Thesis summary doctor of economic developing vietnam’s mechatronics industry in the period up to 2020, vision to 2030

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

DEVELOPING VIETNAM’S MECHATRONICS INDUSTRY
IN THE PERIOD UP TO 2020, VISION TO 2030

Mayor:
Major code:

Economic management
9.34.04.10

THESIS SUMMARY
DOCTOR OF ECONOMIC

HA NOI – 2021


The work is completed at:

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Advisor:
1. Associate Professor, PhD. Tran Dinh Thien
2. PhD. Pham Ngoc Hai
Reviewer 1: Associate Professor, PhD. Nguyen Ngoc Son
Reviewer 2: Associate Professor, PhD. Ngo Quang Minh
Reviewer 3: Associate Professor, PhD. Nguyen Xuan Dung

The thesis will be defended in front of

the Academy-level Thesis Assessment Council at:
Graduate Academy of Social Sciences,
477 Nguyen Trai, Thanh Xuan, Ha Noi
At ……., date …. month …… year ……

Thesis can be found at:
-

Graduate Academy of Social Sciences’s Library

-

National Library of Vietnam


INTRODUCTION
1. The need of the thesis:
Mechatronics is a high-tech field formed by integrating the latest
achievements of many different technology industries such as mechanical
engineering, electrical - electronics, automation technology, technology.
information and material technology to create smart products in civil,
military, medical, security and defense, aerospace ... With this
outstanding feature, Mechatronics's role becomes It is very important and
indispensable in the development of modern science and technology and
was rated as one of 10 technologies by the "Technology Review"
Magazine of Massachusetts University of Technology - USA in February
2003. world-changing outlook in the twenty-first century. The birth of
the Mechatronics industry stems from the growing needs of
manufacturing industries that require interdisciplinary technology
integrating mechanics, electricity - electronics, computer science and

cybernetics. With the presence of a wide range of smart products, today
Mechatronics technology has been widely and effectively applied in
economic, cultural, educational, medical, security and defense
development. , civil ... of the countries of the world.
Vietnam as well as other countries in the world are immersed in the
flow of the Fourth Industrial Revolution - a revolution closely related to
innovation in digital technology in general and Mechatronics in
particular. Thanks to the achievements of the Industry 4.0, the
development of the Mechatronics industry can help Vietnam "take a
short cut" by creating breakthroughs in integrated technology thinking,
improving the level of technology, production and sales capacity and
with new smart and highly competitive products in the world market.
It is time for Vietnam to clearly define strategic directions, have
specific policies and solutions to promote the development of the
Mechatronics industry in the overall national industrial development in
order to respond promptly and effectively to Industry 4.0, properly
assessing the role of "leverage" of industrial products in general,
Mechatronics products in particular for the socio-economic development
of the country, must master the Mechatronics field from many angles.
degree of difference such as science, technology, engineering, education
and must make adequate investment for Mechatronics in the
development process. With that in mind, Mechatronics has been selected

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as one of the six industries and technologies that are prioritized for
investment and development in the period of Vietnam towards Industry
4.0 in Resolution No. 52-NQ / TW dated September 27, 2019. of the
Politburo on a number of guidelines and policies to actively participate in

the Industry 4.0.
Recognizing the important role and potential contribution of the
Mechatronics industry to the national industrial economic development
in the context of international integration with increasingly diversified
market sizes and high competitiveness, along with the impact from the
Industrial Revolution 4.0, to ensure the objectivity and practical basis of
the thesis, the PhD student has conducted a survey to consult experts
(researchers, lecturers, officials). managers, policymakers, leaders of
State agencies, business leaders ...) and enterprises in the Mechatronics
industry on the urgency of the topic "Developing Vietnam's
Mechatronics Industry in period up to 2020, vision to 2030 "and received
positive results. Specifically, according to the survey results collected,
the topic received 72/72 consent votes from experts who are managers,
policy makers, businesses, researchers ... and 14/14 Votes of consent
from businesses, agencies operating in the field of Mechatronics or
related to the field of Mechatronics include Associations, Research
Institutes, Universities and Enterprises. Stemming from actual needs, the
research and proposal of industrial development solutions Mechatronics
Vietnam has received strong support from experts and leading agencies
of the State, Associations, and joint ventures. enterprises operating in the
Mechatronics industry such as: Vietnam Mechatronics Association,
Mechanical Research Institute under the Ministry of Industry and Trade,
Automation Electronics Research Institute under the Ministry of Industry
and Trade, Vietnam Association of Mechanical Enterprises, Vietnam
Automation Association, Vietnam Institute of Economics, Institute of
Information Technology under Vietnam Academy of Science and
Technology, Saigon - Hanoi Beer Joint Stock Company, Mechanical
Automation Co., Ltd. and Environment (AMECO) ... The results
obtained from (i) Survey question on the urgency of the thesis, (ii)
Survey on the development status of the mechatronics industry cluster in

