Viettel Post, a courier service owned by the Vietnamese Ministry of Defence, has recently introduced a fleet of 200 automated guided vehicles (AGVs) at its warehouse in Hanoi. This move represents a significant advancement in Vietnam’s efforts to modernize its logistics sector.
The AGVs, which run on proprietary software developed by Viettel Post, are part of the state-owned enterprise’s strategy to seize opportunities in Vietnam’s rapidly growing e-commerce market. By integrating AGVs into their operations, Viettel Post has managed to reduce delivery times by 8-10 hours and increase output capacity threefold.
With the new system in place, Viettel Post is now capable of processing around 4 million parcels on a daily basis, accounting for approximately half of Vietnam’s total e-commerce capacity. Despite the impressive growth of Vietnam’s logistics sector, which experiences annual growth rates of 14-16% and generates around $40 billion in revenue, the industry still grapples with significant inefficiencies. Logistics costs in Vietnam consume 16-17% of the country’s GDP, nearly double the percentage seen in Singapore.
Vietnam currently ranks 43rd in the World Bank’s logistics performance index, lagging behind its regional competitors. To address these challenges, Viettel Post launched a robotics program in 2023, starting with a research trip to China where engineers studied the systems used by industry giants like Alibaba’s Cainiao and Amazon.
The early results of Viettel Post’s automation efforts have been promising. Yody, a Vietnamese fashion retailer, reported a 50% reduction in labor costs after deploying 48 AGV robots along with warehouse management software. This initiative aligns with Vietnam’s broader goal of transitioning from low-cost manufacturing to high-tech industries.
Hung Nguyen, a logistics expert at RMIT University in Hanoi, highlighted that for state-owned companies like Viettel Post, the robotics program serves as a “political mission” in addition to a business strategy. The company has ambitious expansion plans, including the development of a new $130 million logistics park spanning 144 hectares. Viettel Post is also looking to expand its operations in China’s Guangxi province and explore markets in Cambodia and Myanmar for its AGV technology.
In conclusion, Viettel Post’s deployment of AGVs at its Hanoi warehouse marks a significant milestone in Vietnam’s journey towards modernizing its logistics sector. By leveraging automation and technology, the company aims to improve efficiency, reduce costs, and enhance its competitiveness in the rapidly evolving e-commerce landscape. As Viettel Post continues to expand its reach and capabilities, it is poised to play a key role in shaping the future of logistics in Vietnam and beyond.
