Smart factory transformation: the race for digital mindset and value-chain integration.

Smart factory transformation is not only a race to purchase technology, but more importantly a revolution in management thinking, workforce quality, and the ability to connect the value chain.

Building smart factories is the destination of modern manufacturing. Facing fierce global competition and increasingly stringent requirements for cost optimization and net-zero emissions, Vietnamese manufacturers cannot continue to rely on traditional labor-intensive models.

However, the journey from an ordinary factory to a smart factory with a complete ecosystem is not easy.

Starting from the “real pains”

One common mistake made by manufacturing businesses during digital transformation is to assume that simply spending on expensive software will automatically make the factory “smart.” In practice, rushing to apply technology without a clear direction can waste resources and disrupt existing production lines.

At a roundtable on directions for the smart factory held in the afternoon of 9/4, Mr Cao Van Lanh, Deputy Director of Vietbay Technology Co., Ltd., described this as a “blind spot” for many enterprises. He said that technology for digitalization—no matter how advanced—becomes meaningless if it does not solve the factory’s core problems.

“In the process of consulting and implementing for customers, we find that the problem is not which technology to apply, but identifying the right ‘pain’ and the real needs of the business,” Mr Lanh emphasized.

He noted that many units rush to buy software and systems but do not synchronize them, leading to waste and operational disruption. Instead of investing broadly from the start, enterprises should choose the stage that needs digitization first, implement in parts, and run while evaluating to avoid disrupting current production.

People and data-driven execution as the first investment

From the perspective of a company that has expanded its large-scale automated factory system in Bac Ninh, Mr Nguyen Hong Phong, General Director of Anmi Tools, said capital investment in machinery is not the first necessary investment.

“Before considering capital or machinery, the first and most important investment for us is people,” Phong shared. He said Anmi Tools spent about 6 months at the Bac Ninh factory to consolidate its core team and processes, adding that every step must be data-driven with clear efficiency calculations.

Preparing human resources, he said, is not only about mindset but must be systematized into execution capability. Anmi Tools overhauled its internal training program: beyond guiding machine operation, it built a standardized curriculum by outcomes. Traditional machining engineers were trained to understand programming languages and to communicate with overall management software.

On the supply side, Vietbay supports factories with a three-stage knowledge-transfer roadmap: general system overview training, in-depth training by role, and hands-on practice to ensure the technology truly permeates and becomes a core competitive capability for locally based engineers.

Must connect with the global supply chain

Beyond internal mindset, smart factory transformation cannot be completed if each enterprise operates in isolation. To increase value-added, deeper participation in the global supply chain—from Tier 4, Tier 3 to Tier 1 or OEM—requires a transparent data ecosystem and a tightly connected community.

Mr Le Ky Nam, Vice Chairman of the Vietnam Association of Mechanical Enterprises (VAMI), pointed to a key barrier: management habits and reluctance to share information.

“The biggest barrier is the habit of data management. Digital transformation is essentially using data flows to support decision making. Therefore, before talking about AI or IoT, the mechanical engineering sector needs to change the most basic foundation: manage the product lifecycle and technical data. From design, fabrication, to maintenance, all must use a common data flow. If drawings and processes are still managed using scattered paper, then a smart factory cannot be built.”

Once data is digitized, the next challenge is getting enterprises to open up and connect capabilities to meet large orders that a single factory cannot handle. Reluctance to disclose trade secrets or actual production capacity can cause linkages to break.

Trust, security standards, and verifiable benefits

To address this, Mrs Tran Thi Huyen Thuong, Vice Chair of LITA Network, said the biggest barrier among factories is a lack of verifiable trust. Through direct assessment processes (Factory to Factory), she said the barrier to sharing information gradually dissolves.

“I am willing to share if there are clear security standards, information sharing at levels, and most importantly if the economic benefits are evident. When transparency helps a factory win large orders from the global supply chain, then controlled data sharing becomes a profitable asset rather than a risk,” she emphasized.

Keywords referenced in the article include: AI, chuỗi cung ứng toàn cầu (global supply chain), chuyển đổi số (digital transformation), IoT, nhà máy thông minh (smart factory), and số hóa dữ liệu (digitization of data).