Vietnam in the period 2010-2020 and factors affecting the development
of the mechatronics industry (Appendix 4.5) is one of the important bases
for the PhD student to offer solutions for the singing development for the
Vietnamese Mechatronics industry.

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In order to realize the policies of the Party and State, promote
research and application of Mechatronics, bring Mechatronics to
practically and effectively serve the cause of industrialization and
modernization of the country, and contribute to supply provide
arguments for managers, policy-makers with a basis for orientation and
inter-agency coordination in the formulation of national industrial
development policies as well as development of important sectors and
fields. The subject of "Developing Vietnam's Mechatronic Industry in the
period to 2020, with a vision to 2030" in the 4th Industrial Revolution in
the near future, under the subject of Economic Management has been the
major impact of the Fourth Industrial Revolution in the coming time.
Research students choose to study for their doctoral dissertation.
2. Research objectives and research content of the thesis:
2.1 Research objectives:
Research on the theoretical basis of the Mechatronics industry, the
theory of the development of the Mechatronics industry, evaluate the
current situation of the Mechatronics industry in Vietnam and the policy
of the development of the Mechatronics industry, analyze the factors of
policy influences to develop the industry, from there give solutions to

develop policies for the Mechatronics industry in Vietnam until 2030.
2.2 Research content:
To achieve the above general objectives, the thesis identifies the
specific research tasks that need to be conducted as follows:
- Research on the theoretical basis of the Mechatronics industry,
industrial policy, industrial development policy Mechatronics Vietnam.
- Study international experience on industrial development policy
Mechatronics and draw lessons for Vietnam
- Analyzing factors affecting the development of the Mechatronics
industry in Vietnam
- Assessment of the current status of industrial development policies
in Vietnam's Mechatronics industry in the period 2010-2020
- Proposing solutions (policies) to develop Vietnam's Mechatronics
industry to 2030.

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3. Object and range of the thesis:
3.1. Research objects:
The research objects of the thesis are (i) Vietnam Electronics
industry (position, roles, characteristics, main components), (ii) factor
impacts on the development of the industry. Mechatronics industry in
Vietnam, (iii) issues related to development policies of Vietnam
Mechatronic Company.
3.2. Research range:
- Time: 10 years, implementing from 2010-2020, policy solutions to
2030.
- Space: In addition to analyzing the current status of development
policies for the Mechatronics industry in Vietnam, the thesis chooses to

learn from the experiences of the US, Japan, and South Korea in
promulgating and implementing policies related to Mechatronics industry
development because these countries have developed industries,
including some very strong and successful countries in technology
development and production of Mechatronics products.
4. Research methodology of the thesis:
4.1. Secondary document analysis method:
The research of the thesis is based on the results of secondary
document analysis that are relevant researches to the Mechatronic
industry, helping the author to synthesize his views and make his
conclusions in a different approach.
4.2. Survey method by survey and interview the experts:
The purpose of this method is to survey and collect evaluation
opinions of experts and businesses related to the current status of the
development of Vietnam's Mechatronics industry.
- Survey and survey by questionnaires with 35 enterprises operating
in the field of Mechatronics in Vietnam;
- Questionnaires surveyed and surveyed with 74 experts who are
managers, policymakers, businesses, and researchers related to the
Mechatronics field in Vietnam.

