Modernizing production technology: Small and medium enterprises are exhausted

The biggest challenge during the process of the fourth industrial revolution is the strengths of the facilities and machinery of enterprises. Photo: Hương Dịu.

However, for small and medium enterprises, because of lack of capital, the investment in new technology and equipment is very difficult, and it is more difficult as training labor sources to operate. This is why these enterprises are slowly in the race.

Struggling in digitization

About the trend of the digital economy that the fourth industrial revolution is bringing to Vietnam, according to many experts, the biggest challenge in the process of the revolution is the current potential of facilities and equipment of enterprises.

Many enterprises are using the old machines, factories that does not catch up with the modern trend, which makes them waste a lot of money and time in digitization. And if they want to apply new technologies in production, they also need to have a skilled labor resource. That is the problem of many enterprises.

According to Mr. Tran Phu Si, Deputy Director of Human Resources of Truong Phi Garment Processing Company Ltd, “since the beginning of 2016, the company has accommodated the capital to implement the plan to change its system of machinery in the whole factory.

Starting with labeling, stamping, assembling. However, when we invested in a test line, we also faced the difficulties in operating this chain. Because the engineers of the maker only supported us in the first few months, then we had to train a new team.

But 90% of our workers are ordinary workers, they only do simple work, so we could not train them to acquire the knowledge of the maker. If we recruit new skilled workers to meet the needs of the enterprises, it will exceed the our affordability.

Most of our capital has been poured to change the production line with the hope of increasing the productivity and products, creating the profits, but now, human resource is a difficult problem for us”, Mr. Si said.

It’s hard to do with a small capital

Agreed with Mr. Si, Mr. Nguyen Viet Toan, chairman of Tan Phu District Business Association (of Ho Chi Minh City) shares, most of the small and medium enterprises are in trouble with the labor forces because the trend is changing from skilled workers into foreign-invested enterprises. If we invest in machinery, there will have not money to invest in workforces, meanwhile, these enterprises are difficult to access loans.

Taking an example, in order to invest a Danish auto casting machine line worth €3 million, it is impossible to a small and medium enterprise. Meanwhile, the manpower to operate completely this chain must be a well-trained labor who is studied abroad. Thus, this is still a very large investment for enterprises.

From the point of view of an employer, Mr. Le Huy Thuc, General Director of PTT Mechanical Engineering company said that it is difficult for enterprises to recruit laborers to meet their needs. Because of the salary that we are able to pay, it is only suitable for ordinary workers, in which only a very small number of employees are qualified for further training.

The majority of employees entering the business takes a long time to retrain to meet the needs of the enterprise, but these workers are only responsible for the simple work, with the old or backward machinery. If you want to train the workforce with management ability who can operate the system of machinery with advanced technology, the amount of money that businesses have to spend is not small.

And of course, because of the limited capital, we almost have the idea but do not carry out. For example, we are now able to give our three employees to learn Lean Manufacturing in Singapore. Each course we give 100% of the cost with the desire that these workers will help the company rebuild the production system on the basis of do not produce over or lack, not make good jam, and pack the goods right after production. Thereby, we will spread this method to our every worker to change the mindset of them, ensuring quality, schedule, streamline and maximizing productivity.

According to Ms. Tieu Yen Trinh, General Director of Talentnet (specialised in HR consulting), the integration into the regional market affects not only large enterprises but also small and medium enterprises. The market will receive many waves of foreign investment as well as opportunities to enter the regional market, but only well-prepared businesses will be able to catch it. Therefore, investing in workforces will be an essential tool for all enterprises to equip themselves with a strong internal force and always be ready for integration.