Vietnam Cold Chain Market Report 2023 PDF [PDF]

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VIETNAM COLD CHAIN MARKET REPORT 2023 Date of the report: April 2023 Part of FiinGroup’s Industry Report Series for Vietnam

@ 2023 Vietnam FiinGroup Joint Stock Company. All rights reserved. All information contained in this publication is copyrighted in the name of Vietnam FiinGroup, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher.

1

Vietnam FiinGroup Joint Stock Company Head Office 10th Floor, Peakview Tower 36 Hoang Cau, Dong Da Hanoi, Vietnam

Ho Chi Minh City Branch 16th Floor, Bitexco Financial Tower 2 Hai Trieu Street, District 1 Ho Chi Minh City, Vietnam

telephone: +84 (24) 3562 6962

telephone: +84 (28) 3823 3485

www.FiinGroup.com

Date: April 2023

Dear Our Value Clients, Re: The publication of Cold Chain Market in Vietnam 2023 FiinGroup has been issuing the third report of Vietnam Cold Chain Market Report series, providing the most comprehensive report on this sector. Based on the feedback from our clients, in addition to the comprehensive analysis of Vietnam cold storage sector, in Vietnam Cold Chain Market Report 2023, we also cover cold transportation and full cold chain in Vietnam with the emphasis on the current market size and competitive landscape.

We understand that this is a targeted but also an open study. We would be happy to provide any further information to address any questions that you may have for specific aspects of the cold chain sector in Vietnam.

The purpose of the research work is to support readers to have an indepth understanding of the Vietnam cold chain market at present and assess the growth potential of the market and how to penetrate the market efficiently for both local and foreign players. Particularly, with an aim to assess the cold chain outlook, key growth drivers for both cold storage and transportation such as seafoods (import & export), modern trade, meat and fruit & vegetables are included.

Yours sincerely,

In addition to our experience in this industry, we have conducted various discussions and interviews with industry experts, cold chain endcustomers at executive levels to grasp local insights and the practical ways of doing cold chain business in Vietnam.

Should you have any questions, please contact me or our Manager, Ms. Anh Nguyen at +84 (24) 3562 6962 (ext. 105) or her email: [email protected].

Le Xuan Dong, CFA Managing Director, Head of Market Research & Consulting Vietnam FiinGroup Joint Stock Company

2

Table of Content Section Content Abbreviation What’s New 1

Page 4 5–8

Section 1: Overview of Cold Chain Market in Vietnam

9 – 18

1.1. Market Structure & Description

9 – 10

1.2. Market Size & Segmentation

11 – 18

2

Section 2: Sector Financial Performance

19 – 23

3

Section 3: Competitive Landscape

24 – 41

3.1. Market Share

24 – 30

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam

31 – 41

Section 4: Key Market Trends & Growth Drivers

42 – 57

4.1. Key Market Trends

42 – 46

4.2. Key Growth Drivers

47 - 57

4

3

Abbreviation No. Abb.

Stand for

No.

Abb.

Stand for

1

AS/RS

Automated Storage and Retrieval System

18

Konoike

Konoike Vinatrans Logistics

2

CAGR

Compounded Annual Growth Rate

19

LGL

Lotte Global Logistics

3

CEO

Chief Executive Officer

20

LLC

Limited Liability Company

4

CFO

Chief Financial Officer

21

M&A

Merger & Acquisition

5

CFS

Container Freight Station

22

MHE

Material Handling Equipment

6

COGS

Cost of Goods Sold

23

N/A

Not available

7

CVS

Convenience Store

24

NPM

Net Profit Margin

8

D/E

Debt/Equity

25

OPM

Operating Profit Margin

9

DC

Distribution Center

26

PFS

Preferred Freezer Services

10

EBIT

Earnings before Interest & Tax

27

POS

Point of Sale

11

FMCG

Fast-moving Consumer Goods

28

ROA

Return on Asset

12

GPM

Gross Profit Margin

29

ROE

Return on Equity

13

GPS

Global Positioning System

30

SG&A

Selling, General & Administrative Expenses

14

HCMC

Ho Chi Minh City

31

US

The United States of America

15

ICD

Inland Container Depot

32

US$bn

Billion US Dollar

16

IP

Industrial Park

33

US$mn

Million US Dollar

17

JSC

Joint Stock Company

34

VSIP

Vietnam Singapore Industrial Park

4

What’s New? We have completed the third Vietnam Cold Chain Market Report. In addition to the comprehensive analysis of the market, we updated the Report this year with an emphasis on the cold storage market and cold transportation market as well as a detailed projection until 2026. In addition, we also included in this issue the analysis of the demand for chilled and frozen products by key products in each region. The report cover industry data & operational information up to Dec 2022. Below are the most critical findings that could be of importance to your consideration. 1) The cold chain logistics market in Vietnam was estimated at US$xx mn in 2022. Of which, cold storage and cold transportation account for xx% and xx%, respectively.

