Air conditioning has long been a crucial appliance in Vietnamese households, especially with rising temperatures due to climate change. 2025 is projected to be a record-breaking hot year, leading to a significant increase in air conditioner demand.
Record-Breaking Temperatures Drive Early-Season Cooling Appliance Purchases
Demand for cooling appliances is rising in northern provinces. (Photo: Nguyen Nguyen)
Vietnam, with its tropical monsoon climate, is experiencing a clear upward trend in average annual temperatures. According to the National Center for Hydro-Meteorological Forecasting, the national average temperature rose from 25.8°C in 2020 to 26.1°C in 2022, and may reach 26.6-27°C in 2025.
Large cities like Hanoi, Ho Chi Minh City, and Da Nang are projected to experience peak temperatures of 43-45°C during June-July, influenced by the El Niño phenomenon combined with the greenhouse effect. The number of days exceeding 35°C could reach 40-50 days, 20-30% higher than the 2020 average.
Faced with this reality, people are proactively purchasing cooling appliances, particularly as the heatwave starts early in April. Mr. Lê Văn Hải (Long Biên District, Hanoi), a recent air conditioner buyer, said: “I had to buy early because I was worried about price increases during peak season. This year’s weather forecast suggests it will be even more severe than last year.”
At the HC electronics supermarket chain, demand has surged. Ms. Nguyễn Thị Lan, manager of the refrigeration department, noted: “Customer inquiries about air conditioners have doubled compared to the same period last year. Many people are prioritizing higher-end models with Inverter technology and energy-saving features.”
The Air Conditioner Market Enters a New Growth Cycle
Retailers are launching aggressive promotion campaigns. (Photo: Nguyen Nguyen)
According to the Vietnam Refrigeration Association (VRA), domestic air conditioner consumption has steadily increased, from 2.5 million units in 2020 to 3.2 million units in 2023. It’s projected to reach 4-4.5 million units in 2025, representing a 14-28% increase year-on-year.
Significantly, rural areas are emerging as a potential market, accounting for 30% of total consumption due to improved incomes and expanding electricity infrastructure. Given that electricity prices are rising an average of 8-10% annually, potentially reaching 2,500-3,000 VND/kWh by 2025, consumers are prioritizing energy-efficient Inverter air conditioners.
Recognizing this sustainable and cost-effective consumer trend, major brands are expanding their Inverter-technology product lines. Currently, Inverter air conditioners hold 60-70% of the Vietnamese market share.
Simultaneously, smart products incorporating Wi-Fi connectivity and PM2.5 air filtration are gaining popularity, particularly in large cities, where these products are showing growth of up to 25%.
The air conditioner market is experiencing intense competition between premium brands like Daikin, Samsung, LG, Panasonic and mid-range/budget options like Casper, Funiki, and Midea.
Major retailers such as Điện Máy Xanh, Pico, Nguyễn Kim, and MediaMart are launching aggressive promotional campaigns from April, offering discounts of 10-20% and 0% installment plans, to capitalize on the peak hot season.
“Since the beginning of April, Pico’s e-commerce platform sales have increased 5-6 times compared to typical days. The air conditioner and cooling appliance category has doubled,” said Mr. Nguyễn Tuấn Anh, representative of the home appliance sector at the Pico supermarket chain.
“The North is projected to experience a prolonged intense heatwave through August. Therefore, air conditioner demand is expected to surge by approximately 40% compared to last year,” Pico representatives further predicted.
2025 marks a pivotal moment, ushering in a new growth cycle for Vietnam’s refrigeration industry, against the backdrop of a prolonged El Niño phenomenon and the continued drive toward comfortable living. Consequently, consumers should consider selecting products that meet their needs and prioritize energy efficiency. Domestic businesses need to accelerate technological innovation and refine their strategies to maximize potential in this booming market.
