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What is Internet of Things (IoT)? Its Role in Energy Management and Applications in Vietnam

by Vinergy Vietnam | Jul 10, 2024 | Uncategorized

What is Internet of Things? This revolutionary concept is transforming the way we interact with our environment, particularly in the realm of energy management. As Vietnam rapidly embraces digital transformation, IoT technologies are playing an increasingly crucial role. Let’s explore the role of IoT in energy management and its applications in Vietnam.

What is the Internet of Things (IoT)?

The Internet of Things, commonly known as IoT, refers to the vast network of interconnected devices that communicate and exchange data via the internet. IoT devices are typically embedded with technology such as sensors and software. These “smart” devices span from household appliances like refrigerators and thermostats to sophisticated industrial equipment and autonomous vehicles.

At its core, IoT transforms ordinary items into responsive tools capable of gathering, analyzing, and acting on data without human intervention. Each device is equipped with unique identifiers and the ability to transfer data over a network automatically. For instance, a smart fitness tracker can monitor health metrics and provide personalized recommendations, while an industrial sensor can detect equipment malfunctions and trigger maintenance alerts.

In the business context, IoT technology serves as a powerful tool for monitoring and optimizing operations. Companies deploy IoT devices to track various environmental and operational factors, including temperature fluctuations, humidity levels, air quality metrics, energy usage patterns, and equipment performance. This continuous stream of real-time data allows for in-depth analysis, revealing valuable insights into operational efficiency and potential areas for improvement.

In essence, IoT represents a paradigm shift in how we interact with technology, opening up new possibilities for automation, data-driven decision making, and enhanced user experiences. The continuous exchange of data between devices and the cloud enables real-time insights and more intelligent, responsive systems, revolutionizing both consumer and industrial applications.

How does IoT work?

The Internet of Things operates through a sophisticated ecosystem of interconnected devices and systems. At its core, IoT functionality relies on the following key components:

1. Internet of Things platform

IoT platforms manage device connectivity, typically as software suites or cloud services. These platforms oversee hardware, software, processing capabilities, and application layers. They serve as the central hub for device management and data orchestration. IoT platforms enable seamless integration of various devices and provide tools for data analysis and visualization.

2. Sensors or devices

IoT sensors, often called smart sensors, convert real-world variables into interpretable data. Various types exist, such as temperature sensors detecting heat changes and motion sensors monitoring ultrasonic waves to trigger actions when interrupted.

3. Unique identifiers

Unique identifiers (UIDs) establish each device’s context within the larger network, enabling communication. These can be numeric or alphanumeric strings, like IP addresses, identifying either individual devices (instance identifiers) or device classes (type identifiers).

4. Internet connectivity

IoT devices communicate with one another through networks over the internet. They share sensor data by connecting to an IoT gateway, which functions as a central hub for data transmission. Before sharing, the data may be sent to an edge device for local analysis.

Different technologies like Wi-Fi, Bluetooth, cellular networks, or specialized IoT protocols enable this connectivity. The choice of connectivity method depends on factors such as power consumption, range, and data requirements.

5. Data Processing

Once data reaches the cloud, sophisticated software processes it using advanced analytics. Machine learning and artificial intelligence algorithms are applied to derive insights and inform decision-making. This processing stage transforms raw sensor data into actionable information. The system can identify patterns, predict trends, and generate alerts based on predefined rules or learned behaviors.

6. User Interface

IoT systems typically employ graphical user interfaces (UIs) to facilitate device management and control. These UIs serve as the primary point of interaction between users and their connected devices. For instance, a smartphone app might allow homeowners to effortlessly manage their smart home devices, from adjusting thermostat settings to monitoring security cameras.

7. Artificial intelligence (AI) and machine learning

AI and machine learning enhance the capabilities of IoT systems significantly. Natural Language Processing (NLP) improves user interactions with devices, as seen in virtual assistants like Amazon Alexa. Machine learning algorithms continuously refine the system’s analytical capabilities. These technologies enable IoT devices to learn from data patterns, make predictions, and autonomously adapt their behavior. As AI advances, IoT systems become increasingly intelligent and proactive in their operations.

Benefits of IoT for Businesses

The Internet of Things (IoT) is revolutionizing the business landscape, offering a multitude of advantages:

1. Reduced Costs

IoT devices help businesses streamline operations and increase profitability. From cybersecurity to workplace efficiency, these technologies are making a significant impact on companies’ bottom lines. Maintenance costs can be positively impacted when IoT devices with sensors are used to keep business equipment running at peak efficiency, catching problems before they escalate.

In manufacturing, predictive maintenance can reduce maintenance planning time by 20 – 50%, increase equipment uptime by 10 – 20%, and lower overall maintenance costs by 5 – 10%, a study by Deloitte found. Moreover, 83% of organizations report improved efficiency after introducing IoT technology, according to DataProt.