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4.3. Methods of using quantitative research models and tools:
The results obtained from the expert and business survey were
synthesized and analyzed using quantitative research tools (SPSS
descriptive statistics, Cronbach's Alpha reliability coefficient assessment,
EFA discovery factors, linear regression equation) to have a scientific
basis, objectively verify the assumptions made about the influence of the

factors on the development of the Mechatronics industry.
4.4. Analytical methods according to the diamond model of
M.E.Porter:
The diamond model of M.E.Porter is used in the thesis to analyze
and reflect the current situation of factors affecting the competitiveness
of Vietnam's Mechatronics industry.
4.5. SWOT analysis method:
SWOT analysis method is used in the thesis with the purpose of
synthesizing and analyzing strengths, weaknesses, opportunities and
challenges of Mechatronics Vietnam industry in new context.
5. New contributions of the thesis:
On the basis of systematizing theories related to the development of
the Mechatronics industry, the author has developed a plan to assess the
current situation and competitiveness of the Mechatronics industry in
Vietnam (through the diamond model of ME Porter, SWOT, research and
survey) and a set of criteria for assessing the current status of industrial
development policies in Vietnam's Mechatronics industry.
In addition, the novelty of the topic is to propose solutions to develop
the Mechatronics industry in Vietnam in the direction of an industrial
cluster with synchronous policies on science, technology, human
resources, finance, and investment credit. key products, supporting
industries.
6. The theoretical and practical significance of the thesis:
Theoretically, the thesis has made contributions when clarifying the
current status of the development policy of the Mechatronics industry in
Vietnam and the factors affecting the development of the Mechatronics
industry in Vietnam in the period of 2010- 2020.

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Practical products that the topic proposes are groups of policy
solutions from the State to support the development of Vietnam's
Mechatronics industry in the period up to 2030.
7. Analytical framework of the thesis:
According to the Analytical Framework of the thesis, the two main
areas that are focused on are industry Mechatronics and industry policy
development Mechatronics. The diamond model M.E.Porter is applied to
analyze the overall characteristics of the Mechatronics industry and its
competitiveness in the current context. The SWOT model is also
referenced for the Mechatronics industry for a better view of the
Mechatronics industry's strengths, weaknesses, opportunities and
challenges. Industrial policy development, industry policy management
are reviewed, analyzed and evaluated. General assessment criteria for
industrial policies are referenced and analyzed by the graduate students.
On the basis of the above analysis, the factors affecting the Mechatronics
industry are synthesized and surveyed for businesses and experts in the
field to have a basis to assess the current situation. development of the
Mechatronics industry in Vietnam in the period 2010-2020. The collected
data will be analyzed statistically using SPSS tools, effect factor analysis
method (EFA), Cronbach Alpha reliability coefficient method, regression
analysis method. The results obtained from data analysis and evaluation
from the industry diamond model Mechatronics is an important basis for
NCS to propose solutions to develop the Mechatronics industry in the
new context.
8. The structure of the thesis:
In addition to the Introduction, Conclusion, Appendices and
References, the topic is structured with 04 specific chapters as follows:
Chapter 1: Overview of the research
Chapter 2: Theoretical and practical basis for the development of the

Mechatronics industry
Chapter 3: Development status of Vietnam Mechatronics industry
Chapter 4: Solutions to develop the mechatronics industry in Vietnam.

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CHAPTER 1
OVERVIEW OF THE RESEARCH
1.1. Studies on Mechatronics industry in Vietnam:
From the end of the 20th century and the beginning of the 21st
century, Mechatronics industry began to be interested in Vietnam,
domestic researchers have made many reports and scientific topics on
this issue, however most These are technical and scientific studies
focusing on the design and application of Mechatronics systems and
products, and few reports of scientific research focusing on economic
management aspects as well as the interaction effects between factors.
elements that make up the Mechatronics industry as well as the
management and support policies of the State for this industry. The
domestic research mainly focuses on some main contents as follows:
In terms of concept and role, Mechatronics is the synergy of many
fields (mechanics, electronics, automation, information technology) that
are changing the world, giving us many opportunities and not less
challenges in the integration process. Mechatronics creates many
opportunities for the development and prosperity of the country and
requires many changes in many fields. Our mission is to create a
harmonious and sustainable development in the transition from
specialized thinking to multidisciplinary collaborative thinking.
In terms of potential, Mechatronics is considered as a future technical
technology development strategy of Vietnam, an inevitable development

trend of the equipment manufacturing industry in the 21st century.
Currently, the State policies to support the Mechatronics industry are
not really effective and still have many shortcomings such as tax policies,
human resource training, research and development.
Proposed solutions of domestic research projects for industry
development Mechatronics mainly focus on financial solutions, human
resource training, technology development, and key product group
orientation.

