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Southeast Asia Catches Up in Global Robotics Race
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TABLE OF CONTENTS
EAST ASIA IS THE WORLD’S HUB FOR AUTOMATION
MALAYSIA MAKES MOVES WITH ROBOTICS, AUTOMATION
THE DAWN OF ROBOTICS IN THE PHILIPPINES
SRI LANKA HAS A LOT OF POTENTIAL FOR SOUTH ASIAN ROBOTICS
VIETNAM’S INDUSTRIES WELL-SUITED FOR AUTOMATION
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East Asia has demographic and cultural advantages for building and adopting automation.
EAST ASIA IS THE WORLD’S HUB FOR AUTOMATIONFrom Japan, China, and South Korea to Southeast Asia, each country in the region has different strengths but the same goal for its robotics investments — economic competitiveness.By Eugene Demaitre, senior editor, Robotics Business Review
Asia is home to half of the world’s population, has decades of experience with industrial automation, and is actively promoting economic development. It’s no surprise that many view the continent as the global epicenter for robotics.
However, the fears and hopes of multinational robotics companies often don’t take into account the variance among nations, as well as the interdependence among suppliers and users of emerging technologies.
This download focuses on East Asia, where established leaders and rising manufacturing centers have turned to automation as the key for long-term prosperity and competitiveness. India and the Middle East are worth reports to themselves, and Robotics Business Review will continue its coverage of the global ecosystem.
Like Europe’s Horizon 2020 initiative, Asian governments have invested heavily in robotics and AI research with the hope of commercial value. The U.S. may not have a centralized a policy, but it has benefited from the culture of innovation and risk-taking investments in Silicon Valley.
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You’re more likely to see robots in Tokyo than almost anywhere else in the world.
Asia may be using most of the world’s robots, but it needs to create more skilled labor to both develop and use robots and AI, say analysts.
Japan might be the most advanced robotics producer, but Southeast Asian countries are revamping their educational systems, public-private partnerships, and outreach to Western companies.
This report will look at developments in the Malaysia, the Philippines, Sri Lanka, and Vietnam, but let’s first look at regional (and global) titans of technology: Japan, China, and South Korea.
Japan accepts robots in industry, societyStarting with its automotive industry in the 1970s, Japan has long been a leader in robotics in manufacturing. Japanese companies made 56% of the world’s robots in 2017, according to the International Federation of Robotics (IFR).
Top robotics companies — and 2018 RBR50 companies — in Japan include Hitachi, Kawasaki Heavy Industries, Mitsubishi Electric, Seiko Epson, and Yaskawa Electric (whose Motoman division is based in the U.S.).
Since Astroboy, Japanese popular culture has been friendlier to androids than Western science fiction, which often depicts robots as existential threats to humans. Another reason for Japan’s relative robot friendliness could be that the Shinto religion describes all objects as having spirits.
Outside of small countries such as the United Arab Emirates or Singapore, you’re most likely to see a robot in a retail setting in Japan.
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For instance, a café in Tokyo includes robotic wait staff remotely controlled by people with disabilities. Leading up to the 2020 Olympic Games, a Japanese train station is testing an AI-driven security robot, and self-driving cars could hit Tokyo’s streets in time for the games.
On the materials-handling side, Japan has made advances in collaborative mobile manipulation and drone deliveries in the past year.
Japan’s SoftBank Group has aggressively invested in robotics and AI, partly through its $100 billion Vision Fund. SoftBank Robotics, formerly France’s Aldebaran, makes the popular Nao and Pepper humanoid service robots. A Nao is being used to teach English in a Japanese school.
SoftBank also owns Boston Dynamics, whose humanoid and quadruped robots are the darlings of YouTube and which was previously owned by Google. SoftBank is preparing to sell SpotMini commercially.
More recently, SoftBank’s $52 million Deepcore fund contributed to Engineer.AI’s Series A round. In addition, Brain Corp and SoftBank launched an autonomous vacuum cleaner for commercial use.
