Opportunities for Vietnam in the robotics value chain

At 10 pm, inside Viettel Post’s parcel‑sorting warehouse in Hanoi, small autonomous robots move steadily across the floor while parcels keep arriving, scanners keep reading, and the system continues to operate under the pressure of preparing shipments for the next day.

Four million parcels per day, equivalent to 50% of Vietnam’s daily e-commerce volume, is the processing capacity the company claims to have achieved through automation – a scale that would be difficult to manage with manual labour alone.

But the presence of robots in logistics is only the visible tip of a much larger iceberg. According to the International Federation of Robotics (IFR), Vietnam is among the fastest‑growing markets for industrial robot installation in the region, recording growth of around 27 per cent in 2025.

At the same time, rising labour costs, averaging eight to ten per cent per year, are pushing firms across industries, from textiles and electronics to logistics, to adopt automation.

When robots become part of real production systems, they can stimulate entire industrial ecosystems around them, creating demand for components, engineering skills, and system integration.

This raises a question for Vietnam: where does the country really stand in the robot manufacturing value chain?

A complex ecosystem

A robot is not a single technology but made up of multiple layers of technology stacked together. Each layer is developed by different research groups, firms, and countries, forming a complex ecosystem rather than a single “hero”.

“A robot is a combination of motion, power, sensing, software, and the engineering needed to make those parts work reliably together in real-word environments,” said Dr Byron Mason, a senior lecturer in Robotics and Mechatronics Engineering at RMIT University Vietnam, told Tia Sang.

Even a robot vacuum cleaner depends on this balance. A typical household model uses several small motors, infrared sensors, and a battery with a capacity of one to two hours.

At industry scale, the pattern becomes even clearer. Some estimates suggest sensing and processing at roughly 10 to 15 percent of robot value, movement and mechanical structure at 35 to 40 percent, and batteries and battery management at another 10 to 15 percent.

“On that breakdown, the highest‑value layers are not the casing or the outward design. They are the parts that make the robot move, manage power, control decisions, and keep the whole machine working reliably. In creating a value‑chain position, that is where the focus should be,” Dr Mason explained.

Seen this way, robotics is not simply “a product to manufacture” or “a technology to own”. It is an ecosystem to participate in. Without recognising this, countries like Vietnam risk choosing the wrong starting points by trying to do everything at once.

The debate about robotics in Vietnam has shifted. It is no longer about whether the country can build robots, but about a tougher, more practical consideration: where in the value chain should Vietnam enter?

Vietnam’s existing capabilities

Dr James Kang, a senior lecturer in Computer Science at RMIT University Vietnam, highlighted that Vietnam already has some of the industrial capabilities that robotics depends on, although much of this capacity sits within the foreign-invested sector.

Over the past two decades, Vietnam has become an important link in the global electronics supply chain. Large‑scale facilities, from Samsung’s phone assembly complexes in Thai Nguyen, to Intel’s assembly and test site in Ho Chi Minh City, and most recently Amkor’s advanced chip‑packaging plant in Bac Ninh, demonstrate experience in precision manufacturing, supplier coordination, and large-scale high‑tech production.

“Of course, that does not automatically make Vietnam a robotics leader. But it does show that the country has something to build on as an efficient follower,” Dr Kang said.

Past experience, however, suggests that if Vietnam tries to join the robotics value chain by relying mainly on foreign direct investment, it risks falling into a familiar “outsourcing trap” with rapid growth, but little value retained at home. According to Dr Kang, this model may deliver short-term gains in jobs and exports, but it rarely builds long-term technological independence. Vietnam may assemble increasingly sophisticated machines but own very little of the technology, intellectual property, or strategic decision behind them.

In this case, any robotics industry that emerges under those conditions would remain heavily dependent on the decisions of foreign corporations, and therefore highly vulnerable when production shifts elsewhere. More importantly, domestic firms would struggle to grow, not only in industrial capability, but in innovation as well.

Therefore, Dr Kang argues that Vietnam must focus on building industrial capabilities in areas where universities, domestic companies, and start-ups can genuinely participate and accumulate expertise.

