Investment in cold facilities has begun to take off in recent years as a result of rising demand for cold storage. In addition, there has been a huge growth in the demand for cold storage for rent in Vietnam due to the awareness of consumers towards food safety, the boom in e-commerce and a lack of high-quality cold warehouses.
A huge growth in the demand for the cold storage warehouse for rent in Vietnam
Demand for Cold Storage Warehouse for Rent in Vietnam is Emerging!
The demand for cold warehouses in the Asia-Pacific region has grown quickly, which has led to international investment in Vietnam. This has made the domestic supply chain more valuable.
With the development of online food delivery, some Chinese cold storage facilities are facing rent increases. The fast growth of fresh food distribution has also led to more demand for warehouse space, especially for frozen storage.
Despite the epidemic, the Ministry of Agriculture and Rural Development estimates that agricultural, forestry, and fisheries exports totaled $35.5 billion in the first nine months of the year, a 17.7 percent increase over the same period previous year.
However, while agriculture and seafood exports have expanded, cold storage availability is now insufficient to satisfy demand. At the peak of the COVID-19 pandemic, almost half of all seafood export orders were canceled, resulting in cold storage needing to operate at full capacity.
Seafood is not the only thing putting pressure on cold storage facilities. Meat, veggies, and retail are additional major sources of demand. Seafood and retail exports are the primary drivers of rising demand for cold storage for rent in Vietnam.
Opportunities
There is potential to develop a renting cold storage in Vietnam since the market still lacks major players that dominate the whole industry. There are various reasons why cold facilities are projected to increase significantly in the next few years.
The Vietnamese government hopes to reduce the percentage of losses to less than 10%. The value of vegetable and fruit exports reached $3.1 billion in the first ten months of 2019, accounting for 67.7 percent of the Vietnamese fruit and vegetable export industry and roughly 20–25 percent of the industry’s post-harvest losses per year. This is one of the primary drivers of cold chain logistics development, particularly in boosting the innovation of renting cold storage in Vietnam.
Another consideration is making long-term earnings. Investing in high-quality cold chain systems may yield significant investment returns and profitability. Continued urbanization, food waste awareness, and increased consumer buying power all contribute to a continued need for the cold warehouse for rent in Vietnam in the coming years. Investing in high-quality cold storage facilities and equipment may help firms generate long-term profitability since the correct investment requires minimum maintenance and upkeep.
The next is cost-effectiveness. Investing in cold storage facilities is a cost-effective strategy to extend product shelf life and reduce losses. While cold storage requires a large expenditure, around $1 per pallet daily, it may result in greater revenue returns with high-quality items that have a longer shelf life. By supplying high-quality fresh produce items, businesses may use their time, money, and space more efficiently and pass on costs to customers.
Finally, as the need for cold chain logistics grows, Vietnam will need to build additional infrastructure to fulfill the demand. Currently, the country’s limited number of cold storage warehouses are mostly located in the south, with around one-quarter controlled by foreign investors. Most suppliers only service a tiny portion of the market, and there aren’t many major names in the area, making this a profitable segment for early-stage small enterprises.
Challenges
Vietnam’s cold supply chain still has to overcome many problems before it can move on to the next stage of industrial logistics growth and become more competitive.
One of the most significant barriers is the high initial cost required to build and manage a cold storage facility. Specialized equipment, regular testing, and substantially more power are required for a refrigerated warehouse than for other types of logistical facilities. Expenditures spent on some cold storage facilities are twice or three times the price of a normal warehouse.
Many obstacles remain for Vietnam’s cold supply chain
Furthermore, building times might range from six months to a year, and the length of lease contracts can range from fifteen to twenty years, making supply for the cold storage warehouse for rent in Vietnam even more scarce. As a result, despite the long-term benefits, businesses without significant financial support are unwilling to construct and run cold storage facilities. While some large firms in Vietnam invest in storage systems, SMEs rely on a crowded leasing market.
Rental Cost Cold Storage Warehouse Quotation in Vietnam
Due to a supply-demand imbalance, a lack of specialized cold storage warehouse for rent in Vietnam may cause leasing rates to climb even more. The leasing cost has risen from 52 USD per tonne last year to 87 USD this year.
The rental costs of cold storage warehouses in Vietnam are significantly more expensive to rent than standard warehouses. Depending on the kind of warehouse, rental fees for cold storage equipment can vary from 50% to 100% or even more. Warehouse rent for refrigerated and frozen goods is from $45 to $90 per square meter. The cost of pharmaceutical storage ranges between $45 and $160 per square meter. Every day, pallet rentals range from VND16,000 to VND30,000 per sheet.
