Storyline
- Cold storage demand surges as lack of space leads to rising costs.
- Vietnam's cold storage development lags behind agricultural export growth.
- Seafood industry remains the largest user of cold storage facilities.
- As per Ken Research, Flexible solutions like Arctic Super Stores offer hassle-free cold storage options.
The pandemic has disrupted Vietnam's cold chains, presenting hurdles for exporters. Rising demand for cold storage, limited space, and escalating rental costs require adaptable solutions. This article examines challenges faced by exporters, especially in the seafood industry, and explores the increasing need for cold storage. It also discusses Arctic Super Stores as a flexible solution to address evolving market demands.
1. Rising Costs and Space Constraints
Emergent Cold Vietnam Cold Chain Market
As Vietnamese fruits get ready to head for the harvest season, exporters in Vietnam struggle with a scarcity of cold storage facilities in Ho Chi Minh City and neighboring provinces. The limited availability of space has led to a dramatic surge in rental prices, putting a strain on export businesses. This shortage of cold storage capacity has become a significant hurdle to overcome. The story continues every year.
2. Asynchronous Cold Storage Development
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Vietnam's cold storage infrastructure has not kept pace with the growth of agricultural exports, which continue to witness a surge increase annually. Although the country's agricultural product exports reached approximately $41.2 billion in 2020, most of these were raw and fresh items. The low application of cold storage systems for products beyond seafood reveals a disparity in meeting the demand across different agricultural sectors.
3. Seafood Industry Dominates Cold Storage Usage
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The seafood industry heavily relies on cold preservation systems, with a significant portion of cold storage dedicated to seafood products. In contrast, other agricultural sectors have limited adoption of cold chains. A survey conducted by CEL Consulting found that only 8.2% of producers serving the domestic market had proper cold chain systems, significantly lower than the two-thirds of exporters. The existing cold storage facilities in Vietnam are unable to meet the demand, further highlighting the need for expanded infrastructure.
The Conclusion
The increasing demand for cold storage in Vietnam, particularly in light of rising costs and space constraints, poses significant challenges for exporters across various agricultural sectors. While the seafood industry remains the largest user of cold storage facilities, other sectors struggle to meet their storage requirements.
However, flexible solutions like Arctic Super Stores offer a practical and adaptable approach, allowing businesses to securely store their goods and navigate the changing market dynamics. As per Ken Research, With the ability to expand and move with businesses, these innovative cold storage solutions provide a viable option for businesses seeking reliable and hassle-free storage solutions in Vietnam's evolving market.
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