FiinGroup is pleased to introduce Vietnam Cold Chain Market Report 2023, the third issue on Vietnam cold chain market report series. This report presents a broad range of topics, both sector-specific and crosscutting market issues.
What’s New? The cold chain market in Vietnam recorded active participation and expansion of both local and foreign investors, resulting in a 25.2% surge in the designed capacity of cold storage facilities as well as the growing fleet size of cold transportation providers during the period 2020-2022. The market is fueled by the increasing cold storage demand of seafood export, raw food imports, and domestic distribution (including modern trade retail, food services & catering, etc).
This 2023 issue provides the latest information on the current supply-demand situation in the cold chain market in Vietnam, covering industry data & operational information up to Dec. 2022. This report also provides an in-depth analysis of key growth drivers, market outlook for 2023, and supply-demand forecasts until 2026. Especially, the analysis of key growth drivers from seafood is also included in this report.
Below are the most critical findings in our third issue:
- The cold chain logistics market in Vietnam is estimated at US$203mn in 2022. In particular, there are 75 commercial cold storage providers with a total designed capacity of over 1.0 million pallets while Vietnam's cold transportation records 31 professionally managed cold truck providers by the end of 2022.
- Both local and foreign investors have been actively participating and expanding in Vietnam's cold chain market. In particular, the total designed capacity of cold storage in Vietnam is forecasted to reach over 1.7 million pallets by 2026 with 23 projects during the period 2023-2026.
- Cold chain logistics demand in Vietnam is fueled by seafood export, raw food import, and domestic distribution (i.e. modern trade retail, food service, and catering, etc.). Specifically, seafood export achieved a record high of US$11 billion or a 24%(yoy) growth in 2022 while raw food import continued its solid growth of 28.3% during the review period. The market also witnessed a robust development of retail market CAGR of 2012-2022 of 7.8% and is forecasted to maintain its growth momentum in the time to come.
- Vietnam's cold chain market is relatively consolidated among the Top 10 players. In particular, the Top 10 cold storage providers accounted for % of the market share by designed capacity in 2022 while the Top 10 cold transportation providers dominated with 70% of market share by number of cold trucks. It is noted that cold transportation also witnessed fierce competition from small-scaled providers (i.e. individuals and household business owing 1-3 cold trucks).
- Cold chain logistics companies experienced a decline in profitability during the period 2020-2021, resulting from a surge in administrative expenses. The sector average NPM declined from 6.6% in 2020 to 5.5% in 2021. This could be explained by high administration expenses (i.e. Covid-19 testing and the “3 on-site” production solution) to comply with the GoV’s Covid-19 prevention measures in Vietnam. Sector average profitability is expected to improve in 2022, given an increasing demand from robust seafood export and the ease of COVID-19.
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You can also check out other reports covering key sectors of Vietnam including Cement, Water Supply, Consumer Finance, Banking, Healthcare, Housing Builders, and Plastic etc. on our website: https://fiinresearch.vn
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