Japan's Igarashi Reizo builds $24 mln cold storage project in southern Vietnam

Igarashi Reizo, a more than 100-year-old Japanese company specializing in cold storage services, has broken ground for a cold and dry warehouse complex in Tay Ninh province.

Igarashi Vietnam Co., Ltd., a unit of Igarashi Reizo Co., Ltd., will build the over VND621 billion ($23.57 million) project at Long Hau Industrial Park.

It aims to develop a Japan-standard cold logistics complex featuring extensive automation and robotic technologies to optimize storage quality, according to the company.

The project covers about 36,600 square metres with a planned capacity of around 21,000 pallets. Several zones will be fully automated and integrated with advanced warehouse management systems and operational solutions transferred directly from Japan.

Construction is scheduled to start in January 2026, with phase one expected to be completed in the first quarter of 2027. Phase two and a processing area are planned for completion between 2030 and 2032.

The company aims to bring Japan’s most advanced cold storage technologies to Vietnam, helping ensure food quality, enhance the cold supply chain, and contribute to the sustainable development of Vietnam’s logistics sector, Takaharu Igarashi, CEO of Igarashi Reizo, said at the groundbreaking ceremony.

Founded more than a century ago, Igarashi Reizo is one of Japan’s leading cold storage and refrigeration companies, operating 11 modern cold warehouses across Tokyo, Saitama, and Kanagawa. According to company data, it generates annual revenue of about $200 million.

The group expanded into truck transportation in 1958, building an integrated cold supply chain. It currently operates more than 160 refrigerated trucks alongside its warehouse network, maintaining strict food safety and quality standards.

Vietnam marks Igarashi’s second market in Southeast Asia after Thailand, as the company seeks to expand its regional footprint.

Data from Cushman & Wakefield Vietnam show that the average occupancy rate of ready-built warehouses in southern Vietnam stands at about 89%, driven by rising demand from consumer goods, food and beverage, pharmaceuticals, and construction materials.

Average warehouse rents reached $4.6 per square metre per month in the third quarter of 2025, up 4% from the previous quarter and a year earlier.

Cushman & Wakefield expects the market to continue growing, with more than 1.2 million square metres of new supply set to enter between 2025 and 2027, fuelled by demand from fast-moving consumer goods, pharmaceuticals, and e-commerce.

Occupancy in Ho Chi Minh City remains particularly high at around 96%, pushing logistics operators to seek expansion in neighboring provinces such as Dong Nai and Tay Ninh, where occupancy rates are estimated at 87% and 76%, respectively, the real estate consultancy said.

Long An and Tay Ninh provinces were merged in July to form the new Tay Ninh which borders Dong Nai province, Dong Thap province, Ho Chi Minh City, and Cambodia.