Vietnam’s Manufacturing Digital Shift Goes Deeper — Humans Remain at the Center

Vietnam’s manufacturing sector is entering a more mature phase of digital transformation. Technology is no longer confined to pilot projects or isolated functions. Instead, it is increasingly embedded in day-to-day factory operations and supply-chain coordination.

This shift is unfolding as global supply chains are being reconfigured. International manufacturers are no longer selecting production locations based on cost alone. Operational reliability, digital readiness, system coordination, and long-term resilience are becoming decisive factors.

From the factory floor, CEL’s survey of manufacturing companies operating in Vietnam in Q4 2025 shows that adaptation is happening quietly — not through headline-grabbing technology rollouts, but through incremental, continuous adjustments in how operations are run.

“For us, digital transformation is not a one-off project. It’s about making small operational improvements every day — from production planning to inventory and supply-flow tracking,” shared a factory manager who participated in the survey.

Technology Enables Operations — People Still Decide

According to the survey, 64% of companies have implemented some form of automation, and 57% are using AI or predictive analytics tools. However, the most widely deployed technologies are not robots or advanced machinery.

Instead, companies are prioritizing software and data systems:

• 79% use ERP, MES, or enterprise management platforms

• 64% apply technology to production scheduling

• 64% use digital tools for supply-chain planning and coordination

These figures suggest that technology is primarily being used to connect information and support decision-making, rather than to fully hand over operations to machines. Humans remain responsible for interpreting data, assessing trade-offs, and making decisions at critical points.

“Systems can flag issues and suggest options, but final decisions still rest with people. Machines help us see faster — choosing the direction is still the operator’s responsibility,” said a manufacturing representative.

This observation aligns with recent World Economic Forum analyses, which emphasize that in manufacturing, technology tends to augment human capability and shift repetitive tasks to systems, rather than replace core operational roles.

Digital Transformation Is Uneven

The composition of survey respondents reflects the structural diversity of Vietnam’s manufacturing base:

• 57% multinational subsidiaries

• 25% foreign-invested or joint-venture firms

• 18% domestic companies, mainly SMEs

Export-linked factories, particularly those embedded in global supply chains, tend to lead in technology adoption. Requirements related to traceability, quality assurance, compliance, and ESG standards are pushing these firms to invest earlier and more systematically.

In contrast, many domestically oriented manufacturers remain at an earlier stage. Around 25% of surveyed companies report no automation in production, highlighting that digital transformation is shaped not only by company size, but by depth of integration into global value chains.

Three Persistent Constraints

When asked about barriers to implementation, companies consistently point to three issues:

1. Capital investment constraints

2. Legacy or fragmented data systems

3. Gaps in relevant digital skills

Notably, the skills challenge is not about a shortage of advanced technologists. Instead, it lies in practical system use. Operators often struggle to read and interpret digital outputs, while managers lack confidence when making decisions across multiple interconnected systems. As a result, technology investments do not always translate into expected returns.

Factory Operations Still Revolve Around People

Even as digital tools penetrate deeper into operations, humans remain central. Survey results show:

• 71% rely on people to input and monitor system data

• 50% depend on human intervention to resolve issues flagged by alerts

• 46% report joint human-system decision-making

• Only 11% say systems can run most operations autonomously

In Vietnamese factories today, machines accelerate processes and standardize workflows, but accountability and judgment remain human responsibilities.

Jobs Are Changing from Within

More than half of surveyed companies report the emergence of new roles or significant changes to existing ones. These roles are rarely labeled “AI engineers.” Instead, they focus on:

• Data and system management

• Operational system support

• Exception handling

• Cross-functional coordination via digital platforms

“We’re not hiring AI engineers. What we need are people who understand the process, can read data, and coordinate across departments when issues arise,” shared one participating firm.

This mirrors global manufacturing trends, where digitalization is creating higher-productivity operational roles that require system understanding and coordination skills rather than purely technical specialization.

Training Happens on the Job

Most companies are building capabilities internally. Training is primarily conducted in-house or through on-the-job learning, rather than through external certification programs. Skills development is occurring alongside technology deployment, not as a separate initiative.

Looking Ahead

Over the next few years, companies expect automation and AI to continue improving productivity and operational efficiency. The dominant concern is not workforce reduction, but human readiness — the ability to work confidently with digital systems and data.

CEL’s survey suggests that as global supply chains move beyond cost-driven decisions, Vietnam’s competitive advantage will depend less on how advanced its technology is, and more on how effectively people use that technology in factories and supply chains.

Machines can raise productivity.People ultimately create value.

CEL

Demand Supply Alignment

www.cel-consulting.com