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1.2. Mechatronics industry studies in the world:
In the research on Mechatronics in the world, the authors' opinion on
the development orientation of the Mechatronics industry mainly focuses
on some contents as follows:
The Mechatronics industry plays an important role in the
development of national economies. If businesses want to be competitive
in a competitive and global market, they need to apply Mechatronics in
their movements.
The globalization market as well as the increasing demand from
consumers have created many successful businesses in the Mechatronics
industry and in the future, this will still be a growing industry and an
increasingly expanding market.
The education and training in the Mechatronics industry
revolutionize both industry and education, so there is a need for the
connection between the education system and businesses in the industry.
Development in State policy will help the educational and training
process achieve three main purposes. One is to equip the knowledge of
the Mechatronics industry for human resources, the second is to change

the perceptions of society and the market, and finally the creation of
innovative knowledge and innovation.
Mechatronics components will be the basic layer of new generation
smart products, so the development of the Mechatronics industry is an
inevitable trend in the Industry 4.0.
On the basis of the synthesis of research results of some domestic
and foreign authors mentioned above, the research gap of the thesis
focuses on the impact of State policies and factors related to
development. Industry development of Mechatronics Industry Vietnam,
from which proposing solutions in State management mechanism for the
development of Vietnam's Mechatronics industry.

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CHAPTER 2
THEORETICAL AND PRACTICAL BASIS FOR THE
DEVELOPMENT OF THE MECHATRONICS INDUSTRY
2.1. Theoretical basis on Mechatronics and Mechatronics
industry:
2.1.1. Basic concepts, characteristics and roles of mechatronics and
mechatronic industry:
Mechatronics is a science based on mechanics, electronics,
information technology and is an organic unity of constituent elements,
in which the structure of the constituent technologies has changed. to
form a unity in the product.
The development of computers and information technology software
in the design, manufacture, control and use of Mechatronics products has
laid the foundation for the Mechatronics industry to play a key role in
promoting growth. economic growth of many developed industrial

countries in the region and in the world.
2.1.2. The basic concepts of the industry cluster and the basic
characteristics of the Mechatronic industry cluster:
On the basis of analyzing the characteristics of the Mechatronics
industry and considering the context as well as industrial development
trends in the direction of industrial clusters in the region and in the world,
the thesis builds industry development models. industry Mechatronics in
the direction of industry clusters Mechatronics to optimize linkages and
support capabilities between related disciplines in industrial clusters.
2.1.3. The diamond model by Michael E. Porter applies to the
Mechatronics industry:
Diamond model by Michael E. Porter (2008) is a framework for
analysis of competitiveness and characteristics and characteristics used
for the Mechatronics industry. This is also the basis for evaluating the
level of development of the Mechatronics industry and proposing
solutions for the development of this industry.

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2.1.4. Criteria for evaluating the current status of the development of
the Mechatronics industry:
The Mechatronics industry does not have an industry code in the
Vietnamese economic system - VSIC 2018 and has interdisciplinary
characteristics, so it is difficult to statistic and synthesize relevant data.
Currently, the statistical data of the General Statistics Office specific to
the Mechatronics industry has not been clearly defined and is incomplete
so that the thesis can collect data to assess the status of the Mechatronics
industry. Therefore, the solution of the thesis for the current situation
assessment is to use the method of analyzing secondary and primary data

(surveying experts and mechatronic enterprises), applying a differential
model. Diamond analysis of M. Porter and quantitative research tools to
get the right judgment on the current state of Mechatronics industry
development.
2.2. Theoretical basis for industrial development policy:
2.2.1. An overview of industrial policy:
Industrial policy is the direct or indirect intervention of the
Government towards certain sectors to achieve specific goals.
2.2.2. Mechatronic industry development policy:
Industry Development Policy Mechatronics will be one of the sectorbased industrial policy packages in the national industrial development
policy package.
2.2.3 Industry cluster development policy:
The model of industry clusters and industrial clusters has been
applied in Vietnam and received supportive policies from the State.
These industrial cluster development policy groups can be studied and
applied in combination with the characteristics and circumstances of the
Mechatronics industry cluster to form Mechatronics industrial cluster
development policy groups.
2.2.4. Industrial development policy evaluation criteria:
Mechatronics industrial development policy evaluation criteria
include: (i) the effectiveness and efficiency of the policy, (ii) the fairness
of the policy, (iii) the impact of the policy, (iv) the policy's problemsolving level.

