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Trang 1 FOREIGN TRADE UNIVERSITY FACULTY OF BANKING AND FINANCE ---o0o--- ASSIGNMENT REPORT TOPIC: THE 4TH INDUSTRIAL REVOLUTION AND ITS IMPACT ON FINANCIAL MARKETS IN VIETNAM Course nam
FOREIGN TRADE UNIVERSITY FACULTY OF BANKING AND FINANCE o0o ASSIGNMENT REPORT TOPIC: THE 4TH INDUSTRIAL REVOLUTION AND ITS IMPACT ON FINANCIAL MARKETS IN VIETNAM Course name: Money and Banking Course code: TCHE303(GD2-HK1-2223).2 Group number: 08 Instructor: PhD Nguyen Thu Thuy MSc Hoang Huy Khoi Hanoi, December 2022 GROUP ASSESSMENT Class: TCHE303(GD2-HK1-2223).2 - Group: 08 th Topic: The Industrial Revolution and its impact on financial markets in Vietnam Assessing the contribution to the presentation of each member in Poor Fair Average Good Excellent your group Phạm Thị Kim Anh Lê Vương Đức Hiếu Bùi Thị Mai Hương Đào Xuân Minh Quân Nguyễn An Việt Page | TABLE OF CONTENTS INTRODUCTION Theoretical basis 1.1 Industrial Revolution 4.0 1.1.1 Definition 1.1.2 Roles 1.2 Financial markets 1.2.1 Definition 1.2.2 Roles Situation in Vietnam 2.1 Industrial Revolution 4.0 and its impact on Vietnam's economy 2.1.1 Positive influences 2.1.2 Difficulties and challenges of Industrial Revolution 4.0 2.2 Vietnam’s Financial Market Vietnam's financial market in the context of Industrial Revolution 4.0 10 3.1 Chances 10 3.2 Challenges 12 Suggestions for Vietnamese Government and Businesses 13 4.1 For Vietnamese Government 13 4.2 For Vietnamese Businesses 14 CONCLUSION 17 REFERENCES 18 Page | INTRODUCTION In the present industrialization and modernization age, science and technology are playing a particularly important role As our country moved to socialism from a popular economy of small production, manual labor was common and what we lack is industrial modernity Therefore, we must step into the industrialization and modernization age In this day and age, industrialization must go hand in hand with modernization Industrialization and modernization in our country aim to build a material and technical basis for socialism That is the central task during the transition to socialism in our country Currently, the world is starting to enter the fourth industrial revolution, a new manufacturing revolution associated with unprecedented breakthroughs in technology, related to Internet connectivity, cloud computing, 3D printing, sensor technology, and virtual reality, This new manufacturing revolution is expected to have a strong impact on every country, every government, every business and every person around the globe, and fundamentally change the way we live, work, and produce The essence of the fourth industrial revolution is based on digital technology and integrates all smart technologies to optimize production processes and methods The new era of increased investment, productivity and living standards is all driven by human creativity and will have a profound impact on the world's political, social and economic systems This is both a challenge and a great opportunity for our country to shorten the process of industrialization and modernization The cause of building socialism in our country can only be successful as long as we can implement the cause of industrialization and modernization of the country, science and technology to improve labor productivity, and product innovation Improving the competitiveness of goods in the market, and building national capacity, is the foundation for the industrial revolution 4.0 The industrial revolution 4.0 affects all fields such as the economy, tourism, and culture Therefore, it is extremely necessary to explore and research the 4.0 revolution and its influence Within the framework of one subject, the essay focuses on researching concepts related to the industrial revolution 4.0, its influence on the financial market in positive and negative aspects, and the opportunities and challenges of Vietnam's financial market in the fourth industrial revolution Page | Theoretical basis 1.1 Industrial Revolution 4.0 1.1.1 Definition “The first industrial revolution used water and steam power to mechanize production The second revolution took place thanks to the application of electricity to mass production The 3rd revolution uses electronics and information technology to automate production Now, the Fourth Industrial Revolution is sprouting from the third, which brings technologies together, blurring the lines between physical, digital and biological.” - Klaus Schwab 1.1.2 Roles a) Combination of virtual and entity systems The ongoing technological revolution is characterized by a fusion, without boundaries between the technological, physical, digital and biological domains This is the trend of combining virtual and entity systems, Internet of Things (IoT) and Internet of Things (IoS) systems This fourth technological revolution is changing the way of production and manufacturing In "smart factories", machines are connected to the Internet and linked together through a system that can visualize the entire production process by itself and make decisions that will gradually replace production lines before