Cold Storage Market Size by Designed Capacity (‘000 pallet

Vietnam’s Cold Storage Market Size in terms of Designed Capacity (‘000 pallets) and Sales Revenue (US$mn)

CAGR 2020-22 xx%

xx%

xx% 2020

Central

2021 North

South

2022

2019

2020

2021

2022

2023F 2024F 2025F 2026F

Additional capacity ('000 pallets) Existing capacity ('000 pallets) Market Size (Sales Revenue in US$mn)

5

What’s New? Forecasted Utilization Rate of Cold Storages in Vietnam, 2019 – 2026F

2019

2020

2021

2022

Vietnam's Cold Trucks Market Size, 2021

xx cold trucks in Vietnam

2023F 2024F 2025F 2026F

South

North

Central

6) Local providers dominate the cold storage market in terms of designed capacity, while foreign providers are more proficient at service quality and serve more premium service segments

6

What’s New? Top 10 Players by Fleet Size, 2022 Market Share of Cold Storage by Designed Capacity, 2022 Lineage Logistics Hung Vuong AJ Total Mekong Logistics Hoang Lai SK Logistics ABA Cooltrans SATRA Transimex An Viet Others

8) Top 10 cold transportation providers controlled up to xx% of the market share by fleet size. Only xx providers are Northernbased while the other xx are Southernbased.

7

What’s New? Breakdown of Import – Export Value by region, 2021

Vietnam Retail Revenue & Growth, 2012 – 2021(US$bn)

20 0

16 0

12 0

9) The cold chain market in Vietnam expects strong growth thanks to demand from import/export activities and modern trade formats IMPORT – EXPORT ACTIVITIES

80

40

0

8

Content

Section 1: Overview of Cold Chain Market in Vietnam Content

Page

1.1

Market Structure & Description

9 – 10

1.2

Market Size & Segmentation

11 – 18

9

Section 1: Overview of Cold Chain Market in Vietnam

1.1. Market Structure & Description

Cold chain logistics is one of the most promising segments in Vietnam, fueled by the strong development of processing industry, import-export activities and modern trade retail Figure 1: Market Structure and Description of Vietnam Logistics Market, 2023

Transportation

Domestic transportation

General transportation

International transportation

Cold transportation

Customs clearance

Forwarding ICD and CFS services

Logistics

Dry warehouse Cold storage

Warehousing

Cold chain

Distribution center Bonded warehouse Dangerous goods warehouse

Value-added services Source: FiinGroup

Post operation Packing, inspection, fumigation, etc.

10

Content

Section 1: Overview of Cold Chain Market in Vietnam Content 1.1

Market Structure & Description

1.2

Market Size & Segmentation

Page 9 – 10

11 – 18

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Section 1: Overview of Cold Chain Market in Vietnam

1.2. Market Size & Segmentation

The cold chain logistics market in Vietnam was estimated at US$xx mn in 2022. Of which, cold storage and cold transportation account for xx% and xx%, respectively Figure 2: Vietnam Cold Chain Logistics Market Size by Segment: Cold Storage and Cold Transportation, 2022 FIINGROUP’S METHODOLOGY

The market size of Cold chain market in Vietnam was estimated at US$xx mn in 2022

xx%

Cold storage

Cold transportation

Market size US$XXmn

Market size US$XXmn

Designed capacity xx pallets

Number of cold trucks xx trucks

~

xx%

Source: FiinGroup To calculate the cold transportation market size, FiinGroup includes only professionally-managed cold trucks. Cold trucks by independent providers, in-house truck teams, and container tractors are excluded in our calculation of the market size

12

Section 1: Overview of Cold Chain Market in Vietnam

Cold storage

1.2. Market Size & Segmentation

Total designed capacity of cold storages in Vietnam recorded a noticeable increase during the last two years thanks to the active investment from both local and foreign players Figure 3: Cold Storage Market Size by Designed Capacity (‘000 pallet)

New cold storage projects in 2020-22

CAGR 2020-22

xx%

xx%

2020

2021 Central

North

2022

xx%

South

Source: FiinGroup

13

Section 1: Overview of Cold Chain Market in Vietnam

Cold storage

1.2. Market Size & Segmentation

The cold storage designed capacity in Vietnam is forecasted to reach xx pallets in 2026 with the active participation of both local private & foreign investors Figure 4: Vietnam’s Cold Storage Market Size in terms of Designed Capacity (‘000 pallets) and Sales Revenue (US$mn) Metrics Designed capacity Sales revenue

