Vietnam, Japan firms forge strategic alliance to form cold-chain logistics hub

Toan Phat Logistics Joint Stock Company (TPL) on Thursday signed a strategic alliance with Japan’s Kawanishi Warehouse Co., Ltd and MOL Logistics Co., Ltd - a member of Mitsui O.S.K. Lines - to create the Mekong Logistics Hub, designed to pioneer a closed-loop and comprehensive cold-chain system in Vietnam.

The integrated model creates a closed value chain right at the gateway to the Mekong Delta, said Vuong Hieu, CEO of Toan Phat, a company based in the Mekong Delta province of Tay Ninh.

Hieu elaborated that instead of transporting goods to various sites, businesses could save their time and transport costs by having irradiation and cold storage at the same place, helping reduce the risk of supply chain disruption.

Besides, the model is expected to upgrade Vietnam’s existing export routes, further elevating the country’s agro-fishery product supply chain on the global stage, he added.

The Japanese partners, for their parts, hailed the partnership with Toan Phat, highlighting the company’s operational capacity. They described cold storage as a critical factor for the future growth of agricultural and aquatic exports, which require stringent temperature management.

With the adjacent irradiation facility of Toan Phat, one of the few licensed in Vietnam to irradiate fruit, this integrated model offers a unique one-stop solution in the market, representative director & president and CEO of MOL Logistics Co.,Ltd Osamu Sakurada said, adding that it will also help elevate Vietnam’s logistics infrastructure.

The Mekong Logistics Hub will continue perfecting its services to provide comprehensive supply chain services from irradiation and cold storage to domestic transport and seaport connectivity, helping shorten export routes, reduce costs, and increase competitiveness.

The alliance's long-term vision is to turn the Mekong Logistics Hub into a critical cold cargo transshipment center for ASEAN, opening a new era where Vietnamese agricultural and aquatic products are positioned for brand recognition and quality on the global map, and delivering on the goal of $65 billion in agro-forestry-fishery exports this year.

According to the Ministry of Industry and Trade, the Mekong Delta accounts for around 30% of southern Vietnam’s cold storage facilities and about half of the country’s total capacity, concentrated mainly in Tay Ninh.

Specialists from the Can Tho University said that cold-chain development is not only a technical necessity but also a strategic factor to improve competitive edge by connecting production with international markets. Despite rising demand, Vietnam’s cold-chain supply remains limited, leading to high logistics costs and undermined export competitiveness.

Toan Phat has been an early mover in this field. Since 2018, its irradiation facility in Tay Ninh has applied advanced technology recognized by such demanding markets as the U.S., Australia, and New Zealand. In 2023, the company launched a cold storage facility with a capacity of nearly 11,000 tons, creating a closed-loop irradiation-cold storage export service chain.