2. Higher Efficiency and Productivity

IoT boosts business efficiency by automating repetitive tasks and optimizing resource allocation. It can be used to enhance internal and external office communication, resulting in better productivity. In fact, according to a survey conducted by Harvard Business Review, 58% of companies report increased collaboration through IoT devices. Moreover, IoT also allows for optimization of office floor plans and mobilization of company resources for improved workflow.

3. Creating New Business Opportunities

IoT enables companies to collect actionable data, leading to new insights and business models. Advanced analytics, artificial intelligence, and smart utility grids make it easier for businesses to provide the value their customers are seeking. These technologies are not only creating new business models but also redefining traditional industries. For instance, 36% of companies are investigating new business directions thanks to IoT initiatives.

4. Improved Customer Experience

IoT technology has revolutionized customer engagement, with front-end interactions becoming a priority for organizations. Modern customers expect to interact with businesses through various devices, including phones, chatbots, and dedicated apps. Illustrating the shift in consumer perception of IoT, 30% of customers now express complete comfort with businesses using IoT for proactive service – a notable increase from just a few years prior. This shift has prompted businesses to use new technology combined with IoT to better serve their customers.

5. Increased Mobility and Agility

IoT enables employees to work from virtually any location, offering businesses increased flexibility. This technology supports the trend of hiring remote employees in “work from anywhere” positions, potentially reducing office lease costs. However, it also necessitates a strong focus on securing IoT endpoints to maintain communication safety.

43% of businesses implementing IoT strategies report enhanced business agility and improved operational processes. However, security remains a concern, with more 42% of businesses identifying difficulty in managing security as a primary challenge in IoT implementation.

The Role IoT in Energy Management

The Internet of Things (IoT) revolutionizes energy management in Vietnam, offering significant potential for improved efficiency and sustainability. IoT creates impact through applications such as smart metering, grid optimization, and building energy management. IoT-connected smart meters provide real-time data on energy consumption, allowing both consumers and utilities to monitor usage patterns. The collected information helps identify peak demand periods and opportunities for conservation, leading to more efficient energy use.

In the industrial sector, IoT sensors monitor equipment performance and energy consumption, enabling predictive maintenance and process optimization to reduce energy waste. The achieved results not only save costs but also contribute to Vietnam’s environmental protection efforts.

IoT also facilitates the integration of renewable energy sources such as solar and wind into the power grid. Providing real-time data on generation and demand allows for more efficient energy distribution, supporting the country’s sustainable development goals. Leveraging IoT in energy management helps Vietnam work towards its goals of energy security, efficiency, and sustainability while supporting economic growth and environmental protection.

At the forefront of this trend, Vinergy has developed the IoT SAAS energy monitoring & saving platform to monitor and optimize energy usage, delivering high efficiency and significant savings for businesses. Don’t hesitate to get in touch with us for further consultation!

Internet of Things Applications in Vietnam

The Vietnam Internet of Things (IoT) market is primarily driven by increasing demand for smart devices, expanding government initiatives, and growing need for data analytics. The IoT market in Vietnam is expected to show steady growth in the coming years.

According to Statista, the industry’s revenue is projected to reach $5,117 million by 2029, with a compound annual growth rate (CAGR) of 13.23% during the period 2024-2029. This growth reflects the increasing adoption of IoT technologies across various sectors in Vietnam.

IoT applications are being widely implemented in numerous fields throughout the country. Some notable examples of IoT applications in Vietnam include smart city projects such as the Ho Chi Minh City Security Operating Center ($10 million, 2021 – 2025), Da Nang Intelligent Operations Center ($7.5 million, 2020 – 2025), and Da Nang Intelligent Transportation System Project ($23 million, 2020 – 2025). Furthermore, IoT is being utilized in smart home enhancements, energy resource management, environmental monitoring, traffic flow regulation, and water quality control, among other diverse applications.

GSMA Intelligence reports indicate that the number of IoT devices in Vietnam is expected to surge from 21 million in 2018 to approximately 96 million by the end of 2025. The Ministry of Information and Communications states that the IoT market in Vietnam surpassed $2 billion in 2019 and is anticipated to reach $7 billion by 2025. The following are some typical IoT applications in Vietnam:

1. Banking Sector

Vietnam’s banking industry is embracing IoT technology to drive digital transformation. As banks complete their digital overhauls, they’re establishing a more resilient and flexible IT framework to support the growing demand for IoT-based solutions across the country. This enhanced infrastructure is crucial for processing the massive data streams produced by IoT devices and facilitating smooth inter-system connectivity. The ongoing expansion of fintech services and digital banking practices has further accelerated the adoption of IoT technologies in Vietnam’s financial sector.

