Vietnam’s cold storage logistics market is forecast to reach a value of 295 million USD by 2025, with an annual growth rate of 12 percent per year, said an expert.
In the context of a booming cold storage logistics industry to serve vaccine distribution needs as well as growth in seafood processing and consumer demand, Vietnam’s cold storage logistics market is forecast to reach a value of 295 million USD by 2025, with an annual growth rate of 12 percent per year, said an expert.
Trang Bui, General Manager at Cushman & Wakefield (C&W) Vietnam, made the statement citing figures from a C&W report.
The real estate service provider C&W said that the cold storage sector in Vietnam in the last two years has gained a strong attraction, driven by import and export orders for medicines and vaccines, and an explosive growth of food delivery and e-commerce.
In addition, more and more consumers have demand to access fresh and quality organic products. As a result, the demand for cold storage is increasing, boosting investment trends in cold supply chains.
According to Trang Bui, compared to developed markets in the region, the cold storage market in Vietnam remains nascent and fragmented, with its value hitting around 169 million USD in 2019.
In Vietnam, the market is more developed in the southern region, largely due to the growth of the fisheries and agriculture sectors. Long An province has many cold storage facilities because of its location in the agricultural hub in the Mekong Delta and next to the southern economic hub – Ho Chi Minh City.
However, experts also noted that Vietnam’s cold storage supply chain still faces many challenges before moving to the next stage in the development of industrial logistics and become more competitive. In the medium to long term, infrastructure development remains key to improving the cold storage supply./.