With Vietnam’s GDP rising year after year, the demographic dividend coincides with the stage of economic take-off and the LED lighting market in Vietnam. According to the Vietnam Lighting Association, the output value of Vietnam’s LED lighting market will reach 854 million U.S. dollars (equivalent to about 5.655 billion yuan) in the next three years, an annual growth rate of 25%.
LED lighting market in Europe and the United States has become increasingly saturated, and the Chinese market suppliers more competitive prices, emerging markets such as India, Southeast Asia, South America and the Middle East and other regions of the LED lighting market just around the corner.
According to the survey data, Vietnam’s lighting market in 2016 reached 348 million U.S. dollars with a penetration rate of over 40%. It is estimated that the penetration rate will reach 51% by 2018.
Tran Dinh Bac, vice chairman and secretary general of the Vietnamese Chamber of Commerce and Industry, pointed out that at present about 35% of the national electricity consumption in Vietnam is used for lighting. If 20% of the LED lamps can replace 50% of the lamps and lanterns, 20.8 billion can be saved by 2020 kWh (kilowatts / hour), about 9 million tons of carbon dioxide emissions reduction.
At present, Vietnam LED manufacturers are still Philips, Osram and other foreign manufacturers as the largest, followed by Vietnam’s domestic manufacturers Dien Quang, Rang Dong, Duhal and so on. However, the Vietnamese manufacturers mostly focus on downstream assembly, the lack of the overall industrial chain, so the overall LED industry chain still has great room for development.
There are a total of about 200 domestic LED manufacturers in Vietnam. However, there are still many LED lighting products in the lighting market in Vietnam. The problem is the lack of consistent product specifications and monitoring by related departments.
Tran believes Vietnam should learn from other countries to establish a set of LED product standards that meet ASEAN and other developed countries. In addition, the government should also step up its supervision to ensure that enterprises have a transparent and open competitive environment.