Multi-industry economic group Nagakawa Vietnam recorded net revenue of nearly $28.3 million and net profit of over $541,000 in the first quarter, growing 27 and 82 per cent on year, respectively, according to its AGM in April.

The increase in air conditioner sales was one of the main reasons for the positive results. For 2024, the company targets net revenues of $100 million and profit after tax of $1.45 million, growth of 13 and 39 per cent on year, respectively.

Air conditioning unit retailers to experience bumper summer, photo: cafebiz.vn

Established in 2002, Nagakawa Vietnam mainly sells air conditioning products, kitchen equipment, and home appliances under the Nagakawa brand, and owns dozens of branches and a system of nearly 5,000 distribution agents nationwide.

Nguyen Truong Thanh, deputy general director of Casper Electric Vietnam, said, “With the hot weather ahead in many areas across the country, air conditioner sales in the first quarter have increased by 30-40 per cent over the same period of 2023. Compared to March, air conditioner sales in April have increased by 40-50 per cent.”

Other big electronic household retailers have recorded sustained revenue from air conditioners. In Q1, Mobile World Group (MWG) recorded a strong recovery in business results compared to the same period, with air conditioning product revenues growing by half.

The Dien May Xanh chain, which is operated by MWG, sold more than 40,000 air conditioner sets and nearly 25,000 air conditioning fans over just three days in late April.

Meanwhile, online air conditioner sales on Shopee, Lazada, Tiki, Sendo, and Tiktok Shop increased by 54 per cent on-year, reaching $6.79 million between January and March. Stores on the five e-commerce platforms sold 380,000 air conditioners of all kinds in the first quarter.

In Vietnam, the air conditioner market generated a revenue of $880 million in 2024 in April, according to German online platform Statista. It is projected to experience an annual growth rate of 7.38 per cent from 2024-2028. “Looking ahead, the volume of the air conditioner market is expected to reach 3.8 million units by 2028, with a growth rate of 6.8 per cent in 2025,” noted Statista.

Vietnam currently ranks fifth in market size in the market in the Asia-Pacific region. Vietnam is currently the air conditioner production base of many manufacturers, with fierce competition from Japanese, Chinese, and South Korean brands taking a large share of the market, and domestic brands dominating the market.

The biggest names include Daikin, known for its energy-efficient air conditioning systems, as well as Mitsubishi Electric, Panasonic, Samsung, and LG.

Nguyen Xuan Tien, vice president and general secretary of the Vietnam Refrigeration and Air Conditioning Science and Technology Association, said, “Our country’s demand for air conditioning is considered massive. Every year, the Vietnamese market consumes around two million air conditioners.”

With this potential, manufacturers have implemented activities to expand their market share in the air conditioners segment.

In late April, Daikin Vietnam and Petroleum General Distribution Services hosted an event to launch Daikin’s newest wall-mounted air conditioner products for the Vietnamese market. Over 100 technicians and sub-dealers joined the event.

PSD became the official partner of Daikin Vietnam in April, focusing on products such as air conditioners and air purifiers.

During the event, representatives from Daikin Vietnam shared new features and notable improvements in their manufacturing process, and also highlighted their strict quality assessment criteria for this year’s new products.

Due to widespread intense heat in all regions, Vietnam Electricity said that the maximum capacity and daily electricity consumption nationwide has continuously increased with record numbers.

In the peak months of summer, the average temperature across the country is commonly forecast to be about 1.5-2.5 degrees Celsius higher than the average for many years. The average daily electricity of the entire system is expected to be 913.6 million kWh per cent per day, an increase of 12.24 per cent over the same period last year.