Page 27 - Layout 1

BUSINESS REPORT

ects in areas of power generation, trans-
A TIME TO BE SMART mission, and distribution, energy efficiency,
and transportation, while also building a
skilled workforce.
Dr. Pham Thai Lai, CEO of Siemens ASEAN and Vietnam, shares his
thoughts with VET on the country’s economic and business landscape. % In terms of digital and smart infrastructure,
what can Siemens do to support Vietnam
on this journey?
The adoption of digitalization opportunities
will support the country to increase produc-
tivity and quality as well as leapfrog to a faster
% What is your view of the prospects for industrialization process, thus increasing its
Vietnam’s economy in 2021? overall resilience and competitiveness.
Vietnam has achieved impressive economic Digital and smart infrastructure, ranging
growth in recent years, and although the from digital factories, highly efficient power
country’s economy was heavily impacted in plants, smart grids, and smart buildings to
2020 by Covid-19, I am confident it will be seamless mobility systems, are key levers to
able to resume its growth momentum this strengthen basic infrastructure and at the
year and the years to come. same time help drive efficiency and increase
It is entering an exciting time, with many productivity. Siemens’ comprehensive Product
growth opportunities brought by the imple- Lifecycle Management (PLM) portfolio helped
mentation of the Comprehensive and Pro- VinFast fulfill its vision of building the first
gressive Agreement for Trans-Pacific Part- “Made in Vietnam” motor vehicle in record
nership (CPTPP) as well as the signing and time, whereas our efficient combined cycle
ratification of the EU-Vietnam Trade Agree- power plants significantly contribute to mit-
ment (EVFTA) and the Regional Compre- igating CO2 emissions. Siemens Smart Grid
hensive Economic Partnership (RCEP). These solutions automate and stabilize Vietnam’s
agreements will be key drivers for trade pro- power grid and help cope with fluctuating
motion, FDI attraction, job creation, and GDP energy sources such as wind or solar power.
growth in Vietnam. Our main control center SCADA (Supervisor
The enhancement of Vietnam’s position Control and Data Acquisition) DMS (Distri-
and prestige in the international arena due bution Management System) in Ho Chi Minh
to the government’s substantial efforts to small and medium-sized enterprises, face City, which is equipped with Siemens’ most
ensure a more open and transparent business many difficulties, such as backwards tech- advanced technology in the power distribution
environment will certainly make the country nology, low workplace productivity, poor industry, is helping to remarkably improve
more attractive to investors. I firmly believe competitiveness, inadequate management the efficiency and reliability of the distribution
there will be large investment flows from and leadership skills, and, especially, a lack network in 21 cities and provinces in the
overseas into high-value projects in Vietnam. of capital investment. They also have limited southern region.
This will enable it to become a hub for trade knowledge about international business law Smart Building technology will help achieve
and investment activities in Southeast Asia. and international integration, as well as the highest standards of environmental effi-
limited international business experience. ciency and reduce energy demands. Siemens’
% What are the greatest opportunities and Other emerging challenges are a scarcity of offerings on HVAC (heating, ventilation, air-
challenges facing Vietnamese enterprises? natural resources, which results in a pressing conditioning, and room automation), and
Its free trade agreements (FTAs) offer Viet- need to find alternatives, while the require- building management systems help create
nam major advantages in terms of exports ments for environmental protection and CO2 healthy, productive, and sustainable environ-
and at the same time help to diversify its emissions reductions have forced enterprises ments and safe workplaces for people to live
import markets. Not only can it gain benefits to invest in clean and green technologies, and work in. All of these solutions have
from significant tariff reductions but also which are often very costly. already been deployed extensively in Vietnam,
from having ample opportunities to access with German House being our most prominent
and expand into new markets worldwide. % What should Vietnam do to achieve more example in terms of energy efficiency, comfort,
Vietnam’s deep global integration has also sustainable growth, increase its national and sustainability.
enabled the local business community to competitiveness, and be well prepared for Smart Mobility solutions also increase the
access new state-of-the-art technologies and upcoming challenges? availability of infrastructure, optimize through-
to expand their business relationships inter- In my opinion, Vietnam needs to focus put, and create a new quality of passenger
nationally. For example, the FPT Group has on these three basic factors: establishing a experience through digitalization. In Vietnam,
been selected as Siemens’ global partner for stable legal framework to support business, we are working with the Ministry of Transport
MindSphere - a cloud-based, open IoT oper- developing a highly-skilled workforce, and and different city governments to make trans-
ating system from Siemens. improving basic infrastructure. In particular, portation more efficient by implementing
However, competitive pressure will cer- Vietnam has to develop a “Smart Infrastruc- intelligent traffic lights and traffic management
tainly be intensified, and one of the biggest ture Roadmap” in order to build the country’s systems to regulate the flow of traffic.
challenges for Vietnam is from the stagnation sustainable future over the years and decades Last but not least, we have been working
of the local enterprise system. Their adapt- to come. Such a roadmap will need to take closely with the Ministry of Industry and
ability to a market economy is generally a holistic view of all vital development areas Trade since 2019 to develop a smart infra-
weak. Vietnamese enterprises, especially in the country, including infrastructure proj- structure roadmap for Vietnam. %

FEBRUARY 2021 | VIETNAM ECONOMIC TIMES | 25