The Advantages of Renting a Cold Storage Warehouse Outweigh the Purchase Option
Outstanding Benefits Compared to Buying a Cold Storage Warehouse
1. Delivery and installation are completed quickly
One of the major benefits of renting cold storage warehouses is that delivery or installation processes can be done by providers. They may have their own experts to help companies with the installation procedure, which will be very helpful if it’s for the first time renting.
2. Cost reduction
Another notable benefit of hiring these cold storage spaces is that it saves a lot of money for businesses. While renting a warehouse, maintenance costs are not necessary as, in most cases, providers are responsible for repairing and maintaining equipment.
Saving a lot of money for businesses
3. Flexibility
Businesses may swiftly adjust to the company’s ever-changing and evolving demands by renting. If firms do not require cold storage anymore, it is easy to skip hiring one and adjust to the business’s demands more efficiently and effectively.
4. Reliability
Before providing the application, most vendors guarantee that the cold storage is inspected on a regular basis. Cold storage facilities require routine maintenance to increase their efficiency and lifespan. The providers also ensure that the safety requirements of these units are monitored.
Savills Industrial – Best Provider of Cold Storage Warehouses for Rent in Vietnam!
The Outstanding Points of Savills’ Cold Storage Warehouse for Rent Service!
1. Consulted by leading industry experts
Savills Industrial owns a team of experienced personnel in consulting on the appropriate cold facilities for each characteristic and nature of the company. During the working process, customers will receive dedicated support, answer questions related to rental problems, or solve arising problems. Experts will accompany customers until a final decision is made.
Savills Industrial owns a team of experienced personnel
2. High-Quality cold storage warehouse for rent in Vietnam
The cold warehouse for rent in Vietnam by Savills is of high quality and in accordance with the most advanced and modern warehouse standards in the world. Technology is thoroughly applied in warehouse operations to help optimize costs and time. The security and safety system are always guaranteed, along with other services during the exchange. In particular, high-quality human resources are an advantage of Savills compared to other suppliers.
3. Diverse choices
In order to provide more choices to customers, Savills provides a cold warehouse system with different characteristics according to each field in which the company operates. Location, area, capacity, infrastructure, and technology will change according to customer needs. Savills is confident that it can bring customers the most satisfying factory and warehouse rental experience.
Some Available Cold Storage Warehouses for Rent of Savills
Warehouse for Rent in Hai Phong
– Location: Hai An District, Hai Phong City
– Total area: 126,000 m²
– Vacant area: 70,388 m²
– Price: Contact
– Key features:
+ Near Cat Bi International Airport, Hai Phong Seaports, and highways.
+ Premium industrial premises that are flexible in size and design
+ Preferential tax incentives
+ Infrastructure system with complete synchronous and international standards
+ The developer offers complete assistance, including licensing, construction, technical, and administrative services.
Warehouse for Rent in Hai Phong
Good quality factory for rent in Hai Duong
– Location: Viet Hoa Ward, Hai Duong City
– Total area: 460,000 m²
– Vacant area: 210,000 m²
– Price: Contact
– Key features:
+ Strategic location
+ With the adoption of high-tech, green sectors, the area promotes sustainable development.
+ Excellent support services spanning from registration to logistics and process management.
+ Competitive leasing price
Good quality factory for rent in Hai Duong
Warehouse for Rent in Hung Yen
– Location: Yen My, Hung Yen
– Total area: 282,000 m²
– Vacant area: 59,456 m²
– Price: Contact
– Key features:
+ Favorable geographic location
+ Competitive lease price
+ High quality warehouse facilities
+ The developer fully supports the outstanding transportation service
Warehouse for Rent in Hung Yen
Warehouse for lease in Dong Nai
– Location: Long Thanh District, Dong Nai Province
– Total area: 60,000 m2
– Vacant area: 36,000 m²
– Price: $5/m²
– Key features:
+ Build upto Japanese standards
+ Best for light industry
+ Strategic location: 54 km from HCMC, 51 km from Tan Son Nhat Airport, 38 km to Cat Lai port, convenient access to the transportation infrastructure and major southern seaports.
Warehouse for lease in Dong Nai
More: General and Cold storage for Lease in Bac Ninh
Savills Industrial is currently providing a lot of high-quality cold storage and factories, spreading from south to north of Vietnam. If you have the need for warehouse rental. Let’s check out to Savills’ Quality Factory Inventory right away!
Conclusion
Savills Industrials specializes in industrial real estate and portfolio management. In response to the growing demand for cold warehouse for rent in Vietnam, we commit to providing the best industrial services for firms to achieve a high standard of refrigerated warehouses with optimal rental costs for renting cold storage in Vietnam.
From their locations in Vietnam and other significant regional markets, our team of qualified specialists can assist customers with leasing, selling, investing, valuation, planning, and development. contact Mr. John Campbell right now if you’re looking for manufacturing or a suitable factory for rent in Vietnam.
