Vietnam Cold Chain Market Report 2019

FiinGroup Joint StockCompany
Head Office
5th Floor, Anh Minh Building
36 Hoang Cau, Dong Da
Hanoi, Vietnam
Tel: +84 (24) 3562 6962
www.fiingroup.vn
Ho Chi Minh CityBranch
3rd Floor, Profomilk Plaza Bldg,
51-53 Vo Van Tan, Ward 6,
District 3, Ho Chi Minh, Vietnam
Tel: +84 (28) 3933 3586
Date: May 2nd, 2019
Dear Our Value Clients,
Re: The publication of Vietnam Cold Chain Market Report 2019
FiinGroup has been issuing Vietnam Cold Storage Market Report for the
last three years. Taking into account feedbacks from our clients, in
addition to the comprehensive analysis of Vietnam cold storage sector,
in Vietnam Cold Chain Market Report 2019, we also cover cold
transportation and full cold chain in Vietnam with the emphasis on the
current market size and competitive landscape.
The purpose of research work is to have an in-depth understanding of
Vietnam cold chain market and potential opportunities for local and
foreign players in the sector. Particularly, with an aim to assess the
cold chain outlook, key growth drivers for both cold storage and
transportation such as seafoods (import & export), modern trade, meat
and fruit & vegetables are included.
In addition to our experience in this industry, we have conducted various
discussions and interviews with industry experts, cold chain end-
customers at executive levels to grasp local insights and the practical
ways of doing cold chain business in Vietnam.
We understand that this is a targeted but also an open research. We would
be happy to provide any further information to address any questions that
you may have, for any specific sector or target business in Vietnam.
Should you have any questions, please contact me or our Manager, Mr. Hai
Khieu at +84 (24) 3562 6962 (ext. 121) or his email:
hai.khieu@fiingroup.vn.
Yours sincerely,
Le Xuan Dong
Director, Research and Consulting Services
FiinGroup Joint Stock Company
2Financial Information | Business Information | Research and Consulting Services

Table of Content
Part Content Page
1 Overview of cold chain market in Vietnam 7-24
1.1 Market Structure & Description 7
1.2 Market Size & Segmentation 9
1.3 Analysis of cold storage in Vietnam 11-17
1.4 Analysis of cold transportation in Vietnam 19-21
2 Market Potentials 23-38
2.1 Market Potentials 23-25
2.2 Potential demands from seafoods 27-30
2.3 Potential demands from food retail 32-33
2.4 Potential demands from F&V 35-36
2.5 Potential demands from meat 38
Part Content Page
3 Competition dynamics 40-54
3.1 Cold chain 40
3.2 Cold storage 42-49
3.3 Cold transportation 51-54
4 Sector Financial Performance 56-61
Appendices 63-78
Regulatory framework 63-68
Profiling of top key players in cold chain
market 70-76
List of cold chain companies covered in
Section 4 78

Abbreviation
Content is removed for demo purpose

We have completed the research on Vietnam
Cold Chain Market, including background of the
market, the demand analysis of key end-user
groups, financial performance of each sectors,
investment and expansion trends, along with
the profiles of key cold storage and cold
transportation service providers.
Below are the most critical findings that could
be important for your consideration.
1) The rented cold storage market in Vietnam
had a total designed capacity of xx pallets at
the end of 2018: There are xx professionally-
managed rented cold storages in the South of
Vietnam, xx in the North, and many other small,
independent cold storages. Central market is
gaining attention with the open of Transimex’s
Cold storage in Danang.
The rented cold storage market in Vietnam
has a short development history of 20 years.
The market started booming after 2007
thanks to remarkable import & export
activities after WTO accession and many
FTAs in recent years.
Vietnam rented cold storage capacity
Executive summary

Contents
Section 1: Overview of cold chain market in Vietnam
Page
1 Market structure and description 7
2 Market size and segmentation 9
3 Analysis of cold storage in Vietnam 11 – 17
4 Analysis of cold transportation in Vietnam 19 – 21

