You import agricultural products from Vietnam, and although they were fresh when they left the country, their quality had declined by the time they arrived. Many readers have surely had such an experience. Behind it lies a structural problem: the underdevelopment of Vietnam's domestic cold chain (low-temperature distribution system).
This article explains in detail the current state of Vietnam's refrigeration infrastructure, the specific challenges in keeping produce fresh, and the entry trends of logistics players, including Japanese companies.
The Current State of Vietnam's Cold Chain
Vietnam is one of Southeast Asia's leading agricultural power. It exports a wide variety of agricultural products, such as rice, vegetables, fruit, and seafood, to the world. At the same time, the reality is that its domestic low-temperature logistics infrastructure lags far behind that of other major exporting countries.
According to a survey by Vietnam's Ministry of Agriculture and Rural Development (MARD), the post-harvest loss rate for produce, depending on the item, reaches 20〜35%. Losses are especially large for fruits and vegetables, which directly damages farmers' incomes.
The main cause is breaks in the cold chain. The structure makes it easy for sections without proper temperature control to arise between the growing region and the places of consumption or the export port.
Vietnam's Total Cold-Storage Capacity
As of 2024, the total cold-storage capacity in Vietnam is estimated at about 2 million to 2.5 million pallets worth. This is still a low level compared with Thailand and Indonesia.
There is also a problem of uneven distribution. It is concentrated around Ho Chi Minh City and near Hanoi, while the growing regions, such as the delta areas and the Central Highlands, lack sufficient facilities.
Specific Challenges in Keeping Produce Fresh
The effects of an underdeveloped cold chain begin from the moment of harvest. Here we organize the challenges stage by stage.
A Shortage of Pre-Cooling Facilities Right After Harvest
To keep produce fresh, pre-cooling to lower the product temperature right after harvest is important. In rural Vietnam, however, only a small share of producers have pre-cooling facilities.
In many cases, harvested produce is carried to collection points on room-temperature trucks or motorbikes. At this stage the product temperature rises, and freshness begins to decline.
Temperature Control During Transport
The adoption rate of refrigerated trucks (reefer trucks) also remains low. Produce is often carried on general cargo trucks, and quality deterioration over long-distance transport is a challenge.
Vietnam's road conditions also play a part. Trunk roads are being developed, but in not a few areas the last-mile roads from rural growing regions out to the trunk roads remain undeveloped.
Cold Management at the Retail Stage
In Vietnam, where wet markets are the mainstay of distribution, cold management at the retail stage is also inadequate. At roadside and outdoor markets, produce is commonly displayed at room temperature, and freshness declines further before it reaches consumers.
| Challenge Phase | Main Problem | Impact Level |
|---|---|---|
| Right after harvest | Shortage of pre-cooling facilities | High |
| Growing region to collection point | Room-temperature transport is the norm | High |
| Collection point to port and wholesale | An absolute shortage of cold-storage facilities | Medium to high |
| Wholesale to retail | Low adoption rate of reefer trucks | Medium |
| Retail stage | Room-temperature display at outdoor markets | Medium |
The Reality and Background of the Cold-Storage Shortage
Why is cold storage so scarce? Several structural factors lie behind it.
High Initial Investment Costs
The cost of building and operating cold storage is far higher than for an ordinary warehouse. Electricity costs weigh especially heavily. In recent years, instability in Vietnam's power supply has also been pointed out, making it a risk factor for investors.
Difficulty Securing Land
Building a large cold-storage facility requires a wide plot with good transport access. Around Ho Chi Minh City, however, land prices are rising, making it hard to secure suitable sites. In rural areas near growing regions, land costs are low, but infrastructure development has not kept pace.
Fragmentation on the Demand Side
Vietnam's agricultural distribution is supported by many small-scale farmers and middlemen. Because there are few organized players able to supply produce in consistent, large volumes, demand for cold storage tends to be fragmented, and operators find it hard to project stable revenue.
Entry Trends of Japanese Logistics Companies
Focusing on the business opportunity in the cold chain, Japanese companies are advancing their entry into the Vietnamese market.
Major Entry Examples
Yamato Holdings operates a small-lot refrigerated delivery service in Vietnam. Drawing on the precision-logistics know-how cultivated in Japan, it is developing the fresh-delivery market for urban areas.
Sumitomo Corporation and the Sumitomo Warehouse Group are involved in investing in and operating cold-storage facilities near Ho Chi Minh City. This takes the form of supporting the local expansion of Japanese food manufacturers and retailers on the logistics side.
Kintetsu Express and other integrated forwarders are also strengthening temperature-controlled air and sea transport services for exports of fresh goods from Vietnam.
Why Japanese Companies Are Chosen
| Strengths | Details |
|---|---|
| High quality control | Japanese-standard temperature control, and Sanitary management |
| Traceability | recording and provision of temperature logs is possible |
| Reliability | Leads to winning the trust of buyers in export destinations |
| Know-how sharing | Training and technology transfer for local staff |
When exporting Vietnamese produce to Japan, Europe, or the US, their ability to meet the temperature-control standards (such as HACCP) required by buyers on the importing side is valued.
Competition with Local Companies
Meanwhile, local majors such as AH Cargo (Vietnamese) and SATRA are also increasing their investment in refrigerated logistics. Because local companies sometimes have the edge in price competitiveness, a strategy of differentiating on quality and reliability is important for Japanese companies.
The Vietnamese Government's Policies and Development Plans
The Vietnamese government also positions cold-chain development as a priority issue.
Under the Agricultural Production and Distribution Modernization Program, formulated in 2021, pre-cooling and storage facilities in major growing regions are, by 2030, to be expanded to more than three times their current scale, a target that has been set out. Preferential tax measures to attract foreign investment and the simplification of land-use permits are also advancing.
Also, within the framework of the Japan-Vietnam Economic Partnership Agreement (VJEPA), Japanese ODA support and technical cooperation for agricultural distribution infrastructure continue. However, challenges remain on both the financing and human-resource-development fronts in meeting the targets.
Outlook and Implications for Japanese Companies
Vietnam's cold-chain market is expected to grow rapidly over the next five to ten years. This is because, along with the expansion of the urban middle class, consumer needs for quality and safety are rising. The spread of e-commerce is also driving demand for refrigerated delivery.
For Japanese food manufacturers and retailers involved in importing and sourcing Vietnamese produce, securing reliable local partners is the key to solving these challenges. In selecting logistics providers, adding cold-chain capability as an important evaluation axis is called for.
For companies considering new entry into the logistics and warehousing business, there are entry opportunities in niche segments, such as small cold-storage facilities near growing regions and urban refrigerated delivery geared to e-commerce.
Summary
Vietnam's cold chain is a case where development has not kept pace with the country's potential as an agricultural power. Post-harvest loss, 20〜35%, the concentration of cold storage away from growing regions, and the insufficient adoption of reefer trucks all affect both farmers' earnings and export quality.
At the same time, the cold-chain environment is steadily improving, thanks to the Vietnamese government's development plans, the entry of foreign capital including Japanese companies, and the expansion of the e-commerce market.
For anyone involved in Vietnam's agriculture and food business, grasping the speed and direction of this change is essential when thinking through sourcing and investment strategies.
At VN AGRI, we share the latest information on Vietnamese agriculture.
