Binh Phuoc Gears Up for Innovation and Startup Growth in the 4.0 Era

On the afternoon of December 28, 2017, the Binh Phuoc Provincial People's Committee organized a Provincial Scientific Workshop at the Provincial People's Committee Hall. The event's theme was "Binh Phuoc - Foundations for Startups and Innovation in the Industrial Revolution 4.0 Era."

The workshop saw the participation of notable figures, including Mr. Pham Xuan Da, Director of the Southern Affairs Department, Ministry of Science and Technology; Ms. Huynh Thi Hang, Vice Chairwoman of the Binh Phuoc Provincial People's Committee; Mr. Tran Van Van, Deputy Director of the Binh Phuoc Department of Science and Technology; and scientific speakers specializing in Industry 4.0 from Hanoi, Ho Chi Minh City, and Binh Phuoc. More than 300 youth union members and young people from Binh Phuoc province also attended.

Mr. Vu Manh Hung, Vice Chairman of the DAA High-Tech Agriculture Club and Chairman & CEO of Hung Nhon Group, was among the attendees. He delivered a presentation sharing his successful experience in solving the Industry 4.0 puzzle at Hung Nhon Group.

What is Industry 4.0?

Industry 4.0, or Technology 4.0, is essentially a term describing the fourth industrial revolution. While the first industrial revolution brought the steam engine, the second electricity, and the third electronics, the fourth is known as the digital revolution. This means that through technologies like the Internet, artificial intelligence (AI), and cloud computing, humanity will transform the entire physical world into a digital one.

Foundations for Successful Industry 4.0 Implementation

The foundation for successfully applying Industry 4.0 stems from the 3.0 technological revolution, which involves entirely closed-loop and automated production lines. Hung Nhon is currently implementing these, having fully imported and adopted the most modern technology from Germany's Big Dutchman Group. All our farm systems adhere to the strict standards of GlobalG.A.P. and ISO 9001:2008.

Unlike high-tech, which focuses on shifting production methods from traditional to modern, Industry 4.0 primarily transforms management methods. This paves the way for precise and stringent production activities that don't require direct human presence. It will be a closed-loop process driven by technology, ensuring high-quality breeding stock, and automatically controlled feed and water with high precision, which reduces breeding losses and greenhouse gas emissions. It also includes automation from harvesting, preservation, transportation, and processing, along with the application of cloud computing for traceability.

Based on this foundation, we are actively researching and applying Industry 4.0 livestock techniques for the future.

Challenges Encountered in Project Implementation

When undertaking such a project, we face several challenges:

• Technical Procedures: To successfully implement Industry 4.0, we need systematic and strictly followed technical procedures. As I mentioned, it must be built on a high-tech foundation.
• Capital: Due to the large capital required, Hung Nhon Group has divided the project into phases. For instance, in early March 2008, we inaugurated six broiler farms. By December 2009, we completed phase two, expanding the farm scale threefold to 18 farms. In July 2017, we brought two more farms into operation. Currently, we operate a total of 20 broiler farms, 8 laying hen farms, and 8 clean pig farms, totaling nearly 40 farms of various types.
• Labor Skills: Hung Nhon Group collaborates with foreign high-tech experts from Big Dutchman Group to regularly organize training sessions, enhancing the professional skills of our operational management teams.

The biggest challenge, however, is finding a stable market for our products.

We cannot unilaterally find breeding stock, source appropriate feed, raise the animals, and then independently search for a market for the products. I'd like to share a story with you: More than 10 years ago, I also dreamed of large-scale chicken production. I independently researched breeding stock, bought feed, and when my flock grew to over a thousand birds, I went out to find buyers for my batches of chickens. Finding market access was difficult enough, but during periods of adverse weather or disease outbreaks that caused mass chicken deaths, it brought me to my knees.

At that time, the biggest question in my mind was: How can I find good breeding stock to withstand disease, find a source of compliant feed, and secure stable market access?

Those seemingly unanswerable questions now have solutions. I decided to participate in a linked export model for high-tech livestock products. This chain includes Bel Ga Company (supplying breeding stock), De Heus Group (supplying animal feed), Hung Nhon Group (organizing standardized livestock production), and San Ha Company and Koyu & Unitek Company (processing and slaughtering) to deliver products directly to consumers.

The initial, crucial success was the export of the first batch of commercial chicken meat to the demanding Japanese market on September 9, 2017. We are confident that in the near future, we will also export pork, chicken eggs, and other poultry products.

Effectiveness of Applying Industry 4.0

First, the fully automated production system, combined with cloud computing technology, allows operators to control operations remotely without needing to be physically present. This enables simultaneous control of all farms, which helps reduce labor, decrease production costs, minimize risks, increase productivity, and lower prices.

Second, this model can be replicated and applied to farmers raising chickens, pigs, cattle, etc., on a concentrated scale. This will be a crucial prerequisite for implementing a high-tech livestock export value chain and Industry 4.0 model in Binh Phuoc specifically, and in Vietnam generally.

Ban Truyền Thông.