Tiếng Việt
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SPN INVEST recently completed a significant business trip with a delegation from Igarashi, a Japanese corporation. The visit focused on a preliminary survey of the cold storage market in Southern Vietnam, one of the country’s most strategic and promising regions.
This trip was more than just a standard consulting activity. It was a testament to SPN INVEST’s relentless efforts to connect, advise, and support foreign investors seeking business opportunities in Vietnam. Our ultimate goal is to build strong bridges that not only help international businesses thrive but also create opportunities for Vietnamese small and medium-sized enterprises (SMEs) to partner, scale up, and jointly contribute to the nation’s economic development.
Vietnam’s Cold Storage Market: Impressive Growth and Key Figures
The cold chain is rapidly becoming one of Vietnam’s fastest-growing logistics sectors. Soaring demand from essential industries like seafood, agricultural products, processed foods, beverages, and pharmaceuticals has created an attractive environment for both domestic and foreign investors.
According to a 2024 cold chain market report by FiinGroup and projections from Cushman & Wakefield, Vietnam’s cold storage market is valued at approximately $202 million in 2024 and is expected to reach $295 million by 2025, with a compound annual growth rate (CAGR) of 12.4%. These figures highlight the market’s significant appeal.
In Southern Vietnam, the nation’s most vibrant economic hub, the cold storage sector has seen remarkable growth. Major cold storage projects are being heavily invested in, particularly in provinces like Binh Duong and Long An, where key players like Lineage Logistics and AJ Total are expanding their capacity. The total pallet capacity in the South accounts for a staggering 87% of the country’s total, primarily serving the export-driven seafood industry, which ranks eighth among Vietnam’s top 10 export sectors.
Addressing Logistics Costs: Government Initiatives and Investment Opportunities
Vietnam’s logistics costs currently average 16-18% of its GDP, significantly higher than regional peers like Japan (11% of GDP), Singapore (8%), and Malaysia (13%). This high cost erodes the competitiveness of Vietnamese exports. Storage costs alone can account for as much as 11% of total logistics expenses.
Recognizing this challenge, the Vietnamese government has implemented numerous policies to encourage investment aimed at reducing logistics costs and improving supply chain efficiency. The government’s goal is to lower logistics costs to 16-18% of GDP by 2030 and further to 10-12% by 2050, with the ambition of placing Vietnam among the top 30 countries in the Logistics Performance Index (LPI).
This commitment creates a powerful incentive for foreign investors, particularly from Japan, to invest in this sector.
Insights from Ms. Nguyen Diem Trinh, Vice Director of SPN: “Vietnam’s cold storage and cold chain market is facing a golden opportunity. Firstly, there is the robust growth in both domestic consumption and export demand, particularly in the seafood sector. Secondly, strong government support and investment in infrastructure are creating an attractive and favorable environment for investors.
Ms. Nguyen Diem Trinh – Vice Director of SPN
However, alongside the opportunities, the industry also faces challenges, such as a lack of modern technology, professional management systems, and high initial investment costs. This is where FDI companies with their capital, experience, and technology can collaborate with Vietnamese businesses to co-develop.
As a trusted bridge, SPN INVEST is committed to continuously striving to provide the best solutions for both sides. We believe that combining the resources and technology of international investors with the market understanding and workforce of Vietnamese businesses will create a synergistic power that drives the sustainable and long-term development of the entire industry.”
Conclusion
Our trip with the Igarashi delegation is just one of many initiatives we are undertaking. We are confident that with a fast-growing economy and the proactive support of facilitators like SPN, Vietnam will become an ideal investment destination, not only for large corporations but also for SMEs, contributing to shared prosperity.
SPN INVEST is dedicated to continuing our efforts and standing by Vietnamese businesses on their journey toward global integration and sustainable development.
