Alibaba's Cainiao opens automated sorting centre to tap e-commerce sector

Marking a major milestone in advancing local logistics infrastructure, the new facility is set to enhance Vietnam’s rapidly growing e-commerce sector with cutting-edge automation and efficiency.

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 shapes and sizes while ensuring real-time tracking and an accuracy rate of over 99 per cent.

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 per cent.

“China’s massive e-commerce ecosystem has driven some of the world’s most advanced logistics technologies. 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,” said Jeff Lyu, Cainiao's project lead.

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 pressure to deliver faster, more scalable, and cost-effective fulfilment solutions.

Southeast Asia is a key market for Cainiao's logistics technology, where the company has rolled out warehouse automation, sorting solutions, and digital logistics in countries like Thailand and Singapore. To further strengthen local project delivery, Cainiao has established a dedicated Asia-Pacific logistics technology team.

“At Cainiao, we see innovation and technology as the backbone of efficient logistics and the key to sustainable e-commerce growth. We remain committed to delivering leading solutions that help global businesses scale efficiently and stay competitive,” Lyu added.

Ready-built logistics gain momentum Foreign investors are showing growing interest in Vietnam’s logistics sector by developing new facilities to tap into rising demand.

Construction of $60 million logistics centre kicks-off in Hue On March 26, Hue People's Committee coordinated with LEC Group to commence construction of Chan May Logistics Centre at Chan May-Lang Co Economic Zone in Phu Loc district.

Sembcorp begins construction on SIS Dinh Vu logistics centre On March 6, at DEEP C Haiphong 1 Industrial Zone, Sembcorp Dinh Vu Infra Services Co., Ltd. officially broke ground on the Sembcorp Logistics Park Dinh Vu (SIS Dinh Vu) warehouse and ready-built factory for lease initiative.