News Jan 09 24

Exploring the Surging Demand for Cold Storage Warehouse for Lease in Vietnam

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In the dynamic landscape of Vietnam’s logistics sector, the spotlight is firmly on the escalating demand for cold storage industrial warehouse for lease. As the nation experiences a surge in fresh food consumption and an unprecedented boom in e-commerce, the need for efficient and expansive cold storage facilities has reached a critical juncture.

This blog post delves into the burgeoning demand for cold storage solutions in Vietnam and explores the factors driving this surge. Join us as we unravel the intricacies of this rapidly evolving market.

The Cold Storage Warehousing Market in Vietnam

Cold Storage Demand is Rising in Vietnam

The surge in demand for fresh produce and the thriving e-commerce sector are pivotal factors propelling the growth of Vietnam’s domestic cold storage market—a specialized branch of logistics poised for substantial expansion in the foreseeable future.

The cold storage warehouse for lease landscape in Vietnam is characterized by localization and significant fragmentation, with more than 40 projects contributing to a collective cold chain industrial warehouse space of 460,000 sq.m in 2022. Remarkably, the country witnessed a spike in fresh food sales, escalating from $40.4 billion in 2020 to $45.7 billion last year, reflecting a robust compound annual growth rate (CAGR) of 6.3%.

industrial warehouse for lease
Source: VietNamNet

Concurrently, Vietnam’s e-commerce market experienced an impressive annual growth rate of 21.5% between 2017 and 2022, catalyzing the proliferation of various complementary services. However, the escalating demand, particularly driven by the exponential growth of e-commerce platforms, exerts substantial pressure on cold storage warehouse for lease capacity in Vietnam.

By the close of 2022, the market occupancy rate had reached approximately 88%, with key regions like Ho Chi Minh City, Binh Duong, Long An, and Bac Ninh provinces surpassing the 90% mark.

Factors Behind the Surge in Demand

Vietnam, with its rapidly growing economy and an increasingly affluent population, has witnessed a shift in consumer behavior due to the pandemic, with a surge in online shopping. This, coupled with higher incomes, provides consumers with access to previously inaccessible food products.

As a consequence, the demand for cold storage is poised for continuous escalation, presenting lucrative opportunities for investors to develop and expand the market to meet the impending demands. In this scenario, the availability of warehouse for lease becomes a critical consideration for sustainable growth.

>>> Read more: Investment in Vietnam: Unveiling Opportunities and Overcoming Challenges

What Do Clients Demand in a Cold Storage Warehouse for Lease?

Ample Space for Storage

In the dynamic landscape of Vietnam’s surging cold storage market, the demand for warehouse for lease is at an all-time high. Clients seeking these facilities prioritize a key factor: ample space for storage. With the flourishing fresh food and e-commerce sectors, businesses require expansive cold storage capacities to accommodate their growing inventories.

industrial warehouse for lease
Source: Flickr

The need for sufficient storage space arises from the increasing volume of fresh produce and perishable goods entering the supply chain. In a market where efficiency is paramount, having a spacious cold storage warehouse for lease ensures that businesses can store, organize, and manage their products effectively.

As demand continues to soar, the importance of sufficient storage space remains a top criterion for clients looking to secure an optimal solution for their cold storage needs.

>>> Discover the advantages of leasing a spacious factory for your business .

Strategic Location for Convenient Accessibility

One of the foremost considerations for clients seeking a cold storage warehouse for lease is its strategic location. Accessibility plays a pivotal role in streamlining logistics and ensuring timely deliveries. Industrial warehouses strategically situated in proximity to major transportation hubs and distribution centers offer clients a competitive edge. This not only facilitates seamless transportation but also minimizes the logistical challenges associated with the storage and distribution of temperature-sensitive goods.

In short, a strategically located cold storage warehouse for lease emerges as a fundamental requirement for clients navigating the burgeoning demands of Vietnam’s dynamic market.

Modern & High-quality Infrastructure

Clients seeking a cold storage industrial warehouse for lease in Vietnam are increasingly prioritizing modern and high-quality infrastructure. In a market where demand is surging, the need for advanced facilities is paramount. A state-of-the-art infrastructure ensures optimal conditions for storing and preserving perishable goods.

The evolving landscape of the domestic cold storage market in Vietnam necessitates facilities equipped with cutting-edge technologies to meet the rising expectations of clients. From temperature control systems to efficient logistics solutions, a modern and high-quality infrastructure is integral to catering to the diverse storage needs of businesses.

industrial warehouse for rent
Source: Unsplash

As businesses adapt to the changing dynamics, the emphasis on top-tier infrastructure in warehouses for lease becomes a key consideration, aligning with the growing demands of clients in the vibrant cold storage sector.

Quick & Helpful Support System

In the realm of cold storage industrial warehouse for rent in Vietnam, clients are increasingly emphasizing the importance of a swift and supportive customer service system. As the demand for cold storage solutions skyrockets in the country, lessees are seeking providers with a commitment to responsive and helpful support. With the logistics landscape evolving rapidly, clients value a partner who can address their queries promptly and provide assistance when needed.

The efficiency of the support system has become a crucial factor in the decision-making process for businesses looking to secure a cold storage warehouse for lease. In this dynamic environment, a provider’s ability to offer quick and reliable support stands out as a key differentiator in meeting the heightened demands of the market.

CORE5 Vietnam Warehouse for Lease: The Optimal Storage Solutions

1. Class A Warehouse for Lease with LEED-qualified Design

Explore the epitome of warehouse excellence with our Class A warehouse for rent, meticulously designed to meet the highest industry standards. Boasting a LEED qualification design, our facility aligns with sustainable practices, ensuring an environmentally conscious approach to warehousing.

2. Open Grid Decks

industrial warehouse for rent
CORE5 Hai Phong, looking from above. Photo from CORE5.

The open grid configuration, with dimensions surpassing 24 x 11.4 meters, provides an expansive and adaptable layout, catering to diverse storage needs. The floor loading capacity exceeds 3 tons/m2, emphasizing the durability and robustness of the structure. Elevate your storage capabilities with a generous ceiling height exceeding 11 meters, accommodating voluminous inventory seamlessly.

3. QCVN-compliant Safety System 

Safety is paramount, and our warehouse for rent ensures compliance with QCVN standards through an automatic sprinkler Fire Fighting and Fire Protection (FF&FP) system. This state-of-the-art feature enhances fire safety measures, offering peace of mind to tenants.

4. Extra Height for Easy Loading & Unloading

CORE5 Vietnam’s industrial warehouse for lease is equipped with platform heights of 1.3 meters and includes one dock leveler per 1,000 square meters, streamlining loading and unloading operations for enhanced efficiency. Embrace excellence in warehousing by choosing our Class A facility for your business needs.

industrial warehouse for lease
A simulation of CORE5 Hai Phong’s general landscape. Illustration from CORE5

>>> Interested in discovering more about CORE5 Vietnam’s industrial warehouse for lease? Contact our expert team for further assistance.

In a nutshell, the surging demand for cold storage in Vietnam underscores the critical need for strategic solutions, with the option of an industrial warehouse for rent emerging as a pivotal consideration. As the country’s economy flourishes and consumer habits evolve, the pressure on existing cold storage capacities intensifies.

Investors, recognizing the potential for growth in this sector, should capitalize on the opportunity to meet escalating demands. The availability of warehouse for lease not only addresses immediate storage needs but also positions businesses to adapt to the dynamic landscape, ensuring sustainable and flexible solutions for the evolving cold storage demands in Vietnam.

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Data retrieved from: Vietnamplus

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