With falling birth rates and strict limits on immigration, Japan has the world’s oldest population, with a median age of 46.7. A recent survey found that more than 80% of the Japanese public would accept robotic caregivers.
Demands for elder care will continue to grow, so Honda and Toyota have been working on AI and assistive technologies such as exoskeletons and robots.
Labor shortages are also encouraging Japanese development of robots, 3D printing, and software for construction, farming, and general-purpose household use.
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China wants to move from being the world’s factory to being a net supplier of robots.
China aims to be No. 1 in AI, roboticsIf demographics is destiny, then it should come as no surprise that this nation of 1.2 billion people expects to be a leader, both in producing and using robotics and AI. China’s government has set ambitious goals in its “Made in China 2025” strategy.
China is a huge potential market for robotics suppliers, which sold more than 137,000 robots there in 2017, according to the IFR. Much of Japan’s success in robotics has been from supplying China, and North American and European companies are also big suppliers.
Also, China is a major source of capital for startups worldwide. And the country is working to develop its educational system to develop domestic talent and lure foreign engineering students.
More than 1,600 robotics companies were founded in China last year, reported the fifth China Robot Summit. Chinese startups also surpassed U.S. startups in fundraising last year.
While some countries are specializing in AI, such as the U.K. and Canada, or service robotics, such as France and Israel, Chinese researchers are working on the whole gamut: machine learning, robots, drones, and self-driving cars. They are working with a community of institutions around the world.
For example, Ford and Baidu recently announced a two-year joint project to test autonomous vehicles, and self-driving car startups such as Pony.ai, Roadstar.ai, and Momenta are valued at $1 billion.
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50% China represents half of Asia’s industrial robot usage, according to the IFR.
In addition, China is developing automation for farming, e-commerce, pharmaceuticals, retail, supply chain, and military applications.
Significant industrial automation providers in China include Foxconn Technology, KUKA owner Midea Group, and Siasun Robot & Automation. There are also service robot companies such as cleaning robot provider Ecovacs, Segway owner Ninebot, and humanoid maker UBTECH.
China does face significant hurdles to robotics dominance. U.S. and European regulators have threatened to restrict Chinese investment in Western companies because of allegedly unfair business practices, intellectual property (IP) violations, and espionage. China has responded in part by strengthening penalties for IP theft.
Trade tensions between the U.S. and China could also slow global robotics, already hurting iRobot’s profits and even forcing some companies to relocate. Both Western and Asian companies should carefully choose their partners and markets.
In addition, safety and technical standards in Chinese factories may not yet be at the same levels as elsewhere, and China’s command economy may not provide the agility to react to rapidly shifting consumer demand. At the same time, these conditions provide opportunities for enterprising multinationals.
Cellphone maker Foxconn, a.k.a. Hon Hai Precision Industry, plans to replace tens of thousands of workers with robots. However, other countries are more sensitive to potential worker displacement from automation.
Like Japan, Europe, and, to a lesser extent, the U.S., China faces challenges with an aging population.
Despite intensifying international competition and the prospects of economic recession, the Chinese robotics market is likely to continue growing, agree analysts.
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South Korea showed off multiple robots at the 2018 Winter Olympics.
South Korea parleys industrial prowess into automationNot only does South Korea have the highest robot density in the world — 631 per 10,000 workers, reported the IFR — but it is also home to companies that rival its neighbors in development and production of industrial and service robots.
South Korea showed off 85 robots at the 2018 Winter Olympic Games in PyeongChang. Also in the works are robots and AI for guiding people through airports, cleaning floors, and otherwise aiding people.
South Korea’s electronics and automotive sectors are largely responsible for its engineering prowess. Top companies in South Korea include Hyundai, LG Electronics, Samsung, and Yujin Robot.
In addition, South Korea is investing billions in schools and processors for AI. The country’s government has made sure that its per-capita spending on advanced technologies is one of the highest in the world.