Section 1: Overview of Cold chain market in Vietnam
1. Market structure and Description
Cold chain (storage & cold transportation) is classified as climate control logistics
Figure 1: Logistics market structure in Vietnam
Source: FiinGroup
Logistics
International
transportation
Forwarding
Domestic transportation
Warehousing
Transportation
Other value-added
services
ICD & CFS services
Customs clearance
Cold chain
Bonded warehouse
Packing, Inspection,
Fumigation, etc.
Container loading &
unloading

Contents
Page

Cold chain industry in Vietnam is estimated to reach US$xxxmn in 2019
Section 1: Overview of Cold chain market in Vietnam
2. Market size and segmentation
Figure 2: Market size(*) of Vietnam cold chain market in 2019
Cold chain
Cold storage
Cold
transportation
xxx
pallets
xxx
refrigerated trucks & terminal tracks
Source: FiinGroup

Contents
Page

Section 2: Analysis of Cold storage in Vietnam
3. Analysis of cold storage in Vietnam | Overview
Cold storage market can be divided into owned and rented cold storage
Cold storage in Vietnam
Owned cold storage Rented cold storage
DEFINITION
PURPOSE
KEY PLAYERS
CHARACTERISTICS

Source: FiinGroup
(*) Data takes into account designed capacity of xx cold storages in Vietnam. It is noted that we do not cover small-scaled cold storages with designed capacity of less than 1,000 pallets.
Figure 3: Designed capacity(*) of rented cold storage in Vietnam, thousand pallets
3. Analysis of cold storage in Vietnam | Market size
Rented cold storage market had a total designed capacity of xxx,xxx pallets in 2018

NORTH
SOUTH
CENTRAL
3. Analysis of cold storage in Vietnam | Segmentation
By geography, rented cold storage market is more developed in the South with xx cold
storages which account for xx% of total designed capacity as of December 2018
Figure 4: Cold storage designed capacity by region, 2018

The year of 2015 witnessed the rise of North market after almost 10 years of inactiveness
Figure 5: Designed capacity(*) of rented cold storage in the North of Vietnam, thousand pallets
NORTH
Source: FiinGroup
(*) Data takes into account designed capacity of xx cold storages in the North of Vietnam. It is noted that we do not cover small-scaled cold storages with designed capacity of less than 1,000
pallets.

Cold Storage in the North is fragmented with many small independent cold storages, mainly
located in Hanoi, Hung Yen and Bac Ninh
NORTH
Bac Ninh
Ha Noi
Hung Yen
Figure 6: Distribution by geography of cold storage in the North

South market boomed since 2009 thanks to increasing demand from seafood and retail
Figure 7: Designed capacity(*) of rented cold storage in the South of Vietnam, thousand pallets
SOUTH
Source: FiinGroup
(*) Data takes into account designed capacity of xx cold storages in the South of Vietnam. It is noted that we do not cover small-scaled cold storages with designed capacity of less than
1,000 pallets.

Cold storage market in the South is dominated by top five players namely Emergent Cold,
PFS, Hoang Lai, SATRA & LOTTE Sea
Figure 8: Distribution by geography of cold storage in the South
Truong Sa
Long An
Ho Chi Minh City
Binh Duong
SOUTH

Contents
Page

4. Cold transportation
Cold transportation in Vietnam is growing quickly and being predicted to remain the
growth momentum in the coming future
Figure 9: Cold transportation in Vietnam, 2018
Source: FiinGroup.

Source: FiinGroup
2015
2016
2017
2018E
Domestic Import Export
x,xxx
4. Cold transportation | Container
Demand for cold transportation in Vietnam has been on the rise with increasing cold
container throughput via Vietnam seaports
Figure 10: Container throughput via sea ports system, TEUs
Cargo throught via
refrigerated containers
(‘000 Teus)
x,xxx
x,xxx
x,xxx
CAGR2015-2018=xx%

4. Cold transportation | Bulk
There are xx cold transportation companies in Vietnam owing xxx refrigerated trucks
Main routes
Figure 11: Cold transportation for bulk cargo in Vietnam, 2019
Providers Facilities
Source: FiinGroup.
The analysis is based on a list of cold transportation companies in FiinGroup’s database. The list does not cover small-scale cold transportation providers such as household business or
individuals in logistic cooperatives.

