Industry 4.

Challenges of Industry 4.0 to

Textile & Garment Firms
 Main content

1. Industry 4.0

2. Impact of Industry 4.0 to Global Textile and Garment Industry

3. Challenges of Industry 4.0 to Textile & Garment Industry

4. Proposed solutions to overcome these challenges

 Global Textile and Garment Industry

3.36
5.33

1. Industry 4.0
Womenswear
10.97
2. Impact of
Industry 4.0 to Menswear 36.62

Global TGI
Home textiles
3. Challenges of
Childrenswear
$3 Trillion
Industry 4.0
20.01

4. Proposed Sport footwear

solutions
Bridalwear
23.71
 Top Ten Exporters of Textile, 2018
($billion USD and annual percentage change, %)

1. Industry 4.0

2. Impact of
Industry 4.0 to
Global TGI

3. Challenges of
Industry 4.0

4. Proposed
solutions
 Industry 4.0

1. Industry 4.0

2. Impact of
Industry 4.0 to
Global TGI

3. Challenges of
Industry 4.0 to
Vietnam TGI

4. Proposed
solutions
 9 Technology Pillars – Industry 4.0

1. Industry 4.0

2. Impact of
Industry 4.0 to
Global TGI

3. Challenges of
Industry 4.0 to
TGI

4. Proposed
solutions
 Industry 4.0 Framework

1. Industry 4.0

2. Impact of
Industry 4.0 to
Global TGI

3. Challenges of
Industry 4.0 to
TGI

4. Proposed
solutions
 The key features of Industry 4.0
Interoperability: Cyber-physical systems are able to communicate with
each other and people in real-time through the use of IoT and Internet of
1. GIndustry 4.0 Services
Virtualization: Sensor data is connected through simulation models in a
2. Impact of
virtual environment
Industry 4.0 to
Global TGI Autonomous Management: Cyber physical systems make their own
decisions by determining optimum decisions based on the collected and
3. Challenges of processed big data
Industry 4.0 to Real-Time Management: Collecting and processing data in a real-time
fashion with distributed processing and big data approaches
Vietnam TGI

4. Proposed Internet of Services: Cyber physical systems deliver their services to

people and other systems via Internet of Services
solutions

Modular structure: Providing a modular structure to adapt to rapidly

changing requirements
 Industry 4.0: Why we need it?

1. Industry 4.0
Cost Complexity
2. Impact of  Eliminate waste & losses  Sub-Nano technology
Industry 4.0 to  Eliminate hidden cost  Cyber Physical System
Global TGI  Cost reduction  Exponential
technologies
3. Challenges of
Industry 4.0 to
Vietnam TGI  Personalize  Digitalization
 Fast, Cheap, Quality  Increase
4. Proposed  Total Customer competitiveness
solutions Satisfaction  Globalization

Customer Competition
 Industry 4.0: Key Challenges
o New emerging technologies (Augmented reality, Cyber Security,
IoT, Big Data Analytics, etc.)
1. Industry 4.0 Attitude Skill
o Multi discipline role and responsibilities to support the new
revolution.
GOVERNMENT
2. Impact of
Expertise Knowledge
o Lack on local expertise to create and provide new training
Industry 4.0 to
program.
o Develop ‘I LOVE TECHNOLOGY’ attitude and mind-set.
Global TGI EDUCATION o Lack on local content for system hardware and software.
& TRAINING
3. Challenges of
o Policy on Industry 4.0 related research and development, security
Industry 4.0 to
of integrated system, legal framework conditions, work, training
TGI and further education.
o New Industry 4.0 technology and skill transfer from overseas as
4. Proposed
part of pioneer status application. Localize hardware assembly.
solutions o High level nationwide Industry 4.0 framework and review
POLICIES panel/board.
o Digitalization in manufacturing technologies will require new
incentive.
 Industry 4.0: Key Challenges

o Merging the old and new system, techniques, machinery,

1. Industry 4.0 protocols with complex protocols will be complicated.
o Traditional IT infrastructure merging with new IoT system
2. Impact of
integration will require massive reorg and reskill of the
Industry 4.0 to
workforce.
INDUSTRY