Thanks to the connectivity of billions of people around the world through mobile devices and access to large databases, information processing capabilities will be multiplied by technological breakthroughs in areas such as artificial intelligence, robotics, the Internet of Things, self-driving cars, 3-D printing, nanotechnology, biotechnology, materials science, energy storage and quantum computing b) Scale and speed of development – There is no precedent in human history If the previous industrial revolutions took place at an additive (or linear) speed, the growth rate of this fourth industrial revolution is exponential The time since technology and innovation ideas were conceived, realized in laboratories, and large-scale commercialization of new products and processes created in the world The global scope is significantly shortened Technological breakthroughs taking place in many of these areas at a rapid pace and mutually reinforcing interactions are creating a world that is digitized, automated, and increasingly more efficient and intelligent Page | c) Strong and comprehensive impact on the contemporary world The fourth industrial revolution has enormous economic, social and environmental impacts at all levels – globally, regionally and within countries These impacts are very positive in the long term, but also create many correctional challenges in the short to medium term However, this technological revolution is creating challenges related to short - to mediumterm adjustment costs due to the uneven impact on different industries: some sectors will grow strongly and other industries will have to shrink significantly In each industry, including growth industries, the impact is also different between enterprises, with the emergence and rapid growth of many businesses creating new technologies and the shrinking, even the elimination of companies that are out of step with technology That is why the Fourth Industrial Revolution is redrawing the economic map of the world, with the decline of the power of countries based mainly on resource exploitation and the increase in the power of nations relying heavily on technology and innovation 1.2 Financial markets 1.2.1 Definition “Financial markets are forums in which suppliers of funds and demanders of funds can transact business directly.” “A financial market is a market in which financial assets (securities) such as stocks and bonds can be purchased or sold.” 1.2.2 Roles a) Bringing capital from places with excess capital to places with a shortage of capital This is the main economic function of financial markets Through the activities of subjects in the market, financial sources are circulated so that the supply and demand for capital are met The movement of capital in the financial markets increases the process of converting savings into investments Thus, it is the financial market that helps the capital to move from the place of excess capital to the place of lack of capital, making the capital exchange process quick and efficient Thereby taking advantage of sporadic, temporarily idle capital sources to put into production, business, and construction investment to bring benefits to market Page | Document continues below Discover more Tư tưởng Hồ Chí from: Minh TRIE101 Trường Đại học… 622 documents Go to course Vẻ đẹp tâm hồn Bác qua thơ "Chiều… Tư tưởng Hồ Chí… 100% (17) ĐỀ CƯƠNG ƠN TẬP 16 TƯ TƯỞNG HỒ CHÍ… Tư tưởng Hồ Chí… 100% (4) Chapter-318 16 Translation Tư tưởng Hồ Chí… 100% (3) TƯ TƯỞNG HỒ CHÍ MINH - Note Tư tưởng Hồ Chí… 100% (3) Nội dung đề tài Sinh 20 viên học tập làm… Tư tưởng Hồ Chí… 100% (3) participants, and at the same time serve the development needs of customers in the entire Đề cương ôn tập economy b) Fake formation of financial assets 18 cuối kỳ Tư tưởng Hồ Chí… Through the interaction between buyers and sellers, the price of financial assets is determined, 100% (2) or in other words, the required return on a financial asset is determined The factor that drives businesses to call for capital is the level of return that investors require, and it is this feature of financial markets that signals how capital in the economy should be distributed among financial assets That process is called price formation c) Create a liquidity province for financial assets Financial markets provide a mechanism by which investors can sell their financial assets It is through this feature that it is said that financial markets provide liquidity to the economy If there is a lack of liquidity, investors will be forced to hold debt instruments until maturity or hold equity instruments until the bankrupt company has to liquidate assets However, the level of liquidity varies between markets d) Minimize contact and information costs For transactions to take place, buyers and sellers need to find each other; To so, they need to spend money and time on advertising their intentions and finding partners Those are the search costs In addition, there are information costs associated with determining the investment value of a financial instrument, i.e the volume and certainty of the expected cash flows from the