DHL scales automation in Vietnam logistics operations

Automation and infrastructure support high-tech shifts.

DHL Supply Chain is accelerating investment in Vietnam as the country cements its role as a primary hub for global retail and technology manufacturing, with rising labor costs and supply chain demands pushing logistics players to upgrade capacity and automation.

Bertrand Juvigny, Managing Director of the DHL Supply Chain in Vietnam, said the company is expanding in northern Vietnam, where high-tech investment is strongest. “When you are talking about high tech, the concentration of customers investing is much higher in the north,” he said.

DHL currently has a 14-hectare land bank and plans to build an 80,000 square metre facility to support manufacturing and export needs. “We'll be putting in place facilities that are way higher above the standard that we usually see in Vietnam,” Juvigny said, adding that the site is designed to serve technology customers more effectively.

Rising labor costs are also pushing the company to deploy more automation, though Juvigny said cost is only part of the equation. “First you have the labor cost. So yes, it's always a consideration as to when automation makes sense from a cost standpoint, but we need to also think about resilience,” he said.

DHL has already started introducing “light touch automations” and plans to scale more robotics within its facilities. Juvigny said the goal is not only efficiency, but also stronger supply chain continuity for clients. “Automation cannot be summarized into just the cost. It has to be also looked into from a resilience standpoint.”

He also warned businesses against treating logistics purely as a cost centre when expanding in Vietnam. “Sometimes that can come with additional costs, and those costs are very often blind spots that some customers might not see,” he said, pointing to service quality, asset use and compliance as common problem areas.

For Juvigny, the issue is strategic. “Logistics might be a cost, but it has to be a competitive advantage from the start.”