Alibaba Group’s logistics arm Cainiao has opened a new highly automated sorting centre in southern Vietnam, which has been developed to support the country’s booming e-commerce industry.
The new hub – now Vietnam’s largest automated sorting centre – has been developed by Cainaio for one of the country’s leading courier companies. It can efficiently process parcels of various sizes, with over 99% accuracy, the firm noted.
E-commerce in Vietnam
The new facility is set to enhance Vietnam’s e-commerce sector, which is predicted to show an annual growth rate (CAGR 2025-2029) of 9.69% over the next five years, growing from US$16.13bn in 2025 to US$23.35bn by 2029, according to a report by Statista.
Overall, Vietnam’s e-commerce market is one of the fastest-growing in Southeast Asia, fuelled by increasing digital adoption and rising cross-border trade. As demand surges, logistics providers are under pressures to deliver faster, more scalable, and cost-effective fulfilment solutions, Cainiao noted.
Advanced automation
Designed and developed in-house by Cainiao, the state-of-the-art sorting centre integrates multiple smart logistics technologies, including automated parcel separation, multi-layer cross-belt sorters, and sorting robots.
By leveraging AI and digital solutions, the system efficiently handles bulk shipments, processing parcels of all sizes and shapes while ensuring real-time tracking and an accuracy rate of over 99%.
Despite the project’s complexity and challenges, including typhoon-related shipping delays, Cainiao’s team completed the delivery and deployment in just 100 days, cutting the usual timeline by 30%, the company noted.
“China’s massive e-commerce ecosystem has driven some of the world’s most advanced logistics technologies,” said Jeff Lyu, Cainiao Project Lead. “Unlike traditional automation providers, Cainiao is a global logistics leader itself. Our automation solutions are designed for real-world operations, making them highly practical and efficient for improving sorting capabilities and enhancing the customer experience.”
Dedicated APAC team
