Boosting application of AI in industrial production

Optimizing production efficiency

Artificial intelligence is gradually emerging as a decisive driver, pushing the industrial sector to enhance its modernity and optimize production efficiency. Through big data analytics systems, AI can forecast market demand, optimize production processes, and detect technical faults early, thereby reducing costs and minimizing risks.

In smart factories, AI-integrated robots not only replace humans in repetitive tasks but are also capable of “learning” to improve productivity over time. In particular, AI also supports faster and more accurate decision-making, creating a competitive advantage in the context of rapid digital transformation.

Beyond improving efficiency, AI is also reshaping the entire industrial value chain. From product design, logistics management to distribution, AI helps connect data in real time, enabling flexible coordination among departments. As a result, enterprises can personalize products according to market demand, shorten time-to-market, and reduce inventory levels.

Notably, the application of AI also supports energy consumption monitoring and resource optimization, contributing to green production and sustainable development, a trend increasingly prioritized by modern industrial economies.

Sharing with the reporter of the Newspaper of Industry and Trade, technology expert Nguyen Ngoc Han, Chief Executive Officer of Thu Do Multimedia, said that investing in and applying technology in production is no longer an option but has become a “matter of survival” for Vietnamese enterprises. In the context of the Fourth Industrial Revolution and increasingly intense global competition, delays in digital transformation mean the risk of falling behind, losing market share, and even bankruptcy.

Analyzing the core benefits of applying new technologies, especially AI, Nguyen Ngoc Han emphasized that the application of modern technologies and AI brings comprehensive and significant benefits, helping enterprises achieve breakthroughs in production and business operations.

First, it enhances productivity and optimizes operating costs. This is the most direct and visible benefit. Specifically, robots and automated systems can operate 24/7 with high precision, replacing humans in repetitive or hazardous tasks; AI can analyze data from machine sensors to predict upcoming failures. This allows enterprises to shift from reactive maintenance to proactive maintenance, significantly reducing machine downtime.

AI also helps calculate and allocate raw materials, energy, and labor in the most efficient way, minimizing waste. For example, Hoa Phat Group has reduced energy costs by 8% thanks to the application of IoT and data analytics.

Second, it significantly improves product quality. AI-integrated camera systems can detect the smallest product defects that the human eye may miss, with superior speed and accuracy.

At the same time, when defects occur, AI can analyze large volumes of production data to quickly identify root causes, enabling thorough fixes rather than symptom-based corrections. For instance, BMW has reduced product defects on output vehicles by up to 60% thanks to its AI-based quality management system. Foxconn increased defect detection accuracy from 95% to 99%.

Third, it strengthens competitiveness and expands market access. According to Han, demanding markets such as the United States, Europe, and Japan require products with consistent quality and traceability. The application of technology enables enterprises to meet these strict requirements.

Industry 4.0 technologies allow production lines to be easily adjusted to create multiple product variants on the same system, meeting increasingly personalized customer demand without increasing costs.

“AI and simulation tools (Digital Twin) significantly shorten the time from design, testing to mass production, thereby accelerating time-to-market,” Nguyen Ngoc Han said.

Growing trend of AI adoption

Speaking with the reporter of the Newspaper of Industry and Trade, Pham Van Quan, Deputy Director of the Industry Agency under the Ministry of Industry and Trade, stated that the application of new technologies is increasing and opening up many opportunities for the manufacturing sector. Many large enterprises have pioneered the development of smart factories, applying AI and IoT to optimize performance. A high level of automation has been achieved by leading firms in the industrial value chain such as VinFast, Hoa Phat, THACO, and TH True Milk.

In particular, many enterprises have applied AI to analyze real-time data to monitor machine performance, predict breakdowns, and provide early warnings; using AI-integrated cameras to inspect product defects and analyze causes for timely remediation.

At the same time, big data systems are synchronized with production planning to manage energy efficiently. The deployment of AI/IoT solutions helps improve productivity, reduce costs, and significantly enhance product quality. IoT is being applied to automate processes from production line management to supply chain tracking, thereby reducing operational errors, optimizing raw material usage, and increasing labor productivity.

“Thanks to these applications, some factories in Vietnam have achieved higher levels of precision and flexibility, approaching global smart factory standards,” Quan said.

However, the level of application of AI, Internet of Things (IoT), and big data in Vietnam’s industrial production remains limited. Most Vietnamese industrial enterprises are small and medium-sized, lacking capital and resources for technological innovation, while production management capabilities remain relatively low.

Meanwhile, the application of AI and IoT requires significant upfront investment and suitable IT infrastructure, creating barriers for small enterprises. Technology is changing continuously, making it difficult for firms to keep up with market demand, especially in fast-evolving industries such as electronics.

In addition, high-quality human resources in technology remain in short supply. Each year, AI personnel meet only around 10% of demand, and only about 30% of the 55,000 IT graduates annually possess AI-related skills, despite the strong mathematical capability of Vietnamese talent and significant potential for AI development. High-level engineers in automation and big data are also scarce, making it difficult for enterprises to effectively adopt and operate new technologies.

Furthermore, digital infrastructure and the domestic technology ecosystem remain incomplete. For example, AI infrastructure is still weak, lacking big data and strong computing platforms for industrial-scale AI development. Information security and cybersecurity are also major challenges as more devices and production lines become internet-connected.

Moreover, enterprise awareness of digital transformation is uneven. A segment of businesses remains hesitant to adopt new technologies due to perceived risks or lack of information, requiring guidance and support from regulatory authorities.