Vietnam Cold Chain for Agro & Seafood Market

Vietnam Cold Chain for Agro & Seafood Market valued at USD 1.2 billion, driven by demand for fresh produce, e-commerce growth, and government investments in infrastructure for exports and food safety.

The Vietnam Cold Chain for Agro & Seafood Market is valued at USD 1.2 billion, based on a five-year historical analysis. This market size is supported by recent industry research and reflects the strong demand for temperature-controlled logistics across food, agriculture, and seafood sectors. Growth is primarily driven by the increasing demand for fresh and high-quality food products, rapid urbanization, and the expansion of agricultural and seafood exports. Additional drivers include the rise in consumer awareness regarding food safety and quality, the growth of e-commerce platforms, and the adoption of advanced refrigeration and monitoring technologies.

Key hubs in this market include Ho Chi Minh City and Hanoi, which dominate due to their strategic locations, robust infrastructure, and proximity to major agricultural and seafood production areas. These cities serve as critical distribution and logistics centers, facilitating the efficient movement of perishable goods domestically and internationally. Da Nang also plays a supporting role, particularly for seafood exports, due to its port infrastructure.
In 2023, the Vietnamese government implemented the National Strategy for Cold Chain Development through the Ministry of Industry and Trade, with an investment of USD 300 million to upgrade cold storage facilities and transportation systems nationwide. This strategy mandates compliance with temperature monitoring standards, licensing for cold chain operators, and minimum infrastructure thresholds for storage and transport. The initiative aims to improve the preservation of agro and seafood products, enhance export competitiveness, and ensure alignment with international food safety standards.

Vietnam Cold Chain for Agro & Seafood Market Segmentation

By Type:

The cold chain market is segmented into Refrigerated Transport, Cold Storage Facilities, Refrigerated Warehousing, Refrigerated Distribution, Transportation Management Systems, Temperature-Controlled Packaging, Monitoring Systems, Logistics Management Software, and Others.

Refrigerated Transport and Cold Storage Facilities are the largest segments, reflecting the critical role of maintaining product integrity during transit and storage. The rise of e-commerce and online grocery shopping has increased demand for temperature-controlled last-mile delivery and real-time monitoring systems. Logistics Management Software and IoT-enabled Monitoring Systems are emerging as vital segments due to the need for operational efficiency and regulatory compliance.

By End-User:

The end-user segmentation includes Food Retailers, Food Manufacturers, Seafood Exporters, Agro Exporters, Restaurants and Catering Services, Pharmaceutical Companies, and Others.

Food Retailers and Food Manufacturers account for the largest shares, driven by the need for reliable cold chain solutions to maintain product freshness and safety.
Seafood Exporters and Agro Exporters require robust cold chain infrastructure to meet international standards and minimize spoilage. The pharmaceutical segment is expanding due to stricter requirements for temperature-sensitive drugs and vaccines.

Vietnam Cold Chain for Agro & Seafood Market Competitive Landscape

The Vietnam Cold Chain for Agro & Seafood Market is characterized by a dynamic mix of regional and international players. Leading participants such as ABA Cooltrans, Tan Bao An Logistics, Transimex Corporation, Gemadept Corporation, Vinafco Joint Stock Corporation, Minh Phu Seafood Corporation, T&M Forwarding, Thang Long Logistics, Hai Ha Logistics, An Phat Holdings, FPT Logistics, Binh Minh Import-Export, Phu Hoang Anh Logistics, Vietstar Express, Tuan Minh Logistics contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Cold Chain for Agro & Seafood Market Industry Analysis

Growth Drivers

Increasing Demand for Fresh Produce:

The demand for fresh produce in Vietnam is projected to reach 20 million tons in future, driven by a growing population and urbanization. The World Bank estimates that urban areas will house approximately half of the population in future, increasing the need for efficient cold chain logistics. This trend is further supported by rising disposable incomes, with an average annual growth rate of 6.6% in household income, leading to higher consumption of fresh fruits and vegetables.

Expansion of E-commerce in Food Delivery:

The e-commerce food delivery market in Vietnam is expected to grow to $1.5 billion in future, reflecting a significant shift in consumer purchasing behavior. With over 77 million internet users, the demand for online grocery shopping is surging. This trend is bolstered by the increasing penetration of smartphones, which reached over 70% in 2023, facilitating the growth of cold chain logistics to ensure the freshness of delivered products.

Government Initiatives to Enhance Food Safety:

The Vietnamese government has allocated $200 million for food safety initiatives in future, focusing on improving cold chain infrastructure. This includes the implementation of stricter food safety regulations and standards, which are expected to increase compliance among producers and distributors. Enhanced food safety measures are crucial for maintaining the quality of perishable goods, thereby driving the demand for cold chain solutions in the agro and seafood sectors.

Market Challenges

Inadequate Infrastructure:

Vietnam's cold chain infrastructure is currently underdeveloped, with only 30% of the required cold storage facilities in place. The lack of proper logistics and transportation systems hampers the efficiency of the cold chain, leading to significant food waste, estimated at 1.3 million tons annually. This inadequacy poses a major challenge for the agro and seafood sectors, which rely heavily on effective cold chain management to maintain product quality.

High Operational Costs:

The operational costs associated with cold chain logistics in Vietnam are approximately 20% higher than in neighboring countries due to rising energy prices and maintenance expenses. The average cost of cold storage per square meter is around $150, which can deter investment in necessary infrastructure. These high costs limit the ability of small and medium-sized enterprises to compete effectively in the market, impacting overall growth.

Vietnam Cold Chain for Agro & Seafood Market Future Outlook

The future of Vietnam's cold chain market for agro and seafood products appears promising, driven by technological advancements and increasing consumer demand for quality. The integration of IoT technologies is expected to enhance monitoring and efficiency in cold chain operations. Additionally, as the government continues to invest in infrastructure improvements, the market is likely to see a rise in both domestic and international trade, particularly in seafood exports, which are projected to reach $10 billion in future.

Market Opportunities

Investment in Cold Storage Facilities:

There is a significant opportunity for investment in cold storage facilities, with an estimated need for an additional 500,000 square meters of cold storage in future. This investment can enhance the supply chain efficiency and reduce food waste, ultimately benefiting producers and consumers alike.

Partnerships with Logistics Providers:

Collaborating with established logistics providers can streamline operations and improve service delivery. Such partnerships can leverage existing networks and expertise, facilitating better distribution of perishable goods and enhancing market reach, particularly in urban areas where demand is rapidly increasing.