Businesses Prioritize Building Smart Factory to Enhance Productivity and Sustainable Growth 2026

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As digital transformation and green transition accelerate worldwide, smart factory models are becoming a strategic priority for manufacturing enterprises in Vietnam. In Dong Nai – one of the country’s largest industrial hubs – many companies are investing in AI, IoT, ERP systems, and automation technologies to optimize operations, reduce costs, and improve long-term competitiveness.smart-factory.webp

MỤC LỤC

Smart Factories Become an Inevitable Trend

The rapid advancement of:

  • Artificial Intelligence (AI)
  • Internet of Things (IoT)
  • Big Data
  • Robotics
  • Smart management software

is transforming the global manufacturing industry.

Today, smart factories are no longer exclusive to multinational corporations. They are becoming essential for businesses seeking to:

  • improve competitiveness
  • reduce operational costs
  • optimize supply chains
  • enhance product quality
  • adapt to green transformation trends

Vietnamese Enterprises Accelerate Manufacturing Digitalization

In Dong Nai, many enterprises are actively investing in:

Production Automation

Reducing dependence on manual labor.


Real-Time Data Digitization

Connecting factory systems through real-time information.


Smart Management Systems

Deploying ERP, MES, QR Code, and AI technologies.


Warehouse and Supply Chain Optimization

Improving inventory control and material management.

This marks a major shift from traditional manufacturing toward modern intelligent production.


Limitations of Traditional Manufacturing Models

Many enterprises still rely heavily on:

  • Excel spreadsheets
  • manual operations
  • fragmented management systems

This often leads to:

Information Gaps

Between office operations and factory floors.


Difficulties in Monitoring Progress

Due to lack of real-time data updates.


Material Waste

Caused by weak forecasting and inefficient control.


Delivery Delays

Affecting customer trust and competitiveness.

In an increasingly competitive market, these issues are becoming major operational bottlenecks.


AI and Real-Time Data Improve Operational Control

According to digital transformation experts, smart factories help businesses transition from:

  • experience-based management
  • intuition-driven decision-making

to:

  • data-driven management
  • real-time operational analysis
  • predictive production planning

As a result, companies can:

Monitor the Entire Supply Chain

From raw materials to final delivery.


Optimize Machine Capacity

Reducing downtime and improving efficiency.


Lower Operating Costs

Minimizing material losses and inefficiencies.


Adjust Production Flexibly

Based on changing market demands.


ILO Supports Digital and Green Transformation in Vietnam

The International Labour Organization (ILO) is currently implementing:

The Productivity Ecosystem for Sustainable Employment Program

across several industrial provinces, including Dong Nai.

The program focuses on:

  • process optimization
  • productivity improvement
  • technology adoption
  • digital transformation
  • green transition support

According to the ILO:

digital transformation and green transformation will be the two key factors determining future business competitiveness.


Dong Nai Enterprises Actively Transform Operations

VinaStar Digitizes Warehouse Management

VinaStar Technical Plastics Manufacturing and Trading Co., Ltd. has joined:

  • the Productivity and Quality Improvement Project

implemented by the Vietnam Productivity Institute.

Since 2023, the company has:

  • developed a warehouse digitalization roadmap
  • integrated ERP data systems
  • modernized inventory management

The goal is to:

  • improve accuracy
  • reduce errors
  • enhance operational synchronization

Tavico Develops Smart Furniture Manufacturing

Tan Vinh Cuu Joint Stock Company (Tavico) is also accelerating:

digital transformation in furniture production

According to the company, building a smart factory is not only about technology investment but also about:

  • changing operational thinking
  • improving coordination between people and data

After gradual implementation, Tavico has:

  • improved order management
  • optimized inventory control
  • enhanced production efficiency
  • reduced material waste

The company is also developing:

standardized wood material production models

to support export-oriented wood processing supply chains.


Thuan Loi Rubber Enhances Efficiency Through Digitalization

Thuan Loi Rubber Co., Ltd. is currently implementing:

  • internal management software
  • digital warehouse systems
  • synchronized material data management

Digital transformation helps the company:

Update Inventory in Real Time

Providing faster and more accurate warehouse information.


Reduce Manual Processing

Saving operational time.


Minimize Errors

Increasing transparency in management.


Build a Modern Working Environment

Aligned with digital enterprise trends.

According to the company, digital transformation not only improves productivity but also creates a more professional management foundation.


Key Technologies Businesses Are Prioritizing

Experts believe the following solutions are most suitable for manufacturers today:

ERP

Enterprise-wide resource planning systems.


MES

Real-time production execution management.


IoT

Connecting equipment and factory data.


AI

Data analysis and operational optimization.


QR Codes

Product traceability and warehouse management.


Robotics and Automation

Reducing dependence on manual labor.

These technologies help enterprises move closer to fully intelligent manufacturing systems.


Smart Factories Strengthen Competitiveness

As businesses face:

  • rising labor costs
  • stricter ESG standards
  • tighter global supply chain requirements
  • increasing market volatility

they must focus on:

flexible manufacturing

cost optimization

energy efficiency

emission reduction

productivity improvement

Smart factories provide solutions to all of these challenges simultaneously.


Digital Transformation Becomes a New Competitive Advantage

Today, businesses no longer compete only through:

  • product pricing
  • production scale

but increasingly through:

  • data processing speed
  • automation capabilities
  • operational transparency
  • digital management capacity

As a result, digital transformation is becoming essential for survival and growth.


Dong Nai Aims to Become a Smart Industrial Hub

As one of southern Vietnam’s leading industrial centers, Dong Nai has strong potential to develop:

smart factories

green industrial parks

high-tech manufacturing

modern logistics

digital industry ecosystems

Especially with the growth of:

  • Long Thanh International Airport
  • modern transportation infrastructure
  • high-tech FDI inflows

businesses are gaining stronger motivation to accelerate transformation.


Smart Factories Are the Foundation for Sustainable Development

Technology investment is not only about increasing productivity.

More importantly, it helps enterprises:

  • save resources
  • reduce emissions
  • improve labor quality
  • adapt to market changes
  • achieve sustainable long-term growth

This is also becoming a key requirement from multinational corporations within global supply chains.


Conclusion

In the era of Industry 4.0, building smart factories is no longer optional but an inevitable direction for manufacturing enterprises.

The application of:

  • AI
  • IoT
  • ERP systems
  • automation
  • real-time data management

is helping Vietnamese companies gradually:

  • improve productivity
  • optimize operations
  • reduce costs
  • enhance competitiveness
  • achieve sustainable development

With strong industrial advantages, expanding infrastructure, and growing high-tech FDI, Dong Nai is well positioned to become one of Vietnam’s leading smart manufacturing and modern industrial centers.

References:

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