According to HUBA, a smart factory (also known as Smart Factory, Digital Factory or Connected Factory) is a digitalized production system that uses connected smart devices, machines and production systems to continuously collect and share data. The goal of a smart factory is to improve production processes and solve any problems that may arise. This is one of the typical leaps in the 4.0 industrial revolution, opening a new era for the manufacturing sector.

Many businesses come to find a solution to apply smart factories in the near future.
Urgent implementation of digital transformation for enterprises
Smart factories interact optimally in real time, from the strategic level to the management level, the operational level, the machinery and equipment level and vice versa. To successfully deploy Smart Factory, enterprises need to prepare carefully in terms of technology, processes and people. Global enterprises are gradually realizing the great potential of integrating advanced technologies such as IoT, AI, robots and big data analytics into the production process.
Affirming this, Associate Professor, Dr. Thoai Nam - University of Technology, Ho Chi Minh City National University said that a smart factory is an integrated system that combines physical and digital technologies to create a connected and intelligent production environment. This enables real-time monitoring, data-driven decision making, and autonomous manufacturing…
According to Mr. Nam, the smart manufacturing market is expected to grow at a compound annual growth rate (CAGR) of 13.1% over the next seven years, reaching a total value of US$658.41 billion by 2030. According to the 2022 SME and CESMII survey, 77% of respondents believe that smart technology will increase their organization’s competitiveness, the majority believe that smart technology will increase their organization’s competitiveness, but only half are willing to invest in these initiatives. Previously, only large enterprises could afford to access or benefit from smart technology, but smart manufacturing has become more accessible to small and medium-sized enterprises in recent years.

Implementing the smart factory model, DuyTan Recycling's recycled plastic products have met the strict standards of international markets, including the US.
New information on smart manufacturing, smart factories, experts say that the main trend of industrial production in the world today and in the future is Industry 5.0. If Industry 4.0 is based on the connection between machines and information technology systems, Industry 5.0 focuses on collaboration between humans and machines in tasks that require creativity, complex decision making and emotional skills. In the Fifth Industrial Revolution, the human factor is increasingly prominent and placed at the center of the production process. Industry 5.0 focuses more on the use of renewable energy sources and the design of energy-saving systems to achieve more sustainable production and reduce carbon emissions.
To support businesses in developing smart factories, the Department of Science and Technology of Ho Chi Minh City. Ho Chi Minh City cooperates with the High-Tech Park Management Board to meet with enterprises in the high-tech field, to create opportunities to meet, discuss and seek ideas to propose orders for solutions to support enterprises in the field of developing smart factories, sharing experiences in applying high technology, applying digital transformation in production and promoting science and technology activities, innovation in Ho Chi Minh City.
Director of Samsung Electronics Vietnam Partner Support Department, Mr. Jang Yoon Ho said that Samsung is currently deploying smart factories in Vietnam as well as supporting more than 50 enterprises to build smart factories. To be selected to participate in the smart factory project, Mr. Jang Yoon Ho said that enterprises must meet a number of conditions, in which enterprises must improve and optimize processes so that data will be collected and processed in real time.
Businesses are more profitable when the factory is smart
Talking about the benefits of digital transformation and implementing smart factories, Mr. Jang Yoon Ho said that smart factories are means and tools to help factories earn more money. The nature of smart factories is low investment costs and high profits.

Duy Khanh Mechanical Company has implemented digital transformation in the implementation of smart factories to aim to become a pioneer enterprise in digital applications
Mr. Le Anh - Director of Sustainable Development, Duy Tan Plastic Recycling Company (DuyTan Recycling) said that thanks to the implementation of smart factory technologies, in the first 6 months of 2024, the company collected and recycled 26,000 tons of plastic waste equivalent to 2 billion plastic bottles, supplied the domestic market with 7,730 tons of plastic and exported 7,770 tons of plastic to 15 countries.
Similarly, Mr. Do Phuoc Tong - Chairman of the Board of Members of Duy Khanh Mechanical Company and Chairman of the Ho Chi Minh City Mechanical - Electrical Association, said that digital transformation is very urgent for businesses, helping businesses optimize the production management process, minimize waste, and increase production and business efficiency. Digital technology will greatly support businesses to improve their creativity, enhance their competitiveness, and increase orders in the context of fierce competition.
Proposing many solutions to develop smart factory models, experts said that it is necessary to strongly spread smart factory models to small and medium enterprises; organize exhibitions, surveys, and share successful lessons of smart factories; develop standards and certify smart factories; invest heavily in research and development of smart factory models; strengthen training and coaching on smart factories, especially at universities...
"Smart factories are an attractive solution for small and medium enterprises (SMEs) looking to improve their competitiveness. However, to increase the number of smart factories, small and medium enterprises need to be supported through smart factory development policies," Mr. Nam shared.
Affirming the city's policy for this model, Ms. Nguyen Thi Kim Ngoc, Deputy Director of the Department of Industry and Trade of Ho Chi Minh City, said that the Ho Chi Minh City State Financial Investment Company was directed by the city to lend in priority areas for socio-economic development in the city with a maximum loan of VND200 billion/project. This policy is an opportunity for businesses to have more financial resources to convert to smart factory and green factory models," Ms. Ngoc said.
"The city encourages businesses to convert from traditional factories to smart factory models, contributing to promoting the city's industry to become increasingly green and clean and highly efficient. The city is having many policies to support businesses in digital transformation, especially preferential loan packages with low interest rates for small and medium-sized enterprises to invest in technology and upgrade factories," Ms. Ngoc said.
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