2019

2020

CAGR 2019-22 xx% xx%

2021

Existing capacity ('000 pallets)

CAGR 2023-26 xx% xx%

2022

FORECAST

2023F

Additional capacity ('000 pallets)

2024F

2025F

2026F

Market Size (Sales Revenue in US$mn)

Source: FiinGroup

14

Section 1: Overview of Cold Chain Market in Vietnam

Cold storage

1.2. Market Size & Segmentation

Cold storage facilities in Vietnam reached an average utilization rate of xx% as of 2022 Figure 5: Forecasted Utilization Rate of Cold Storages in Vietnam, 2019 – 2026F

FORECASTt

2019

2020

2021

2022

2023F

2024F

2025F

2026F

Source: FiinGroup The analysis is based on in-depth discussion with cold storage providers in the market

15

Section 1: Overview of Cold Chain Market in Vietnam

1.2. Market Size & Segmentation

Cold transportation

Vietnam cold transportation market size is estimated at xx professionally-managed cold trucks throughout the country, excluding independent and in-house providers Figure 6: Number of Professionally-Managed Cold Trucks in Vietnam by Region (Excluding Independent Providers and In-house Truck Teams), 2022 • Number of companies: xx • Number of trucks: xx • Major players:

• Number of company: xx • Number of trucks: xx • Major player:

Hoang Sa (Vietnam)

• Number of companies: xx • Number of trucks: xx • Major players:

Source: FiinGroup

Truong Sa (Vietnam)

FiinGroup’s Methodology for market size calculation (in terms of number of cold trucks) ➢ Leveraging FiinGroup’s in-house database of all registered companies in Vietnam, including cold transportation companies, we created a list of xx transportation companies in Vietnam with sales revenue above VND100bn for further validation. FiinGroup validated the number of cold trucks of these companies via their public information such as website, company brochure, or phone interview ➢ Please note that container tractors are not included in the market size calculation as tractors, while can be used to transport frozen goods, are mostly used for ambient goods.

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Section 1: Overview of Cold Chain Market in Vietnam

Cold transportation

1.2. Market Size & Segmentation

There are xx professionally-managed cold truck providers with xx cold trucks throughout the country Figure 7: Vietnam's Cold Trucks Market Size, 2022

xx cold trucks in Vietnam

1,200

Figure 8: Breakdown of Cold Transportation Market Size by Company Type, 2022

xx% cold trucks in the Central are owned by logistic companies

1,000 800 600 400

200 0 South

North

Central

Logistics companies

General transportation companies

Warehousing companies

Specialized cold transportation companies

Source: FiinGroup Note: It is noted that in the course of this market research, FiinGroup does not cover container tractors (including prime movers, trailers, semi-trailers, etc.) and generators for cold container transportation as they can be utilized for ambient good transportation. Please refer to slide xx for an in-depth analysis of Vietnam cold transportation market size.

17

Section 1: Overview of Cold Chain Market in Vietnam

Cold transportation

1.2. Market Size & Segmentation

Cold transportation model of cold storages in Vietnam Cold storage providers

Professionally-managed cold truck providers

Both Cold storage and Professionallymanaged cold truck providers

Business model

Key players

Practice

18

Content

Section 2: Sector Financial Performance Content 2

Sector Financial Performance

Page 19 – 23

19

Section 2: Sector Financial Performance

2. Sector Financial Performance

Cold chain logistics companies recorded a drop in profitability ratios in 2021 due to increased overall expenses Figure 9: Sector Financial Performance Profitability ratios

2019

2020

2021

Gross profit margin

xx%

xx%

xx%

Operating profit margin

xx%

xx%

xx%

Net profit margin

xx%

xx%

xx%

EBIT margin

xx%

xx%

xx%

ROA

xx%

xx%

xx%

ROE

xx%

xx%

xx%

%COGS

xx%

xx%

xx%

%SG&A

xx%

xx%

xx%

%Financial expense

xx%

xx%

xx%

D/E

xx

xx

xx

Total liabilities/Total assets

xx

xx

xx

Current ratio

xx

xx

xx

Quick ratio

xx

xx

xx

Days in account receivables

xx

xx

xx

Days in account payables

xx

xx

xx

FiinGroup’s methodology

Cost structure Cold storage sector financial performance

Capital structure & Liquidity ratios

Management ratios

Source: FiinGroup (*) The classification of cold chain companies by segment (i.e. cold storage and cold transportation) is based on their main business line (i.e. accounting for over 50% of total net sales based on FiinGroup’s validation). Cold storage/cold transportation companies may have diversified business lines and the analysis is conducted based on financial information of all business lines of these companies for the whole country.

