Cold storage rent soars as supply dwindles

Rent for cold storage in the south stands at $87 per ton in Q4, up 1.67 times against Q1 last year due to limited availability.

Vietnam’s e-commerce boom amid the Covid-19 outbreak has fueled demand for cold storage facilities, according to the latest report on the cold supply chain released by real estate consultancy Savills Vietnam.

According to the cold storage warehouse report by real estate services provider JLL, more consumers have opted for online shopping during Covid-19, leading to bigger demand for cold storage warehouses mainly located in the south and managed by medium- and small-sized suppliers. Foreign investors currently hold a share of some 60 percent in the local cold storage market.

Trang Bui, JLL senior director in charge of the Vietnamese market, predicted demand for cold storage warehouses would increase sharply in the next five years, opening opportunities for investors.

The country currently has a meager 48 cold storage warehouses with some 600,000 shelves, and over 700 refrigerated trucks.

The local cold storage warehouse market is projected to annually grow 12 percent to reach $295 million in 2025, stated Savills Vietnam.