Investments in cold storage facilities in Vietnam have begun to take off in recent years as a result of rising demand. According to Savills, a global services firm specializing in real estate, Vietnam’s cold storage industry is surging and is expected to reach USD 295 million by 2025, with a 12% annual growth rate.
Additionally, Savills reported that modern commercial retail was the critical reason for the sector’s fast development, with the food business accounting for almost 80% of demand. In 2019, Vietnam had 48 refrigerated storage facilities, with a combined capacity of 600,000 shelves. Leading cold storage suppliers – which include Mekong Logistics of Minh Phu-Gemadept, ABA Cooltrans, and Hoang Anh Gia Lai Group – employ many warehouses with a capacity of 45,000-50,000 each.
Some recent developments include:
- In 2020, Vietnam Green Startup commenced the construction of five smart cold storages in the Mekong Delta region. One of them is located in Tra Vinh province, covering an area of 10,000 sqm with an initial investment of USD 1.07 million.
- Also in 2020, Truong Hai Auto Corp invested in building an extensive cold storage system in Chu Lai Economic Zone, capable of handling 2,400 tons of goods.
- In 2021, AJ Total Vietnam inaugurated a cold warehouse in Long Hau Industrial Park, which is considered Vietnam’s highest cold warehouse, with a capacity of 31,000 pallets.
- Similarly, Hung Vuong Corp put a 60,000-pallet cold storage facility into operation in Ho Chi Minh City (HCMC), which was dubbed the largest in Southeast Asia and the second largest in the world in terms of capacity.
- In early 2022, Another AJ Total Vietnam warehouse, with a capacity of 23,000 pallets, was slated to open in Hung Yen Province.
- Preferred Freezer Services, a US cold storage provider based in HCMC, has announced plans to establish new cold warehouses in several localities in the next five years, including the Mekong Delta, Hanoi, Danang and Quy Nhon.
(Source: The Star)