The Promising Future of Vietnam’s HVACR Industry
Asia-Pacific (APAC) is projected to be the largest market for construction in the coming years fueling the demand for more HVAC systems and HVAC valves. Emerging economies like India, Indonesia, and Vietnam have registered rapid growth in the construction sector. In particular, the South East Asia HVACR market is expected to reach $13.63 billion by 2023, according to BIS Research.
Supported by the Vietnamese Government’s efforts to improving the quality of the country’s infrastructure, Vietnam’s residential construction market is expected to retain a market share of 44.3% of the industry’s total value in 2022. An estimation of over 1 million affordable residential units would need to be
constructed in Vietnam by 2020 to meet demand.
This presents great opportunities for the HVACR industry, as the growth of the building and construction market will only mean greater demand for HVACR products.
Developments towards Green Buildings and Energy-Efficient HVACR Products
According to the Vietnam Green Building Council (VGBC), green buildings are those posting high efficiency in energy and material usage, minimizing adverse impacts on the environment. They are designed to significantly reduce the harmful impacts of construction on people’s health and the natural environment through the effective use of energy, water, and other natural resources.
Vietnam’s Ministry of Planning and Investment, along with other relevant Ministries, including the Ministry of Construction, are now targeting to reduce annual energy consumption and GHG emission by 2 – 3% from 2020 – 2030 through their Green Growth Strategy.
Green buildings are expected to penetrate up of 30% of the market by 2025, particularly in the commercial sector.