Global production Livestream – Shaping the future of Manufacturing Industry in Vietnam

The reality of the global production industry is that everything runs wild! While the new normal is still in the shaping phase, every country tiptoe around the problem tries to figure out what best to do. With some advantage in this global pandemic, how should Vietnam react? What are the obstacles and challenges? What should Vietnam implement to be a leading manufacturing country? All of this will be discussed in the exclusive global production Livestream from VGU: “Shaping the Future of Manufacturing Industry in Vietnam.”

1. Economic research on the current situation

Like the global production in other countries hit by COVID-19, Vietnam’s economy has also suffered significant losses throughout the outbreak. In the first three months of the year, almost 35,000 businesses went bankrupt.

The novel coronavirus pandemic and trade tensions have driven the shift of production lines from China to Southeast Asia. Especially, multinational companies such as Samsung, LG, and many Japanese manufacturers have been moving factories from China to Vietnam, or have established new global production facilities in Vietnam rather than in China.

Thanks to such an opportunity, it is a chance for Vietnam to take a step toward the global production manufacturing industry. It is making significant progress in affirming its position as a production base. However, Vietnam is still facing many barriers and challenges to reach the goal.

2. Talking about the future of global production industry

To shine a light on this pressing matter, Vietnamese-German University (VGU) is proud to bring in some of the experts in the economic research field:

1. Dr. Sebastian Schumacher – Global production engineering and Management (GPE) Program Manager cum GPE Academic Coordinator at TU Berlin
2. Dr. Nguyen Hong Vi – Academic Coordinator of Global production engineering and Management Program of VGU
3. Dr. Thomas Guidat – Director of Industrial Relations and Technology Transfer Center of VGU
4. Mr. Brian O’Reilly – Academic Coordinator of Master Business Administration Program of VGU
3. Summary of the Livestream

Question 1: Strategic focus on the macro-economic global production situation

Economic research has shown that, in the last decade, Vietnam consistently registered robust growth and considered as a destination of choice for foreign direct investment (FDI). What will be the challenges for the county to keep sustainable growth in the years to come?

Dr. Sebastian Schumacher:

– The international environment brings positive outlook for Vietnam as many factors are calling for a shift of global production out of China (US-China trade war, lack of trust due to the responsibility in COVID crisis)
– International standards will be the norm, as agreed upon in the treaties
– VN industry must increase its standards to cope with the new environment: improve quality, workers safety connection to the global supply chain through industry 4.0
– The shift from low value-added activities such as assembly to a more reliable integration in the global production value chain (Vinfast, Thaco, Viettel as examples)
– German companies very present in Vietnam and reinforcing the investment in the country with a clear focus on manufacturing activities


The future for global production is promising but also contain many challenges

Question 2: Current situation in Vietnam and the gaps for higher education

Global production plays a vital role in national economic development. However, the quality of Vietnamese labor resources in manufacturing is still a significant concern. World Bank has ranked Vietnam in 11th place out of 12 Asian countries based on economic research on the quality of human resources. We still lack the vital skills needed to succeed in the global production ecosystem. How are these factors relevant to this industry? Are there any suggestions from the education system for policymakers to improve the quality of human resources?

Dr. Nguyen Hong Vi and Dr. Thomas Guidat:

– Oversupply of graduates, but companies still cannot hire. One of the reasons is the disconnection from universities to the industry environment.
– VN is still finding the critical skills needed to succeed in the global production ecosystem. Need of the people with the right attitude in companies. Therefore, the most important is to show you have an overview of the local and global challenges to get hired as a manager.
– Threat: build HR capacities to go from factor-based advantages to the knowledge-based, value-added focused economy to follow the macro-economic shift.
– VGU has set the IRTTC in 2015 and enjoy a very close relationship with industry. Also, VGU’s graduates perform very well in the industry (95% of students find a suitable job 3 months after graduation).
– The global production engineering and management curriculum at VGU has been developed in considering the requirements in Vietnam and Germany. A first call to industry: scholarships from adidas, framas, pepperl and fuchs, zwilling…

Question 3: Technical / Hard skills development and ways to teach them

Why a technical master’s degree in Global production Management is essential to company and learner itself? How can a standard German curriculum promote competencies for students in the future of the manufacturing industry and economic research?

Mr. Brian O’Reilly:

– The Bachelor learns how to apply single methods. The master can justify what is the change/innovation needed in an ecosystem and develop a strategy to use it. The reason is that the Master student has a broad understanding of the various technical area of global production and knows how to implement.
– German engineering: innovative subjects in VN such as Simulation of Production Systems, along with opportunities to do projects with companies after each course.
– Furthermore, with courses in English only, international program, best lecturers, practical and project-oriented learning, closing the knowing-doing gap, excellent relations with industry; Global production engineering and management is a great choice for people who want to shape the future of the industry.

Watch the full livestream for more interesting conversation here

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