Creating new opportunities with 5G

Denis Brunetti, president of Ericsson for Vietnam, Myanmar, Cambodia, and Laos

How important is 5G to Vietnam’s growth and innovations and what opportunities will it bring to industries?

5G has the potential to accelerate the digital transformation of virtually any sector of industry or society. The next wave of sustainable and inclusive socioeconomic development in Vietnam will be driven through innovation, science, and technology, powered by the digital economy.

5G will serve as the critical national infrastructure that will enable the digitalisation of all industries, making them more productive, efficient, and competitive. People in Vietnam will experience a new digital lifestyle and businesses will be able to leverage the benefits of enhanced mobility, flexibility, reliability, and security that 5G offers.

As an innovation platform, the applications that will run on top of 5G will also create major value for industry and society, enabling new startup innovations to flourish, which will in turn help generate new jobs in new industries.

5G will enable Vietnam to unlock the full potential of Industry 4.0 and will be the foundation on which it can further build on its digital transformation journey and realise the government’s vision as described in the Socioeconomic Development Strategic Plan for 2021-2030 and National Strategy for Industry 4.0.

The new network will pave the way for increased investments in smart manufacturing capabilities in the country, supporting the government’s vision and focusing on driving an increased and sustainable productivity growth rate of 7 per cent per annum by 2025 and 7.5 per cent per annum by 2030, with 30 per cent of GDP attributed to the digital economy by 2030.

By wisely taking a strategic decision to focus on sci-tech, innovation, and embracing the accelerated adoption of Industry 4.0, Vietnam is well on its way to creating a digital ecosystem that will attract foreign direct investment in high-tech and drive the next wave of inclusive and environmentally sustainable development.

Which 5G rollouts and networks can Vietnam learn experience from?

Currently, there are more than 180 live 5G networks globally with more than 1000 5G devices commercially available. Ericsson is proud to power 100+ live 5G networks in 46 countries. Since the first 5G network launched in 2019, 57 per cent of data traffic in South Korea is already carried over 5G. By 2027 we expect 75 per cent of the world’s population to be covered by 5G with over 4.5 billion people having access by then.

Across the globe, we are seeing many examples of 5G being adopted by enterprises and we seeing early results of these use cases. For example, Ericsson has collaborated with Audi and sensor manufacturer SICK to connect one of Audi’s German factories with 5G technology, creating seamless robot collaborations, greater efficiency, and enhanced productivity and safety. 5G brought flexibility improvements, enhanced connectivity, and a complete reimagining of what safe human-robot collaboration can look like.

Our own 5G Smart Factory in Texas has been recognised by the World Economic Forum as a global frontrunner in Industry 4.0, with the site being awarded its prestigious “Global Lighthouse” designation in recognition of Ericsson’s deployment of next-generation technology. This includes its subsequent impact – an impressive 2.2 times improved output per employee when compared to a similar site without automation and Industry 4.0 upgrades..

How exactly can Vietnamese enterprises improve through the use of 5G?

In order to remain competitive, increase efficiency, and even achieve sustainability goals, businesses need to become digitally connected. This transformation can happen through connected devices and products or connected environments like industrial sites. Thus, in order to realise the possibilities, enterprises need connectivity that is global, reliable, and secure.

When 5G is deployed, Internet of Things (IoT) applications will solve many challenges, and all industries and fields will be digitally transformed and operate more efficiently and productively.

Manufacturing, energy/utilities, transport, logistics, healthcare, education, and finance are sectors that represent huge opportunities for 5G in Vietnam. Industry digitalisation is happening in all segments worldwide, and enterprise networking services are examples of areas already leveraging cellular and 5G tech.

Based on our own global studies, it is clear that digitalisation is a clear top priority for businesses. Today, nearly 75 per cent of IT decision-makers find digitalisation very important or crucial to the future of their business, and more than 60 per cent have clear plans for what to do. Also, almost half consider themselves well underway in implementing their current plans.

Enterprises engage in digitalisation for business reasons, with technology being the key enabler. We can see 5G’s potential to transform industries and society at large – such as in smart manufacturing, smart cities, self-driving cars, and advanced healthcare applications, just to mention a few. Healthcare, manufacturing, automotive, and energy/utility sectors represent the largest value pools for services created or enhanced by 5G.