2. Smart Wearables

The rise of smart wearables is propelling IoT expansion in Vietnam. These gadgets, equipped with sensors and connectivity, gather and relay data on users’ health, fitness, and daily routines. Their user-friendly nature and multi-functionality have made them increasingly popular among Vietnamese consumers. As adoption rates climb, so does the need for robust IoT infrastructure to handle data collection and analysis, driving wider IoT implementation across the country. Fitness trackers and smartwatches, offering features like heart rate monitoring and sleep analysis, are particularly in demand. This trend reflects a growing health awareness among Vietnamese consumers, opening up new avenues for IoT-powered health monitoring solutions.

3. Healthcare Sector

The healthcare industry is a key force behind Vietnam’s expanding IoT market. The integration of IoT and medical technologies is creating new opportunities to enhance patient care, optimize healthcare processes, and improve overall health outcomes. IoT-enabled medical devices are empowering healthcare providers to remotely monitor patients’ health status. This capability is especially beneficial for individuals managing chronic conditions and those in rural or isolated areas where access to medical facilities is limited.

4. Government Initiative

Vietnam’s leadership is taking decisive action to position the country for Industry 4.0, promoting IoT adoption while addressing workforce development challenges. The Ericsson regional president emphasizes 5G’s role in industrial digitalization and the company’s partnership with Vietnam in this endeavor. The Politburo’s 2019 Resolution No.52-NQ/TW outlines plans to accelerate Industry 4.0 adoption, showcasing the government’s strategic vision for sustainable economic growth through digital transformation.

Vietnam is prioritizing 5G development, recognizing that advanced mobile broadband networks are critical national infrastructure. These networks are seen as essential platforms for driving Industry 4.0 initiatives and supporting widespread digitalization across various sectors of the economy.

The Importance of Energy Efficiency in Manufacturing in Vietnam

by Vinergy Vietnam | Jun 23, 2024 | Uncategorized

Vietnam’s manufacturing boom has led to soaring energy demands, causing environmental strain. Enhancing energy efficiency in manufacturing has become crucial to reduce costs, boost productivity, increase competitiveness, and minimize the environmental impact. Explore the importance of energy efficiency in manufacturing in detail through the blog below!

Energy – The Key Determinant of Manufacturing Success

Energy fuels every facet of manufacturing operations, acting as the indispensable driving force behind machines, processes, and systems transforming raw materials into finished goods. Reliable and affordable energy access determines factories’ production efficiency, product quality standards, and overall competitiveness. In our modern energy-intensive industrial landscape, businesses prioritizing energy efficiency enjoy significant competitive advantages.

According to the International Energy Agency (IEA), energy efficiency measures could provide over 40% of the emissions reductions required to reach global climate goals by 2040. Optimizing energy consumption allows manufacturers to curb operational costs, it also minimizes their carbon footprint and ensures sustainable growth trajectories resilient to ever-evolving market pressures.

Conversely, inefficient practices burden companies with soaring overhead expenses, increased greenhouse gas emissions (the industrial sector accounted for 24.2% of global emissions in 2019 as per the EPA), and diminished adaptability. Energy efficiency transcends environmental stewardship; it constitutes a strategic cornerstone determining long-term manufacturing success and profitability.

Vietnam Facing an ‘Energy Thirst’ in Manufacturing

Vietnam’s rapidly growing manufacturing sector is facing an increasing demand for energy, fueled by the country’s economic growth and industrialization efforts. According to a report by the Vietnam Energy Partnership Group (VEPG), the manufacturing industry accounted for nearly 47% of the country’s total energy consumption in 2021.

The surge in energy demand is driven by several factors, including the expansion of existing industries and the establishment of new manufacturing facilities, particularly in sectors like electronics, textiles, and automotive. Vietnam’s energy consumption in the manufacturing sector has been growing at an annual rate of around 8% over the past decade, according to the Vietnam Energy Outlook Report 2021.

This rapid growth in energy consumption poses significant challenges for Vietnam in terms of energy security, affordability, and environmental sustainability. To address this “energy thirst,” the Vietnamese government has been promoting energy efficiency initiatives and investing in renewable energy sources. Prime Minister Pham Minh Chinh has issued a directive to save electricity in 2023 – 2025 and subsequent years, aiming to curtail the country’s overall energy consumption by 8 – 10 percent and reduce power transmission losses to 6 percent by the year 2023.

