Vietnam Cold Chain Market Size and Forecast (2019-2029)

Executive Summary

The Vietnam cold chain market has experienced significant growth in recent years, with the market expanding at a compound annual growth rate (CAGR) of 8.78% from 2019 to 2023. This growth is primarily driven by the increasing demand for temperature-sensitive products, booming import-export activities, and the rapid expansion of modern retail. Key sectors propelling market demand include food and beverage, pharmaceuticals, and e-commerce, with a rising middle class fueling higher demand for fresh and organic products. Increasing urbanization and consumer preference for high-quality, traceable food have further strengthened demand for temperature-controlled logistics solutions, particularly for fresh produce, pharmaceuticals, and processed foods.

Cold storage facilities in Vietnam are concentrated in the southern region, driven by proximity to industrial parks, seaports, and agricultural hubs. Technological advancements are shaping the industry, with refrigerated trucks and reefer containers equipped with real-time temperature monitoring systems ensuring compliance with international food safety standards. E-commerce and food delivery services have spurred demand for cold storage facilities, particularly for fresh produce and temperature-sensitive goods.

The country also benefits from recent infrastructure investments aimed at strengthening cold chain logistics. Initiatives such as the Van Don Mong Cai Expressway in the north and the expansion of Long Thanh International Airport in the south have improved transportation efficiency, reducing costs and enhancing the capacity of Vietnam’s cold chain network. Furthermore, innovative technologies, such as automated temperature monitoring and real-time tracking, are being adopted to boost operational efficiency, particularly for time-sensitive sectors like pharmaceuticals and fresh food products.

Despite robust market growth, Vietnam's cold chain sector faces key challenges. High initial capital outlay for constructing cold storage facilities, prolonged construction timelines, and extended lease terms present entry barriers for smaller firms. Additionally, seasonal fluctuations in agricultural production create variable demand for cold storage, affecting utilization rates. The market is also marked by intense competition, contributing to decreased profitability and a 20-30% drop-in storage fees in 2022 due to oversupply. However, conditions are expected to stabilize in the coming years due to anticipated balance between supply and demand, supporting double-digit market growth from 2024 to 2029.

The Vietnam cold chain market is poised for robust growth, with an expected double digit compound annual growth rate (CAGR) between 2024 and 2029. As Vietnam's urban population is projected to hit 47.24 million by 2030, the demand for improved logistics and cold storage infrastructure is anticipated to expand correspondingly. In alignment with this need, 13 new cold storage projects are planned from 2024 to 2028, aiming to elevate the country's storage capacity to 1.8 million pallets by 2030.

Growth in Vietnam’s cold chain infrastructure is closely tied to the country's strategic objectives in agriculture and food sectors, where rising exports of fish, seafood, and other perishable products are driving demand for temperature-controlled logistics. Moreover, as Vietnam’s agricultural imports of temperature-sensitive items like dairy and meat increase, advanced cold chain solutions are becoming essential to meet these needs effectively.

The pharmaceutical industry also represents a promising area for cold chain expansion. Vietnam's goal to produce 80% of its pharmaceuticals domestically by 2030 highlights the importance of a robust cold storage network to support safe distribution and storage. This aligns with both rising consumer demand and government initiatives encouraging sector growth. Long-term demand from retail, pharmaceuticals, and agriculture sector combined with Vietnam’s favourable position as a regional trade hub is expected to sustain growth momentum in the cold chain market in the near future.

Scope of the Vietnam Cold Chain Market Report:

Makreo Research has published a comprehensive report titled “Vietnam Cold Chain Market Size and Forecast (2019-2029) - Analysis by Ownership, Temperature Range, Geography and Industry Applications”. This in-depth analysis examines the historical performance and current status of the Vietnamese cold chain market, identifying key opportunities and drivers that will influence its future growth. The report begins by assessing Vietnam’s economic, political, technological, and demographic factors and their impact on the cold chain market. It then explores the trade performance of the country. Subsequently, the report provides a detailed examination of the Vietnam cold chain market, focusing on the prevalence of cold storage, rental rates, pallet capacity, and market segments and their respective shares.

Furthermore, it highlights significant companies within the Vietnamese cold chain market, analysing their merger and acquisition activities, funding timelines, services offered, pallet locations, temperature ranges, and more. The report also addresses the challenges and opportunities present in the market and offers a future outlook. This report equips stakeholders with a thorough analysis of the Vietnam cold chain market, enhancing their understanding of its current state, future growth potential, and strategic investment opportunities.

Period of Study:

• 2019 - 2023: Past and Present Scenario
• 2023: Base year of study
• 2024 – 2029: Future Prospects

Key Topics Covered:

Vietnam Cold Chain Market

• Vietnam Cold Storage Market
• Vietnam Cold Transport Market

Vietnam Cold Storage Market by Ownership

• Domestic
• Foreign

Vietnam Cold Storage Market by Temperature

• Frozen
• Refrigerated
• Standard Temperature
• Ultra Low Temperature

Vietnam Cold Chain Market by Key Economic Regions

Vietnam Cold Chain Market by Sectors/Industries

Competitive Landscape

This section provides a detailed market comparison of key players in the Vietnam cold chain market based on various parameters such pallet capacity, temperature ranges, refrigerated and frozen vehicles owned and certifications etc. It also highlights their recent investments, merges and acquisitions (M&A), and funding activities. Additionally, it includes comprehensive profiles of selected industry players, covering their financials and latest business activities.

Companies Covered

• AJ Total Vietnam Company Limited
• Hung Vuong Corporation (Hung Vuong Limited Company)
• ABA Cooltrans
• CLK Cold Storage Company Limited
• Lineage Logistics
• SK Logistics
• Kuehne+Nagel Vietnam Company Ltd
• Vinafco Joint Stock Corporation
• Lotte Logistics Vietnam Company Ltd.
• Transimex Corporation (Công Ty Cổ Phần Transimex)
• Hoang Lai Group
• Meekong Logistics (Mekong International Transport Co., Ltd)
• Preferred Freezer Services, LLC
• ALS Aviation Logistics (Aviation Logistics Corporation (ALS).

Key Questions Answered:

1. What is the current state of Vietnam's economy and political landscape, along with its technological and demographic factors, and how do these elements influence the cold chain market in Vietnam?

2. How does Vietnam's trade performance appear?

3. What has been the performance of the Vietnamese cold chain market, both historically and currently?

4. What is the total pallet capacity in Vietnam's cold storage, and how do the occupancy rates for cold storage pallets appear?

5. What are the rental rates for cold storage facilities across Vietnam?

6. What does the transportation infrastructure in Vietnam's cold transport sector look like? What are the key modes of transport, and what are the reasons for their significance?

7. What are the key segments in the cold chain market in Vietnam, and how are they distributed across the market?

8. How does the consumption of food and pharmaceutical products affect the overall performance of the cold chain market in Vietnam, and what has been the trend regarding food loss in the country?

9. Who are the major players in the Vietnamese cold chain market, and what are their core business activities?

10. What significant mergers, acquisitions, and funding activities have impacted the Vietnam old chain market?

11. What are the various challenges associated with the Vietnam’s cold chain market?

12. What future opportunities and prospects exist for growth in the Vietnam cold chain market? Show more