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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.
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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
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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
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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$mn)
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What’s New? Forecasted Utilization Rate of Cold Storages in Vietnam, 2019 – 2026F
2019
2020
2021
2022
Vietnam's Cold Trucks Market Size, 2021
xx cold trucks in Vietnam
2023F 2024F 2025F 2026F
South
North
Central
6) Local providers dominate the cold storage market in terms of designed capacity, while foreign providers are more proficient at service quality and serve more premium service segments
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What’s New? Top 10 Players by Fleet Size, 2022 Market Share of Cold Storage by Designed Capacity, 2022 Lineage Logistics Hung Vuong AJ Total Mekong Logistics Hoang Lai SK Logistics ABA Cooltrans SATRA Transimex An Viet Others
8) Top 10 cold transportation providers controlled up to xx% of the market share by fleet size. Only xx providers are Northernbased while the other xx are Southernbased.
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What’s New? Breakdown of Import – Export Value by region, 2021
Vietnam Retail Revenue & Growth, 2012 – 2021(US$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
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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
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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.
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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
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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
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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
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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
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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.
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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
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Content
Section 2: Sector Financial Performance Content 2
Sector Financial Performance
Page 19 – 23
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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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Anh Nguyen Manager, Market Research and Consulting T: +84 (024) 3562 6962 (ext.: 105) E: [email protected]
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