He points to the government’s recent investments in the semiconductor sector, including an ambitious goal to train an additional 50,000 engineers with university-level qualifications or higher. Moreover, various programs have been launched to help students and start-ups gain access to chip design tools and specialised training.

For robotics, these skills are critical. Modern systems depend not only on mechanical parts, but also on electronics, sensors, power systems, and software.

Notably, several Vietnamese firms, from Viettel Post, VinMotion, and Phenikaa‑X to technology start‑ups, have started developing autonomous robots with initial success, suggesting that domestic capability can emerge if supported in the right way.

Three practical entry points for Vietnam

Where, then, are the most realistic openings for Vietnam in the global robotics value chain? According to Dr Mason, the most plausible near‑term opportunities lie in layers closest to Vietnam’s existing strengths in electronics, assembly, and applied engineering.

One of the clearest entry points is battery systems and energy management. Like electric vehicles, the performance of robots depends heavily on how long they can operate, how quickly they recharge, and how safely they run.

Vietnam may not yet be able to compete with other countries’ battery-cell technology, but more realistic opportunities exist in battery‑pack assembly, battery management and cooling systems, charging design, and eventually recycling. These layers are technically sophisticated enough to create value, without requiring Vietnam to make unrealistic leaps ahead.

Dr Mason said that projects like Vingroup's VinES battery factory and Vietnam's nickel resources point to an emerging opportunity rather than an established strength. Starting with battery systems could allow Vietnam to build experience before moving to more advanced stages like battery chemistry.

Another opening lies in motion-related components. According to Dr Mason, mastering high‑precision motors or advanced gear systems is extremely difficult, as these require tight tolerances, advanced materials, and years of refinement.

A more practical starting point is in the components used in specific robot types such as warehouse robots or service machines – areas that require moderate technical capabilities but have large markets. These components could include structural frames, motor housings, wheel modules, wiring harnesses, controller boards, and advanced power electronics, such as energy-efficient DC/DC converters, integrated power modules, and next-generation gallium nitride (GaN) and silicon carbide (SiC) transistors that allow robots to run longer and charge faster.

Another realistic opportunity is in system integration – making a complete machine work reliably in daily use. A warehouse robot, for example, must do more than just move. It needs to “understand” its surroundings, communicate with inventory software, automatically recharge when energy runs out, and keep adapting as conditions change. Achieving this depends not on any single component, but on how all parts are connected and work together.

By focusing on contract manufacturing, adaptation, and system integration for logistics and factory automation, Vietnamese firms can build capability and value before attempting to launch global consumer brands.

FPT’s experience in software outsourcing shows that this path can work. The kinds of tasks that may not look glamorous at first are often the very ones that give a Vietnamese robotics company the chance to go much further over time.

Competing in a crowded race

Dr Mason warned that Vietnam will not be climbing this ladder alone. Thailand, Indonesia, and India are also trying to move into higher‑value parts of electronics and automation.

He also stressed that Vietnam may remain dependent on imported chips, sensors, and premium motors longer than policymakers hope. As in many sectors, strong national strategies can still face uneven implementation.

“Vision matters but what matters more is consistent effort in training, research funding, industry partnerships, standards, and procurement,” Dr Mason said.

In his view, if robotics does take root in Vietnam, progress will not come in the form of dramatic breakthroughs or headline‑grabbing leaps. It will come through the steady accumulation of capability, built piece by piece in batteries, motion systems, integration, and maintenance. Vietnam may not deliver fully formed robots right away, but the process will gradually deepen its understanding of how complex systems function in real‑world conditions.

If robotics can genuinely serve as a catalyst, or even just a pretext, to upgrade Vietnam’s wider industrial base through engineering education, semiconductor development, system design and integration, then the value created will extend far beyond the final robots. It will lie in Vietnam’s own ability to solve complex automation challenges across a range of sectors.

Story: Ngo Ha

A version of this article was first published by Tia Sáng - VnExpress. Read the original article here.

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