages. Regarding the story of rates, Mr. Nguyen Tuan Huy affirmed that 99% of network operators in the world do not increase rates when deploying 5G, only creating larger packages and capacity for consumers. Vietnamese network operators will also implement a similar approach. However, Mr. Huy mentioned another big problem: the lack of vertical digital transformation experts. For example, Vietnam has many good experts in information technology, but when it comes to digital transformation for seaports, it is impossible to find people specializing in this field. MobiFone is on the journey to transform from a traditional network operator to a technology company. The corporation has many opportunities to develop 5G applications, but it needs vertical experts to help network operators and businesses connect with each other to build smart ports, smart airports, and smart factories. Head of the Technical Department of the Military Industry-Telecoms Group (Viettel) Le Ba Tan highly appreciated the need for cooperation between network operators and businesses in promoting 5G applications, bringing practical benefits to both sides. If we only do many small solutions, it will not create a common effect, but if we create common platforms with a widespread nature, it will require human resources and very specialized knowledge. “Vietnam has many seaports, and to create a platform to provide smart port services to all seaports nationwide, we need to understand industry knowledge, the entire customs and immigration procedures; on that basis, we will standardize, set standards and create a foundation. We must promote seaports to co-invest with network operators to do this,” Mr. Tan gave an example. From the perspective of state management, Deputy Director of the Department of Telecommunications ( Ministry of Information and Communications ) Nguyen Phong Nha suggested some contents for businesses to learn about business opportunities in the smart industry such as: Telecommunications network operators such as Vinaphone, Viettel, MobiFone have always only provided connection and access services for the national and public market; but when deploying 5G network applications, there will be high requirements for service personalization for each subject in the economic sectors. At this time, network operators not only need to strengthen their relationships with telecommunications management agencies but also with all state management agencies in other fields to grasp policies related to many industries and fields. When understanding these policies and knowing market needs, businesses will have better solutions for their services. In addition, it is imperative that there be cooperation between connection service providers (network operators) and technology and software solution businesses to be able to develop well in niche markets. With 5G officially commercialized, Mr. Nha also hopes that network operators and telecommunications businesses will increase their understanding of the need to apply 5G in each industry and field. In addition, if automation is introduced into production, how will the problem of surplus workers be solved? Training new jobs with higher incomes for workers will contribute to solving Vietnam's middle-income trap. If we only look at it from the perspective of providing a better solution without looking at the root problem of surplus labor, some businesses will certainly hesitate to apply new technology.

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