FRAGMENTED
Global TGI LAYOUT

3. Challenges of
o Hackers and system attackers.
Industry 4.0 to
o Manufacturing sector are more vulnerable to attack with
TGI
interconnectivity through cyber physical system.
4. Proposed o Require more white hacker to develop full proof security
DATA SECURITY &
solutions
PRIVACY
system as attacker continue to look for loop hole.
 Industry 4.0: Key Challenges

o More data scientist needed means more statistician

1. Industry 4.0 with operational background.
o More complex big data analytics from industrial data
2. Impact of
source. Not typical consumer based data anymore and
Industry 4.0 to transforming into well structured data format.
INDUSTRY

BIG DATA
Global TGI

3. Challenges of
o Industry 4.0 is about transforming the organization into
Industry 4.0 to
new culture and promote technology as the way to
Vietnam TGI move forward. Top management must endorse on it first
4. Proposed before the rest follow.
o Need more systematic master framework to ease the
solutions CORPORATE
(CULTURE, FINANCIAL, deployment plan.
STRUCTURE)
 Adoption of Technologies by Different Geographies
Values for 2015

Advanced 14% 20% 63% 3%

1. Industry 4.0 Robotics

US$ 35 bn.
2. Impact of
78% 15% 7% 1%
Industry 4.0 to Artificial
Intelligence
Global TGI
US$ 8 bn.

3. Challenges of 40% 28% 27% 5%

Industry 4.0 to 3D printing

US$ 5.2 bn
TGI
39% 40% 13% 8%

4. Proposed Wearables
US$ 0.7 bn.
solutions
North America Europe Asia- Pacific Others
Data Source: World Economic Forum

Presently, North America, Europe and some parts of Asia (China,

Japan and South Korea) are leading in technology adoption
 World is already adopting this change…
1. Industry 4.0

2. Impact of
Industry 4.0 to How about Textile and Apparel Industry?
Global TGI

3. Challenges of
Industry 4.0 to
TGI

4. Proposed
solutions
 Impact of Industry 4.0 to Global Textile & Garment Industry

Video YIN USA Smart Factory Industry 4.0

1. Industry 4.0

2. Impact of
Industry 4.0 to
Global TGI

3. Challenges of
Industry 4.0 to
TGI

4. Proposed
solutions
 Key levers that will reshape the textile industry

1. Industry 4.0 Big Data Analytics 3D Printing

• Creating 3-D objects using Computer Added
• Collection and Analysis of large sets of data
2. Impact of • Used in making informed strategic and Design (CAD)
• It is generally used in high-end fashion
Industry 4.0 to operational decision
products
Global TGI

3. Challenges of
Artificial Intelligence Smart / Wearables Textiles
• Machines which can think humanly • Intelligent textiles which can sense and react
Industry 4.0 to • Can be used for consumer trend to environmental conditions
TGI predictions, self diagnosing machines • Used in textiles for health, military, defense,
and sports
4. Proposed
solutions Advance Robotics Internet of Things
• Application of automation in business operations • Interconnected machines that can transfer
• Extensive use possible in cut & sew industry data without human intervention
• Automated monitoring of factory
 Strategy:
Globally  Hugo Boss is one of the forerunners of Textile 4.0
Digitization,
Companies are  Factory in Izmir, Turkey produces 4 mn. pcs of garments Automation,
annually Robotics and
Already Gearing finally
 It is investing heavily in robotics & automation of processes
up for Textile 4.0 Artificial
 Goal: To create a digital twin of their facility. Intelligence

Case-Study Hugo Boss is aiming to run an entire factory as one “Suit Machine”
with focus areas as:
Hugo Boss -
Robotics Artificial Intelligence
s