South Korea is also aware of the increasing demand for robots to aid aging humans. The Korea Advanced Institute of Science and Technology (KAIST) and its Future Robot spinoff are led by a pioneer in humanoid robots, producing the DRC-HUBO robot that won the final DARPA Robotics Challenge in 2015.
Once again, South Korea’s automation leadership is not mutually exclusive with international partnerships and in fact relies on them. China is a major purchaser of South Korean robotics, and Korean companies have a big presence at each year’s Consumer Electronics Show in Las Vegas.
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Kuala Lumpur.
South Korea poses some unique challenges for parties interested in robotics. The most obvious one is continued tension with North Korea, which is pursuing its own robotics research and development.
The potential military applications of AI and unmanned systems have led to public-private partnerships, as well as protests. Relations between the Koreas are complicated by other regional geopolitical rivalries with China and Japan, not to mention interested parties in the U.S. and Russia.
MALAYSIA MAKES MOVES WITH ROBOTICS, AUTOMATIONChina helps its neighbor grow with multiple deals.By Abishur Prakash
Malaysia is one of five nations that Deloitte named as being the world’s next factory (after China). With help from China, the Southeast Asian country could well become a leader in robotics.
Back in 2017, Malaysia made a huge stride in developing its own robotics hub in Johor, a southern state connected to Singapore. The Johor Corp. (JCorp) and China’s Siasun Robot Investment have launched a robotics research and development institute.
The institute is part of the “Robotic Future City” project. Siasun said it planned to invest $3.5 billion (U.S.) to help Johor grow economically. The deal itself was
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part of nine agreements signed between businesses in Malaysia and China when Malaysia’s prime minister visited China.
While Malaysia will benefit from this investment, it raises an important geopolitical question: Is China using robotics to expand its influence? Building robotics infrastructure could be China’s equivalent to American firms building highways, electrical grids, and more throughout South America in the 20th century.
Equally important is that China’s investment ensures that Malaysia will play a role in the One Belt, One Road (OBOR) initiative, for which robotics could be an important component.
Malaysia also turns to tax incentives, South KoreaMalaysia’s government has offered tax incentives to companies that invest in automation there. Note that any steps that Malaysia takes could affect the production of goods destined for the rest of the world.
For example, Top Glove Corporation produces every one in four latex gloves in the world and has automated part of its operations.
In addition, South Korean representatives have met with their Malaysian counterparts to explore ways to build up their robotics industry. Seoul has moved to partner with the Association of Southeast Asian Nations (ASEAN), which includes Malaysia.
Robots emerge in Malaysian hospitalityBeyond diplomatic affairs, robotics has also emerged in Malaysia’s hospitality sector. CH Premier Restaurant in Kuching, which is on the northern part of the island of Borneo, has used four robots to hold conversations with customers and do other tasks.
Interestingly, these robots spoke “fluent” Mandarin, once again pointing to China’s indirect influence on Malaysia’s robotics industry.
However, a 2016 study found that nearly half of young Malaysians were worried that robots would take jobs. It also claimed that the manufacturing and engineering fields have the highest risk. This puts the onus on the government to alleviate fears or prepare a framework to help unemployed youths.
Malaysia makes inroads with robotics, AIThanks to help from Chinese investors, Malaysia is building a robotics sector from the ground up. China could use Malaysia’s success as a blueprint for
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The Philippines may lack a unified policy, but it is developing robotics.
engaging other countries in the region that don’t have a central robotics policy, such as Indonesia.
The country has made strides in artificial intelligence research for smart cities, “conversational AI” or “cognitive agents,” healthcare, and service robots.
Forbes noted that Supahands is an example of how Malaysia is using data and collaboration with humans to build “the world’s most efficient workforce.”
Advance Technologies Innovative Alliance Sdn Bhd (ATIA) is working with three partners to establish a Centre of Excellence for Robotics in Malaysia. In addition, the Malaysian Technology Development Corp. is actively looking for local roboticists and companies to support.