Contents
Section 2: Market potentials
Page
1 Market potentials 23 – 25
2 Potential demands from seafoods 27 – 30
3 Potential demands from food retail 32 - 33
4 Potential demands from F&V 35 - 36
5 Potential demands from meat 38

1. Market potentials
Huge potential for cold chain industry in Vietnam
xx% demand for cold chain is from Food group xx% from OthersEnd-use sectors
Regions
Expansion
NORTH CENTRALSOUTH
COLD TRANSPORTATIONCOLD STORAGE

Cold chain is growing in line with the development of end-use sectors such as Seafood,
Retail, Meat, etc.
Figure 12: Demand for cold chain from end-use sectors, 2019
Source: FiinGroup

Zoom in End-use sectors: Demand for cold chain originated from five main sources (i)
Seafood (ii) Grocery retail (iii) Fruit & Vegetables, (iv) Meat and (v) Others. Seafood export
remains the leading user for cold storage

Contents
Page

Source: FiinGroup, VASEP
2. Potential demands from seafoods
Vietnam seafood production continues its strong growth with xx.xx million tonnes volume in
2018, with frozen seafood dominated the domestic consumption
Figure 13: Seafood production volume in Vietnam
Figure 14: Vietnam seafood domestic consumption by
category, 2017
Wild-caught Farm-raised

Figure 15: Vietnam seafood import value (US$mn), 2012-2018
The rise in seafood import will spur the demand for both in-house and bonded cold storages
Figure 16: Import volume (US$mn) and Y-o-Y growth of major
market, 2018
Import value Y-o-Y Growth
Import value Y-o-Y growth

Figure 17: Seafood export value (US$mn), 2012-2018
Exporting in the Southeast region will continue to drive the demand for cold chain
Figure 18: Vietnam seafood export value (US$bn) and market share of
major markets, 2018
Export value

In the meantime, with increasing in-house storages, demand for rented cold storage next to
seafood manufacturing plants is expected to decrease. However, seafood is considered the
main driver of sector growth.

Contents
Page

3. Potential demands from food retail
Vietnam grocery retail witnessed healthy growth, surpassing US$xxbn in 2018. Robust
development of modern retailers fueled the sector, posting opportunities for cold chain
Figure 21: Sales in grocery retailers in Vietnam Figure 22: Number of modern retailer in Vietnam
Source: FiinGroup, EUI

3. Potential demands from food retail
Currently, most retailers have their own in-house cold storages…

Contents
Page

Source: FiinGroup, General Customs
4. Potential demands from F&V
Vietnam fruit & vegetables sector posts an impressive performance in the period 20xx-20xx
with export value of US$ x.xbn in 2018
Figure 24: Fruit & vegetables import/export value in Vietnam

Figure 25: Processed fruit & vegetables in Vietnam
Source: FiinGroup, General Customs
Figure 26: Processed fruit & vegetables in peer countries, 2018
4. Potential demands from F&V
Processed fruit & vegetables sector witnessed a promising growth with x.x% CAGR, higher
than other regional countries

Contents
Page

Figure 27: Meat production volume in Vietnam
Source: FiinGroup, Department of Livestock(MARD)
5. Potential demands from meat
Demand for cold chain from meat sector started to warm up with the rise of chilled meat
products
Source: FiinGroup, Department of Livestock(MARD)
Figure 28: Meat export and import value of Vietnam

Contents
Section 3: Competition dynamic
Page
1 Cold chain 40
2 Cold storage 42 - 49
3 Cold transportation 51 - 54

FULL-CHAIN
SERVICES PROVIDER
SPECIALIZED
SERVICES PROVIDER
3PL COMPANY
1. Cold chain | General dynamics
Cold chain in Vietnam consists of three main sectors with different characteristics and
business strategy
Type # companies Example Strategy & Characteristics

