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AI enters Vietnam’s textiles and garment industry

Vietnam’s textile and garment industry will use technologies such as AI and robots for work replacing humans. In 10 years, 86 per cent of workers will become redundant. A Hanoi-based company has dismissed 80 per cent workers as robots now undertake the work. The revolution is expected to have a big impact not only on labor intensive industries, but in all socio-economic fields.

Vietnam’s industrial production is mostly primary production which does not create high added value, with exports mostly raw materials. The production cost in Vietnam is much higher than that in other regional countries but China can make products at low cost because it has modern technology and large-scale production.

The biggest obstacle for Vietnamese enterprises is the outdated technology. It will take time and great effort but if Vietnam cannot catch up with the development pace in the world and the region, the country will have to face many risks including production decline. There might be a wave of outdated technologies from developed to developing countries including Vietnam.

The impact of the industrial revolution, both positive and negative, is unavoidable. The only thing Vietnamese enterprises can do is take full advantage of the opportunities and confront challenges.