investment Thanks to the centralization, large volume and transaction value, and complete and fast information provided, financial markets allow to reduce these costs e) Stabilize and regulate money circulation Besides the above functions, the financial market also has the function of stabilizing and regulating money circulation, ensuring the healthy development of the economy Through the purchase and sale of bonds and government bills by the central bank in the financial market, the government can generate revenue to cover the budget deficit and control inflation Page | Situation in Vietnam 2.1 Industrial Revolution 4.0 and its impact on Vietnam's economy Vietnam's population is about 96 million, GDP ranks 42nd in the world with 362,6 billion USD (2021) The Vietnamese economy is in the process of shifting from a centrally planned economy to a market economy with a socialist orientation Vietnam's economy is one of the most dynamic in the world, with a consistently high annual GDP growth rate (6.19% period 2008-2019) But in 2021 the GDP of VietNam grew only 2.6% compared to last year This rate is three-tenths of one per cent less than the figure of 2.9% published in 2020 Particularly, labor productivity is extremely low, only 6% that of Singapore and lower than Laos Variables that are increasingly lowering the importance of labour and increasing the role of capital and total productivity in Vietnam's economy (including technology) The Fourth Industrial Revolution, the wave of globalization, and increased international integration have had significant positive and negative impacts on the Vietnamese economy 2.1.1 Positive influences Vietnam is one of the developing nations that would benefit greatly from Industrial Revolution 4.0 Modernization and industrialization are key goals as Vietnam makes the transition to socialism Vietnam now has the chance to modernize and accelerate its transition to a modern industrial nation thanks to Industrial Revolution 4.0 If the first industrializing nations, like the UK, took hundreds of years, then Japan would shorten the time to 50 years, and East Asian NICs, like South Korea, would so in less than 30 years, then Industrial Revolution 4.0 offers opportunities for Vietnam and other developing nations to accelerate their industrialization Industrial Revolution 4.0 will bring about a thorough change in everything from market structure to modes of production, consumption, and state administration Vietnam now has the chance to increase labor productivity, boost the competitiveness of its traditional industries, and gain access to the global market via digital and internet platforms, enabling it to grow quickly and sustainably Digital economy, smart manufacturing, and services are and will continue to present opportunities Industrial Revolution 4.0 will also present the potential for other sectors of the economy, including agriculture, finance, banking, logistics, and robots and intelligence Page | Industrial Revolution 4.0 offers significant advantages to the State, firms, and consumers by increasing labor productivity and reducing production and administration expenses When Vietnam has access to information, knowledge, and cutting-edge services, Industrial Revolution 4.0's impact on consumer behaviour can be viewed as highly good This is viewed as an economic opportunity Our nation's economy now has a new capacity system for future development that will be more rapid and long-lasting Although these policies may not directly relate to Industrial Revolution 4.0, Vietnam already has policies in place to create a knowledge economy and high technology Therefore, the State Bank's "Non-cash Payment" projects; the Ministry of Information and Communications "Digitalization"; the Ministry of Science and Technology's "Technological Innovation"; and higher-level directives The Ministry of Science and Technology is also aggressively establishing a playground for business creativity through the "Start-up Innovation" programme The Government approved the Project "Digital Vietnamese Knowledge" in May 2018, and the Ministry of Science and Technology will also carry it out 2.1.2 Difficulties and challenges of Industrial Revolution 4.0 The first issue and challenge is employment; as a result of the fourth industrial revolution, many occupations in the service industry have been replaced by artificial intelligence (AI), the internet of things (IoT), and big data Vietnamese workers are now dealing with the effects of the fourth industrial revolution, which has different labour requirements in terms of skills and level than those of the second and third industrial revolutions, although they have not yet adjusted to the second and third industrial revolutions The World Economic Forum estimates that in the ASEAN region, automation technologies would result in the loss of 7.5 million employment for Vietnamese employees over the next ten years (ASEAN) Vietnam will soon need to adapt its approach to education and training to the Fourth Industrial Revolution The second challenge is using technology to boost labor productivity Vietnam's labor