20

Section 2: Sector Financial Performance

2. Sector Financial Performance

Specialized cold storage providers managed to achieve higher profitability (i.e. GPM, OPM and NPM) than cold transportation companies Figure 10: Profitability Ratios of Cold Chain Sector, 2021

GROSS PROFIT MARGIN

OPERATING MARGIN

NET PROFIT MARGIN

Specialized cold transportation providers Specialized cold storage providers

Hybrid provider(*)

Industry Average

Source: FiinGroup The classification of cold chain companies by segment (i.e. cold storage and cold transportation) is based on their main business line (i.e. accounting for over 50% of total net sales based on FiinGroup’s validation). Cold storage/cold transportation companies may have diversified business lines and the analysis is conducted based on the financial information of all business lines of these companies for the whole country. (*) ABA Cooltrans is the only hybrid provider that has main business lines in both cold storage and cold transportation.

21

Section 2: Sector Financial Performance

2. Sector Financial Performance

Vietnam cold chain companies have a strong financial position during the reviewed period Figure 11: Capital Structure and Liquidity of Cold Chain Sector, 2021

Current ratio

Quick ratio

Specialized cold transportation providers

Debt to Equity Specialized cold storage providers

Hybrid provider

Total liabilities/Total assets Industry Average

Source: FiinGroup (*) The classification of cold chain companies by segment (i.e. cold storage and cold transportation) is based on their main business line (i.e. accounting for over 50% of total net sales based on FiinGroup’s validation). Cold storage/cold transportation companies may have diversified business lines and the analysis is conducted based on financial information of all business lines of these companies for the whole country.

22

Section 2: Sector Financial Performance

2. Sector Financial Performance

COGS of cold chain sector remained high driven by high COGS in cold transportation sector Figure 12: Cost Structure of Cold Chain Sector, 2021

Specialized cold storage providers

Specialized cold transportation providers % COGS

% SG&A

Hybrid provider

Industry average

% Financial expense

Source: FiinGroup (*) The classification of cold chain companies by segment (i.e. cold storage and cold transportation) is based on their main business line (i.e. accounting for over 50% of total net sales based on FiinGroup’s validation). Cold storage/cold transportation companies may have diversified business lines and the analysis is conducted based on financial information of all business lines of these companies for the whole country.

23

Content

Section 3: Competitive Landscape Content 3.1

Market Share

3.2

Profiling of Top 5 Cold Storage Operators in Vietnam

Page 24 – 30 31 – 41

24

Section 3: Competitive Landscape

Cold storage

3.1. Market Share | Cold Storage

Local providers dominate the market in terms of designed capacity, while foreign providers are more proficient at service quality and serve more premium service segments Figure 13: Designed capacity (‘000 pallets) – 2022 and Sales Revenue (US$mn) - 2021 by Groups of Major Cold Storage Providers Unit: thousand pallets

MAJOR FOREIGN PLAYERS

By Designed capacity

By Revenue

Lineage Logistics

Mekong Logistics

Meito

Hoang Lai

Woojin Hanaro Anpha-AG Newland CLK ShengLong xx pallets

Unit: thousand pallets

Hung Vuong

AJ Total

LGL

MAJOR LOCAL PLAYERS

SK Logistics xx cold storage providers xx pallets

ABA Cooltrans Satra Transimex An Viet Phan Duy New Era xx pallets

Source: FiinGroup For cold-storage providers with in-house demand, the cold storage’s proportion used for such demand is typically less than 50% of the total designed capacity, thus, FiinGroup still cover these companies as cold storage service providers in the market. The official proportion of in-house and commercial demand of these companies is not available, FiinGroup shall cover their total designed capacity.

25

Section 3: Competitive Landscape

Cold storage

3.1. Market Share | Cold Storage

Cold storage in Vietnam could be classified into foreign and local groups, based on facilities, target customers, value-added services and technology

Cold storage in Vietnam Foreign

Local

FACILITIES

TARGET CUSTOMERS

VALUE-ADDED SERVICE

TECHNOLOGY

KEY PLAYERS

26

Section 3: Competitive Landscape

Cold storage

3.1. Market Share | Cold Storage

The top 10 players in Vietnam contributed to xx% of the total market share of cold storage by designed capacity in 2022 Figure 14: Market Share of Cold Storage by Designed Capacity, 2022

Lineage Logistics Hung Vuong AJ Total Mekong Logistics Hoang Lai SK Logistics ABA Cooltrans SATRA Transimex

An Viet Others

Source: FiinGroup

27

Section 3: Competitive Landscape

Cold transportation

3.1. Market Share | Cold Transportation

Almost all players could provide services for cold containers while cold transportation service for bulk products is the strength of only several key players in the market COLD TRANSPORTATION

Terminal tractors

Cold trucks

As cold container transportation can be handled by most non-professionally managed cold truck providers, FiinGroup shall focus more on professionally-managed cold truck providers based on their cold truck fleets.

