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Vietnam is the 5th largest air conditioner market in Asia

Vietnam is situated in the tropical monsoon region. During the peak summer months, temperatures can reach up to 40 degrees Celsius. This characteristic significantly contributes to the growth of the air conditioning market in Vietnam.

Top 8 prominent brands in the air conditioning market

According to estimates from the Japan Refrigeration and Air Conditioning Industry Association, although the sales of air conditioners showed a declining trend during the period of 2019 to 2021, Vietnam still maintains its position as the fifth-largest market in the Asian region, with a consumption volume exceeding 1.8 million units in 2021.

Therefore, Vietnam represents a promising market with a potential growth rate for the air conditioning industry. However, this also signals a competitive race among brands, both in terms of pricing and quality.

According to market surveys, there are approximately 50 air conditioner brands, ranging from large to small, present in Vietnam. Among them, domestic brands such as REETECH and Hoa Phat stand out prominently. Additionally, there is the presence of international brands such as Daikin, Toshiba, Sharp, AQUA, LG, according to market research.

Representative air conditioning products from prominent brands.


Daikin Vietnam was established in 1995 and later renamed as Daikin Air Conditioning (Vietnam) Joint Stock Company in 2015. This marked a shift towards a product portfolio centered around air conditioning.

Since 2018, the air conditioning manufacturing plant in Hung Yen has been in operation. This not only reflects a strategy to expand production and consumption scale in Vietnam but also initiates projects for research and development of products featuring new technologies.

Currently, Daikin Vietnam serves as one of the main distribution hubs for the Daikin Group in the Southeast Asia - Pacific region, contributing to Daikin's continued leadership in the air conditioning industry.

In the period from 2020 to 2022, Daikin maintained an impressive average growth rate of 6%. The total net revenue of Daikin exceeded 9,700 billion VND in 2022. This success is attributed to the strategic promotion of core product consumption, particularly air conditioning, in Vietnam and selected regions across Asia.


REETECH is an air conditioning and refrigeration brand under R.E.E Corporation, the predecessor of which was a state-owned enterprise in mechanical electrical refrigeration. Established in 1977, R.E.E has prominently operated in the fields of energy, water, and M&E services. Recently, the company has expanded its business into real estate with an office space of over 130,000 square meters for lease.

By the end of 2022, REETECH's total net revenue from the mechanical electrical refrigeration sector alone reached over 2,800 billion VND, showing a growth of more than 55% compared to the same period in 2021. Notably, revenue from the sales of air conditioning units demonstrated significant growth. In the first quarter of 2022 alone, the air conditioning portfolio recorded a growth rate of over 41% compared to the corresponding period of the previous year (according to the BIDV  Securities Company).

The net revenue of some air conditioning brands in Vietnam


Toshiba is a multinational electronics company with advantages spanning various sectors, from operating thermal power plants to manufacturing elevators, air conditioners, hard drives, and semiconductors.

To date, Toshiba's household appliances have been ingrained in the preferences of Vietnamese consumers for over three decades. In the period from 2020 to 2022, the brand achieved an average growth rate of 40%, with a total net revenue exceeding 5,700 billion VND by the end of 2022. This growth is primarily attributed to its strong products, namely washing machines and refrigerators. While Toshiba's air conditioning products have seen a moderate increase, the introduction of new air conditioning technologies has garnered significant attention. Expectations are high for substantial sales growth in the coming year.


AQUA Vietnam, the predecessor of Sanyo HA ASEAN, was established in 1996. With over 27 years of development in the Vietnamese market, AQUA has gradually become a familiar brand for many consumers.

In 2017, the company introduced its first air conditioning line under the AQUA brand, marking a transformative effort from its previous brand - Sanyo, to a new brand in the fiercely competitive market. Currently, the air conditioning portfolio has become one of the three main product lines of AQUA, alongside refrigerators and washing machines. In the period from 2020 to 2022, AQUA Vietnam's total revenue exhibited an upward trend, achieving an average growth rate of 12%.


Casper is an international brand that entered the market in 2016. To date, it remains a trusted brand when it comes to air conditioners and refrigerators. Inheriting modern technologies from industry giants, this Thai-origin brand has carved out its own development direction. However, the revenue growth has not met expectations. Casper has consistently recorded a decline in sales, with decreases of 21% and 13% in 2021 and 2022, respectively, compared to the corresponding periods in the previous year.

Hoa Phat

Hoa Phat is a leading industrial manufacturing group in Vietnam. After establishing a solid position over a period of operation, the group expanded into various sectors, including refrigeration, marking the establishment of Hoa Phat Home Appliances Joint Stock Company.

To meet market demand and optimize costs, the Hoa Phat’s Home Appliance Production Center in Ha Nam has expanded, covering an area of over 15 hectares. This project aims for proactive control in the production process, from assembly to finished products, for product categories such as air conditioners, water purifiers, and air purifiers.

Hoa Phat Home Appliances has recorded significant revenue growth from 2020 to the present, particularly during the 2021-2022 period with a sales growth rate of nearly 71%. Despite the main products being industrial refrigerators and freezers, the air conditioning sector still experienced remarkable growth by the end of 2022, achieving revenue nearly double compared to the previous year.


Electrolux is a global appliance company with key product lines including air conditioners, refrigerators, dishwashers, washing machines, and more. Operating in a vast consumer market spanning up to 150 countries and regions, including Vietnam, the company is a prominent player in the home appliance industry.

In 2022, Electrolux's net revenue in Vietnam reached 2,800 billion VND, showing a slight increase compared to the previous year. However, the profitability recorded robust growth, with a remarkable 56% increase compared to the year 2021.


LG is one of the world's leading companies in the consumer electronics and technology sector, headquartered in South Korea. As of 2020, LG's three factories located in Hai Phong have contributed to optimizing the production process, opening up opportunities to penetrate deeper into the Southeast Asian market.

Net Revenue and Profit After Tax of LG Electronic

In 2022, LG Electronics achieved a total net profit of over 84,000 billion VND, primarily driven by the premium home appliance portfolio, such as air conditioners and smart TVs.

Analyzing the profit and revenue relationship at LG Electronics, it is noticeable that the net revenue in 2022 experienced a slight decrease of 4%, while Profit After Tax increased by 19% compared to the previous year. According to some experts, this paradox can be attributed to the favorable dynamics of export prices. These impressive figures stem not only from robust consumption in the Vietnamese market but also include over 70% of products exported to 35 countries worldwide.

Profit after tax of some air conditioner brands in Vietnam

In general, the revenue of the domestic and industrial refrigeration sector in Vietnam is on an upward trend. Domestic brands are gradually gaining advantages, seizing opportunities for expansion and development in the market. Conversely, some well-known brands face challenges in the fiercely competitive market, resulting in significant declines in revenue and profit.

Thus, the demand for the Vietnamese home appliances market has never waned, but the level of competition in this sector continues to intensify. This has led to product diversity and created numerous development opportunities. Even industry giants must have a strategic development direction to maintain their momentum in the face of market expansion.

Source: Vietdata's 2023 report on the air conditioning market in Vietnam.


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