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2.3. International experience in building and implementing
industrial development policies in general, Mechatronic industry in
particular and lessons for Vietnam:
The thesis has researched and synthesized international experiences

of the United States, Japan and South Korea in the process of formulating
and implementing industrial development policies focusing on groups of
content as:
(i) Science and Technology Policy
(ii) Policy of orientation and selection of priority sectors and fields
for development
(iii) Policy to improve management efficiency and link the public
sector with the private sector in science and technology research and
development
(iv) Technology infrastructure innovation and adaptation policy for
Industry 4.0.
Based on the deployment experience of the above countries, the
thesis has drawn a number of lessons for Vietnam, including:
(i) Enhance competitiveness on the basis of continuously improving
productivity to promote the development of the nation's industry
(ii) Promote international cooperation, acquire experience and
technology for effective, fast and sustainable development
(iii) State policies need to orient the development of industries in
certain periods, ensure clarity, transparency and be built in the direction
of making the most of external resources, enhancing inner strength to
better compete in the world market, attaching importance to attracting
investment capital, importing modern techniques and investing in
research and development of science and technology.

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CHAPTER 3
DEVELOPMENT STATUS OF
VIETNAM MECHATRONICS INDUSTRY

3.1 Evaluation of factors affecting the current status of the
Mechatronics industry in the period 2010-2020:
3.1.1. Assessment of production capacity, product type and human
resource training situation of Vietnam Mechatronics industry:
3.1.2. Using Michael E. Porter’s Diamond model to analyse Vietnam
Mechatronics industry:
Based on the presentation of Diamond model by Michael Porter
(1990, 2008) introduced in Chapter 2 about the theoretical basis and
analytical framework of industry competitiveness, the impact from 05
factors (the role of the Government, foreground and competition,
conditions factors, inputs, company support and association) determines
competitiveness and greatly affects the state of mechatronic company
development. assessed and classified into 3 groups: (+) favorable group,
(-) limited group, (+/-) favorable and limited group.
3.1.3. Analysis of survey results on factors affecting the development
of Vietnam's Mechatronics industry:
- Method of descriptive statistics SPSS
- Cronbach Alpha coefficient of reliability method
- Explore factor analysis method EFA
- Linear regression analysis method
The obtained regression equation is:
DV= 0.545*IV1 + 0.484*IV2
The results of the regression equation show that the Mechatronics
industry development policy in particular, investment and support
policies for Mechatronics enterprises (capital, interest rates, taxes, R&D
activities) is very urgent but will be significantly affected by political cultural - social factors such as the macroeconomic situation and political
environment, the integration of Vietnam with the world so that
Mechatronics enterprises can easily access the source. quality raw

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materials, cheap price and easy access to credit sources, businesses are
supported with taxes, interest rates...
3.2. Review development policy of Vietnam Mechatronics
company:
3.2.1. Review groups of solutions to develop the mechatronic industry
in Vietnam in the period up to 2025:
3.2.2. Mechatronics industry development policy review:
- Effectiveness and efficiency of industrial development policy
- Equity of industrial development policy
- The impact of industrial development policy on the beneficiaries of
the policy
- Degree of problem solving by industrial development policy
According to the domestic and international economists and
policymakers, although the State, ministries and sectors have made great
efforts in formulating and promulgating industrial development policy
institutions. However, these institutions and policies are not uniform,
show many limitations and shortcomings and some policies are not
consistent with international practices, so they have limited impacts on
the development of the industry. industry in general and Mechatronics
industry in particular.
3.3. General assessment of the development status of the
Mechatronic industry in Vietnam in the period 2010 - 2020:
3.3.1. SWOT analysis for the development of Vietnam's Mechatronics
industry:
Strengths: Vietnam has the advantage of geographical location and
natural conditions, stable political situation, and an open and attractive
investment environment. The Mechatronics industry has strong
institutional

and
policy
backing
from
the
government.
Telecommunication infrastructure of good quality. The labor structure is
young, receptive, quality and potential. The potential domestic market for
Mechatronics products.
Weaknesses: The state has not shaped and properly planned the
Mechatronics industry, leading to difficulties in management,
administration and development orientation of the industry. Low

