T&T - YCH's AI logistics application reduces warehouse transportation time by 95%

The Vietnam Innovation Day 2024 and the 5th anniversary of the National Innovation Center (NIC) took place at the Hoa Lac Hi-Tech Park in Hanoi on the morning of October 1. The event saw the participation of Prime Minister Pham Minh Chinh, the leadership of various ministries, central and local agencies, pioneering global "big tech" companies such as Meta, NVIDIA, and Qualcomm, as well as major domestic corporations like T&T Group, Viettel, Sovico, FPT, and THACO.

During the event, the ICD Vinh Phuc – Vietnam SuperPort™, a joint venture between T&T Group and Singapore's YCH Group, showcased an impressive experience with the Apple Vision Pro, offering a glimpse into the future of Vietnam SuperPort™. The virtual reality technology highlighted the "Park within a Park™" model, which integrates all supply chain management services for road, rail, air, and sea transport into a single logistics hub. This initiative promotes seamless connectivity, enhances supply chain efficiency, and strengthens Vietnam SuperPort™’s position as a key logistics player in the region.

ICD Vinh Phuc – Vietnam SuperPort™ pioneers breakthrough technological solutions

During his presentation to the Prime Minister at Vietnam Innovation Day 2024, Dr. Yap Kwong Weng, CEO of Vietnam SuperPort™, announced that Vietnam SuperPort™ will integrate artificial intelligence (AI) solutions, developed by YCH Group, that saw considerable success at the Supply Chain City (SCC) in Singapore.

Notable examples include the Automated Storage and Retrieval System (ASRS), Autonomous Guided Vehicles (AGV), Drone Inventory Management System, and Autonomous Mobile Robots (AMR). According to T&Y experts, ASRS technology can optimize storage space by up to seven times and reduce warehouse transportation time by 95%.

Similarly, the use of drones to replace manual labor and fixed camera systems for goods monitoring will significantly reduce time, with only 12 minutes needed for inventory counting—a task that previously required two people and an entire day to cover a sizeable warehouse section.

More importantly, as a representative from T&Y highlighted, the ICD Vinh Phuc SuperPort™ will utilize advanced AI technologies as well as pioneer breakthrough technological solutions. By collaborating with leading global tech partners, ICD Vinh Phuc SuperPort™ aims to develop innovations such as advanced warehouse robots to optimize workflows and accelerate order processing; an ESG platform that utilizes blockchain and AI to create a digital twin for tracking and reducing carbon footprints; an integrated logistics marketplace to connect businesses and logistics service providers; and enhancing transparency and improving capital access through AI.

Vietnam SuperPort™, the first “super port” in the ASEAN smart logistics network, is one of the largest logistics hubs in northern Vietnam. The multimodal logistics port spans an area of 83 hectares, with a total investment capital of approximately 200 million USD. Located in the industrial hub of Binh Xuyen, Vinh Phuc, Vietnam SuperPort™ is developed by T&Y SuperPort Vinh Phuc Joint Stock Company—a joint venture between T&T Group and Singapore’s YCH Group.

Situated along the northern economic corridor, Vietnam SuperPort™ connects 20 industrial zones with major seaports and airports, including Hai Phong and Noi Bai, extending into China’s Yunnan and Kunming provinces. Benefiting from nearly 70 years of YCH Group’s logistics expertise, Vietnam SuperPort™ also capitalizes connections with global supply centers across Asia, including China, India, and Southeast Asia.

As a strategic multimodal logistics hub, Vietnam SuperPort™ connects China-Southeast Asia freight networks with global markets via road, rail, air, and sea. As a key node in the ASEAN smart logistics network, Vietnam SuperPort™ is designed to strengthen regional integration and cross-border trade, thereby promoting faster, smarter, and more seamless supply chains.

“Vietnam SuperPort™ is not only building infrastructure. We are creating a sustainable and advanced ecosystem that utilizes modern technologies to enhance the efficiency of Vietnam’s logistics system and expand the supply chain from China to ASEAN. With Vietnam SuperPort™, we are ushering in a new era for the logistics industry, with Vietnam as a strategic link in the global supply chain,” the CEO of Vietnam SuperPort™ affirmed to the Prime Minister at Vietnam Innovation Day 2024.

A new era for the logistics industry

According to the World Bank (WB), Vietnam ranked 43rd in the 2023 Logistics Performance Index (LPI), with Singapore securing the top spot.

The Vietnam Logistics Business Association (VLA) reported that Vietnam's logistics costs currently account for 16.8 to 17% of its GDP, which are significantly higher than the global average of 10.6%. In the ASEAN region, Vietnam’s logistics costs surpass those of Singapore (8.5%), Malaysia (13%), and Thailand (15.5%).

Singapore is renowned as one of the world's most advanced nations in the logistics sector. The country is a model for regional and global logistics services development, investment, and management. A key factor that propelled Singapore to the top of the global logistics industry and contributed to its economic prosperity is the use of various advanced technologies, including artificial intelligence (AI), blockchain, and the Internet of Things (IoT), to optimize logistics processes, enhance operational efficiency, and reduce logistics costs. The adoption of these technologies is projected to further reduce Singapore's logistics costs to as low as 5%.

Vietnam has designated the integration of AI technology into logistics as an urgent solution. According to Decision No. 200 issued by the Prime Minister, a key task to improve Vietnam's logistics competitiveness and development by 2025 involves “researching and applying new technologies, technical advancements, and modern technologies in supply chain management, operations, and training to achieve higher logistics service quality.”

Under the National Digital Transformation Program, which runs until 2025 with a vision towards 2030, Vietnam has identified logistics as one of eight sectors prioritized for digital transformation.

The application of technology in logistics offers numerous benefits. Studies indicate that incorporating technology into logistics operations can reduce delivery costs by 14% and increase the number of deliveries per vehicle by 13%. Additionally, breakthrough technologies enable companies and logistics service providers to further optimize costs and boost delivery productivity by efficiently planning routes to ensure more pickups and drop-offs.

Furthermore, AI-driven logistics will enhance the competitiveness of domestic logistics companies, which will attract additional investment, particularly from foreign direct investment (FDI) businesses and major tech firms specializing in technology, semiconductors, and microchips.