Contents
Page
1 Cold chain 40

2. Cold storage | Market share
Logistics companies and local providers lead the market in terms of total designed capacity
Figure 29: Vietnam rented cold storage market by designed capacity, 2018

Cold storage in Vietnam could be divided into different tiers based on their features

Cold storage in Vietnam
Tier 1 Tier 2
FACILITIES
VALUE-ADDED
SERVICE
TECHNOLOGY
TARGET CUSTOMERS
Specifically, cold storage in Vietnam could be classified based on facilities, target
customers, value-added services and technology
KEY PLAYERS

2. Cold storage | Market share |Foreign – Owned Group
Despite the decline in market share, foreign cold storage providers are still the market
leaders in quality and management services
Figure 30: Foreign Rented cold storage capacity in Vietnam, 2018
Source: FiinGroup
Highlights

2. Cold storage | Market share | Local
Local rented cold storage providers boomed in the 2000s and are leading the market in
terms of total designed capacity
Figure 31: Local Rented cold storage capacity in Vietnam, 2018
Source: FiinGroup
Highlights

2. Cold storage | Market share | Other logistic companies
Logistics companies has gained significant market share with xx% CAGR during 2010-2018
Source: FiinGroup
Figure 32: Cold storage capacity by logistics companies in Vietnam, 2018 Highlights

2. Cold storage | Key operational
High occupation rate in peak season for most providers
Figure 33: Top rented cold storage providers’ current utilization rate in peak season, 2018
Source: FiinGroup

2. Cold storage | Investment in the sector
At least xx,xxx pallets from new cold storages will be available in the near future
Figure 34: Expansion plan of selected top players

Contents
Page
1 Cold chain 40

Almost players could provide services for cold containers while cold transportation service
for bulk products is the strength of only several key players in the market
TERMINAL TRACTORS
REFRIGERATOR TRUCKS
Cold transportation

Cold transportation industry promises huge potential but fierce competition
Business strategy applied by players in the market
Competition

What do cold transportation companies do to gain the market share?
Competition
factors

In term of refrigerator trucks, xxx and xxx are leading players in Vietnamese market
Figure 35: Top 10 cold transportation companies for bulk products, 2019
Source: FiinGroup, the company’s website or via interview with sales man

Contents
Section 4: Sector Financial Performance
Page
Sector Financial Performance 56 - 61

• Our analysis on cold chain companies’ financial performance is empowered by the most comprehensive and insightful financial
database for Vietnam – our FiinPro Platform. At the time of this report, financial data for FY2018 is not available. FiinGroup will
update this part once the FY2018 data is available.
Methodology
Methodology

The sector yielded outstanding profitability ratios, thanks to growing demand and declining
operation costs.
Figure 36: Financial performance of cold chain companies in Vietnam –
FiinGroup’s sample
Capital Structure & Liquidity
Ratios
2014 2015 2016 201
7
Total Liabilities / Total Assets
Total Liabilities / Owners’
Equity
Quick ratio
Current ratio
Management Ratios 2014 2015 2016 2017
Account Receivables Turnover
Number of Days of Receivables
Account Payables Turnover
Number of Days of Payables
Profitability Ratios 2014 2015 2016 201
7
GPM
OPM
NPM
ROA
ROE
Cost Structure 2014 2015 2016 201
7
%COGS
%SG&A
%Financial expense

Source: FiinGroup
Cold transportation and full chain companies yielded impressive profitability, while cold
storage providers has been underperforming
Figure 37: Profitability ratios of cold chain segmentation, 2017

Source: FiinGroup
Cold transportation and full chain companies yielded impressive profitability, while cold
storage providers has been underperforming
Figure 38: Profitability ratios of cold chain segmentation, 2017

Source: FiinGroup
Cold storage companies rely on financial leverage, while cold transportation and full chain
companies possess great liquidity ratios
Figure 39: Capital structure & liquidity ratios of cold chain segmentation, 2017

Source: FiinGroup
Full chain companies have a balanced cost structure, while COGS covers almost xx% total
costs of other sectors
Figure 40: Cost structure of cold chain segmentation