The time for foreign multinational companies to get involved in Malaysia is now.
THE DAWN OF ROBOTICS IN THE PHILIPPINESThe island nation is less industrialized that its neighbors but is no less interested in automation.By Abishur Prakash
After Japan, China, and South Korea, the next most promising centers for robotics include India, Taiwan, and Australia. However, a largely untapped opportunity exists in the Philippines.
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With more than 7,000 islands and a population of over 98 million, the Philippines is experiencing the dawn of robotics. The country’s government and private sector are taking steps to invest in robotics, but the Philippines also faces challenges to becoming a regional leader.
Government strategy developingLike the U.S., the Philippines doesn’t have a single, official strategy when it comes to robotics, but several initiatives underway point to robotics becoming an important part of the country’s economy.
The Department of Science and Technology (DOST) has included artificial intelligence in its 2017-2022 research and development agenda. The secretary wasn’t new to AI; he wrote a paper in the 1980s on the future of technology.
DOST is also behind a separate initiative to create 500 homegrown startups by 2020. The startups should have a combined valuation of $2 billion and create 8,500 high-skilled jobs. Could Filipino innovations in artificial intelligence and robotics flow from this?
Another government agency called the National Economic and Development Authority (NEDA) has unveiled strategy called “Ambisyon 2040,” which is a 25-year roadmap to transform the Philippines into a predominately middle-class society.
Rosemarie Edillon, the deputy director of NEDA, said the strategy needs to enable people to be “flexible” so that they can “adapt to changing technology and conditions.”
Of all the new technologies on the global stage, robotics and AI are likely the most beneficial and disruptive to the Philippines, in part because of the many customer-service call centers based there.
Ambisyon 2040 is made up of four pillars. One of them stands out: “The people will be smart and innovative.” While this is a fairly broad goal, the Philippine government is eyeing 21st century skills, including the ability to manufacture and program robots.
Ironically, while Manila looks to prepare people for automation, robots made a splash in its political scene. Back in 2016, a “vice-presidential android” was unveiled in the Philippines during an election debate. The robot was named “Escuderoid” and answered questions from the debate moderators.
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UAVs have been useful for search-and-rescue and damage-assessment missions after natural disasters.
Disaster relief drives drones and AIThe frequency of typhoons, geological activity, and other natural disasters has been a powerful driver for advanced technology in the Philippines.
After Typhoon Haiyan hit the Philippines in 2013, the country was the launch pad for the “ORCHID” artificial intelligence project. It was a joint effort by British universities and companies.
Many nongovernmental organizations (NGOs) used drones in the aftermath of Typhoon Haiyan for assessing areas and deploying search and rescue teams. These and other NGOs expect drones to become one of the default tools for future disaster-relief missions.
The Netherlands Red Cross, through its “510 global” subsidiary, has used AI to help the Philippines with disaster relief. Its goal is to create a “Priority Index” for different disasters that combines data sets with machine learning.
In partnership with the United Nations’ Food and Agriculture Organization (FAO), the Philippines has also used drones to identify which farms are most vulnerable to natural disasters and climate change. Such applications would be useful throughout Southeast Asia.
Academia a strength for FilipinosUnlike in the U.S., China, or Europe, academia in the Philippines doesn’t just mean university and college. It also includes innovations from elementary
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schools and high schools. The nation’s familiarity with English and strong educational, healthcare, and engineering tradition make it appealing to international partners.
The country’s Department of Education is just beginning to incorporate robotics into its curriculum, but schools have already demonstrated noteworthy successes.
Students at Adamson University unveiled several robots back in 2011. One of them was a humanoid robot that used “speech technologies” to hold conversations with humans. Another robot could climb stairs to identify gas leaks, and a third robot traversed difficult terrain to provide surveillance capabilities.
In 2013, a team of high school students in the Philippines developed three robots to solve different problems. The robots, ProGrow , ProTek, and ProTrek, could sprinkle fertilizer, test soil, keep insects away from fields with sound, and act as an emergency station, respectively.