productivity in 2018 was only $11,142 per worker, which was lower than Singapore's, Malaysia's, Thailand's, Indonesia's, and the Philippines's by 55.9 per cent, 44.8 per cent, 44.8 per cent, and 37 per cent, respectively Only Cambodia's labor productivity, which was $6,963, is higher in Southeast Asia than Vietnam's Outdated technology and practices are Page | the main causes of the aforementioned predicament Up to 76% of machinery and technological lines imported from outside belong to the 1960 generation, and 75% of private businesses utilize technology that is two to three generations below the global average 50% of the equipment is refurbished, and it has depreciated The lack of modern technology will prevent Vietnam from catching up to other ASEAN nations in terms of labor productivity; as a result, the country's level of development cannot only be prolonged but also runs the risk of slipping further behind To improve labor productivity and lay a solid foundation for cutting-edge science and technology, Vietnam will need a suitable strategy for science and technology development The Vietnamese government faces issues as a result of Industrial Revolution 4.0 The effects of the fourth industrial revolution changed how public institutions operate and are structured The State's capacity is crucial in determining how to fix the flaws and shortcomings of the market and direct the economy for efficient development Particularly in Vietnam, a socialist-oriented market economy is being pursued, therefore the State's participation is crucial to ensuring that the State economy always plays a leading role and promotes social orientation tenet; Another significant difficulty is getting the government to function effectively in the age of Industrial Revolution 4.0 2.2 Vietnam’s Financial Market There are many different ways to divide a financial market The terms of the financial market which are commonly used by Vietnam at present include capital market, money market, and foreign exchange market Here are some different conjugations Based on the duration of the credit, financial markets are divided into two types of money markets (where the trading of financial instruments with a term of less than year) and capital markets (where transactions of derivative instruments are principal with a term of over year) In developed economies in general, the money market is usually implemented by banks Medium-term and long-term capital needs are mainly taken directly from the stock market In contrast, in Vietnam with its characteristics, most of the short-term, medium-term and long-term capital is provided by commercial banks and other types of markets are very small in scale In other words, in Vietnam, mobilization and distribution Page | Capital additions are mainly done through financial intermediaries, in which commercial banks play a major role Based on the type of credit, Vietnam now has a bill market, a bond market, a stock market; bank loan market As mentioned above, the market for bank loans is mainly Primary market and secondary market: The primary market in Vietnam is where securities are first issued In this market, a securities company will typically ensure that procedures, consulting, and the issuance of securities will be completed There are now 26 different types of stocks available on the secondary market, along with a VF1 certificate, government bonds, and bonds issued by the Bank for Investment and Development of Vietnam Centralized and decentralized markets: In Vietnam, there are very few businesses trading on the centralized market; instead, decentralized market transactions predominate Informal and informal markets: In Vietnam, there are two types of financial markets: the formal market, where banks, financial institutions, securities firms, etc operate; and the informal market including credit cooperatives, and rural microcredit institutions These forms of unofficial credit are crucial to Vietnam's socio-economic progress Vietnam's financial market in the context of Industrial Revolution 4.0 3.1 Chances Industrial Revolution 4.0 is the natural evolution of the third industrial revolution, which completely changed the nature of commerce in the second half of the 20th century with a series of informatics and information technology advances Currently, under the impact of Industrial Revolution 4.0, Vietnam's financial market is in the midst of a huge transformation - unlike any previous period in history With the characteristics of an economy with a labor force at the peak of the "golden population" - when highly qualified human resources in Vietnam can be considered extremely abundant in the labor market They are all dynamic labourers, able to quickly adapt to information technology Industrial Revolution 4.0 is bringing new development opportunities to the Vietnamese financial market, which is considered to have great potential for developing financial products based on information technology Page | 10 This is reflected in the trend of close and frequent cooperation between financial institutions such as banks, securities companies, fund management