28

Section 3: Competitive Landscape

Cold transportation

3.1. Market Share | Cold Transportation

Top 10 cold transportation providers controlled up to xx% of the market share by fleet size. Only xx providers are Northern-based while the other xx are Southern-based. Figure 15: Market Share by Fleet Size, 2022 ABA Cooltrans Dai Tan Thanh An

Figure 16: Top 10 Players by Fleet Size, 2022 300 200

9th Transport Tan Bao An

100

Konoike Lam Dat

0

Gemadept Long Phu DKP

Others Source: FiinGroup

Source: FiinGroup

Aside from the professional cold transportation providers covered in the report, as mentioned in the previous slide, the cold transportation industry witnesses participation from individuals, household businesses, SMEs that are in possession of a few trucks. Within the scope of this report, we do not factor them into the calculation of the cold transportation market size.

29

Section 3: Competitive Landscape

Cold transportation

3.1. Market Share | Cold Transportation

What do cold transportation companies do to gain the market share? Salesperson

Temperature

Delivery time

Price

Competition factors Additional services

Location

30

Content

Section 3: Competitive Landscape Content

Page

3.1

Market Share

24 – 30

3.2

Profiling of Top 5 Cold Storage Operators in Vietnam

31 – 41

31

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | Lineage Logistics Vietnam

Lineage Logistics Vietnam COMPANY PROFILING

SERVICE OFFERINGS

BUSINESS STRATEGY OWNERSHIP STRUCTURE & MANAGEMENT TEAM • Ownership Structure 2022 Shareholder

Percentage

• Management team

Name

KEY CLIENT PORTFOLIO Title

32

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | Lineage Logistics Vietnam

Lineage Logistics OPERATIONAL INFORMATION •

FINANCIAL HIGHLIGHTS

Cold storage facilities:

Facility Location

Facility Equipment Area (m2)

Financial statement of Lineage Logistics Vietnam is not available Storage Capacity (pallet)

LINEAGE’S FACILITIES

33

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | ABA Cooltrans

ABA Cooltrans COMPANY PROFILING

SERVICE OFFERINGS

BUSINESS STRATEGY OWNERSHIP STRUCTURE & MANAGEMENT TEAM • Ownership Structure 2022 Shareholder

Percentage

KEY CLIENT PORTFOLIO • Management team Name

Title

34

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | ABA Cooltrans

ABA Cooltrans OPERATIONAL INFORMATION •

FINANCIAL HIGHLIGHTS Unit

2019

2020

2021

US$mn

xx

xx

xx

COGS

US$mn

xx

xx

xx

Gross profit

US$mn

xx

xx

xx

Operating profit

US$mn

xx

xx

xx

EBIT

US$mn

xx

xx

xx

Net profit

US$mn

xx

xx

xx

Total Assets

US$mn

xx

xx

xx

Total Liability

US$mn

xx

xx

xx

Owner’s Equity

US$mn

xx

xx

Xx

Unit

2019

2020

2021

GPM

%

xx

xx

xx

OPM

%

xx

xx

xx

EBIT margin

%

xx

xx

xx

NPM

%

xx

xx

xx

Unit

2019

2020

2021

% COGS

%

xx

xx

xx

% SG&A

%

xx

xx

xx

% Financial expense

%

xx

xx

xx

Capital Structure & Liquidity

Unit

2019

2020

2021

D/E

Time

xx

xx

xx

Current ratio

Time

xx

xx

xx

Quick ratio

Time

xx

xx

xx

Cold storage facilities: Net sales

Facility

Location

Facility Equipment Area (m2)

Storage Capacity (pallet)

Profitability

Cost Analysis

35

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | AJ Total

AJ Total COMPANY PROFILING

SERVICE OFFERINGS

BUSINESS STRATEGY

OWNERSHIP STRUCTURE & MANAGEMENT TEAM • Ownership Structure 2022 Shareholder

Percentage

KEY CLIENT PORTFOLIO • Management team Name

Title

36

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | AJ Total

AJ Total OPERATIONAL INFORMATION •

FINANCIAL HIGHLIGHTS Unit

2021

Net sales

US$mn

xx

COGS

US$mn

xx

Gross profit

US$mn

xx

Operating profit

US$mn

xx

EBIT

US$mn

xx

Net profit

US$mn

xx

Total Assets

US$mn

xx

Total Liability

US$mn

xx

Owner’s Equity Profitability

US$mn Unit

xx 2021

GPM

%

xx

OPM

%

xx

EBIT margin

%

xx

NPM

%

xx

Unit

2021

% COGS

%

xx

% SG&A

%

xx

% Financial expense

%

xx

Capital Structure & Liquidity

Unit

2021

D/E

Time

xx

Current ratio

Time

xx

Quick ratio

Time

xx

Cold storage facilities:

Facility Location

Facility Equipment Area (m2)

Storage Capacity (pallet)

Cost Analysis

*AJ Total’s cold storages only began operational in July 2021, so financial information in 2019 and 2020 were not available.

