Vietnam Low GWP Refrigerants Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Vietnam Low GWP Refrigerants Market Overview

• The Vietnam Low GWP Refrigerants Market is valued at approximately USD 165 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for environmentally friendly refrigerants, spurred by global climate change initiatives and local regulations aimed at reducing greenhouse gas emissions. The shift towards low Global Warming Potential (GWP) refrigerants is also influenced by the rising awareness among consumers and businesses regarding sustainability and energy efficiency. The broader regional transition is accelerating, with R32 emerging as the dominant refrigerant choice in new residential and light commercial installations across Southeast Asia.
• Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their significant industrial activities and urbanization. These cities are home to numerous commercial and residential buildings that require efficient cooling solutions, thereby driving the demand for low GWP refrigerants. Additionally, the presence of major manufacturers and distributors in these urban centers facilitates easier access to innovative refrigerant technologies. Industrial hubs like Haiphong are also becoming central to Vietnam's growth, requiring significant refrigeration solutions for logistics, food processing, and manufacturing.
• Vietnam is actively phasing out high-GWP refrigerants through the HCFC Phase-out Management Plan, in accordance with the Montreal Protocol. The Ministry of Natural Resources and Environment reported that Vietnam had successfully reduced HCFC consumption by 35% by 2023 and aims to completely phase out these refrigerants by 2025. Additionally, Vietnam's complete ban on R22 for new installations has been followed by policy efforts to promote R32 in both residential and commercial markets. The government is also promoting research and development in this sector to enhance the adoption of sustainable refrigerants, with over 40% of new refrigeration systems in industrial sectors already utilizing low-GWP refrigerants as of 2023.

Vietnam Low GWP Refrigerants Market Segmentation

By Type:The market is segmented into Hydrocarbons (HCs), Hydrofluoroolefins (HFOs), Fluorocarbons, and Inorganics. Among these, Hydrofluoroolefins (HFOs) are gaining traction due to their low environmental impact and efficiency in various applications. The increasing regulatory pressure to reduce GWP levels is driving the adoption of HFOs, making them a preferred choice for manufacturers and end-users alike.

By Application:The applications of low GWP refrigerants include Commercial Refrigeration, Industrial Refrigeration, Domestic Refrigeration, Stationary Air-Conditioning, Mobile Air-Conditioning, and Others. Commercial Refrigeration is the leading application segment, driven by the booming retail and food service sectors. The demand for energy-efficient cooling solutions in supermarkets and restaurants is propelling the growth of this segment.

Vietnam Low GWP Refrigerants Market Competitive Landscape

The Vietnam Low GWP Refrigerants Market is characterized by a dynamic mix of regional and international players. Leading participants such as Daikin Industries, Ltd., Honeywell International Inc., The Chemours Company, Arkema S.A., Linde plc, Air Products and Chemicals, Inc., Mitsubishi Electric Corporation, Johnson Controls International plc, GEA Group AG, Carrier Global Corporation, A-Gas, Solvay S.A., BOC Group, Koura Global, and Dongyue Group Co., Ltd. contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Low GWP Refrigerants Market Industry Analysis

Growth Drivers

• Increasing Environmental Regulations:The Vietnamese government has implemented stringent environmental regulations, including the commitment to the Kigali Amendment, which aims to phase down hydrofluorocarbons (HFCs). As of future, Vietnam is expected to reduce HFC consumption by 10% from its baseline, which translates to a reduction of approximately 1,000 metric tons. This regulatory framework is driving the adoption of low GWP refrigerants, as businesses seek compliance and sustainability.
• Rising Demand for Energy Efficiency:The energy efficiency market in Vietnam is projected to grow significantly, with the government targeting a 20% reduction in energy consumption by future. This translates to an estimated savings of 20 billion kWh annually. Low GWP refrigerants are increasingly favored for their energy-efficient properties, which can lead to reduced operational costs and lower energy bills, thus driving their market adoption.
• Technological Advancements in Refrigerants:Innovations in refrigerant technology are enhancing the performance and safety of low GWP options. For instance, the introduction of R-32 and R-290 has shown a 30% improvement in energy efficiency compared to traditional refrigerants. As of future, the market is expected to see a 15% increase in the adoption of these advanced refrigerants, driven by their superior performance and lower environmental impact.

Market Challenges

• High Initial Investment Costs:Transitioning to low GWP refrigerants often requires significant upfront investments in new equipment and training. For instance, the cost of retrofitting existing systems can range from $5,000 to $20,000 per unit, depending on the complexity. This financial barrier can deter small and medium-sized enterprises from making the switch, limiting market growth in the short term.
• Regulatory Compliance Complexity:The regulatory landscape surrounding refrigerants is complex and evolving. Companies must navigate various local and international regulations, which can lead to compliance costs estimated at around $1 million annually for larger firms. This complexity can hinder the swift adoption of low GWP refrigerants, as businesses may struggle to keep up with changing requirements and standards.

Vietnam Low GWP Refrigerants Market Future Outlook

The future of the Vietnam low GWP refrigerants market appears promising, driven by increasing environmental awareness and regulatory pressures. As the government continues to enforce stringent regulations, businesses are likely to invest in low GWP technologies. Additionally, the growing cold chain logistics sector, projected to reach $10 billion in future, will further stimulate demand for efficient refrigerants. Overall, the market is poised for significant growth as sustainability becomes a priority across various industries.

Market Opportunities

• Expansion of Cold Chain Logistics:The cold chain logistics sector in Vietnam is expected to grow by 15% annually, reaching $10 billion by future. This growth presents a significant opportunity for low GWP refrigerants, as businesses seek efficient solutions to maintain product quality and reduce spoilage during transportation.
• Government Incentives for Green Technologies:The Vietnamese government is offering incentives, including tax breaks and subsidies, for companies adopting green technologies. In future, an estimated $50 million will be allocated to support the transition to low GWP refrigerants, creating a favorable environment for investment and innovation in this sector.