companies and Fintech technology companies In Vietnam, FinTech is a relatively new field, with about 40 FinTech businesses providing services in the following areas: Providing platforms, payment solutions, crowdfunding, and personal finance The field of providing payment platforms and solutions currently dominates the number of companies, accounting for about 58% of the total number of companies operating in the FinTech sector Total transaction value using digital payment solutions is estimated to increase from USD 7,259 million in 2017 to USD 8,523 million in 2019 The average growth rate of this sector in the period 2019-2023 is estimated at 12 7%, corresponding to the total transaction value using digital payment solutions reaching 13,742 million USD in 2023 In addition, Vietnam has 17 free trade agreements (FTAs) up to the present time, including signed, implemented, and negotiated agreements, which are the proves of the policy of proactive integration Vietnam's extensive internationalization in the process of regional and world trade liberalization, attracted US$422.84 billion in foreign direct investment (FDI) as of March this year, nearly 80 % of which comes from Asia - Pacific countries Therefore, Vietnam has a great openness in its efforts to capture Industrial Revolution 4.0 Not only that, but the Vietnamese government also pays special attention to Industrial Revolution 4.0 This is clearly shown by the Government's focus on developing information technology infrastructure, prioritizing the development of the digital technology industry, smart agriculture, smart tourism, and smart cities, promoting innovative start-up ecology, reforming education and vocational training and training human resources capable of catching up with new production technology trends On the other hand, with Vietnam's financial market being increasingly integrated with the global financial market, Industrial Revolution 4.0 will also bring modern and advanced suppliers of products and services, along with a technology system with many smart and modern solutions , thereby helping to increase automation in the provision of products and services of Vietnamese financial institutions, as well as in investor transactions It is these factors that will create a new face for Vietnam's financial market in the coming period Page | 11 3.2 Challenges Currently, Industrial Revolution 4.0 is drastically changing industries and fields with a series of breakthrough new technologies such as artificial intelligence, automation, the Internet of things, and cloud computing, Many successful models from the application of technologies of this revolution are putting the Vietnamese financial market in front of great challenges The first challenge is that businesses in the financial services sector in Vietnam must invest more in the development of technology systems to keep up with the world's trend of electronification and automation of the supply process to provide financial products and services to customers Compared to competitors in the international financial market, how to effectively arrange financial resources for the implementation of investment items in technology infrastructure development to achieve business efficiency while avoiding spread investment is a limitation of Vietnamese enterprises The second challenge is the digitization of customer and market data Normally, for the data encryption process to be accurate and effective, it is required that the information be transparent However, the ease of information collection, as well as the reliability of information collected on the Vietnamese financial market, are still limited compared to international financial markets This is the biggest challenge for Vietnamese businesses when participating in the game according to the standards of the 4.0 revolution In addition, the labor quality of the group of "skilled labors" is not high enough to meet the requirements of the market both in terms of expertise and foreign language skills According to a survey by the Japan International Cooperation Agency (JICA) on the quality of Vietnamese labor at enterprises associated with Japan, out of 2,000 Vietnamese students, only about 90 candidates (equivalent to 5% of the total number of candidates) passed the professional survey, of which only 40 candidates had sufficient English proficiency to work About 24% of enterprises have difficulties recruiting skilled and trained personnel Compared with other countries in the region, the professional and technical level of the Vietnamese workforce is much lower The trained workforce in Vietnam is only approximately 20% while in countries like Singapore 61.5%, Malaysia 62%, Philippines 67% Page | 12 To be compatible with international trends, in addition to the dynamism and positivity of businesses, it also requires the participation of management agencies in the aspect of proactively adjusting the system of mechanisms and policies to meet the needs of customers' requirements to digitalize and automate the process of providing products and services One problem is that many legal regulations interfere