At the FIRST (For Inspiration and Recognition of Science and Technology) LEGO League World Festival hosted by the U.S. in 2014, the Filipino team beat 12,000 other students and won first place. Its All-Around Homing Operative of Nature (AHON) robot could detect natural disasters like floods and earthquakes and communicate these risks by flashing a color — i.e. green for flood, blue for tsunami.
An egg-shaped robot has taught English to students in South Korea. However, its operators were based in the Philippines. Because salaries for English-speaking teachers are cheaper in the Philippines than in other parts of the world, it could be a control base for telepresence robots.
Last July, the Philippine Robotics Team won 23 medals in the 2018 International Robotics Championship.
Regional movesThe Philippines has partnered with other countries to develop its robotics expertise. South Korea has expressed interest in helping the Philippines develop its manufacturing center, including electric vehicles or e-vehicles.
Japan’s Nidec-Shimpo is planning on building gears for robots in the Subic Technology Park.
On the other hand, China’s moves in the South China Sea, including the use of robots and AI in the contested waters, could also affect regional security and economic relations.
President Rodrigo Duterte has pursued stronger ties with China and
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Russia, including in defense. While the Philippines has been a crucial part of U.S. strategy in the Pacific for a century, could Beijing and Moscow pull Manila further into their fold by offering cutting-edge technology, such as exoskeletons, unmanned aerial vehicles (UAVs), or autonomous military vehicles?
Private investments help Philippine roboticsManufacturing in the Philippines also stands to benefit from increasing automation.
When Ayala, the largest and oldest conglomerate in the Philippines, announced that would merge its car divisions into a new company called AC Industrial Technology Holdings, its CEO made two interesting comments.
First, Jaime Augusto Zobel de Ayala said that one of AC’s goals was to manufacture “a PC on four wheels.” Second, he said that Ayala was working with global partners to establish a $100 million venture to make the Philippines a regional hub for “next-generation cars,” including self-driving cars.
Universal Robots has partnered with Elixir Industrial Equipment and Asia Integrated Machine to sell its collaborative robots or cobots. Denmark-based Universal Robots stated that its robots are designed to support, not replace, workers.
Automation poses risks to the PhilippinesHowever, as the Philippines and other Southeast Asian countries look to catch up in robotics, the biggest challenge to increasing employment could be automation.
The International Labor Organization (ILO) has projected that 56% of all “salaried workers” in Cambodia, Indonesia, the Philippines, Thailand, and Vietnam could lose their jobs to automation in the coming decades.
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Automation could affect call-center jobs.
In textiles, customer service, and manufacturing, robots and AI could enable more developed countries to reshore manufacturing, causing once-outsourced jobs to disappear.
In the Philippines, one of the best paying industries was call-center work, for which many people would pause studying for a degree. While only 1.2 million people, or 3% of the Philippine workforce, have such of jobs (1.2 million people), some fear that they are being replaced by AI.
There is a lot of debate over the actual effects of automation on where production happens and what jobs might be created or lost.
One U.S. study projects that the number of high-skilled outsourcing jobs will double by 2022. The question is, can the Philippines educate its workforce to take advantage of this boom, or will robotics simply eat into the Philippine job market unrestricted?
If Manila’s Ambisyon 2040 strategy isn’t enough, Manila could take a tough stance against robotics. President Duterte, who has been praised by U.S. President Donald Trump, has been known to take extreme positions in what he says is the national interest. Could robot taxation, as proposed in Australia, or bans on certain technologies, such as self-driving cars in India, be possibilities?
Multinationals like GE, IBM, and Infosys should weigh their risks and develop a “GeoRobotics” strategy before automating operations in the Philippines.
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Columbo, Sri Lanka.
