Promising Solutions Emerge for Vietnam's Exporters Amidst Rising Demand and Limited Cold Storage Space: Ken Research

 Buy Now

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

To learn more about this report Download a Free Sample Report

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

Visit this Link: – Request for custom report

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.

Lotte Group Pivots: Vietnam Beckons as China Exit Nears: Ken Research

Buy Now

Lotte Group embraces Vietnam's potential while withdrawing from China, capitalizing on the country's promising market opportunities.

Storyline

• Lotte Group shifts focus: Vietnam's retail and F&B industries.
• Expansion plans: Lotteria restaurants, Lotte Mart hypermarkets, and more.
• Vietnam's growth potential: Favorable market conditions and rising consumer income.
• As per Ken Research, the company’s retaliation aftermath will lead to strategic realignment.

South Korea based Lotte Group, the country's fifth-largest conglomerate, is accelerating its expansion in Vietnam's retail and F&B sectors as it finalizes its recent withdrawal from the Chinese market. Following his recent release from jail and receiving a presidential pardon, Chairman Shin Dong-bin is poised to visit Vietnam, signaling the group's determination to pursue business in its "third-most important market" after South Korea and Japan. Lotte's focus on Vietnam comes as the company's top executives have been closely monitoring their opportunities in the country, recognizing the growth potential and favorable business environment.

1. Growing Presence in Vietnam

To learn more about this report Download a Free Sample Report

Lotte boasts an expansive presence in Vietnam, with 270 Lotteria fast-food restaurants and 15 Lotte Mart hypermarkets. Additionally, Lotte's subsidiaries are actively involved in the development of shopping complexes and residential apartments in major cities like Hanoi and Ho Chi Minh City. The establishment of Lotte Ventures Vietnam last year further solidifies the group's commitment, making it the very first foreign venture capital firm approved in the country.

2. Vietnam's Favorable Market Conditions

Visit this Link: – Request for custom report

The decision to focus on Vietnam is driven mainly by the country's strong retail sector, experiencing significant growth, and a rising disposable income level. Lotte recognizes Vietnam's potential as a strategic market, benefitting from Korea's positive reputation and strong consumer demand. The group views Vietnam as a key growth driver in the region, offering ample opportunities for expansion and development.

3. Exit from China

Lotte's exit from the Chinese market comes after 14 years of operation, as it faced challenges due to alleged retaliation from China following the deployment of the THAAD missile defense system in 2017. The decision to fully divest from China reflects the company's strategic realignment and its focus on emerging markets with more favorable growth prospects.

Conclusion

Lotte Group's intensified focus on Vietnam's retail and F&B industries signifies its commitment to leveraging the country's growing market potential. As per Ken Research, as the conglomerate completes its withdrawal from China, it aims to capitalize on Vietnam's favorable business environment and consumer-driven growth. Lotte's expansion efforts in Vietnam highlight its strategic vision and determination to establish a strong presence in one of Southeast Asia's most promising markets.