37

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | Mekong Logistics

Mekong Logistics COMPANY PROFILING

SERVICE OFFERINGS

BUSINESS STRATEGY OWNERSHIP STRUCTURE & MANAGEMENT TEAM • Ownership Structure 2021 Shareholder

Percentage

KEY CLIENT PORTFOLIO • Management team Name

Title

38

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | Mekong Logistics

Mekong Logistics OPERATIONAL INFORMATION •

FINANCIAL HIGHLIGHTS Unit

2019

2020

2021

US$mn

xx

xx

xx

COGS

US$mn

xx

xx

xx

Gross profit

US$mn

xx

xx

xx

Operating profit

US$mn

xx

xx

xx

EBIT

US$mn

xx

xx

xx

Net profit

US$mn

xx

xx

xx

Total Assets

US$mn

xx

xx

xx

Total Liability

US$mn

xx

xx

xx

Owner’s Equity

US$mn

xx

xx

xx

Unit

2019

2020

2021

GPM

%

xx

xx

xx

OPM

%

xx

xx

xx

EBIT margin

%

xx

xx

xx

NPM

%

xx

xx

xx

Unit

2019

2020

2021

% COGS

%

xx

xx

xx

% SG&A

%

xx

xx

xx

% Financial expense

%

xx

xx

xx

Capital Structure & Liquidity

Unit

2019

2020

2021

D/E

Time

xx

xx

xx

Current ratio

Time

xx

xx

xx

Quick ratio

Time

xx

xx

xx

Cold storage facilities:

Facility

Location

Facility Equipment Area (m2)

\

Storage Capacity (pallet)

Net sales

Profitability

COLD STORAGE FACILITY

Cost Analysis

39

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | Hoang Lai Group

Hoang Lai Group COMPANY PROFILING

SERVICE OFFERINGS

BUSINESS STRATEGY

OWNERSHIP STRUCTURE & MANAGEMENT TEAM • Ownership Structure 2022 Shareholder Hoang Phi Quan Hoang Lai (LA) Hoang Lai (SG)

GROUP COMPANIES

• Management team Name

Title

40

Section 3: Competitive Landscape

3.2. Profiling of Top 5 Cold Storage Operators in Vietnam | Hoang Lai Group

Hoang Lai Group OPERATIONAL INFORMATION •

FINANCIAL HIGHLIGHTS - 2021 Unit Hoang Phi Quan Hoang Lai (LA) Hoang Lai (SG)

Cold storage facilities:

US$mn

xx

xx

xx

COGS

US$mn

xx

xx

xx

Gross profit

US$mn

xx

xx

xx

Operating profit

US$mn

xx

xx

xx

EBIT

US$mn

xx

xx

xx

Net profit

US$mn

xx

xx

xx

Total Assets

US$mn

xx

xx

xx

Total Liability *

US$mn

xx

xx

xx

Owner’s Equity

US$mn

xx

xx

xx

Net sales Facility

Location

Facility Equipment Area (m2)

Storage Capacity (pallet)

Profitability

Unit Hoang Phi Quan Hoang Lai (LA) Hoang Lai (SG)

GPM

%

xx

xx

xx

OPM

%

xx

xx

xx

EBIT margin

%

xx

xx

xx

NPM

%

Cost Analysis

xx xx xx Unit Hoang Phi Quan Hoang Lai (LA) Hoang Lai (SG)

% COGS

%

xx

xx

xx

% SG&A

%

xx

xx

xx

% Financial expense

%

xx xx xx Unit Hoang Phi Quan Hoang Lai (LA) Hoang Lai (SG)

Capital Structure & Liquidity` D/E

Time

Current ratio

Time

xx xx

xx xx

xx xx

Quick ratio

Time

xx

xx

xx

* Hoang Lai (SG) has negative liability balance due to large tax assets balance in 2021

41

Content

Section 4: Key Market Trends & Growth Drivers Content 4.1

Key Market Trends

4.2

Key Growth Drivers

Page 42 – 46 47 – 57

42

Section 4: Key Market Trends & Growth Drivers

4.1. Key Market Trends

Modern cold chain providers focus on offering new services and upgrading facilities Key Development Trends Trend of Service offerings

