Speaking about the agreement between the two firms, Brooke Miller, president of Lineage Asia Pacific, said, "Partnering with SK Logistics is a remarkable opportunity for us to continue delivering world-class cold storage solutions in the Asia Pacific region alongside a proud and thriving family business."

"Expanding Lineage’s footprint in Asia Pacific through Vietnam as a significant economic contributor in the region continues to be a long-term strategic goal for the company. Vietnam is an important market for Lineage, and partnering with a reliable and proven operator like SK Logistics helps the company to continue delivering excellence in supply chain solutions in the region," Miller added.

SK Logistics’ two cold storage warehouses, totalling almost 400,000 square feet, represent a strong increase in capacity in the north of Vietnam for Lineage. These facilities offer storage, distribution, stamping, weighing, classification, and packing services for important customers in the region.

In July, Yokorei, the Japanese refrigerated warehousing company, received an investment certificate for a $52 million cold-storage warehouse in Ben Luc district, Long An. Covering an area of 4.5 hectares, the factory is under construction and is slated for a trial run in the third quarter of 2024 with operations set to begin by March 2025. Yokorei provides cold storage solutions for agricultural produce, aqua-products, food, and other items.

A report by Ken Research pointed out that the cold chain market in Vietnam is fragmented with the presence of major players such as Kuehne Nagel, Swire Cold Storage, Schenker, Agility, APL, K-Line, Maersk Logistics, and others. The players compete on various parameters including total space of temperature controlled area, number of temperature maintained fleets, local coverage area, cost per pallet space, support services, number of pallets, number of offices, warehouses, production capacity, clientele and verticals served.

According to commercial real estate firm Cushman & Wakefield, the cold chain market in Vietnam accounted for almost $170 million in 2019. Given the boom in the sector in anticipation of receiving and storing the COVID-19 vaccine, the growth in seafood processing, and overall increased consumer demand, it is expected to reach a value of $295 million by 2025, which translates to about 12 per cent annual growth.