Vietnam Cold Chain Logistics for Food Exports Market

Vietnam Cold Chain Logistics for Food Exports Market is valued at USD 1.2 billion, driven by demand for perishable goods, export growth, and infrastructure advancements.

The Vietnam Cold Chain Logistics for Food Exports Market is valued at approximately USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for perishable food products, including fresh fruits, vegetables, seafood, and processed foods, as well as the expansion of export markets and rising urbanization. The rise in consumer awareness regarding food safety and quality, coupled with advancements in refrigeration technology and logistics infrastructure, has also propelled the need for efficient cold chain solutions, ensuring that food products maintain their integrity throughout the supply chain.

Key players in this market include Ho Chi Minh City and Hanoi, which dominate due to their strategic locations, robust infrastructure, and proximity to major ports. These cities serve as critical hubs for logistics and distribution, facilitating the export of food products to international markets. The concentration of food manufacturers and distributors in these urban areas further enhances their significance in the cold chain logistics landscape.
The Circular No. 35/2018/TT-BNNPTNT issued by the Ministry of Agriculture and Rural Development sets mandatory requirements for food export companies to comply with cold chain logistics standards. This regulation establishes operational protocols for temperature-controlled storage and transportation, requiring exporters to implement validated monitoring systems and maintain records to ensure food safety and quality throughout the export process. Compliance is essential for maintaining export eligibility and ensuring consumer trust in Vietnamese food products.

Vietnam Cold Chain Logistics for Food Exports Market Segmentation

By Type:

The cold chain logistics market can be segmented into various types, including Refrigerated Transport, Cold Storage Facilities, Temperature-Controlled Packaging, Monitoring Systems, Logistics Management Software, and Others. Each of these segments plays a crucial role in ensuring the integrity of food products during transportation and storage. Refrigerated transport and cold storage facilities are particularly critical for maintaining product quality and safety, while monitoring systems and logistics management software support real-time tracking, compliance, and operational efficiency.
The Refrigerated Transport segment is currently leading the market due to the increasing demand for efficient transportation of perishable goods. This segment is favored by food manufacturers and distributors who prioritize maintaining the quality and safety of their products during transit. The rise in e-commerce and online grocery shopping has further accelerated the need for reliable refrigerated transport solutions, making it a critical component of the cold chain logistics ecosystem.

By End-User:

The end-user segmentation includes

Food Manufacturers, Distributors, Retailers, Food Service Providers, Exporters, and Others. Each of these end-users has unique requirements and plays a vital role in the cold chain logistics process. Food manufacturers and exporters, in particular, require robust cold chain solutions to ensure compliance with international standards and to maintain product quality during long-distance transportation.
Food Manufacturers dominate the end-user segment, accounting for a significant share of the market. This is primarily due to their need for reliable cold chain logistics to ensure the freshness and safety of their products. As the demand for high-quality food products continues to rise, manufacturers are increasingly investing in cold chain solutions to meet consumer expectations and regulatory requirements.

Vietnam Cold Chain Logistics for Food Exports Market Competitive Landscape

The Vietnam Cold Chain Logistics for Food Exports Market is characterized by a dynamic mix of regional and international players. Leading participants such as Viettel Logistics, Transimex Corporation, Gemadept Corporation, Sotrans Logistics, TBS Logistics, APL Logistics, DHL Supply Chain Vietnam, JWD Group, Vinafco, ABA Cooltrans, Saigon Newport Corporation, Vinalines Logistics, FPT Logistics, Nippon Express Vietnam, Kuehne + Nagel Vietnam contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Cold Chain Logistics for Food Exports Market Industry Analysis

Growth Drivers

Increasing Demand for Perishable Goods:

The demand for perishable goods in Vietnam is projected to reach 1.5 million tons in future, driven by rising consumer preferences for fresh produce and meat. The country's population, estimated at 98.2 million, is increasingly urbanized, with over 38% living in cities. This urbanization leads to higher consumption rates of perishable items, necessitating efficient cold chain logistics to maintain product quality and reduce spoilage, which currently stands at 20% for fruits and vegetables.

Expansion of Export Markets:

Vietnam's agricultural exports are expected to exceed $50 billion in future, with significant growth in markets such as the EU and the US. The government aims to increase agricultural export value by 5% annually, supported by trade agreements like the EVFTA. This expansion necessitates robust cold chain logistics to ensure that perishable goods meet international quality standards, thereby enhancing Vietnam's competitiveness in global markets and increasing demand for cold storage and transportation services.

Government Support for Agricultural Exports:

The Vietnamese government has allocated approximately $1 billion for agricultural development in future, focusing on enhancing cold chain infrastructure. Initiatives include subsidies for cold storage facilities and tax incentives for logistics companies investing in temperature-controlled transport. This support is crucial as it aims to reduce post-harvest losses, which currently account for 30% of total agricultural production, thereby improving the overall efficiency of food exports and boosting the cold chain logistics sector.

Market Challenges

Infrastructure Limitations:

Vietnam's cold chain infrastructure is still developing, with only 20% of the required cold storage capacity currently available. The lack of adequate facilities, particularly in rural areas, hampers the efficient distribution of perishable goods. Additionally, the existing transportation network is often inadequate, leading to delays and increased spoilage rates. Addressing these infrastructure gaps is essential for meeting the growing demand for cold chain logistics in the food export sector.

High Operational Costs:

The operational costs for cold chain logistics in Vietnam are approximately 30% higher than in neighboring countries due to energy costs and maintenance of temperature-controlled facilities. This financial burden can deter investment in necessary infrastructure and technology upgrades. Furthermore, the reliance on imported refrigeration equipment adds to the overall expenses, making it challenging for local companies to compete effectively in the cold chain logistics market.

Vietnam Cold Chain Logistics for Food Exports Market Future Outlook

The future of Vietnam's cold chain logistics for food exports appears promising, driven by increasing consumer demand for fresh produce and government initiatives aimed at enhancing infrastructure. Vietnam's GDP growth is projected at 6.6% in future, providing a strong economic foundation for sector expansion. As e-commerce continues to grow, logistics providers are likely to invest in advanced technologies, such as IoT and automation, to improve efficiency. Additionally, partnerships with international firms may facilitate knowledge transfer and best practices, further strengthening the sector's capabilities and competitiveness in the global market.

Market Opportunities

Growth in E-commerce Food Delivery:

The e-commerce food delivery market in Vietnam is projected to reach $3 billion in future, creating significant demand for efficient cold chain logistics. This growth presents an opportunity for logistics companies to develop specialized services that cater to the unique needs of online grocery retailers, ensuring timely and safe delivery of perishable goods to consumers.

Investment in Cold Storage Facilities:

With the government encouraging investment in cold storage, the market for new facilities is expected to grow significantly. An estimated $500 million is anticipated to be invested in cold storage infrastructure in future, which will enhance capacity and reduce spoilage rates. This investment will not only support local producers but also attract foreign investment in the logistics sector.