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Vietnam, Antara Cold Storage

Delivering vital cold storage facilities to boost Vietnam's seafood industry and prevent waste.

InfraCo Asia worked with Antara Holdings Limited (AHA) to help fund the development costs of a cold storage project in Ho Chi Minh City, Vietnam. This project has been developed in response to the need for new and improved infrastructure within the aqua-culture business sector.

In Vietnam, small fish farmers suffer considerable losses due to waste and spoiling of their produce before it can get to market. Given the perishable and seasonal nature of their goods, infrastructure facilities for warehousing and storing them are critical for maintaining value and ensuring a sustainable source of income for producers. These infrastructure facilities also support the development of small and medium-scale enterprises along the aqua-cultural supply chain, providing greater efficiency and competitiveness in local and international markets.

Antara

There is currently insufficient modern, well-maintained cold storage space in Vietnam to meet increasing demand. Professional cold warehouse space and expert management is lacking in the country, leading to product spoilage rates of more than 30%.

The Antara Cold Storage project is being developed to tackle these issues. By developing a public refrigerated warehouse and cold storage distribution facility in Ho Chi Minh City, the project will serve the large number of aqua-culture farmers operating in the Mekong Delta. The project will enhance capacity in cold warehouse space, and will improve the transportation and tracking of goods. 50,000 tonnes of seafood is expected to pass through the warehouse every year. Additionally, the project will provide the infrastructure needed for vital health inspection services which can help producers sell into higher-value markets.

The project will comprise a US$16 million facility, with the expectation that US$10 million of debt financing will be sourced from the International Finance Corporation (IFC) and commercial banks, and US$6 million of equity will be financed from private investors. InfraCo Asia's total costs for developing the project were originally budgeted for US$1.9 million. In addition, the InfraCo Asia team, with assistance from a TAF grant, have initiated plans for a programme focused on capacity building in the fisheries sector via a series of training sessions. This will provide much-needed expertise to the fishing community in the region, helping to ensure they can take best advantage of the new facilities.

The project will greatly contribute to the economic and social development of Vietnam. It will serve a variety of industries and needs, but its primary beneficiary is expected to be the seafood sector, which is currently a US$3.3 billion export industry in the country. With access to refrigerated storage, local seafood producers will add value to their product and expand their market-access whilst associated employment opportunities will boost thousands of local livelihoods.