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technology level, small production scale. Human resources have not met
the requirements of the industry in terms of quantity and quality. The
supporting industry and social infrastructure have not met the set
demand.
Opportunities: The context of integration and the industrialization 4.0
helps businesses to have access to technology, to global markets in terms
of trade liberalization and facilitation. The market capacity is expanding,
the demand for Mechatronics and Mechatronics products is increasing.
The rapid increase in foreign investment helps enterprises to receive
international capital sources and quickly access advanced technologies
and techniques.
Challenges: Improving the capacity to absorb, absorb and create
modern technology for production and business of Mechatronics
products and Mechatronics in the context of Industry 4.0. Promote

efficiency, improve the quality of scientific research and development
activities, avoid the risk of falling behind in technology. Escape from the
scenario to become the consumer market of Mechatronics products and
Mechatronics in other countries in the region and in the world. Promote
the development of supporting industries to reduce the dependence of
enterprises on the purchase of spare parts, components and materials
from abroad, increase competitiveness for Vietnamese Mechatronics
products.
3.3.2. Limitations and causes:
Limitations:
- Investment in research and development as well as production of
Mechatronics products remains single, lacks orientation and
interdisciplinary coordination;
- The development environment Mechatronics is still in the process of
forming, the product structure is unreasonable, still heavy on the
development of civil Mechatronics products, the specialized
Mechatronics products with high value such as machinery and
equipment. having high technology features accounting for a very small
proportion;
- Mechatronics industry develops in Vietnam mainly because it
attracts foreign investment projects, Mechatronics enterprises of Vietnam
are very few and mainly focus on independent fields such as mechanics.

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creating, electronics and assembling computers. Equipment and
technology systems of domestic enterprises are outdated and
asynchronous;
- The supporting industry serving the Mechatronics industry is

limited. Most of the spare parts, components and production materials are
imported from abroad;
- Vietnam is seriously lacking in human resources with high
qualifications and expertise capable of holding the role of chief engineer
in the design and development of Mechatronics products.
Causes:
- The State has not focused on developing the Mechatronics field into
a complete and clear industry, so up to this point science and technology
research and development organizations as well as enterprises deploying
applications or manufacturing business. Mechatronics products have not
received specific policies of the State, but only exploit some general
policies that affect the field of Mechatronics;
- The Mechatronics industry has not had the unified direction and
management of the State, has not been properly invested; Policies slow to
come to life. Scientific research and development programs and
connections between scientists, research units and businesses are
sporadic, without the support of the State;
- Some macro policies such as import tax policies, localization
policies, etc. are unreasonable for a long time, thus discouraging
production from developing;
- There is no linkage between levels, ministries and branches in policy
implementation. Some policies still have many irrationalities, lack of
consistency and consistency, and have not yet attracted all interested
subjects. Besides, the policy formulation, in addition to subjects such as
experts and administrative agencies, the beneficiaries of policies such as
enterprises and business associations have not participated much;
- Mechatronics enterprises develop individually, with small scale and
mainly due to market demand, spontaneity, lack of linkage and
coordination in the general development orientation;
- The necessary choice of products and technology for foreign

investors has not been given due attention. Investment projects for the

16


Mechatronics industry are few, especially projects in the field of
mechanical engineering and complete equipment;
- The training of human resources for the Mechatronics industry is
still inadequate. The training of Mechatronics engineers is mainly a
combination of other specialties, so there is often a lack of
synchronization and specific orientation.

