According to the latest report from LEDinside, a division of the market research firm TrendForce, 2017 Vietnam Lighting Market Report, Vietnam is the world's 14th-most-populous country as well as emerging market, and its GDP has climbed in recent years, with annual growth more than 6%, its economic take-off attracts huge foreign investment, so it is believed that Vietnam market will be booming soon. In view of the opportunities to popularize
LED lighting in Vietnam, the increase in electricity consumption also provides great opportunities for
LED business in Vietnam besides its economic take-off.
Therefore, LEDinside estimated that the
LED lighting market scale in 2017 in Vietnam reached USD 420 million at the annual growth rate of 20.6%. Furthermore, the smart lighting developed late in Vietnam, and which is only adopted in the outdoor and high-end commercial lighting places at present. The Vietnam smart lighting market is expected to reach about USD 18 million in 2017, will exceed USD 60 million by 2020. LEDinside has made the summaries on each chapter of the report to show the whole picture of Vietnam lighting market.
Chapter I Analysis on Overall Economy
Vietnam is the world's 14th-most-populous country as well as emerging market, and its GDP has climbed in recent years, with annual growth more than 6%, its economic take-off attracts huge foreign investment, so it is believed that Vietnam market will be booming soon. In view of the opportunities to popularize LED lighting in Vietnam, the increase in electricity consumption also provides great opportunities for LED business in Vietnam besides its economic take-off.
Chapter II Infrastructure Construction Development
As foreign direct investment continually flows into Vietnam, the establishment of industrial zone has become an important means of attracting foreign direct investment in Vietnam, Vietnam is now working to modernize industrial productivity, one of its strategies is to develop multiple industrial zones, in order to promote industrial investment. At present, Vietnam has a total of 328 industrial zones, and the industrial zones put in operation achieve occupancy rate of nearly 73%.
Chapter III Vietnam Lighting Market Scale and Trend
Over the past few years, Vietnam traditional lighting market experienced continuing decline while its LED lighting market kept on going up. It’s estimated that its LED lighting market scale can reach USD 420 million in 2017. From the perspective of product types, since the lighting demand in Vietnam is still in basic stage, products like LED bulb, tube and spotlight were applied most so far. In 2017, replacement lamp occupies 78% of the total market share. In recent two years, due to the rise of local production and the industrial booming, Vietnam manufacturers started to import components from China and assemble by themselves in order to save cost, which led to an annual decline of Chinese import scale. Vietnam lighting market has gradually rid high dependency on imported products and changed into a healthier development mode. Meanwhile, it had certain negative effects on the competitiveness of Chinese LED lighting OEM manufacturers.
The smart lighting developed late in Vietnam, and which is only adopted in the outdoor and high-end commercial lighting places at present. The Vietnam smart lighting market is expected to reach about USD 18 million in 2017, will exceed USD 60 million by 2020.
Chapter IV Lighting Manufacturers and Strategy Analysis
Vietnamese lighting import industrial chain structure can be divided into five types: First one, international manufacturers provide components for local lighting manufacturers; second one, Vietnamese manufacturers import parts and assemble locally; third one, Vietnamese manufacturers import retrofit lamps and assemble locally; fourth one, international ODM manufacturers deliver products to various countries after ODM; fifth one, international manufacturers sell their branded products by project channel or wholesale distribution. As a whole, due to the lack of local manufacturing capacity, international manufacturers like Philips Lighting and Osram still take up the most market share in Vietnam market, and the next ones are local large manufacturers like Rang Dong and Dien Quang, etc.
Chapter V Main Lighting Exhibitions Introduction
This chapter introduces well-known exhibitions in Vietnam, including LEDTEC ASIA and Vietnam TELECOM. In light of scale, LED-related manufacturers can attend LEDTEC ASIA, especially those aim to specialize in stage lamp, stage equipment or display device.
Chapter VI Main Channel Agencies and Engineering Service Providers
Given that Ho Chi Minh City is the commercial center of Vietnam, for lighting manufacturers’ reference, LEDinside sorted out respectively several LED lighting distributors, system integration distributors, utility companies and housework service companies located in Ho Chi Minh City, which may help lighting manufacturers start distribution strategy in Vietnam market. In addition, LEDinside also sorted out local retail channels in Vietnam in the report.
Chapter VII Vietnam LED Lighting Product Specification and Price Analysis
Comparing with the mature markets like Europe and America, Vietnam market has lower requirements on specification and certification of indoor LED products except for special projects, while there are requirements on product specification and lighting effect for municipal street light projects. Manufacturers should develop various product specifications and set prices according to different projects when they make products plan. In addition, Vietnam local well-known manufacturers including Điện Quang, Duhal and Rạng Đông are actively developing online channels, introducing products under private brand, covering a wide range of price.
Chapter VIII Lighting Policies, Regulations and Bidding Project Status
Complying with the IEC standards, Vietnam further develops its own standards on the basis of the IEC standards according to the actual situation of each country. The major national standard for lighting products in Vietnam is TCVN, but there is no mandatory certification for lighting. For non-local lighting manufacturers, it is best to cooperate with well-known local lighting manufacturer to bid for the local government streetlight project, because it is easier to win the bid in the name of local manufacturer. Once the bid is successful, it is available to sell the parts of luminaires to the partner for the following assembly and labeling. Generally, the local government announced bid for demonstration project of hundreds sets at first, and then it will gradually promote it in other cities if the lighting performance and effect are satisfactory.
Chapter IX Suggestions and Analysis on Entering Vietnam Lighting Market
Vietnam achieves increasing social-economic stability and booming economy, and it has large youth demographic and low labor cost. The government of Vietnam is continuing to revitalize the local business and investment climate as well as accelerates the process of urbanization. In addition, Vietnam has signed free trade agreements with more mainstream countries, which further enhances the competitiveness of Vietnam's import and export in the international market. With many favorable factors, companies still need to take the challenges for development in the local area into consideration when they enter the Vietnam lighting market, such as language barriers, the discontinuities of government policy and corruption. Manufacturers ought to attach more attention to several aspects including standard requirements, product positioning, channel selection and government relations, to develop appropriate market strategy to open up the market.
LEDinside 2017 Vietnam Lighting Market Report
Release Date: 01 November 2017
Format: PDF
Language: Traditional Chinese / English
Chapter I Analysis on Overall Economy
Chapter II Infrastructure Construction Development
Chapter III Vietnam Lighting Market Scale and Trend
Chapter IV Lighting Manufacturers and Strategy Analysis
Chapter V Main Lighting Exhibitions Introduction
Chapter VI Main Channel Agencies and Engineering Service Providers
Chapter VII LED Lighting Product Specification and Price Analysis
Chapter VIII Lighting Policies, Regulations and Bidding Project Status
Chapter IX Suggestions and Analysis on Entering Vietnam Lighting Market
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