Vietnam's refrigeration market: Japanese brands lead the game

Vietnam is a country located in the tropical climate belt, has a relatively high temperature, and with a population of nearly 100 million people, the demand for air conditioning products is very large. According to Euromonitor International’s report in 2021, air conditioners are the most dynamic industry in 2021 with a growth rate of 85%. Therefore, Vietnam is considered a large and potential market for the giants in the electronics and refrigeration industry in general.


It is estimated that by 2023, the size of this market could reach 2.4 billion USD. Currently, Vietnam has attracted the participation of international brands such as Samsung, Panasonic, Casper, Daikin, LG, Toshiba, Sharp... and it is impossible not to mention domestic brands such as REE, Hoa Phat, Sunhouse,...


As consumer demand and market size increase, there is a race to compete for the market share of domestic and foreign players.


The leap forward development of domestic brands


REE Refrigeration Mechanical and Electrical Joint Stock Company is considered a pioneer in Vietnam in the field of mechanical and electrical refrigeration and is one of the first two companies to list shares on the Ho Chi Minh Stock Exchange. Ho Chi Minh. Currently, REE has expanded its scale to many fields such as Energy, Clean Water, Real Estate Development & Leasing, and Mechanical Refrigeration & Air Conditioning.


In the past 2 years, the company brought in a revenue of over VND 5.5 trillion and increased by nearly 20% compared to the same period in 2018 (nearly VND 4.9 billion). In terms of profit, after a drop of nearly 11 billion VND in 2020, REE’s profit reached 1.9 billion VND in 2021, up 14% over the same period last year.


Particularly in the mechanical and electrical refrigeration segment, in 2020, REE recorded revenue of nearly 3.5 billion VND, up nearly 10% over the same period last year, accounting for 62% of the company’s total revenue.


By 2021, the mechanical and electrical refrigeration segment has a decrease in revenue when it reaches nearly VND 1.9 billion (decreased 47.7% compared to 2020). The segment's share in REE’s consolidated revenue also dropped from 62% to only 31%.





Hoa Phat Group is a collection of a group of companies, in which Hoa Phat Group Joint Stock Company plays the role of the parent company and 10 member companies and 3 associate companies. Hoa Phat Group recently decided to expand into the electronics segment and established Hoa Phat Home Appliances Joint Stock Company with a charter capital of up to 1 trillion VND to manage investment, production, and business activities of refrigeration products, and household electrical appliances.


In the period from 2017 to 2021, Hoa Phat’s revenue growth rate increased continuously. In 2020, the company achieved a revenue of up to 90 trillion VND (up 42% compared to 2019). By 2021, this group will bring in revenue of nearly 150 trillion VND and profit after tax of nearly 35 trillion VND.


In the last 3 years, Hoa Phat Refrigeration’s revenue has reached over 1 trillion VND. Although the revenue is quite low compared to other businesses, Hoa Phat Refrigeration still achieved more than 130 billion VND in profit after tax.


The business situation of international brands in Vietnam


Panasonic is a brand from Japan and has been present in Vietnam since the 1950s. In 2021 marks 50 years since Panasonic is officially present in the Vietnamese market with a journey of step-by-step expansion and constant growth.


Occupying the Vietnamese market with a wide range of electronic and refrigeration products, Panasonic’s revenue has grown continuously. In 2019 and 2020, Panasonic’s revenue in the Vietnam market reached nearly 14 trillion VND, up 12% compared to 2018. In which, the majority of revenue was from the air-conditioner segment.


In 2019, Panasonic Vietnam brought in a profit after tax of up to VND 1 trillion. However, due to the impact of the covid-19 pandemic, by 2020, this company’s profit will drop to nearly VND 850 billion.





Casper is a multinational brand with branches and distribution networks in many Southeast Asian markets. Joining the Vietnamese market in 2016, Casper quickly developed and became a well-known brand in the electronics, refrigeration, and home appliances industries. In the last 3 years, since 2019, Casper has become one of the top 3 international brands with the largest consumption volume in the air conditioning industry in Vietnam with a market share of 15.9% (GfK 2021).


Casper Vietnam is on a very fast growth track. In the period 2017 - 2021, the revenue of this brand increased continuously, from 280 billion (in 2017) to nearly 6 trillion in 2021. Also in 2021, Casper’s after-tax profit reached nearly 90 billion VND, which increased 21 times compared to 2017.


After 5 years of distribution in the Vietnamese market, Casper ranks in the top 3 in the air conditioning industry, the mechanical air conditioner industry ranks 1st in the Vietnamese market.


Daikin is a brand from Japan. Its products are famous all over the world and are often compared with Panasonic. In 2021, Daikin was awarded “Excellent Air Conditioner Brand at Tech Awards 2021”. To continue to maintain its title as the leading air conditioning enterprise in Vietnam, Daikin has set a target and achieved a strong growth rate.


In 2020, Daikin Vietnam brings in total revenue of nearly 9.5 trillion VND, of which the revenue of the air conditioning industry is the majority. However, this air-conditioner company cannot avoid the impact of the pandemic when its revenue in 2020 is somewhat lower than in 2019. In terms of profit, compared with a profit of more than 450 billion in 2019, the profit of Daikin Vietnam has nearly halved.


Toshiba is one of the most famous air conditioner manufacturers in the world. Air conditioners from this brand always attract users with outstanding features and luxurious design. Since entering the Vietnamese market, the brand’s revenue has always been higher than that of domestic brands such as REE, Hoa Phat, Sunhouse, etc.


In recent years, Toshiba’s revenue has grown continuously, surpassing foreign brands such as Casper and Electrolux and reaching the revenue milestone of more than 5 trillion Dong (in 2021). However, before the outstanding development of Casper Vietnam, the revenue of this brand must be second and make room for Casper.


In terms of profit, it can be seen that the profit of this brand tends to increase over the years. However, the profit after tax is not high and lower than both REE and Hoa Phat.





Sharp is also a brand from Japan, is a leading brand in the field of technology and continuously produces electronic products, and was awarded the “National Invention 2008” award. Sharp entered the Vietnamese market with the goal of changing lives and bringing the most convenience to life.


Sharp has built the trust of consumers and brought in nearly 4 trillion VND in revenue in 2019. By 2020, this brand’s revenue is down 6% compared to the same period last year. Despite a slight decrease in revenue, the profit of this foreign brand increased by nearly 10 billion VND compared to the same period in 2019.


Electrolux is a corporation manufacturing home appliances from Sweden, and Europe. Electrolux is ranked among the 100 largest corporations in the world with about 20 product lines of lawn mowers - refrigerators and many other electronic and household appliances. After penetrating the Vietnamese market, this brand also brings in a revenue of about 2.5 trillion per year.


Vietnam's air conditioner market is one of the potential markets for brands. More and more international brands have entered our country’s market, contributing to the diversity in the product selection needs of Vietnamese consumers. However, this also puts enormous pressure on domestic brands in the face of increasingly fierce competition from international brands.


Vietdata