DAIKIN AIR CONDITIONING (VIETNAM) JOINT STOCK COMPANY

DAIKIN AIR CONDITIONING (VIETNAM) JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN DAIKIN AIR CONDITIONING VIỆT NAM): Cool Air, Cold Profits in Vietnam’s Electronics Market

The Cooling Giant That’s Losing Heat on the Bottom Line

DAIKIN AIR CONDITIONING (VIETNAM) JOINT STOCK COMPANY, a subsidiary of the global DAIKIN INDUSTRIES group, has spent over two decades expanding its footprint across Vietnam. Known for its premium air conditioners and purifiers, the company operates in a high-demand sector that rides on Vietnam’s urban growth, rising middle class, and year-round hot, humid climate.

Yet while DAIKIN VIETNAM continues to generate nearly USD 400 million in annual sales, its profit plunged by nearly 80% in 2024, raising red flags about the company’s cost structure, market pressures, or internal challenges.

Growth Flatlines, Profits Collapse

DAIKIN VIETNAM’s total revenue for the fiscal year ending March 2024 came in at USD 399.9 million, down slightly by 0.3%, ending a streak of growth seen the previous year. More concerning, however, is the crash in net profit from USD 5.8 million in 2023 to just USD 1.18 million in 2024—a 79.64% decline.

This dramatic erosion in earnings occurred despite relatively stable sales and assets, which only fell by 0.91% to USD 360.7 million. The company’s equity barely grew, up by just 0.51%, suggesting retained earnings were minimal and pressure on margins intense.

This is a classic case of a market leader underperforming in profitability—not due to lack of demand, but likely due to cost escalations, competitive pricing, or internal inefficiencies.

Vietnam’s Consumer Electronics Market: Growth, But at a Cost

Vietnam is one of Southeast Asia’s fastest-growing consumer electronics markets. Air conditioner sales in particular have surged in the past decade, especially in urban centers like Ho Chi Minh City and Hanoi. Yet competition is fierce, with brands like Panasonic, Toshiba, LG, Gree, and Midea all fighting for shelf space and online sales.

This has led to aggressive discounting, rising after-sale service costs, and increasing demands for energy-efficient and environmentally friendly models—all of which may be squeezing DAIKIN’s margins in Vietnam.

Strong Structure, Still Foreign-Owned

DAIKIN VIETNAM operates across the country, with branches in Hanoi, Da Nang, and Can Tho, and is led by Japanese executive Mr. Junichi Omori. It employs 1,500 workers, and like most foreign-owned electronics ventures, it maintains manufacturing, distribution, and service capabilities.

The company is majority-owned by DAIKIN INDUSTRIES LTD. (Japan) and its Thai subsidiary, ensuring strategic control remains offshore. That model may provide access to global tech and capital, but could also slow local decision-making in a fast-moving market like Vietnam.

For Suppliers and Partners: Proceed with Clarity

Despite its scale and global backing, DAIKIN VIETNAM’s financial downturn suggests potential risks—especially for vendors, installers, and logistics firms entering long-term contracts. For those exploring partnership or supply opportunities, we strongly recommend using the Business Verification and Risk Management Service by Vanguard Business Information (VBI).

VBI provides exclusive private financial data, helping businesses assess risks beyond the surface metrics.

Final Thought

DAIKIN AIR CONDITIONING (VIETNAM) JOINT STOCK COMPANY may be keeping Vietnam cool, but it’s under increasing financial heat itself. With slipping profits and flat growth, the brand needs to rethink cost controls, innovation, or market positioning if it wants to maintain its leadership. Until then, its financial temperature is worth watching—closely.