The Philippines a ‘hidden gem’ for roboticsNestled north of Indonesia and east of Vietnam, the Philippines remains one of the most untapped robotics markets. The country is working to change perceptions of it as a quiet backwater and reinvent itself as a “new Asian tiger,” with robotics as an important element.
With a young population, a growing economy, and a front-row seat for outsourcing and robotics expertise, the Philippines is open for business.
SRI LANKA HAS A LOT OF POTENTIAL FOR SOUTH ASIAN ROBOTICSWhile the robotics industry in Sri Lanka is in its infancy, robotics is clearly establishing a role in education and healthcare.By Abishur Prakash
Robotics spending in Asia will accelerate to a compound annual growth rate of 31.4% between 2017 and 2021, reaching $133 billion and representing more than 60% of the global robotics market, said Jin Bing Zhang, research director for worldwide robotics and Asia/Pacific manufacturing insights at IDC.
While most western analysts look to countries like China and India for their
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investments and advancements in robotics, other countries also have the potential to become robotics powerhouses. One of those countries is Sri Lanka, which has reportedly lagged behind other nations.
International influencesAs in the Philippines, Universal Robots has sold its collaborative robots in Sri Lanka. The Sri Lankan Chamber of Commerce and Ministry has been warning that sectors such as agriculture and construction are suffering from lack of labor. The cobots are expected to help alleviate labor shortages.
Sri Lankan officials have said that cobots can improve productivity, create jobs, and even increase the number of women in the workforce — a benefit that no other government has highlighted in the deployment of robots.
In October, Norway’s Element Logics and Tiqri said they would build a packaging facility that uses robots to process fish. The technology is also used in warehouses for sporting goods, fruits, and vegetables.
Universities operate ‘under the radar’Much of Sri Lanka’s robotics work has taken place “under the radar” — especially since there seems yet to be a government strategy for guiding the nation’s robotics industry. Since 2012, however, an annual robotics competition has been taking place.
The Sri Lankan Robotics Competition (SLRC) is organized by the Department of Electronic and Telecommunication Engineering (ENTC) at the University of Moratuwa. The competition has inspired different robotics ideas.
For example, in 2012, one team made it to the finals for having developed a robot that can navigate environments laden with obstacles. The robot could also identify suitable areas to launch a smaller robot from within itself.
The University of Moratuwa is also helping the Sri Lankan government deploy robotics. The country’s Ministry of Science, Technology and Research has integrated robotic traffic light systems that monitor highways.
More recently, the university developed the Scalable Autonomous Agronomical Smartbot, or SAASbot, for maintaining home gardens, from planting seeds to harvesting.
Sri Lankan robots in healthcareRobotics has also made an entrance in the healthcare sector of Sri Lanka. In 2014, the National Hospital of Sri Lanka planned to use robots for keyhole
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Surgical robots have been adopted worldwide for minimally invasive surgery.
surgeries, like prostate operations.The following year, doctors at Sri Jayewardenepura General Hospital (SJEH)
used a robot to help with a keyhole surgery for the kidney.
Sri Lankan scientists have used an unmanned robot to stitch together the bowels of a pig. According to news reports, the robot matched the stitching of trained doctors.
However, cost could slow adoption of surgical and other healthcare robotics in Sri Lanka. The National Hospital of Sri Lanka expected to spend between 200 million to 230 million rupees on one surgery robot, which is the equivalent of between $2.9 million and $3.4 million U.S.
Training and educationIn addition to finding skilled workers, part of the challenge for robotics developers is educating consumers and businesses about the potential benefits of robotics. Sri Lanka has hosted several automation and information technology (IT) conferences in the past few years.
Sri Lanka is also attracting robotics talent. A 24-year old Nigerian developed an AI-powered robot for his final year project at a college in Sri Lanka. The robot, which uses an algorithm the millennial developed himself, enables the robot to arrange a Rubik’s Cube in minutes.
At the same time, local robotics talent in Sri Lanka is going abroad. Rapyuta
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Robotics aims to create a cloud system that enables connected robots to share experiences. Once the cloud system is developed, startup’s founders plan to enter the robotics market through security and infrastructure drones.