Digital Twin
t
en

Artificially Intelligent Machine

rtm

Strategy 100 Data Collecting Robots

pa

that can predict maintenance

de ,
r a ss

collect Data from Man,

fo ce

requirement, schedule lines

ll

Machine and Material

ct ac

etc.
ne int
on po

Focus on IT & R&D Layout of Digital Factory

tc e
On

3D Space Planning (Robots

Establishment of IT
in

and Drones working from

po

Department and TecknoLab above)

e
On
 APPAREL 4.0 For Production Cutting

Sewing
Digital
1. Industry 4.0 Information
Transfer Buttoning
2. Impact of Packaging
Industry 4.0 to with Cyber Predictive
Global TGI Physical Maintenance
Ironing
Systems
3. Challenges of APPAREL 4.0
Industry 4.0 to
for
PRODUCTION Human- Quality
TGI control
Robot
Robotic Technology
4. Proposed Collaboration
Quality
solutions in Cutting Packaging
Control
Department
Intelligent
Manufacturing
Shipment
 APPAREL 4.0 For Management
Customer's Real-
3D Product Production Line
Time Order
Design Balancing
Tracking
1. Industry 4.0

2. Impact of Real-Time
Real-Time
Industry 4.0 to Real-Time Employee
Production
Product Tracking Performance
Global TGI Planning
Management
3. Challenges of Human-Robot
Real-Time
Industry 4.0 to Real-Time Technology
Supplier
TGI Warehouse Collaboration in
Performance
Management Warehouse
Management
4. Proposed Management
solutions
Sewing Training Training Robots
with Augmented with Kinect
Reality Technology
 Requirement of Stakeholders in the value chain

Manufacturers Brands Customers

• Effective Planning • Sampling and • Good Quality
• Input Availability Technical Inputs • Right Price
• Better Productivity • Good Quality • Instant Delivery
How will • Training • Timely Delivery • Good After Sales
Industry • R&D inputs for Sampling • Right Costs Service
• Reduced Costs • Inventory Management
4.0
benefit How Textile 4.0 can Address the Needs of Stakeholders?

the • Better flow of information • Higher Productivity

textile across the value chain • Improved quality levels
industry
• Increased efficiency • Reduced cost

• Reduced lead times • Better Service

 Challenges of Industry 4.0
1. Industry 4.0
2. Impact of
Privacy and security:
Industry 4.0 to - digital data from smart
Global TGI factory environment
- secure machine-to-machine
3. Challenges of
protocols to protect data.
Industry 4.0 to
TGI
Initial investment cost:
4. Proposed - Technology 4.0 and their
solutions integrations are very costly.
- Most apparel companies are
SME enterprises.
Technical Challenges:
- new and complex technologies,
- shortage of experienced
workers.
Lack of a global standard:
- a standardized Industry 4.0
maturity model
- a standard roadmap to guide
the firms and practitioners
Social difficulties:
- required more high-skilled
Challenges complex jobs
 threats of unemployment.
 Application of Industry 4.0 in TGI

1. Industry 4.0
 RFID
2. Impact of  Sewbot
 Horizontal and vertical system integration
Industry 4.0 to
 ERP
Global TGI Area
 Digital marketing,
3. Challenges of
 Consumer-driven garment design,
 Additive manufacturing
Industry 4.0 to
 3D printing technologies
Vietnam TGI

4. Proposed
solutions
 Challenges to Textile and Garment Industry
High cost Complexity Risky
Internal
Lack of Knowledge

Lack of motivation to change Lack of skilled labour

1. Global and 5.00

4.53 4.60
Vietnamese TGI 4.50 4.43 4.43
4.23 4.29
4.14 4.18
4.06 4.00
4.00 3.85 3.92
2. Industry 4.0 3.71 3.65 3.71
3.54
3.50 3.43 3.35
3.24
3. Impact of 3.12
3.00 3.00
3.00 2.92 2.88
2.71 2.76
Industry 4.0 to 2.62
2.50 2.35
Global TGI
2.00

4. Challenges of 1.50

Industry 4.0 to 1.00

TGI 0.50

0.00
5. Proposed
Spinning Weaving Dyeing Garment
solutions

To what extend do the firm agree that they face these challenges to adopt Industry 4.0
 Challenges to Textile and Garment Industry
Policy/ Institution Lack of information Lack of R&D ecosystem Lack of experts

Infrastructure
External
1. Global and 6.00
Vietnamese TGI
5.00 4.88
5.00 4.69 4.69 4.71 4.71
4.57 4.65 4.65
2. Industry 4.0 4.54 4.53 4.56
4.31 4.29 4.38 4.31 4.44
4.14 4.13 4.10
3.92 4.00
4.00 3.86
3. Impact of
3.47
Industry 4.0 to
3.00
Global TGI
2.00
4. Challenges of
Industry 4.0 to
1.00
Vietnam TGI
0.00
5. Proposed
Spinning Weaving Dyeing Garment
solutions

