Technological breakthroughs

Automation Drives Substantial Transformation at Vinachem

12:04 PM @ Friday - 12 June, 2026

From cargo handling, stacking product bags, to cutting and splicing cord fabric, automation is delivering real results at many Vinachem units—reducing manual labor, increasing productivity, improving working conditions, and stabilizing production processes.

In implementing Resolution 57-NQ/TW, the Vietnam National Chemical Group (Vinachem) has focused on deploying science and technology solutions, innovation, and digital transformation directly linked to production and business activities. Among these, production automation has been identified as a practical direction, with the potential to bring clear improvements in labor productivity, management efficiency, product quality, working conditions, and the competitiveness of enterprises.

A notable achievement is the gradual introduction of robots and automated equipment into stages previously reliant on manual labor at several member units. From cargo handling, stacking product bags, to cutting and splicing cord fabric, automation solutions not only reduce costs and boost productivity, but also help standardize production processes, improve working conditions, and increase product stability.

The automatic cargo-handling robot system at LIX Detergent JSC reduces direct labor, lowers labor costs, and enhances operational efficiency at the plants.

At LIX Detergent JSC, automatic cargo-handling robot systems have been installed at the Binh Duong, Thu Duc, and Bac Ninh plants. The introduction of robots for cargo handling suits the unit’s production characteristics, especially in stages with high direct labor demands, repetitive work, and the need for operational stability. The robot system significantly reduces direct labor, enhances safety, and improves output quality by ensuring precise parameter settings before production.

The effectiveness at LIX is evident in the automated robot projects at the three plants. At the Binh Duong Branch, direct labor demand dropped from 45 to 12 workers after investing in robots; labor costs fell from about VND 6.75 billion/year to about VND 1.8 billion/year. After accounting for warranty and maintenance, actual savings reach about VND 4.65 billion/year. At the Thu Duc plant, direct labor dropped from 14 to 2 workers, labor costs are about VND 300 million/year; the project payback period is about 5.37 years, with an internal rate of return (IRR) of 26.74%, exceeding the WACC of 12%. At LIX Bac Ninh, before automation, 10 general workers per shift were needed for handling; after investing in robots, this was reduced to 2 machine operators per shift; the payback period is 7.76 years, with an IRR of 17%, above the WACC of 12%.

These results from Binh Duong, Thu Duc, and Bac Ninh demonstrate that automation at LIX not only replaces manual labor but also delivers clear financial benefits, enhances organizational capacity, and stabilizes operations.

The robot for picking and stacking product bags at DAP No. 2 Joint Stock Company – Vinachem increases accuracy in stacking bags on pallets, supporting more efficient transport, storage, and sales

At DAP No. 2 Joint Stock Company – Vinachem, a robot for picking and stacking bags is used to stack products on pallets. According to the design, after production, products are robotically stacked on pallets, each carrying about 2 tons of DAP (50-kg bags). Each robot has a design capacity of 40 tons/hour, and actual operation can reach 40–45 tons/hour. Robotic application ensures products are stacked neatly and precisely, reducing misalignment during transport, storage, and sales.

A remarkable aspect at DAP No. 2 is that automation not only boosts productivity, but also improves working conditions. Previously, bag handling was labor-intensive, exposing workers to heat and poor air quality. With robots replacing manual handling, direct labor exposure to harsh environments is reduced, while pallet stacking becomes more standardized. Without robots, about 3 workers per shift per side were needed—about 24 workers across shifts. Robot application significantly reduces direct labor in stacking, and supports storage, logistics, and sales.

Based on the success of the robotic bag-stacking system, DAP No. 2 plans to continue automating the bagging stage, which still relies heavily on manual labor. Here, workers perform continuous tasks, such as bag sleeving, monitoring weighing, and feeding bags into the sewing machine. Currently, about 27 workers are used in bagging; with automation, this could drop to about 4, reducing direct labor by 23. This builds on the success of bag-stacking robots and demonstrates DAP No. 2’s focus on automating stages with the highest potential for productivity and operational stability gains.

The automated cord fabric cutting and splicing robot arm at Da Nang Rubber JSC increases splicing precision, productivity, and product stability

At Da Nang Rubber JSC, automation is applied to the cutting and splicing of cord fabric—a key stage in the production of bias and semi-steel truck tires. After rolling, cord fabric is cut to various angles and lengths; then the sheets are spliced into rolls for forming. The splice requires uniform density and precision, as this affects tire balance and stability in use.

Previously, cord splicing at DRC was done manually, relying on operator skill, making it difficult to ensure uniformity and consistent productivity. The development of an automated cord cutting and splicing machine using a robotic arm has improved precision, ensured product uniformity, and enhanced tire quality, better meeting customer demands.

The effectiveness at DRC is evident in both productivity and labor use. The automated cutter-splicer has a capacity of about 14 splices/minute with only 1 operator; the manual machine achieved about 7 splices/minute and required 2 operators. Thus, to reach the same productivity, manual methods needed 2 machines and 4 workers, while the automatic system reduces labor, lessens reliance on manual skills, and increases production stability and efficiency.

Experiences at LIX, DAP No. 2, and DRC show that production automation is becoming a practical solution in Vinachem’s implementation of Resolution 57-NQ/TW. Robot and automated systems not only reduce manual labor, cut costs, and boost productivity, but also improve working conditions, raise product quality, and standardize production processes.

Building on initial results, Vinachem is rolling out production automation in a targeted fashion, addressing the actual needs of each unit. Introducing robots and automation in labor-intensive stages paves the way for further research and investment planning suited to production conditions, concretizing the implementation of Resolution 57-NQ/TW in business operations.