Moreover, the project “Promoting energy saving in industries in Vietnam” is implemented to encourage the judicious and efficient utilization of energy resources within the industrial sector of Vietnam. Concurrently, it endeavors to make a meaningful contribution towards attaining the nation’s overarching goals for energy conservation. Enhancing energy efficiency in manufacturing processes and adopting clean energy technologies are crucial steps for Vietnam to achieve its targets of reducing greenhouse gas emissions and transitioning towards a low-carbon economy.

The Importance of Energy Efficiency in Manufacturing in Vietnam

The importance of enhancing energy efficiency cannot be understated. Data from the International Energy Agency highlights that measures to boost energy efficiency could account for a staggering 47% of the potential reductions in carbon dioxide emissions related to energy use by the year 2030. Energy efficiency is crucial in manufacturing for several reasons:

1. Reducing operational costs

Implementing energy-saving technologies and equipment will enable businesses to significantly reduce input costs for their manufacturing processes. For instance, replacing outdated equipment and motors with newer, more efficient models will help consume less energy while still achieving equivalent output capacity.

Additionally, improving heating, ventilation, and air conditioning systems also contributes substantially to conserving energy consumption. Furthermore, optimizing production processes by eliminating unnecessary steps is also an effective measure to reduce energy input requirements.

2. Increasing productivity

Efficient energy utilization facilitates seamless operation of production lines without interruptions caused by energy shortages. This continuous flow translates into heightened output and elevated labor productivity for the company. Furthermore, automation and digital technologies streamline processes, optimizing energy utilization and amplifying productivity levels. When implemented effectively, the goal is for performance enhancements to drive productivity gains, ultimately eliminating unnecessary expenditures.

3. Enhancing competitiveness and attracting investment

Globally, investors and supply chains are increasingly favoring partnerships with enterprises that adhere to sustainable development principles. Moreover, it is necessary to meet the UN’s CO2 emission reduction targets, avoiding financial penalties.

Manufacturers adopting energy efficiency solutions are perceived as eco-friendly entities, reinforcing their competitive edge and attracting foreign investment inflows. Their products also gain a competitive advantage in domestic and international markets by meeting the rising green consumption trends exhibited by consumers.

4. Reducing greenhouse gas emissions and environmental impact

The deployment of energy efficiency initiatives, such as investing in new energy-saving technologies, equipment, and process optimization, significantly reduces greenhouse gas emissions originating from the industrial sector – currently a major polluter. Industry-related emissions constitute 29 percent of CO2 emissions in Vietnam, according to Climate Transparency. This emissions reduction mitigates climate change impacts while diminishing the sector’s detrimental effects on ecosystems and community health.

5. Meeting rising energy demands

Vietnam’s rapid economic expansion, coupled with the proliferation of industrial parks and supply chains, continues fueling an escalating appetite for energy resources. Enhanced energy efficiency plays a pivotal role in satisfying these surging demands while optimizing the use of finite energy resources, contributing to national energy security, and enabling uninterrupted business operations for enterprises.

6. Social commitment and corporate image

Energy efficiency initiatives exemplify a company’s commitment to environmental and social responsibility. This positive stance promotes an active corporate image within communities and elevates consumer appeal.

According to the Ministry of Industry and Trade, the demand for green products in Vietnam has been growing at an average rate of 15% annually between 2021 and 2023. A remarkable 72% of Vietnamese consumers express a willingness to pay a premium for eco-friendly products, reflecting the rising awareness and concern for environmental protection among the populace. Consequently, energy efficiency initiatives not only improve operational efficiency but also augment brand equity and convey a constructive message to society.

How Businesses Can Improve Energy Efficiency in Manufacturing?

The first and crucial step for businesses to improve energy efficiency in manufacturing is to conduct energy audits. Regular energy audits help identify areas of high energy consumption and provide recommendations for energy-saving measures. This initial assessment lays the foundation for implementing targeted strategies to optimize energy usage. Investing in energy-efficient technologies, such as upgrading machinery, equipment, and production processes, as well as utilizing renewable energy sources like solar and wind power, can significantly reduce energy consumption.

Optimizing production processes is another effective approach. Companies can achieve substantial energy savings through the elimination of unnecessary steps, implementation of lean manufacturing principles, and strategic use of automation. Training and raising awareness among employees through energy-saving programs and fostering an energy-conscious culture within the organization can also encourage behavior change and idea-sharing, leading to improved energy efficiency.

Additionally, businesses can leverage smart energy solutions offered by companies like Vinergy. Vinergy’s cutting-edge solutions offer a comprehensive approach to energy management, combining real-time energy monitoring, automation capabilities, and actionable insights. With Vinergy, you can effortlessly track, control, and optimize your manufacturing’s energy consumption from a single platform, unlocking substantial cost savings and minimizing your environmental footprint. To explore the boundless possibilities of Vinergy’s energy-saving solutions, get in touch with us for a consultation with our experts today!