Vietnamese small, medium-sized firms carrying out digital transformation

Although more than 90 percent of manufacturers in Vietnam are still in small and medium enterprises, they have performed digital transformation strongly, which also impacts the country's economic growth beneficially.

CNS AMURA Precision Company (CAP), one of the members of Saigon Industry Corporation (CNS) has implemented digital transformation and is negotiating more new orders with foreign business partners to produce end products. Many of its orders are worth up to millions of US dollars. This is a new step after the company became Samsung's tier 1 supplier.

Evaluating its workers’ skills as well as existing production lines and machines, the company’s representatives are confident that they can meet most of the orders of foreign direct investment (FDI) enterprises.

Regarding the CNS Amura’s digital transformation process, Mr. Nguyen Phuong Dong, General Director of Saigon Industry Corporation, told following the wave of foreign direct investment in Vietnam, the corporation managers were concerned about how to be able to "absorb" this capital and transform it into an internal force for domestic industrial development. Keeping the concern in mind, the corporation managers have come up with an investment plan to transform the entire production technology line of CNS Amura.

Accordingly, the corporation purchased five most modern mold making machines and managers changed their thought by approaching the market; simultaneously, the corporation studied the global supply chain standards of FDI enterprises. The efforts of the corporation managers and employees were rewarded as CNS Amura has gradually become the first-class supplier of mold making for many large enterprises in the world.

Mr. Tran Ba Linh, Production Director of Dien Quang Lamp Joint Stock Company, said that the production line innovation by applying digitalization in operation is a vital factor for the enterprise’s success.

In fact, in order to be able to join the supply chain in the European and US markets, especially actively manufacturing "Made in Vietnam" tablets and laptops, the company has invested thousands of billions of Vietnamese dong to innovate the management system and the production line. For instance, the company spent on the Panasonic Smart Factory version of the gluing machine with two robotic arms, each arm has 16 suction heads with a capacity of 86,000 chips an hour. This type of machine allows engineers to glue micro-components into parts with a length of 1.2m.

The company also invested in a thickness tester, an oven, and a machine that checks the accuracy and completeness of all components on each board. In addition, there are other devices and X-ray machines to check welds at glue points that are invisible to the naked eye, ensuring product quality requirements.

Last but not least, while carrying out digital transformation, many businesses also look for green production solutions. Specifically, the US$1.5 billion Stavian Quang Yen Petrochemical Factory project of the Stavian Group has recently committed to copyrighted technology and modern production lines from G7 countries, which will save energy, contributing to the implementation of the Vietnamese Government's commitment to environmental protection and reducing greenhouse gas emissions to zero by 2050. Stavian is also a pioneer in applying blockchain technology in international payment transactions.

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