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CHAPTER 4
SOLUTIONS TO DEVELOP THE
MECHATRONICS INDUSTRY IN VIETNAM
4.1. The background of the development of Vietnam's
Mechatronics industry:
4.1.1. The impact of globalization:
4.1.2. The impact of the Industrial Revolution 4.0:
4.1.3. The impact of these risk factors on the global and domestic
economy:
4.1.4. Evaluate the needs and development potential of the
Vietnamese Mechatronics industry:
The domestic and international market currently has a very high
demand for Mechatronics products, particularly in fields such as
mechanical engineering, information technology, energy, aerospace,
shipbuilding, and engineering. medical equipment, robot, consumer

industry. With the great demand for Mechatronics products in the current
period, the potential of the Mechatronics industry in Vietnam is shown in
the following contents:
- Vietnam has the advantage of an abundant labor resource with the
proportion of the working age population (15 - 64) accounting for 69.3%,
the labor cost is only 15-20% compared to other countries in the ASEAN
region;
- Vietnam currently has many large enterprises and corporations with
strengths in financial resources, human resources as well as technology
that can lead the Mechatronics industry to develop and integrate
internationally such as: (i) Companies Truong Hai Auto Joint Stock
Company (THACO); (ii) Vinfast Production and Business Company
Limited - a member of Vingroup with large scale and modern
technology…;
- Vietnam is located in the Asian region with high economic growth
rate and is in the take-off stage, with great promise for the development
of the Mechatronics field.

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- Business investment environment in Vietnam is increasingly open
and operates according to international standards, creating confidence to
attract foreign direct investment (FDI).
4.2. Opinions and orientations for completing development
policies for the Vietnam Mechatronic industry by 2030:
The development orientation of the Mechatronics industry in
Vietnam in the period to 2030 should follow 3 mottos:
1. To make a breakthrough in developing qualified and high-quality
human resources;

2. Make use of external force effectively to increase internal force.
The internal force must become the core and the main force, the external
force plays an important role;
3. Taking the quick mastery of the domestic market to step by step
steadily expand into regional and global markets is the decisive stage.
Some of the basic views when building Mechatronics industry
development policy and solutions are:
1. To develop the Mechatronics industry in line with the national
industrial development orientation, especially in the context of the
Industrial Revolution 4.0;
2. Develop Mechatronics industry on the basis of bringing into full
play the resources of all economic sectors, including the role of the
Government in investing in developing the country's endogenous
technological capacity and building Synchronous industrial infrastructure
is one of the decisive factors for the success of this industry. Using
foreign investment as a resource to increase capital, innovate technology,
improve production capacity, especially attaching special importance to
association with multinational corporations is an important factor;
3. Science and technology, education and training hold a key
position, are a breakthrough in the development of the national industry
in general, the Mechatronics industry in particular. Effectively take
advantage of the latecomers' advantages in industrialization and
modernization, especially the Industrial Revolution 4.0 to have a
reasonable approach, short-cut and proactive approach;
4. Harmoniously combine the development of the Mechatronics
industry in both width and depth, focusing on in-depth development,

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creating a breakthrough in improving productivity, quality and
competitiveness of Mechatronics products. Make the most of the
country's comparative advantages and potentials to develop Mechatronics
industry into one of the internationally competitive industries;
5. An important factor in the development of Vietnam's
Mechatronics industry in the context of the Industry 4.0 is to develop
human resources to meet the requirements of quantity and quality, have
the ability to think, create and innovate., have skills in analyzing and
synthesizing information, able to work independently and make decisions
on the basis of analyzing data.
Industry development orientations Mechatronics Vietnam focuses
on: (i) industry development investment; (ii) research, design, and
development of products and technology; (iii) the market; (iv) human
resources.
4.3. Proposing a number of policies and solutions to develop
Mechatronics industry to 2030:
4.3.1. Policy proposal:
1. Policies to develop and improve creative capacity, support
research, test production, technology incubation, business incubation for
Mechatronics and Mechatronics products, especially Mechatronics
products and smart Mechatronics systems.
2. Policy on supporting technology and equipment innovation for
enterprises producing and trading in Mechatronics and Mechatronics
products
3. Credit investment policy
4. Tax policy
5. Stimulus policy
6. Policies to attract foreign direct investment
7. Policies to encourage foreign experts and overseas Vietnamese
4.3.2. Proposed Solutions:

1. Solutions on policy mechanisms
- Building and shaping Vietnam's Mechatronics industry into a
complete industry in the list of industries of Vietnam with full functions,

