What is Industry 4.0?

In recent times, the phrase “Industrial Revolution 4.0” has been gathering notice of media and social networks. Along with that is the potential of a life-changing growth for businesses in Vietnam if we adopt this industry properly. So how should we understand the Industrial Revolution 4.0?

Definition of Industrial Revolution 4.0

Industrial Revolution 4.0 connects embedded systems and intelligent manufacturing facilities to create digital convergence between Industry, Business, Function and Processes.

Klaus Schwab, founder and executive chairman of the World Economic Forum explains the Industrial Revolution 4.0 as follows:

“The first industrial revolution utilized water and steam power to mechanize production.” The second revolution took place through the use of electricity for mass production. The third rationalised electronics and information technology to automate production. Now, the Fourth Industrial Revolution is built based on the third’s foundation, which combines advanced technologies altogether, blurring the boundaries between physics, engineering digit and biology.

What is Industry 4.0?
What is Industry 4.0?

How did the Industrial Revolution 4.0 take place?

Following the definition stated by Klaus Schwab, the Industry Revolution 4.0 will take place in three main areas, including biotechnology, digital and physics. The core elements of Digital 4.0 in the Industry Revolution will be: AI, the Internet of Things (IoT) and Big Data. In the field of physics, it is the birth of new robots, 3D printers, self-driving cars, new materials (graphene, skyrmions …) and nanotechnology.


The report of the World Economic Forum has raised this issue at different stages. The first stage will be the challenge for office workers, intellectuals, technical workers. The next stage will be cheap labor, which may be slower. With the move of the Industrial Revolution 4.0, in the next 15 years the world will have a new face, requiring businesses to change and update their operating mechanism.

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