Vietnam Heat Pump Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Vietnam Heat Pump Market Trends and Insights

Growing Use Beyond Traditional Heating and Cooling

Agricultural drying facilities adopting heat pumps report 60–80% energy savings and improved export-grade product quality, helping farmers secure premium prices. Manufacturing plants in food processing, textiles and pharmaceuticals achieve 20–30% lower energy consumption after integrating waste-heat-recovery heat pumps, according to Vietnam’s Ministry of Industry and Trade. Demand is spreading from urban centers to secondary industrial clusters as project case studies prove quick paybacks. Suppliers now promote modular units that suit process-temperature ranges from 40 °C to 80 °C, opening a pathway for rapid scale-up. These developments collectively lift the Vietnam heat pump market as industries chase lower operating costs and carbon footprints.

Implementation of Government Policies and Initiatives

The National Program on Energy Efficiency and Conservation (VNEEP3) targets an 8–10% cut in national energy use by 2030, explicitly naming heat pumps as a priority technology^{[1]Ministry of Industry and Trade, “Draft guide on energy-saving boiler technologies,” tietkiemnangluong.com.vn}. Minimum-performance regulations coming into force on April 1, 2025, make high-COP heat pumps visibly superior to legacy HVAC products on new energy labels. The Vietnam–Denmark Energy Partnership Program is drafting up to 20 technical guidelines that normalize heat-pump engineering practices across sectors^{[2]Ministry of Industry and Trade, “Draft guide on energy-saving boiler technologies,” tietkiemnangluong.com.vn}. As building owners race for green-building points, specifiers increasingly select heat pumps from the outset. Collectively, these measures translate into predictable demand, encouraging manufacturers to deepen local assembly and training.

Rapid Urbanisation and Construction of New Buildings

Vietnam’s urban population is expanding at 3% annually, triggering a wave of apartments, malls, and hotels that must comply with the Green Building code QCVN 09:2023. Developers earn certification credits by installing high-efficiency heat pumps, a trend showcased at the HVACR Vietnam 2025 exposition, where suppliers highlighted AI-enabled control packages. Urban retrofits in Ho Chi Minh City replace ageing split units to slash electricity bills, while new resorts along the southern coast specify water-source systems to exploit warm seawater temperatures. Financing incentives from state banks for certified buildings further accelerate adoption. This construction boom reinforces the Vietnam heat pump market outlook over the near term.

Difficulties in Installation and High Cost

Installed prices remain two-to-three times those of conventional air conditioners, discouraging households despite life-cycle savings. Ground- and water-source units need site surveys, drilling or piping work that few local contractors master. An ASEAN energy-efficiency study pinpoints financing schemes and soft loans as critical to closing the affordability gap^{[3]Economic Research Institute for ASEAN and East Asia, “Heat-pump introduction study,” eria.org}. International brands now partner with Vietnamese banks to offer zero-interest installment plans, yet complexity still slows decision making, particularly outside large cities.

Limited Public Awareness

Surveys find many homeowners equate heat pumps solely with pool heating, overlooking year-round cooling and hot-water benefits. This gap pushes small commercial sites toward familiar split systems even when lifecycle economics favor heat pumps. Government and industry bodies have begun nationwide roadshows and media campaigns, but outreach remains concentrated in Hanoi and Ho Chi Minh City. As awareness spreads, latent demand in tier-two cities should lift the Vietnam heat pump market penetration curve.

Technician Shortage and Training Bottlenecks

The number of certified installers is running behind project growth, creating scheduling delays. OEMs and distributors have launched in-house academies that blend classroom work with on-site mentoring. For example, Hitachi’s new Hanoi training center targets 500 technicians annually^{[4]Hitachi Air Conditioning, “Hitachi heat pumps available for low-carbon heating and cooling,” hitachiaircon.com}. Similar programs by LG and Ariston aim to stabilize service quality and reassure prospective buyers. Until training output scales, labour scarcity will cap short-term deployment speed.

Segment Analysis

By Type: Water-Source Gains Momentum in Coastal Developments

Air-source units generated 72% of 2024 revenue, reflecting their ease of installation and compatibility with Vietnam’s year-round temperatures. The segment benefits from continual COP gains, with top models exceeding 5.0 under high-humidity conditions. Water-source systems, though smaller today, as beach resorts tap seawater to boost efficiency. Hitachi’s airH2O 400 series demonstrates this push by offering output temperatures up to 65 °C and Europe’s A+++ rating. Developers of new hotel clusters leverage the technology to secure green-building certification and lower energy bills.

Manufacturers refine corrosion-resistant heat-exchanger coatings and variable-speed compressors to match Vietnam’s saline and humid environment. Hybrid designs that pair heat-pump compressors with solar thermal collectors now target domestic hot-water loads, promising up to 80% electricity savings, according to Ariston field trials. Continued R&D in brine-water loop systems could open opportunities in industrial parks seeking process heat below 80 °C, further enlarging the Vietnam heat pump market.