Trend of Cold storage facilities

43

Section 4: Key Market Trends & Growth Drivers

4.1. Key Market Trends

Cold chain providers aim to extend their service portfolio and offer full end-to-end solutions to customers Key growth drivers

Service offering

44

Section 4: Key Market Trends & Growth Drivers

4.1. Key Market Trends

Cold chain providers combine rack-supported building solution and vertical-oriented design to lower costs and increase efficiency Modern Cold Storage Design

Advantages

45

Section 4: Key Market Trends & Growth Drivers

4.1. Key Market Trends

Modern cold storages are often equipped with automation systems and energy-efficient technologies Equipment & Technologies

Source: FiinGroup

46

Content

Section 4: Key Market Trends & Growth Drivers Content

Page

4.1

Key Market Trends

42 – 46

4.2

Key Growth Drivers

47 – 57

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Section 4: Key Market Trends & Growth Drivers

4.2. Key Growth Drivers

The cold chain market in Vietnam expects strong growth thanks to strong demand from import/export activities and modern trade formats

Exports

Imports

Modern trade

48

Section 4: Key Market Trends & Growth Drivers

Import - Export Activities of Chilled & Frozen Products

4.2. Key Growth Drivers

Chilled and frozen product import-export activities recorded a slight decrease in the last two years due to the negative impact of COVID-19 Figure 17: Import – Export Value (US$mn) of Chilled & Frozen Products in Vietnam, 2019 – 2021

Figure 18: Breakdown of Import – Export Value by region, 2021

15,000 12,000 9,000 6,000 3,000 0 2019

Export

2020 Import

2021

2020 Growth (yoy)

2021 Growth (yoy)

CAGR 2019-2021

Import

xx%

xx%

xx%

Export

xx%

xx%

xx%

Total

xx%

xx%

xx%

Source: FiinGroup, Customs

49

Section 4: Key Market Trends & Growth Drivers

4.2. Key Growth Drivers

Import - Export Activities of Chilled & Frozen Products

Seafoods, Processed Food, and Vegetable & Fruits are the Top 3 segments, accounting for xx% of total import - export value of chilled and frozen products in Vietnam in 2021 Figure 19: Breakdown of Market size (US$mn) in Vietnam by Product Types, 2021

Export Import

2021

Source: FiinGroup, Customs

50

Section 4: Key Market Trends & Growth Drivers

Import - Export Activities of Chilled & Frozen Products

4.2. Key Growth Drivers

Seafoods remained the biggest segment in terms of import-export activities in Vietnam in 2021, albeit deteriorated Figure 20: Import-Export Value (US$mn) of Major Product Categories to Vietnam

EXPORT

CAGR 2019-21

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

xx%

IMPORT

CAGR 2019-21

Source: FiinGroup, Customs

51

Section 4: Key Market Trends & Growth Drivers

Import - Export Activities of Chilled & Frozen Products| SEAFOOD| Import & Export

4.2. Key Growth Drivers

Seafood import and export activities witnessed a decrease with CAGR 2019-21 of xx% due to weak export activities resulted from COVID-19 pandemic Figure 21: Import – Export Value (US$mn) of Seafoods in Vietnam 2019 - 2021 Proportion

Figure 22: Breakdown of Import – Export Value (US$mn) of Seafoods in Vietnam by Country, 2021

CAGR 2019-21

Export Import

xx%

xx%

xx%

xx%

India Source: FiinGroup, Customs

Japan

China

Norway

South Korea

USA

United Kingdom

Others

Source: FiinGroup, Customs

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Section 4: Key Market Trends & Growth Drivers

Import - Export Activities of Chilled & Frozen Products| SEAFOOD| Export

4.2. Key Growth Drivers

Processed shrimp, Fish fillet, and Processed fish were Top 3 major exported seafoods products in Vietnam Figure 24: Seafood Export Value (US$mn) from Vietnam by Major Products

2019 2020

Processed shrimp

2021

Fish fillet

Figure 25: Export Value (US$mn) of Major Seafood Products 2019

2020

2021

Processed Fish Shrimp Whole fish Others Source: FiinGroup, Customs Note: Processed shrimp and fish refer to products with primary processing such as the beheading, gutting, or filleting of finfish, etc.

CAGR 2019-21

Processed shrimp

Fish fillet

Processed Fish

Shrimp

Whole fish

xx%

xx%

xx%

xx%

xx%

MAJOR PORTS (% of Export Value in 2021)

Source: FiinGroup, Customs Note: The proportion is calculated based on export value

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Section 4: Key Market Trends & Growth Drivers

Import - Export Activities of Chilled & Frozen Products| SEAFOOD| Import

4.2. Key Growth Drivers

Whole fish, Processed shrimp, and Processed fish were the three major imported seafoods products in the Vietnam during the review period Figure 26: Seafoods Import Value (US$mn) in Vietnam by Major Products

Figure 27: Import Value (US$mn) of Major Seafoods Products

2019

Whole fish

2019 2020 2021

2020

2021

Processed shrimp Processed Fish Fish Fillet Shrimp Others

Source: FiinGroup, Customs Note: Processed shrimp and fish refer to products with primary processing such as the beheading, gutting, or filleting of finfish, etc.

