Vietnam Refrigeration Oil Market Report: Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025-2030

Vietnam refrigeration oil market is valued at USD 140 million, driven by demand for refrigeration systems in urbanization and food sectors, with growth in synthetic and bio-based oils.

The Vietnam Refrigeration Oil Market is valued at USD 140 million, based on a five-year analysis of regional lubricant consumption and import data. Growth is primarily driven by the rising demand for refrigeration and air conditioning systems across residential, commercial, and industrial sectors. Key factors include rapid urbanization, a surge in construction activities, and the expansion of the food and beverage industry, all of which are fueling the need for efficient refrigeration solutions.

Key cities such as Ho Chi Minh City, Hanoi, and Da Nang continue to dominate the market due to their accelerated industrialization and urban development. These urban centers are experiencing significant growth in population and construction, which directly increases the demand for refrigeration and air conditioning systems. The high concentration of commercial enterprises and consumers in these cities further supports robust market expansion.

In 2023, the Vietnamese government enacted the National Technical Regulation on Energy Efficiency for Air Conditioners (QCVN 09:2023/BKHCN) issued by the Ministry of Science and Technology. This regulation sets mandatory energy performance standards for air conditioning and refrigeration systems, including requirements for refrigerants and lubricants used in cooling equipment. The regulation aims to reduce greenhouse gas emissions and promote the adoption of environmentally friendly products in the refrigeration sector.

Vietnam Refrigeration Oil Market Segmentation

By Oil Type:

The market is segmented into Mineral Oil, Synthetic Oil, Bio-based Oil, and Others. Mineral Oil remains the most widely used due to its cost-effectiveness and local availability. Synthetic Oil is gaining market share, favored for its superior thermal stability and performance in high-efficiency and modern refrigeration systems. Bio-based Oil is emerging as a sustainable alternative, driven by growing environmental awareness and regulatory encouragement for eco-friendly lubricants.

By Application:

Refrigeration oil applications include Air Conditioning (Residential, Commercial, Industrial), Refrigeration Systems (Food & Beverage, Cold Chain, Pharmaceuticals, Supermarkets, Warehouses), Automotive Air Conditioning, Heat Pumps, and Others. The Air Conditioning segment is the largest, reflecting robust demand for cooling solutions in both residential and commercial buildings. Refrigeration Systems are also significant, especially in the food and beverage sector, where temperature control is critical for product safety and quality.

Vietnam Refrigeration Oil Market Competitive Landscape

The Vietnam Refrigeration Oil Market is characterized by a dynamic mix of regional and international players. Leading participants such as TotalEnergies Vietnam, Castrol BP Petco Vietnam, ExxonMobil Vietnam, Fuchs Lubricants Vietnam, Idemitsu Kosan Co., Ltd. Vietnam, PetroVietnam Oil Corporation, Repsol Lubricants Vietnam, Shell Vietnam, Chevron Lubricants Vietnam, Klüber Lubrication Vietnam, Lubrizol Corporation, Gulf Oil Vietnam, Sinopec Lubricants Vietnam, ENEOS Vietnam, Mobil Vietnam contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Refrigeration Oil Market Industry Analysis

Growth Drivers

Increasing Demand for Energy-Efficient Refrigeration Systems:

The Vietnamese refrigeration oil market is experiencing a surge in demand due to the increasing focus on energy efficiency. In future, the energy consumption in the HVAC sector is projected to reach 13,000 GWh, driven by rising urbanization and industrialization. This shift towards energy-efficient systems is expected to boost the demand for high-performance refrigeration oils, which are essential for optimizing system efficiency and reducing operational costs.

Growth in the HVAC Industry:

The HVAC industry in Vietnam is anticipated to grow significantly, with a projected market value of $4.0 billion in future. This growth is fueled by the expanding construction sector, which is expected to see an increase in new residential and commercial buildings. As HVAC systems become more prevalent, the demand for refrigeration oils will rise correspondingly, as these oils are critical for the effective operation of air conditioning and refrigeration systems.

Rising Awareness of Environmental Regulations:

The Vietnamese government is increasingly implementing stringent environmental regulations aimed at reducing greenhouse gas emissions. In future, compliance with these regulations is expected to drive the adoption of eco-friendly refrigeration oils. The market for environmentally friendly products is projected to grow by 25%, as manufacturers seek to align with government policies and consumer preferences for sustainable solutions, thereby enhancing the demand for bio-based and synthetic oils.

Market Challenges

Fluctuating Raw Material Prices:

The refrigeration oil market faces significant challenges due to the volatility of raw material prices. In future, the price of crude oil is expected to fluctuate between $75 and $95 per barrel, impacting the cost of mineral oils. This unpredictability can lead to increased production costs for manufacturers, which may ultimately be passed on to consumers, affecting market stability and profitability.

Limited Availability of High-Quality Products:

The market is also challenged by the limited availability of high-quality refrigeration oils. In future, it is estimated that only 35% of the products in the market will meet international quality standards. This scarcity can hinder the performance of refrigeration systems, leading to inefficiencies and increased maintenance costs, which may deter potential customers from investing in refrigeration oil solutions.

Vietnam Refrigeration Oil Market Future Outlook

The future of the Vietnam refrigeration oil market appears promising, driven by technological advancements and a growing emphasis on sustainability. As manufacturers innovate and develop new formulations, the market is likely to see an increase in the adoption of synthetic and bio-based oils. Additionally, the expansion of the food and beverage sector will further fuel demand, as efficient refrigeration is critical for maintaining product quality and safety in this industry. Overall, the market is poised for growth, with opportunities for companies that prioritize eco-friendly solutions.

Market Opportunities

Development of Bio-Based Refrigeration Oils:

There is a significant opportunity for manufacturers to invest in the development of bio-based refrigeration oils. With the increasing consumer preference for sustainable products, the market for bio-based oils is expected to grow, potentially reaching $180 million in future. This shift can enhance brand reputation and attract environmentally conscious consumers.

Technological Advancements in Oil Formulations:

The ongoing technological advancements in oil formulations present a lucrative opportunity for market players. Innovations that improve oil performance and efficiency can lead to increased market share. Companies that invest in R&D to create superior products are likely to capture a larger segment of the market, estimated to be worth $220 million in future.