To what extend do the firm agree that they face these challenges to adopt Industry 4.0
 Challenges to Textile and Garment Industry
• Infrastructure and R&D • Institutions
activities
1. Global and
Vietnamese TGI

2. Industry 4.0 Technological Managerial

challenges challenges
3. Impact of
Industry 4.0 to
Global TGI
Human
4. Challenges of Financial
resource
Industry 4.0 to challenges
challenges
TGI • Global •Skillful
standards human
5. Proposed resource and
solutions Social
difficulties
 Industry 4.0 means:
 Digitalization
 Disruptive Innovation
Technological challenges

 Automation and Interconnection

 AI and Robotic
 Big Data
 Increasing organizational complexity in the manufacturing system

 challenges to the current technological system of Vietnamese Textile

and Garment firms (most of machine are old-fashion and hard to be
integrated in smart manufacturing system, lack of synchronized
database system)
 Managerial challenges

Industry 4.0 requires

1. Global and
• new managerial approach, new business model,
Vietnamese TGI
• touch skills and qualifications concerning e.g. problem-solving
2. Industry 4.0
skills, failure analysis, big data analysis
3. Impact of
Industry 4.0 to • the ability to deal with constant changes and completely new tasks
Global TGI
• courage, confidence, pioneering spirit and the readiness to take
4. Challenges of risks
Industry 4.0 to
TGI
• high-tech knowledge

5. Proposed
solutions
 Human resource challenges
Most of Vietnamese technical staff and workers lack of skills and professionals
in:
1. Global and
• Automation
Vietnamese TGI
• IT
2. Industry 4.0
• Data analytics
3. Impact of
• Information security
Industry 4.0 to
Global TGI • Foreign languages

4. Challenges of Distribution of Vietnamese TGI labor by qualifications

Industry 4.0 to
High school Vocational Undergraduate Graduate Total
TGI
Worker 87.31 9.49 3.17 0.03 100
5. Proposed
Manager 32.00 30.15 35.87 1.98 100
solutions Total 84.40 10.60 4.90 0.10 100
 Human resource challenges
 Most of Vietnamese technical staff and workers lack of skills and

1. Global and
professionals
Vietnamese TGI  Lack of Industry 4.0 knowledge
2. Industry 4.0
 Resist changes
3. Impact of
 Technical staffs worry they can not master new technology, lack of motivation
Industry 4.0 to
to study new things
Global TGI
 Manual labor worry they will loose their job
4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions
 Financial challenges

1. Global and
Vietnamese TGI

2. Industry 4.0
The implementation of
3. Impact of
all the pillar of industry
Industry 4.0 to 4.0 requires huge SMEs
Global TGI amount of investment
Lack of financial capability
4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions
 Institutions

Lack of policy on Industry 4.0 related research

1. Global and and development, security of integrated
system, legal framework conditions, work,
Vietnamese TGI
training and further education.
2. Industry 4.0

3. Impact of
Industry 4.0 to Lack of incentives (tax, financial support) for the
Global TGI
costly and risky investment in application of
Industry 4.0
4. Challenges of
Industry 4.0 to
TGI

5. Proposed Lack of guidelines and roadmap for the

implementation and development
solutions
 Infrastructure

• Hardware
1. Global and
• Software
Vietnamese TGI

2. Industry 4.0 • Interconnection

3. Impact of
• Security
Industry 4.0 to
Global TGI

4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions
 Proportion of Textile and Garment have specialized
R&D activities R&D division/ department

• R&D budget
R&D is a
No R&D
1. Global and • R&D ecosystem activities
subset Specialized
Total
Vietnamese TGI another R&D division
division
• R&D human resource division
2. Industry 4.0