Note: Segment shares of all individual segments available upon report purchase

By Rated Capacity: Mid-Range Systems Capture Commercial Retrofits

The 10–20 kW band held 38% of 2024 sales thanks to villa installations and small offices. Rising middle-class incomes encourage households to replace multiple air conditioners with a single high-efficiency heat pump for cooling and hot water. The 20–50 kW segment is set to grow as supermarkets, gyms and clinics pursue cost savings. Viessmann’s scalable Vitocal lineup reaches 236 kW in cascade, illustrating the modular trend.

Product innovation centers on compact footprints that fit tight mechanical rooms yet deliver higher seasonal energy efficiency. LG’s MULTI V platform ranges from 8 HP to 96 HP, giving engineers flexibility to right-size systems for phased building expansions. Over the forecast period, continued miniaturization and intelligent load-shifting algorithms are poised to broaden adoption among mid-scale commercial retrofits, boosting the Vietnam heat pump market size.

By Application: Cooling Demand Accelerates with R-22 Phase-Out

Domestic and sanitary hot-water installations represented 46% of 2024 turnover, underpinned by solar-heat-pump hybrids piloted by the Ministry of Industry and Trade. Space-cooling deployments, though smaller, are expected to grow rapidly as the nationwide ban on R-22 chillers drives replacement cycles. Vietnam’s endorsement of the Global Cooling Pledge prompts facility owners to prioritize high-efficiency units that maintain comfort while cutting power demand.

Next-generation products deliver heating, cooling and hot-water services from a single outdoor unit, supporting integrated design in mixed-use towers. Manufacturers now market high-temperature heat pumps suitable for process drying or laundry facilities, thereby expanding addressable applications. The resulting diversification further cements the Vietnam heat pump market as a central pillar of the country’s clean-energy roadmap.

By End-User Vertical: Commercial Sector Leads Green-Building Transition

Residential premises led with 55% of 2024 invoices, driven by electrification of domestic hot-water systems. The commercial vertical, is set t grow as retail chains and hotels chase sustainability branding. Water-source configurations provide both chilled water and 62 °C hot water, enabling resorts to cut energy bills up to 80%, as illustrated in Ariston’s coastal installations. Industrial users adopt heat pumps for process drying and waste-heat recovery, although penetration remains in early stages.

Vendors segment product lines by user profile: compact, low-noise units for apartments; modular, building-management-system-ready packages for commercial towers; and rugged skid-mounted machines for factories. Viessmann’s Vitocal 250-A targets modernization projects, while the 200-A suits new builds at lower capital cost. This tailored approach underpins sustainable growth across end-user categories within the Vietnam heat pump market.

By Installation Type: New-Build Growth Driven by Green Codes

Retrofit projects claimed 61% of 2024 value, reflecting the replacement of ageing split systems in dense cities. Engineers favor compact outdoor units that slot into limited balconies or rooftops, an area where STIEBEL ELTRON positions its stackable designs. Looking ahead, new-build developments will expand as QCVN 09:2023 forces tighter energy budgets. Architects integrate heat-pump-ready mechanical shafts and piping layouts from day one, minimizing installation friction.

Integrated solutions that pair heat pumps with rooftop PV or battery storage gain traction in smart-building prototypes. Predictive control software optimizes compressor speeds against weather forecasts and time-of-use tariffs, raising seasonal efficiencies. This shift from retrofit dominance to balanced demand across installation types reinforces the medium-term outlook for the Vietnam heat pump market size.

Note: Segment shares of all individual segments available upon report purchase

By Sales Channel: Direct OEM Growth Reshapes Distribution Landscape

Distributor–installer networks kept 68% share in 2024 by bundling design, installation and after-sales services. PGTech’s partnership with Enerblue CO₂ technology exemplifies this service-led model. Meanwhile, direct OEM sales, growing 27% annually, reflect multinationals’ push to secure margin and ensure technical compliance on complex commercial jobs. Ariston’s Bac Ninh factory supplies domestic and export markets, signaling commitment to Vietnam as a regional hub.

E-commerce remains niche but is rising for standardized residential units, where online configurators recommend capacity based on floor area and number of occupants. Collectively, these evolving channels broaden customer access, underpinning steady expansion of the Vietnam heat pump market.

Geography Analysis

Ho Chi Minh City and surrounding southern provinces form the largest cluster owing to high cooling loads, dense commercial stock and energy tariffs that reward efficiency investments. Hanoi and the northern region follow, boosted by greater seasonal temperature spread that values dual heating–cooling capability. Coastal belts from Da Nang to Phu Quoc post the fastest growth as resort developers adopt water-source systems drawing on abundant seawater. The Vietnam-Denmark Energy Partnership’s technical seminars in Ho Chi Minh City showcase industrial heat-pump retrofits, encouraging uptake in nearby manufacturing zones.

Rural adoption remains low; however, agricultural drying applications are carving an entry path. VMTech’s heat-pump dryers help fruit cooperatives cut energy costs and meet export-grade quality. Grid-capacity concerns in the north, where electricity demand is forecast to jump 10.5–14.3% in 2025, further encourage businesses to install efficient HVAC systems. Over the next five years, provincial industrial parks receiving foreign direct investment are expected to lift regional sales, diversifying the Vietnam heat pump market beyond the two largest cities.