Warehouse for rent in Ho Chi Minh for storage or logistics service

Warehouse for rent service in Ho Chi Minh is increasing rapidly along with the demand for warehouse rental recently. Both domestic and foreign investors want to find a warehouse location not only in Ho Chi Minh City but also in big cities. In particular, investors aim to rent warehouses in industrial zones with large area. Why is the demand for warehouse rentals so high? What will warehousing service be?

1. Evaluation of global warehousing market

According to the Vietnam Logistics Report, the warehousing market in 2020 has main driving force from the e-commerce and cold storage segment. In particular, the increasing demand for cold storage continue driving the growth of this market upcoming years.

The companies with most influence in global warehousing market include: A.P. Moller Maersk AS, C.H. Robinson Worldwide Inc., CEVA Logistics AG, Deutsche Bahn AG, Deutsche Post AG, DSV Panalpina AS, FedEx Corp., Kuehne Nagel International AG, United Parcel Service of America Inc. and XPO Logistics Inc.

2. Warehousing service market in Vietnam in 2020

Currently, 53.7% of Vietnamese logistics service enterprises provide warehousing services. Warehouse for rent continues to be one of main services provided by Vietnamese logistics enterprises.

The current concern is about warehouse management technology and warehouse development investment capital to promptly meet the requirements of production and import and export, especially frozen storage for supply chain.

3. Demand for cold storage and e-commerce warehouses increases sharply

3.1 The urgency to develop cold storage

Cold storage refers to the management of temperature of perishable products to maintain quality and safety from the point of production or harvest through the distribution chain to the final consumer.

According to a survey by CEL Consulting in 2020, only 8.2% of manufacturers for domestic market are applying cold storage, much lower than the figure of 66.7% of exporters.

Currently, Vietnam is in need of investment to develop more cold storage. The Vietnam Association of Seafood Exporters and Producers (VASEP) is asking the state for loans with low interest rates to build cold storage facilities for the production and export of seafood products. In the near future, there will be a large-scale cold storage chain and normal warehouse expected to be developed in Le Minh Xuan 3 Industrial Park with an investment scale of 7.3ha.

According to a survey by CEL Consulting in 2020, only 8.2% of manufacturers for the domestic market apply cold chains, much lower than the figure of 66.7% of exporters.

Currently, Vietnam need more investment to develop cold storage chain. The Vietnam Association of Seafood Exporters and Producers (VASEP) is asking the state for loans with low interest rates to build cold storage facilities for the production and export of seafood products.

3.2 The increasing demand for e-commerce warehouses

In addition, the warehousing service market is also led by the “hot” growth of e-commerce industry in Vietnam and all over the world. During epidemic period, the demand for warehouse rental is higher than in the pre-epidemic period.

This is actually happening when foreign capital is pouring into the construction of warehouses and factories in industrial zones in Ho Chi Minh, Binh Duong or Dong Nai. The development of warehouses in big cities will create advantages for distributors, suppliers and sellers to quickly access their customers.

4. Warehouse for rent in Ho Chi Minh

Sai Gon VRG will develop Logistics warehouse in Dong Nam industrial park with over 5ha. Warehouse will be built with high standards, meeting the needs of logistics and forwarding enterprises.

Especially with current period of strong development of e-commerce, Logistics warehouse in Dong Nam Industrial Park may be good choice for many enterprises who are looking for high-quality warehouse for rent.

Warehouses can be built according to the requirements of investors who need to rent for long term. It is considered favorable condition for investors to choose the form of warehouse rental in Ho Chi Minh.

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