The United Nations Development Programme says in its report, dubbed, “Adaptation and Adoption of Industry 4.0 (the so-called 4th industrial revolution) in Cambodia.” that Cambodia aims to become an upper-middle-income country by 2030 and a high-income country by 2050. This vision can only be achieved if new technologies are leveraged to increase industrial added-value, diversify exports and strengthen small and medium enterprises (SMEs). However, the level of Industry 4.0 adoption in Cambodia is still low, as is the case in many developing and developed countries. But Cambodia has the opportunity to build on a number of conditions to support the adaption and adoption of new technologies, including Industry 4.0. Khmer Times’ Sok Chan, spoke to Hay Phirum, country head of Robert Bosch in Cambodia and Myanmar, on what is the government’s response and readiness to Industry 4.0 at present and in the future and how the private sector can contribute to the adaptation and adoption of Industry 4.0 in Cambodia.

KT: What are the business operations and markets of Robert Bosch in Cambodia?

Phirum: Bosch Cambodia offers a broad range of products and services to various industries, including automotive, building and construction, hydropower, mining, and manufacturing. The company provides spare parts for passenger and off-highway vehicles as well as services and equipment for workshops. Moreover, Bosch delivers solutions to drive and control the moving parts of industrial machinery.

In addition to its operations in the country, Bosch has also contributed to further develop the skill sets of the local workforce by providing training and support with tools and equipment to raise educational standards at vocational schools and nonprofit organisations in the country.

KT: How has the pandemic affected your company operations and on what does the company focus?

Phirum: Like the rest of the company, we have also been affected by the COVID-19 situation. When demand decreases, it also affects our supplies. However, we are coping well with this hit from our financial standpoint. Our associate’s health and conditions are our priority. Bosch put forward a strategic focus to offer solutions for Industry 4.0 with a strong focus on research and development. Industry 4.0 lies within the business of the industrial segment of Bosch business. Bosch is not the only supplier of this technology but we are also a user ourselves. We have deployed industry 4.0 technology in our 270 manufacturing plants globally.

KT: How have you observed the readiness of the Cambodia government in terms of adapting to Industry 4.0?

Phirum: Thus far, there are many forums and roundtable discussions among the government, private sector and development partners, who are talking about Industry 4.0. However, there is no concrete policy or direction that has emerged. Industry 4.0 has advanced and developed fast and slow, dependibg on the government. If the government releases a policy and direction to push the private sector to advance Industry 4.0, it would proceed faster. When the implementation of Industry 4.0 begins, it will affect some traditional workforces especially the repetitive jobs that the government has to think about. If we deploy Industry 4.0, some workforces will become redundant, but not all Industry 4.0 is bad. It has eliminated some jobs but it has also created a lot of jobs. Therefore, we have to prepare for now and adapt human resources to start thinking, understanding and studying from now on matters such as software engineering and mechanics. If we do not start now, it will be slow. If we look at the graduate students from mechanical and electronics, computer and software engineering skills are low compared with neighbouring countries. Cambodia must strengthen and encourage students to study this subject. Currently, a lot of students graduate in banking, accounting, and finance. However, from the technology and engineering and industry perspective, there are fewer graduate students. The government should have a policy and tax incentive for those who adopt this.

KT: What will be the effect if Cambodia does not adapt faster to Industry 4.0 now?

Phirum: We have to be careful about industry 4.0. There are some companies applying Industry 4.0. The adoption of Industry 4.0 is not only on the supply side but also it is on the order or buyer side. Some buyers start demanding production to apply industry 4.0. It could be countries using the same technology which they both know about regarding the process and how production matches Therefore, they start demanding what they need. They need production efficiency, time-saving, high productivity. They want the supplier to ensure they do not miss production deadlines. This demand is starting step-by-step, which is a risk for Cambodia if we do not adopt and adapt quickly and be prepared for it. When the buyer asks about applying Industry 4.0, we will meet the issue. The skill set is important. We have to have more expertise. We cannot hire expats to do it. We must have local core skills.

KT: What is the private sector trying to contribute to Industry 4.0? What should industry and manufacturers do to adopt Industry 4.0?

Phirum: Most people think that industry 4.0 is an advanced technology, it is expensive and it needs special skills. Therefore, they are scared of it. For the adoption of industry 4.0, there are two types. The adoption of big solutions and single or individual solutions. Normally, the adoption of big solutions of industry 4.0 costs a lot of money and needs more expertise and high demand. In Cambodia, if there is no big investment to inject money to do it, it is difficult. However, they can adopt single or individual solutions. Industry 4.0 does not need to adopt the complete set of the whole solution. The important thing is that if we have the commitment to start and learn from industry 4.0 with its own solutions in the future, we can then adopt the solution on a bigger scale. So we start doing it from now by adopting single solutions.

KT: How important is Industry 4.0?

Phirum: The potential of Industry 4.0 is big. The most important element to implement Industry 4.0 is the policymakers and how each stakeholder plays a role in pushing Industry 4.0 to go forward. The government side has to develop a new Industry 4.0 balance between policy now and impact on the future workforce. The development agencies must research and give policy recommendations to the government, support and fund early-stage development especially to get a concrete project started to collaborate with the private sector, especially expert companies with knowledge and solutions.

Solutions providers have to show a strategic focus on their market, make investments to introduce solutions with expert knowledge support from the government and development agencies. They should decide policy development and solutions and support the development of local skill sets.

The adopter has to think about Industry 4.0 strategy now and for the future, change mindsets from management to execution staff level, think of Industry 4.0 as a problem solver or improvement genie instead of skill and cost devil. Industry 4.0 is the new technology to improve matters.

Associations and business group must play an important role to bring together expert companies to create a pool of solutions providers and an eco-system, advocate members as users, advocate and connect to relevant government bodies and members who are solutions providers and users.