Viettel Post, the defence ministry-owned courier service, has unveiled a fleet of 200 automated guided vehicles (AGVs) at its Hanoi warehouse, marking a significant step in Vietnam’s push to modernise its logistics sector.
The robots, which operate on proprietary software developed by Viettel Post, represent the state-owned enterprise’s bid to capitalise on Vietnam’s burgeoning e-commerce market. The integration of AGVs reduces delivery times by 8-10 hours and triples output capacity.
The system can now process approximately 4 million parcels daily, roughly half of Vietnam’s e-commerce capacity.
Vietnam’s logistics sector experiences robust growth of 14-16% annually, reaching approximately $40 billion. However, the industry faces significant inefficiencies, with logistics costs consuming 16-17% of GDP—nearly double that of Singapore’s.
Vietnam currently ranks 43rd in the World Bank’s logistics performance index, trailing regional competitors.
The company’s robotics programme, launched in 2023, began with a research expedition to China, where engineers studied systems used by logistics giants, including Alibaba’s Cainiao and Amazon.
The automation drive has shown promising early results. Yody, a Vietnamese fashion retailer, reported halving its labour costs after deploying 48 AGV robots with warehouse management software.
The initiative is part of broader state ambitions to transition Vietnam from low-cost manufacturing to high-tech sectors. Hung Nguyen, a logistics expert at RMIT University in Hanoi, said that for state-owned companies like Viettel Post, the programme is also a “political mission.”
The company has ambitious expansion plans, including a new $130 million logistics park spanning 144 hectares. It is also establishing operations in China’s Guangxi province and exploring markets in Cambodia and Myanmar for its AGV technology.