CAGR 2019-21

Whole fish

Processed shrimp

Processed Fish

Fish Fillet

Shrimp

xx%

xx%

xx%

xx%

xx%

MAJOR PORTS (% of Import Value in 2021)

Source: FiinGroup, Customs Note: The proportion is calculated based on import value

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Section 4: Key Market Trends & Growth Drivers

4.2. Key Growth Drivers

Modern Trade

Vietnam retail market experiences a rapid growth with CAGR 2012-2022 of xx% and is expected to keep its growth momentum in the time to come Figure 28: Vietnam Retail Revenue & Growth, 2012 – 2022E(US$bn)

KEY GROWTH DRIVERS

200

160

120

80

40

0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E Source: FiinGroup, GSO

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Section 4: Key Market Trends & Growth Drivers

Modern Trade

4.2. Key Growth Drivers

Robust expansion of modern trade retail in Vietnam Figure 29: Number of MT Stores in Vietnam, 2019-22

Figure 30: Number of MT Stores of Leading Players, 2021 - 2022

SUPERMARKET

MT stores

xx

CAGR 2019 – 2022: xx

CoopMart

WinMart

Sakuko

Lanchi Mart

2021

Mega Market AEON Citimart

CONVENIENT STORES/ MINI SUPER

3,00 0

2022

Go! (BigC)

2021

2022

2,50 0

2,00 0

1,50 0

1,00 0

500

2019

2020 2021 Department store Supermarket Convenient store/Mini super

Source: FiinGroup, Q&Me

2022

-

WinMart+ Bach Hoa Circle K Xanh

Co.op food

Satrafoods Family Mart

GS25

Mini Stop

B's Mart

K-market

Hapro foods

7 Eleven

T-Mart

Source: FiinGroup, Q&Me

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Section 4: Key Market Trends & Growth Drivers

E-commerce Platform

4.2. Key Growth Drivers

Consumers shifted to online shopping for groceries amidst the COVID-19 pandemic; however, the trend is not expected to be permanent Covid-19 pandemic

E-commerce platform

Cold chain demand

Key social distancing periods in Vietnam in 2020 - 2021 Unit: Days of lockdown Vinh Phuc (Son Loi commune) (12/02/20 - 03/03/20) Whole country - High risk provinces* (01/04/20 - 30/04/20)

First wave of COVID-19

Whole country - Low risk provinces** (01/04/20 - 22/04/20)

Da Nang (27/07/20 - 11/09/20)

Hai Duong (28/01/21 - 03/03/21)

Second wave of COVID-19 Third wave of COVID-19

Bac Giang (19/05/21 - 24/06/21)

HCMC (09/07/21 - 01/10/21)

Hanoi (24/07/21 - 21/09/21)

Fourth wave of COVID-19

High risk provinces are Hanoi, HCMC, Da Nang, Lao Cai, Quang Ninh, Bac Ninh, Ninh Binh, Ha Tinh, Quang Nam, Binh Thuan, Khanh Hoa, Tay Ninh (*)

Low risk provinces are Hai Phong, Can Tho, Lang Son, Thai Nguyen, Ha Nam, Nam Dinh, Nghe An, Thua Thien Hue, Dong Nai, Binh Duong, Binh Phuoc, Kien Giang, Soc Trang, An Giang, Dong Thap, Ha Giang (**)

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Publishing License No. 458-2023/CXBIPH/2-15/TTTT dated on February 22th, 2023

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Contact us Dong Le, CFA Managing Director, Head of Market Research and Consulting T: +84 (024) 3562 6962 (ext. 110) E: [email protected]

Hai Khieu Director, Market Research and Consulting T: +84 (024) 3562 6962 (ext.: 120) E: [email protected]

Head Office 10th Floor, Peakview Tower, 36 Hoang Cau Street, O Cho Dua Ward, Dong Da District, Hanoi, Vietnam T: +84 (024) 3562 6962 E: [email protected] W: https://fiingroup.vn

Ho Chi Minh City Branch Level 16, Bitexco Financial Tower, 2 Hai Trieu Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam T: +84 (028) 3933 3586/ 85

Anh Nguyen Manager, Market Research and Consulting T: +84 (024) 3562 6962 (ext.: 105) E: [email protected]

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