Vietnam is the most competitive water purifier market in the world.
A. Water purification equipment is a rising star in Vietnam.
Due to the decline of bottled water, water purification equipment has become a rising star here. This market has a bright future, prompting many people to join in like a swarm of bees. For instance, Tana and SONHA, which were manufacturers of roof water tanks, have now entered this market and even begun to assemble simple water filters. Even Picenza, the agent for European and American building materials and kitchen implements, has entered the industry as well. These newcomers are well-capitalised and well-connected, which may explain why this market is so competitive.
B. The ecology of the Vietnamese water purifier market.
According to information from local wholesalers, most importers source parts from Taiwan and then assemble them in Vietnam. If they purchase complete systems from Taiwan, they usually only import them once. Their aim is to obtain a Taiwanese certificate of origin to solicit business and demonstrate that their water purifiers and RO water dispensers are all from Taiwan. This is because local consumers distrust products made in China and are also concerned about the quality of items assembled in Vietnam. This is why local wholesalers adopt this approach.
C. The reasons why water purifiers sell well in Vietnam.
- In Ho Chi Minh City, the water source comes from the Saigon River.
The residents who live here rely on the water from the Saigon River. However, nearly a thousand factories discharge their wastewater into the river every day. No matter how frugal these individuals are, they will invest in a water purifier to filter the water and protect themselves.
The scene where ALYA drew water from the Saigon River in Ho Chi Minh City.
The analysis of tap water quality in Vietnam: https://www.easywellwater.com/tw/knowledge/marketing/3/86
Water pollution and ageing water pipelines are significant issues. Many Vietnamese are reluctant to drink local tap water, leading most to purchase bottled water for storage in their homes. However, urbanisation has brought considerable changes to numerous families. An increasing number of nuclear families now reside in small apartments with limited space. They lack sufficient room to store bottled water, resulting in a decline in its demand. Furthermore, scandals surrounding bottled water are frequent in Vietnam, causing consumers to question the quality of these products. This is also a contributing factor to the popularity of water purifiers in the region.
RO water systems have become the mainstream choice in the Vietnamese market.
Kangaroo, Tana, SAWA, and SONHA are all local brands in Vietnam, primarily focusing on RO water systems. Traditional systems account for approximately 80% of the market. I was curious as to why the Vietnamese prefer to add a stainless steel casing around traditional water systems. Not only does this incur additional costs, but it also takes up valuable space. When we consulted local importers, they mentioned that the Vietnamese believe that bigger is better.
An RO system with a stainless steel case.
E. The most competitive water purifier market in the world.
In Vietnam, selling water purifiers seems to be a national activity. It may be more intense than convenience stores in Taiwan. I saw nearly ten shops selling water purifiers around an intersection, and there were even three to five shops selling products of the same brand.
F. The Future Trend of Vietnam’s Water Purifier Market
In Vietnam, consumer demand for water purification equipment is higher than in China, India, or Indonesia. This market has significant potential in the long run. However, only a few households currently possess high-end products. If Taiwanese manufacturers wish to develop in this market, they will need to invest considerably more time to establish themselves.
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