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roles and specific tasks together with criteria, statistical indicators on the
operation of the industry serving the methodical and scientific
management and development orientation of the Mechatronics industry
of Vietnam;
- Perform synchronously from the stage of policy formulation and
promulgation to implementation in the direction of transparency in
management, reducing administrative procedures; research, formulate
and publish specific and feasible Strategy and Action Plan for the entire
Mechatronics industry, develop and apply technology in accordance with
production needs and market requirements. school; maximize the
participation of the Government - business - scientists in the entire
process of developing, inspecting, monitoring and evaluating the results
of the implementation of the Action Plan, as well as evaluating the
effectiveness of the industry development;
- Promote cooperation and international integration for the training,
technology transfer and development of Mechatronics industry;
- Strengthening the close linkage between the domestic economic
sector and the FDI sector, taking measures to support start-ups and a
number of businesses that are operating effectively.
2. Group of investment capital solutions
Attracting foreign investment capital from large corporations,
multinational corporations with financial and technological potentials,
creating funding channels to contribute to promoting the bringing of

Mechatronics products to life. Improving the policy of selling shares to
foreign partners for equitized enterprises, at the same time expanding the
participation of foreign individuals and legal entities in enterprises in the
Mechatronics industry. capital in the country.
3. Group of solutions for building scientific and technological
potentials for the Mechatronics industry:
To formulate appropriate policies to attract foreign investors to invest
and transfer technology to the field of manufacturing Mechatronics
products on the basis of high technologies and high added value;
perfecting legal policies to protect intellectual property rights for
enterprises; encourages research on Mechatronics.
4. Human resource solutions group

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Promote training of human resources to design Mechatronics
products; establish preferential policies on funding, grant scholarships,
take advantage of foreign scholarships, secure jobs, ... in order to attract
excellent students to study this field; to make additional investments in
universities and technical colleges so that these units have funds to
regularly update, supplement, improve and modernize their training
programs; investment in teaching facilities; encourage the application of
a 3-party joint training model, including enterprises - institutes, schools state management agencies to train highly skilled human resources at the
request of enterprises.
5. Solutions for key products:
- Develop programs to develop key products in the Mechatronics
industry synchronously with investment incentive policies;
- Promulgate incentive mechanisms to put research results into
production and business practices, regulations on minimum R&D cost

ratios for businesses to facilitate development of smart Mechatronics
products. technology foundation of Industry 4.0.
6. Solutions for the market:
- Create a healthy, open, favorable market, capable of self-regulation
according to the law of supply and demand; promote brand building
activities, image for the Mechatronics industry in Vietnam.
- Create an environment for scientists and businesses to meet,
exchange and cooperate in research and development of high-tech
products. Create specialized playgrounds for businesses to participate in
learning to improve their expertise and experience.
- Issue technical regulations for Mechatronics products in accordance
with current regulations as a basis for checking the quality of
Mechatronics products domestically produced and imported, and to
prevent importation of Mechatronics products. from outside when
factories producing Mechatronics products and 100% domestic
Mechatronics systems come into operation.

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7. Supporting industry solutions group:
- Develop a system of preferential policies for supporting industrial
enterprises to participate in the supply chain of products for the
Mechatronics industry including taxes, land rent, training costs,
information support, and procedures. one door, etc…;
- Building a database system of supporting industries serving the
development of Mechatronics industry in a database system for the whole
industry and technical regulations and Vietnamese standards;
8. Group of solutions for the development of Mechatronics industry
in the direction of cluster industries:

- Shaping and planning the development of Vietnam's Mechatronics
industry cluster with close and effective links, ensuring maximum
support for the development of Mechatronics enterprises from research,
design, materials. , input components to business network allocation,
marketing.
- Provide support services of the Government with the goal of
creating favorable conditions for the development of clusters, namely: (i)
synthesis, collection and classification of cluster information, (ii) figure
grouped with representatives of many agencies, (iii) encouraging
Governmental with common applications, (iv) reviewing and reforming
regulations and income tax.
- Investing in clusters with policy groups: (i) investing in cluster
innovation and research, (ii) setting up technology centers for each
cluster, (iii) supporting activities cluster-based entrepreneurship, (iv)
cluster marketing and cluster management team building.
- Strengthening network connectivity and building bridges with the
following contents: (i) restructuring cluster organization, (ii) promoting
the formation of external linkages, (iii) promoting communication
channels between clusters.
- Developing human resources for cluster with the following
contents: (i) developing a specialized and highly skilled workforce, (ii)
forming cluster skill development centers, (iii) strengthening labor
quality, (iv) linking with job training and placement centers, (v)
supporting regional skills development links.

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