Government Incentives for LED Adoption in Vietnam

How Government Incentives Are Driving LED Adoption in Vietnam?

The government of Vietnam has committed to increasing LED usage in order to promote energy conservation and efficiency, reduce greenhouse gas emissions, and conserve energy. The government is particularly encouraging LED lighting through national energy conservation plans, especially as urbanisation and industrialisation are increasing electricity demand and adding pressure to an electrical grid that the country currently struggles to maintain. The Ministry of Industry and Trade, which manages the energy efficiency program, has introduced subsidy programs, pilot programs, and decreased import duties on LED lighting to support the transition from traditional to LED lighting in homes, public infrastructure and buildings, and manufacturing units. Considering subsidies and pilot programs by the government, energy efficient lighting, particularly lighting retrofits, have become more affordable and accessible, especially within low-income communities and rural areas.

In addition, public-private partnerships and donor-supported programs are supporting Vietnam's transition towards energy efficient technologies. Pilot programs supported by the government have introduced LED systems in schools, hospitals, and other public structures to to set a precedent for commercial deployment. Subsidies, pilot projects, and lower import duties on LED lighting have also been integrated into Vietnam's larger commitments to meet the Paris Agreement and green growth strategy.

Public Lighting Initiatives Are Gaining Momentum

Streetlights are being replaced by municipal governments in Ho Chi Minh City, Hanoi and Da Nang with smart LED systems. These upgrades cut energy bills and improve night-time safety while reducing operational costs for city utilities.

Public institutions are rapidly adopting LEDs due to tax exemption for LED components and government procurement policies.

Subsidies Make LEDs Affordable in Rural Areas

• Energy service corporations are offering performance-based financing.
• Development banks and NGOs are subsidising LED costs in disadvantaged areas. 
• Campaigns delivering LED bulbs in bulk aim to low-income households. 

These solutions drive down upfront costs and speed up the process for new rural electrification and reduce reliance on inefficient CFLs or incandescent bulbs.

For policy analysis and full market data, see our Vietnam LED Lighting Market

Policy Support Is Reshaping Vietnam’s Lighting Sector

The Vietnamese government has made a commitment to energy efficiency, which is resulting in widespread local LED adoption. Vietnam is incentivising a long-term market movement toward energy efficient lighting with policy, financial incentives, and public sector leadership. Aligning both environmental desirability with consumer affordability represents a key pillar in Vietnam's sustainable development policies.