return icon

Great investment opportunities in cold storage

The rise of online shopping is driving demand for cold storage facilities, a segment that is severely short of supply around the world.

ABA cold storage in HCM City. — Photo

Research firm Forrester forecasts online shopping in Asia-Pacific will grow by 30 per cent annually by 2024.

Trang Bui, senior director of markets, JLL Vietnam, said the seafood export sector occupied the largest area of ​​cold storehouses in Vietnam.

During the peak period of the COVID-19 pandemic, up to 30 - 50 per cent of seafood export orders were cancelled, leading to an increase in inventories, causing cold storehouses to operate at maximum capacity.

Supply was constrained in part because cold storehouse facilities take more time to build than other types of logistics properties. The construction of cold storehouses is more complicated and expensive than standard warehouses, said Trang.

The investment cost of cold storehouses is two to three times higher than that of standard warehouses, and the construction process can take up to six months. Besides, the lease term usually lasts from 15 years to 20 years, making the already scarce supply even more scarce, Trang added.

Michael Ignatiadis, head of Supply Chain & Logistics Solutions, JLL Asia Pacific, said Asia's rapidly growing population and middle class, increasing demand for fresh food, was driving demand for cold storehouses.

The potential of cold storehouses has attracted the attention of real estate investors, venture capital funds and lenders. Investors are also considering cold storehouse as an alternative to traditional industrial real estate and logistics companies are looking to expand into new markets.

JLL Vietnam reported cold storage for seafood operated most effectively within a distance of 50km to ports, while items such as vegetables and fruits should be located near urban areas.

Currently, the supply of cold storage is mainly in the southern region due to great demand, of which, about 60 per cent of the market share is held by foreign investors.

JLL experts also shared that for Vietnam to enter the next phase of the industrial and logistics cycle and move ahead of regional counterparts, it was vitally important to continue spending significant amounts on infrastructure, including both highways and utility networks, including renewable energy.

Also, Vietnam's cross-border trade process, which includes both time and costs, still needs significant improvements.  VNS

Vietnam sees strong demand for cold storage facilities

Vietnam sees strong demand for cold storage facilities

A strong demand for fruits and vegetables is driving food hygiene and safety requirements in Vietnam, which in turn are spurring investments in new cold storage facilities, said Cushman & Wakefield, in a recent report.

Government support needed for investment in cold storage, says VASEP

Government support needed for investment in cold storage, says VASEP

The COVID-19 pandemic has worsened the shortage of cold storage space in HCM City and surrounding areas as goods pile up as a result of lack of demand.


Rumor on former Minister of Health’s suicide in prison denied

Amid the rumors about former Minister of Health Nguyen Thanh Long and former Director of Hanoi Heart Hospital Nguyen Quang Tuan suicided in prison, a police official confirmed that it is fake news.

Vietnam continues to be one of the top FDI receivers in ASEAN

Vietnam continues to be a magnet to foreign direct investment (FDI) in ASEAN as it is transforming into a production base for tech giants.

Virtual event to connect Vietnamese, Japanese firms in support industries

An online conference will take place from July 5 - 6 to connect Vietnamese and Japanese businesses in the support industries, aiming to help domestic firms seek partners and boost exports.

Quang Hai signs two-year deal with French side Pau FC

Vietnam’s leading footballer Nguyen Quang Hai has officially signed a two-year contract with French side Pau FC of Ligue 2 after passing a medical check-up on June 29.

Vietnam International Café Show 2022 to open in HCM City

More than 200 domestic and international exhibitors will participate in a coffee, food and beverage exhibition called Vietnam International Café Show 2022 from July 21 - 23 at Sai Gon International Exhibition and Convention Center in HCM City.

Miss Supranational 2013 to arrive for local beauty contest

Mutya Johanna Datul, Miss Supranational 2013, will be the guest of honour at the first Miss Vietnam Sea and Islands 2022 beauty pageant, which is scheduled to take place in October in the northern province of Quang Ninh.

HCM City calls for EU investment in nearly 200 projects

Ho Chi Minh City is calling for investment into 197 projects in ten key areas, an official told the Vietnam-Europe Business Forum in the southern largest economic hub on June 30.

VN businesses hit by ‘price storm’

Many business fields have been witnessing a rapid recovery after the Covid-19 outbreak. However, difficulties are ahead as they lack capital and petrol prices are escalating.

SCIC has no plans to divest from large enterprises this year

In 2022, State Capital Investment Corporation (SCIC) is expected to divest from 101 member companies.

Fresh policies come into effect in July

A series of new policies will take effect from next month including regional minimum wage increase, issuance of passports with electronic chips, tuition fees for lecturers sent abroad for doctoral training and compusolry e-invoince enforcement.

Rubber groups aim to cut China reliance

As China cuts down on its purchase of rubber from Vietnam, the latter has witnessed a sharp decline in its rubber market share in China.


HCM City works hard to better quality of human resources


Vietnam sees more chances for coffee exports to the US

Vietnam stops announcing new daily Covid-19 infection from June 29

The Ministry of Health (MoH) yesterday said that from June 29, it stops posting new daily Covid-19 infection. The daily announcement will have only the numbers of recovered cases, deaths, and vaccinated people.

Vietnam considers axing additional taxes to lower retail price of petrol

The Ministry of Finance has submitted a proposal to the Prime Minister in a bid to reduce the excise tax and value added tax, in addition to the environmental protection tax, as it seeks control rising petrol prices.