Who will trail blaze the Sri Lankan frontier?China has been in discussions with Sri Lanka for a $1.4 billion “Port City” in Colombo. In 2017, China offered Sri Lanka a staggering $24 billion to partake in its “One Belt, One Road” initiative, which has sparked controversy about its benefits and costs.
Should this port city be built, will Chinese robots help with logistics, security, operations, loading, and more? Or, as Sri Lanka looks for collaborative robots, will Chinese firms step in to supply the demand?
The main opposition to the port deal has come from India. New Delhi could offer its automation expertise to help Sri Lanka (and extend its own geopolitical sphere of influence).
At the same time, Sri Lanka’s poverty and relative lack of regulations have made it attractive to foreign companies. One example is Google’s Project Loon, which was experimenting with using hot air balloons to provide Internet service to remote areas.
Unfortunately, Project Loon ran into problems with spectrum allocation, but Sri Lanka is still a good place to test AI services.
Fast or slow growth?Sri Lankan robotics is ready for a real push by a local or foreign entity. Unless a robotics company opens up an innovation lab there or Sri Lanka signs a memorandum of understanding (MoU) with another country to develop robotics, the industry could grow slowly.
Geographically, Sri Lanka is located at a prime location in the Indian Ocean, which is becoming a hotbed of geopolitical activity. As China and India compete over influence in the region, both of Asia’s biggest military powers are turning to Sri Lanka.
Robotics in Sri Lanka could take a number of directions, following the different examples of its neighbors: “frugal” robotics like in India, AI and software, or automation specializing in a certain market, such as logistics or healthcare. This unpredictability makes the robotics field in Sri Lanka exciting.
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Vietnam’s Ho Chi Minh City has prospered, despite other economic slowdowns.
VIETNAM’S INDUSTRIES WELL-SUITED FOR AUTOMATIONOpportunities abound for automation solutions in this Southeast Asian country, and a little government planning and support could go a long way.By Abishur Prakash
Vietnam has a population of more than 97 million, an average age of 30.7 years, a targeted economic growth rate of 7% and a middle class doubling in size between 2016 and 2020, according to the CIA World Factbook, Vietnam is surging forward.
But this surge isn’t without growing pains. Though Vietnam skipped the slowdown of Asian economies in 2016, reaching more than 6.2% growth, it will undoubtedly face disruptions associated with automation.
For Vietnam, the main industries with a high robotics potential include food processing, garments, shoes, mining, and mobile phones.
A survey by Vietnam’s Chamber of Commerce and Industry explored how automation would affect the country’s apparel industry. One executive said a factory reduced its employment from 13,000 to just 8,000. Another said a single cutting machine could automate the jobs of 12 to 15 people.
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A Verisk Maplecroft report claimed that 86% of garment workers in Vietnam could lose their jobs because of automation in the next 10 to20 years. Before the Vietnam Hanoi Textile & Garment Industry Expo (HanoiTex) in September, an economist noted that Industry 4.0 will require businesses to invest in both technology and staff.
There are currently no official plans to address the need for retraining.
Low-wage labor won’t slow pace of automationOne advantage Vietnam has over other countries is that the average monthly wage for a worker remains relatively low ($132) compared with China ($505). But as China and other industrial powers increasingly turn to robotics, what place will be left for Vietnam?
Unlike China’s centralized policy, Vietnam is more pluralistic, so creating a plan for avoiding income inequality while promoting automation is a big challenge.
Without a sound plan, Vietnam and its neighbors may face civil unrest if massive unemployment occurs as a result of shifting methods and locations of global production. However, the existing pool of talent could be harnessed to help Vietnam’s robotics industry.
Vietnam’s robotics industry is both domestic and internationalSome countries, such as the U.S., are importing robots from Japan or Germany. In addition to international partnerships, Vietnam is developing its own innovations, from a robot crosswalk guide and customer-service chatbots to unmanned aerial vehicles from the Vietnam Academy of Science and Technology.