quite deeply with the operation process of financial institutions In addition, these processes change quite often, while high predictability and stability are required to meet the requirements of digitizing input information for the design and supply process of financial products, and services Frequent changes in policies will make financial institutions difficult and expensive in the process of data digitization, affecting the provision of products and services in an automated manner Suggestions for Vietnamese Government and Businesses 4.1 For Vietnamese Government To continue to apply IT in particular and the achievements of Industry 4.0 in general to the financial sector, it is necessary to continue to closely follow the tasks and solutions set out in the 12th Party Central Committee issued Resolution No 23-NQ/TW on orientations for formulating a national industrial development policy to 2030, with a vision to 2045, focusing on the following contents: Firstly, the Government needs to put enterprises at the center of the national innovation system; continue to make efforts to build a government of creation and development, serving the people and businesses; ensure the right to freedom of business and make efforts to create an equal and favorable business environment for enterprises At the same time, there are supporting policies in improving technological capacity for enterprises to develop new products, advanced technology, high technology, and key products; support development, and protect intellectual property development Secondly, it is, by all means, certain that the government should focus on building and supporting to improve integration capacity to Industry 4.0 for businesses, with special attention to small and medium enterprises Enterprises can then participate more effectively in global value chains and play a leading role in domestic value chains and industrial clusters Page | 13 Thirdly, we need urgently to renovate the field of education, training and vocational training in the direction of international integration, creating and supplementing to develop human resources with appropriate skills, able to absorb and master modern technology during Industry 4.0 period Fourthly, establish an information system with a database that is always fully updated and publicly announced on the guidelines and policies of the Party and the laws of the State; on planning strategies, and development plans of sectors, fields and economic regions; on the plans, programs and projects of the State's activities (except for programs and projects of national secrets); information on activities, research, exchange and references of agencies and organizations in all aspects related to the life of enterprises, as well as international experiences Fifthly, strengthen information and propaganda, raise awareness for the whole society, especially the business community, about the opportunities and challenges of Industry 4.0, the inevitable trend of Industry 4.0 4.2 For Vietnamese Businesses “Businesses need to find ways to go against the norm to make a difference Must choose to wrong faster to get right faster In the past, we used to learn first, it later, but now we have to it first, learn the knowledge later; Find people first and arrange suitable jobs later” According to Mr Nguyen Manh Hung - Minister of Information and Communication It must be said that no business can grow without changing and absorbing new things Especially in terms of technology, new things appear very quickly and old ones are quickly obsoleted and eliminated We can mention the brands that were once very strong but had to "die" because of the explosion of technology such as Nokia… They were all giants in the phone business But the explosion and rapid development of technology caused these companies to be at the forefront, quickly becoming obsolete, losing market share and collapsing Therefore, whether large or small and medium-sized enterprises must comply with the changes to be able to develop and stand firm in the explosive industrial revolution 4.0: Firstly, enterprises should study advanced technologies of Industry 4.0 and apply them to improve their position in the value chain Enterprises must flexibly adjust products according Page | 14 to consumer needs, integrate advanced technologies to minimize production processes, reduce delivery times, and shorten product life cycles but still ensure manageability, production management and product quality, and increase competitiveness Secondly, they must focus on integrating digital technology: Promote the development of production and business solutions based on digitization; integrated with sensor systems, control systems, and communication networks for business and customer care; efficient storage and use of cloud-based big data; collect, analyze and process big data to generate new knowledge, support decision making and create competitive advantage; effectively analyze, evaluate, and apply data gathered from machines and sensors, to quickly make decisions to improve safety, operational efficiency, workflow, service and maintenance