Contents
Appendices
Page
Appendix 1 Regulatory framework 63 - 68
Appendix 2 Profiling of top key players in cold chain market 70- 76
Appendix 3 List of cold chain companies covered in Section 4 78

Region Class I and Class II logistics
center
Dedicated logistics center
Source: FiinGroup
Figure 41: The number of large-scale logistics centers according to the Development
Plan
Appendices
Appendix 1. Regulatory framework
Logistics industry has been oriented to focus on nationwide logistics center development by
2030

Sector &
sub-sector
Limitation on Market Access Limitation on National
Treatment
Additional
Comment
Source: FiinGroup
Appendices
Foreign ownership restriction at less than xx% was removed on 11/1/2014 for the logistics
sector under Vietnam’s Commitments to WTO
Figure 42: The schedule of specific commitments in Warehousing Service, including
Cold Storage of Vietnam

Appendices
Cold chain is being encouraged by the Government with various incentives

Figure 43: Application process for food safety certificate
Appendices
NAFIQAD is responsible for grant of Food Safety in Cold Storage Sector

Indicator Technical regulation
Source: FiinGroup
Figure 44: Summaries of Cold storage for fishery products – Conditions for food
safety in QCVN 02 - 09:2009/BNNPTNT
Appendices
Condition for food safety of fishery cold storage

Year 1997 2009 1/1/2014 1/1/2016
The Corporate Income
Tax
Figure 45: Road map of the corporate income in Vietnam
Source: WTO commitment of Vietnam
Appendices
The Government of Vietnam offers many preferential policies and incentive to attract FDI

Contents
Appendices
Page

Appendices
Appendix 2. Profiling of top key players in cold chain market
There are xx new cold storage establishments from both foreign and local investors in the
last 5 years
Figure 46: List of completed rented cold storage investments in Vietnam, 2013-2018
No. Company name Location Completion year Capacity Estimated Investment Value
(US$ mn)(pallets)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Source: FiinGroup

Appendices
ABA Cooltrans
Company Profiling Products & Service
Key Financials
Facilities
Figure 47: Net sales & total assets of ABA Cooltrans
Source: FiinGroup

Appendices
Freight Mark Vietnam
Key Financials
Facilities
Figure 48: Net sales & total assets of Freight Mark Vietnam
Source: FiinGroup

Appendices
Hoang Lai
Key Financials
Facilities
Figure 49: Net sales & total assets of Hoang Lai
Source: FiinGroup
Facilities

Appendices
Emergent Cold (SWIRE)
Facilities

Appendices
Tan Hung
Key Financials
FacilitiesFigure 50: Net sales & total assets of Tan Hung
Source: FiinGroup

Appendices
Quang Minh
Key Financials
Facilities
Figure 51: Net sales & total assets of Quang Minh
Source: FiinGroup

Contents
Appendices
Page

No. Company name Location Classification of service Cold Storage
Capacity
Cold Transportation
Capacity
(cold trucks)(pallets)
Appendices
Appendix 3. List of cold chain companies covered in Section 4
There are xx cold chain companies covered for their financial performance during
2014-2017
Figure 52: List of cold chain companies covered for their financial performance, 2014-2017

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‹#›
Contact us
Dong Le, CFA
Director, Research and Consulting Services
M: +84 (024) 3562 6962 (ext. 110)
T: +84 (0) 912 057 529
E: dong.le@fiingroup.vn
W: www.fiingroup.vn
Hai Khieu
Manager, Research and Consulting Services
T: +84 (024) 3562 6962 (ext. 120)
M: +84 (0) 966 510 388
E: hai.khieu@fiingroup.vn
W: www.fiingroup.vn
Head Office
5th Floor, Anh Minh Building
36 Hoang Cau Street
Hanoi, Vietnam
+ 84 (24) 3562 6962
Ho Chi Minh City Branch
3rd Floor, Profomilk Plaza Bldg
51-53 Vo Van Tan, District 3
Ho Chi Minh City, Vietnam
+ 84 (28) 3933 3586

Vietnam Cold Chain Market Report 2019

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