Businesses in the Ho Chi Minh City Park have been working with international partners to develop robotics and AI. They include South Korean and Japanese companies such as Mitsubishi Electric.
SoftBank’s NAO is used to teach English, and the Vietnam-Japan Training and Technology Transfer Center opened last summer. In return, Vietnam’s FPT is growing its Japanese operations.
Swiss-Swedish conglomerate and global robotics leader ABB recently opened a Robotics and Technical Service Center at Viglacera Vocational College to help manufacturers in northern Vietnam.
Vietnam is also reportedly in talks to buy military drones from Israel Aerospace Industries.
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Ho Chi Minh City could be a leading smart city, providing opportunities for robotics suppliers.
This all points to a “push and pull” trend, whereby Vietnam is pushing its own innovations in Asia while also using robots from countries like Japan and Denmark. For now, having both streams opens up Vietnam to new applications and markets and equips it with the tools and expertise needed to grow its robotics sector.
Vietnam builds robots for smart citiesHo Chi Minh City has developed a smart city roadmap with short-term and long-term objectives. It is working on a common database, increasing citizen participation in the economy and government, and smart services.
These services would include healthcare, transportation, and emergency response. For instance, the city planned to invest 8 trillion Vietnamese dong ($360 million U.S.) on firefighting equipment, including robots. By 2025, all 24 districts in the city could be equipped with the robots.
Ho Chi Minh City isn’t alone in becoming a smart city. Binh Duong invited people to a summit to discuss ideas around self-driving cars and using advanced software to help ambulances know which hospitals have beds available.
Like other cities around the world, these Vietnamese cities could soon use drones for public safety, AI to derive insights around utility use and other public behavior, or self-driving cars for transportation.
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Vietnamese agriculture gets robotic helpWhile farming may be slower to adopt automation than automotive or textile manufacturing, it presents another opportunity for Vietnam. Drones with advanced cameras and sensors are used in precision agriculture.
A locally developed AI system called “Sero.ai” is helping farmers identify “crop abnormalities” through an imaging platform. The system can identify pests through smartphone pictures and tell whether a leaf on a plant is deficient in nutrients based on the color.
Policy challenges for robotics in VietnamVietnam has two challenges in developing its robotics industry and becoming a bigger user of automation. The first is that the government has no plan to deal with the risks of job displacement.
Could Vietnam subsidize local factories that are seeing costs rise in order to avoid laying off workers and buying robots? Could Vietnam introduce automation quotas requiring, for example, that 75% of all jobs must go to humans, not robots?
The second challenge is that there is relatively little investment in robotics. In 2013, Vietnam announced a plan to establish a “Vietnam Silicon Valley.” However, most locally developed robots come from academia or Vietnam’s private sector.
Government grants or loans could help robotics startups and grow the entire sector. Such funding would also balance foreign support and involvement in Vietnamese companies in the fields of robotics, AI, 3D printing and more. This could become a national security issue for the country, especially if these are countries from which Vietnam wants distance itself.
The future of robotics belongs to AsiaWho will be Asia’s dominant robotics power? A few years ago, everyone would expect the trophy to be given to China, Japan, or South Korea. But now, with robotics taking off everywhere, from Singapore and Thailand to Australia, who will dominate the industry next is anybody’s guess.
Vietnam’s booming population and economy, plus its local development scene, are creating a robotics ecosystem with the right ingredients to succeed. The question is whether its government can increase support for domestic innovation while also addressing fears of job losses and international competition.
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The U.S., Japan, and Europe have led the way in industrial automation for the past several decades. In the next 10 years, Asian robotics and AI will transform in ways many of us can’t imagine.
In addition to technical advances, geopolitical concerns, and macroeconomic cycles, both developers and users of robotics should watch emerging leaders in robotics, such as the nations of Southeast Asia.