3. Impact of
Spinning - 92.3% 7.7% 100.0%
Industry 4.0 to
Global TGI Weaving 14.3% 42.9% 42.9% 100.0%

4. Challenges of
Dyeing - 58.8% 41.2% 100.0%
Industry 4.0 to
Vietnam TGI
Garment 21.2% 48.5% 30.3% 100.0%
5. Proposed
solutions Total 10.0% 62.2% 27.8% 100.0%
 Proportion of R&D budget in earning before tax of
Textile and Garment firms
R&D activities
<1%
Spinning
• R&D budget Weaving
Dyeing
Garment
1. Global and • R&D ecosystem
Vietnamese TGI • R&D human
2. Industry 4.0
resource
3. Impact of
Industry 4.0 to
Global TGI

4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions
No investment <1% 1-3% 3-5% 5-10%
 Skillful human resource

 The country faces tough competition from Cambodia and Bangladesh, as

1. Global and their labour wages are lower than that of Vietnam. Labour cost is not
Vietnamese TGI Vietnam’s competitive advantage anymore
2. Industry 4.0  New competitive advantage should focus on skillful human resource, ability
3. Impact of
of quick responses, and capability to adopt Industry 4.0
Industry 4.0 to While
Global TGI
 Talent shortages increase overtime
4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions
 Skillful human resource

1. Global and
Vietnamese TGI

2. Industry 4.0

3. Impact of
Industry 4.0 to
Global TGI

4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions

Source: Manpower Survey 2018

 Skillful human resource

1. Global and
Skills
Vietnamese TGI required for
2. Industry 4.0
Industry 4.0
3. Impact of
Industry 4.0 to
Global TGI

4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions

Source: Manpower Survey 2018

 Social difficulties
• Changes in the world of work
• Worries about job losses (high proportion of manual labor in TGI
1. Global and
• Shuffle labor market and training system
Vietnamese TGI

2. Industry 4.0 • Technological and business-driven innovative solutions

3. Impact of are not going to be enough.
Industry 4.0 to  Social innovation
Global TGI

4. Challenges of
Industry 4.0 to
TGI

5. Proposed
solutions

https://timreview.ca/article/1117
 Global standards

• A lack of standards and norms with regard to interface

1. Global and
technologies
Vietnamese TGI
• Vietnamese companies are adapting to the standard of the large
2. Industry 4.0
company they supply
3. Impact of
Industry 4.0 to difficult for Vietnamese companies to join value creation
Global TGI networks with different standards and norms, thereby constraining
4. Challenges of their room to manoeuvre
Industry 4.0 to
TGI

5. Proposed
solutions
 How Vietnamese Companies will move towards
Textile/ Apparel 4.0?
Proactive in experiments with
01 technology through pilots
1. Global and
Vietnamese TGI

2. Industry 4.0 Gradually upgrading information

02 technologies and systems
3. Impact of
Industry 4.0 to Firms
Global TGI
perspectives Develop a talented workforce
4. Challenges of 03 through proper training
Industry 4.0 to
TGI

5. Proposed Collaboration and Integration

solutions 04 (horizontal and/or vertical,
research units, …)
 Government perspectives
• Establish vision, roadmap and guidelines towards Industry 4.0 for firms,
especially SMEs.
• Tax incentives for companies pursuing Industry 4.0
1. Global and
Vietnamese TGI
• Financial support
• Technical support i.e. criteria for appropriate technology, steps to
2. Industry 4.0
implement, …
3. Impact of
• Upgrade ICT infrastructure system in national-wide
Industry 4.0 to
• Give a push to enhance value-adding capabilities of the apparel
Global TGI
manufacturers, develop their own brands, become original design
4. Challenges of manufacturers (ODMs) rather than function only as subcontractors.
Industry 4.0 to • Orient training system focusing on skills required by Industry 4.0
TGI
• Build and develop ecosystem for R&D and technology transfer
5. Proposed
solutions
 Conclusion

1. Global and
“You cannot wait until a house burns down to buy fire insurance on it. We cannot wait
Vietnamese TGI
until there are massive dislocations in our society to prepare for the Fourth Industrial
2. Industry 4.0
Revolution.”
3. Impact of Robert J. Shiller, 2013 Nobel laureate in economics, Professor of Economics, Yale University
Industry 4.0 to
Global TGI

4. Challenges of
Industry 4.0 to
The important thing is
TGI

5. Proposed
to understand the challenges
solutions
and find out the solutions to overcome them