Enterprises prioritize building smart factories

Amid rapid advances in science and technology and growing pressure for energy transition, the transition toward modern production models and smart factories has become a key strategy for enterprises.

Semi-automatic electrical equipment production at the Electrical Equipment Joint Stock Company in Long Duc Industrial Park, Binh An commune, Dong Nai City. Photo: Hoang Loc

The application of modern management tools and software, along with investments in machinery and automation technology for production, is among the solutions enterprises are gradually implementing.

An inevitable trend

Smart manufacturing for sustainable development has become an inevitable global trend. Technologies such as artificial intelligence (AI), the Internet of Things (IoT), big data, robotics, and smart manufacturing systems are fundamentally transforming factory operations, optimizing supply chains, and improving production efficiency.

Meanwhile, many enterprises continue to operate using manual methods or rely excessively on Excel to manage production planning, inventory, and order progress. This situation creates the risk of information disruption between offices and factories, hampers the monitoring of operational performance, causes material waste, and increases the risk of delayed deliveries.

Nguyen Thanh Luan, Director of Digital Transformation at ITG Technology Joint Stock Company in Hanoi, stated that traditional factories face management challenges due to the lack of effective measurement tools, with operations still largely dependent on experience and intuition. With AI-integrated smart factory solutions, enterprises can access comprehensive supply chain data, enabling them to shift from passive to proactive information management. As a result, enterprises are able to flexibly adjust their production and business operations in line with their development strategies.

The gradual transition toward smart factories is being promoted at both the national and international levels. According to Phung Duc Hoang, National Project Coordinator of the International Labour Organization (ILO) Productivity Ecosystems for Decent Work Programme, the ILO is implementing the Productivity Ecosystems for Decent Work Programme in several key manufacturing localities, including Dong Nai. The program focuses on optimizing operational processes, applying best practices, and promoting the use of technology. In the near future, priority will be given to digital and green transitions, which are considered essential to sustaining and improving productivity over the long term.

Production at the factory of Ishikawa Metal Processing Co., Ltd. in Bien Hoa ward.

Enterprises transform

Transforming production models presents numerous challenges for each enterprise and production facility, requiring every business and factory to make strong operational efforts. VinaStar Technical Plastic Commercial Production Company Limited, in Trang Dai ward, has boldly participated in the project to develop an overall model to improve productivity and quality in industrial and trade enterprises, implemented by the Vietnam National Productivity Institute. Since 2023, VinaStar has begun developing a four-step roadmap for digital transformation in its warehouse operations, aiming to build a modern, accurate warehouse and logistics management system that is synchronized with the company’s enterprise-wide management and production software.

Tan Vinh Cuu Joint Stock Company (TAVICO) in Long Binh ward is also rolling out a digitalization model for its furniture manufacturing operations. Tang Thi Bich Thuong, Deputy General Director of the company’s business division, stated that developing a smart factory model is not only a journey of applying technology but also a process of changing operational thinking and the way people coordinate with data. After a step-by-step implementation process, the enterprise has improved its ability to control order progress, inventory, and factory operating efficiency. At the same time, TAVICO is working toward building a standardized blank production model to help export wood-processing enterprises optimize their input supply chains and reduce raw material losses.

According to experts, technological solutions such as ERP, MES, IoT, QR codes, and smart production planning systems are considered a suitable approach to help enterprises gradually digitize their production activities. With data connected in real time, enterprises can track order progress at each stage, accurately control inventory, optimize machinery capacity, and significantly reduce operating costs.

Similarly, to improve management efficiency, optimize operational processes, and gradually modernize production and business activities, Thuan Loi Rubber Co., Ltd. in Thuan Loi Commune is stepping up digital transformation in its own factory’s warehouse division through its internal management software. Using software for warehouse management enables import, export, and inventory data to be updated quickly, accurately, and consistently across departments. This endeavor helps reduce manual processing time, limit errors, and improve transparency in the management of materials and goods.

Vo Quang Hieu, Deputy General Director of Thuan Loi Rubber Co., Ltd., stated that digital transformation not only helps improve labor productivity but also lays the foundation for building a professional and modern working environment aligned with enterprises’ development trends in the new period. He noted that this is an important step reflecting the company’s determination to innovate management methods, enhance operational efficiency, and gradually build a digital enterprise.

By Vuong The – Translated by Minh Hong, Minho