The Evolution of Vietnam’s Cold Chain and Logistics Sector: A Focus on Recent Developments
Vietnam’s logistics industry is experiencing a remarkable evolution, driven largely by strategic investments and partnerships that enhance its capabilities. A significant recent development is the collaboration between two Japanese companies, Kawanishi Warehouse and MOL Logistics, as they become strategic shareholders in Toan Phat Logistics (TPL) in Tay Ninh province. This facility, prominently located in the Mekong Delta, is ideally positioned to support Vietnam’s robust agricultural production.
The Role of Toan Phat Logistics
Toan Phat Logistics operates a state-of-the-art refrigerated warehouse, crucial for maintaining the quality of perishables as they move through the supply chain. Adjacent to TPL, Toan Phat Irradiation offers essential irradiation sterilization services, enabling comprehensive solutions including pre-export storage. This synergy not only supports local agricultural producers but also strengthens the overall logistics framework, ensuring that goods meet the stringent safety and quality standards demanded by international markets.
Importantly, TPL has secured Halal certification, an advantage that opens doors for Vietnamese agricultural exports to Islamic countries, expanding market reach and ultimately contributing to economic growth.
Integration of Cold Chain Logistics
Through its investment, MOL Logistics Vietnam has effectively integrated its existing transport network with TPL’s refrigerated storage facilities. This strategic move enables MOL to address the burgeoning demand for cold chain logistics within Vietnam. As agricultural and marine products gain prominence in exports, this capacity is crucial for meeting both domestic and international needs.
Osamu Sakurada, the president and CEO of MOL Logistics, emphasizes the importance of efficient cold storage operations for the export of these products, highlighting the industry’s potential for further growth. Strict temperature controls are essential for maintaining product integrity, particularly as Vietnam’s agricultural sector evolves and seeks to increase its international footprint.
Enhanced Capabilities in Distribution
In another exciting development, Kuehne+Nagel and the Lego Group have recently inaugurated a new regional distribution center in Dong Nam. This center, spanning 10,200 square meters at launch, is equipped with bonded storage, specialized packing, and various value-added services. By 2026, the facility is expected to expand significantly, processing over 150 containers per week and offering storage for 33,000 pallets.
The end-to-end logistics management by Kuehne+Nagel includes transport from Lego’s factory in Ho Chi Minh City, encompassing customs clearance and distribution across the region. This strategic initiative reflects the growing need for sophisticated logistics solutions that align with the expanding manufacturing capabilities in Vietnam.
Emergence of New Partnerships and Services
Furthermore, the collaboration between Seino Holdings and ITL Corporation marks a significant milestone with the launch of Seino-ITL Logistics. This joint venture, headquartered in Ho Chi Minh City, aims to provide efficient less-than-truckload services, optimizing logistics for smaller shipments. Sam Sang, general manager of Seino-ITL Logistics, confirms a firm focus on enhancing road connections between Vietnam’s key economic areas, fostering competitiveness among Vietnamese businesses.
The Growing Logistics Landscape
According to the National Statistics Office, Vietnam’s logistics sector is on a growth trajectory of 14–16 percent annually, with freight volumes reaching 1.67 billion tonnes in the first seven months of the year, reflecting a 13.7 percent year-on-year increase. This upward trend underscores the significance of logistics in supporting Vietnam’s broader economic ambitions.
By 2030, projections indicating that the logistics services sector could contribute 6-8 percent to GDP and achieve a higher outsourcing rate demonstrate the sector’s potential. By 2050, these figures may rise to 12–15 percent of GDP, reinforcing the narrative of Vietnam’s burgeoning logistics capabilities on the global stage.
Investment Opportunities
Jens Thomassen of A.P. Moller Capital recognizes the vast opportunities within Vietnam’s logistics sector, emphasizing its rapid growth underpinned by GDP expansion and increasing foreign direct investment. The ongoing “China+1” strategy is pushing companies to explore Vietnam as an alternative for high-quality supply chain operations.
To harness this potential, A.P. Moller Capital, in partnership with VinaCapital, has invested in ALS Cargo Terminal, where operational enhancements and sustainability initiatives are expected to add significant value. This focus on modernizing logistics will serve to attract further investments and partnerships, reinforcing Vietnam’s position in the regional logistics marketplace.
Conclusion
The landscape of Vietnam’s logistics industry is shifting rapidly, influenced by both strategic global partnerships and domestic innovations. As cold chain logistics mature, and as companies like TPL and joint ventures like Seino-ITL Logistics solidify their presence, Vietnam is well-positioned to capitalize on its logistic potential, enhancing its competitiveness in an increasingly interconnected world.