Thirdly, businesses need to develop new skills for each individual as well as for the organization; effectively participate in and use the intelligent supply chain created from the Fourth Industrial Revolution, more closely linked to the needs of customers Fourthly, consider people as the most valuable resource of enterprises Human resource development strategy must be a part of the enterprise's long-term development strategy In particular, first of all, there are solutions to improve the quality of existing human resources of enterprises, especially key staff and experts through training activities, updating knowledge, and equipping skills (focusing on skills: Proficient in professional competence; knowing foreign languages, first of all, English ; being proficient in information technology and computers) to improve labor productivity; attach importance to recruitment work, and have a strategy of "headhunting" to supplement high-quality human resources for enterprises Last but not least, attach importance to the work of "restructuring enterprises" in the spirit of entrepreneurship, innovation and creativity; review and update to promptly adjust and renew the corporate governance model by the development scale of the enterprise in each period; building a streamlined and efficient operation apparatus and arranging the right workforce with the right people to ensure the highest labor productivity Lastly, applying new scientific and technological advances in Industry 4.0 to business administration, construction, project management, promotion, project introduction, and online real estate product sales, especially researching and applying blockchain technology to real estate business, to improve labor productivity and business efficiency of enterprises; Page | 15 attach great importance to cooperation with foreign investors and enterprises to increase financial resources, improve corporate governance capacity, increase the diversity of real estate products but still retain the Vietnamese architectural identity Page | 16 CONCLUSION The fourth industrial revolution, which will come very quickly and is unlike any other in human history, will combine technologies from the domains of biology, digitalization, and physics to open up new possibilities It has a significant impact on the global political, social, and economic systems and wholly new capacities With the signing of numerous comprehensive free trade agreements including the Trans-Pacific Partnership, the FTA with the EU, and the Eurasian Economic Union, Vietnam is becoming increasingly integrated into the global economy Utilizing the successes of the new production revolution will result in the creation of a powerful tool that will assist Vietnam in effectively joining the global value chain and accelerating the industrialization and modernization of the nation Technological breakthroughs can provide productivity and output miracles However, developing nations like Vietnam are also facing several new issues as a result of Industry 4.0 That is the difficulty of continuing to lag, low-cost labor steadily losing its advantage, and the technological and knowledge gap growing, resulting in a greater societal rift, notably in the financial industry main As a result, it's important to conduct research and develop solutions to both mitigate Industry 4.0's positive effects and capitalize on its negative ones The essay audaciously proposes some recommendations and fixes for this issue Page | 17 REFERENCES VIETNAMESE REFERENCES (2021) “Tác động cách mạng công nghiệp lần thứ tư đến phát triển kinh tế” [online] vhnt.org.vn https://vhnt.org.vn/tac-dong-cua-cach-mang-cong-nghiep-lan- thu-tu-den-phat-trien-kinh-te/?fbclid=IwAR3ZLK8E7qbU X5zA0Zy5RFo1IVcv2nmtdQfebmiDgj1hEta8B_n-IBQb8s congdoanxaydungvn.org.vn (n.d.) Việt Nam với Cuộc cách mạng công nghiệp 4.0 [online] http://congdoanxaydungvn.org.vn/tin-tuc/t7449/viet-nam-voi- cuoc-cach-mang-cong-nghiep-4-0.html Kỷ yếu Hội thảo quốc tế “Thương mại phân phối” lần năm 2020 Việt Giải Trí (2019), Phát triển thị trường dịch vụ tài Việt Nam kỷ ngun Cách mạng cơng nghiệp 4.0 - Kinh tế - Tin ngày [online] https://vietgiaitri.com/phat-trien-thi-truong-dich-vu-tai-chinh-viet-nam-trong-kynguyen-cach-mang-cong-nghiep-40-20191106i4426122/ www.crowe.com (n.d.) Số liệu đầu tư trực tiếp nước ngồi vào Việt Nam (FDI) | Kiểm Tốn Crowe Vietnam [online] Available at: https://www.crowe.com/vn/vivn/insights/doing-business-in-vietnam/foreign-direct-investment-(fdi)-in-vietnam ENGLISH REFERENCES Hayes, A (2019) Financial Markets: The Basics [online] Investopedia Available at: https://www.investopedia.com/terms/f/financial-market.asp Van Thong, L and Trinh The Quan, V (2020) The Vietnamese Economy in the Industrial Revolution 4.0 Science & Technology Development Journal - Economics Law and Management, 3(4), pp.360–366 www.rsis.edu.sg (n.d.) ASEAN’s New Economic Player – Vietnam’s Industry 4.0: Opportunities and Challenges - RSIS [online] Available at: https://www.rsis.edu.sg/rsispublication/rsis/aseans-new-economic-player-vietnams-industry-4-0-opportunities-andchallenges/#.Y5I7VXbP23A Page | 18