Vietnam LED Lighting Market Report and Forecast 2024-2032

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Rising Demand in the Residential Sector to Supplement the Market Growth of LED Lighting in Vietnam

The growing infrastructure sector in the country is anticipated to provide a push to the regional market. According to the Ministry of Planning and Investment of Vietnam, USD 150-160 billion was estimated to be invested in new infrastructure by 2020. The rising per capita income in Vietnam is expected to lead to an increasing demand for LED in the residential sector. Further, the market is witnessing an increasing demand from lighting projects for newly-built factories and other commercial infrastructure. The market share for traditional lighting industry in Vietnam is expected to decrease with the growth of the LED lighting industry. LED lighting technology is replacing incandescent bulbs for street lighting applications at a rapid rate. Initially, the technology in Vietnam was restricted in its utilisation to outdoor applications, finding uses in traffic lights and the advertisement industry. It has fast expanded to find applications in indoor settings, like in restaurants and hotels as interior and exterior decorations.

The thriving growth of commercial offices and a strong foreign investment in Vietnam is further expected to propel the industry forward. Currently, about 200 companies have registered their LED products in Vietnam and have been divided into three broad groups. The first group, which contains 3% of the companies holding 10-20% market share in the Vietnam LED lighting industry, have modern production lines, standard testing systems, and R&D centres. The second group comprises of foreign-invested enterprises whose selling prices are generally higher than the average prices by two to three times. Thirteen percent of the 200 companies are included in this second group, with their products holding a 15-20% market share. The third group dominates the market with 60-70% market share and comprises of 84% of the companies. These are the companies assembling their products from imported components, mostly from China.

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Vietnam LED Lighting Market Segmentation

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Favourable Government Schemes Supporting the Use of Energy Efficient Lighting Solutions to Spearhead the Vietnam Market for LED Lighting

The market is expected to be supported by the various schemes of the government of Vietnam, promoting the use of energy efficient lighting due to the rise in electricity prices, growing concerns over energy wastage, and climate change. The government programs in the region are promoting the widespread adoption of LED lighting by aiding the local manufacturing of LEDs. The move away from compact fluorescent lamps (CFLs) started in the early 2000s, as the consumers in Vietnam moved towards LED lighting technologies. With growing awareness among the consumers about the environmental issues, LED lighting has seen a rising demand due to their reduced energy consumption and decreased emissions of greenhouse gases, as compared to CFLs and High-Intensity Discharge (HID) lamps.

The thriving electronics industry is providing further impetus to the Vietnam LED Lighting industry. Vietnam is attracting international investors from electronics and home appliances sectors, especially from Korea, due to the lower land resources and labour force cost, growing infrastructure sector, rising economy, and political stability. The recently developed smart lighting system will also drive the regional LED lighting market. For now, the use of smart lighting is restricted to outdoor and high-end commercial lighting. In addition, the growing demand for LED solutions in the manufacturing of digital devices such as television, smartphones, digital cameras, and others, is anticipated to prove beneficial for the market growth in the coming years. The rising demand for digital devices, spurred by the growing disposable incomes and improved living standards of consumers, is anticipated to support the demand for LED solutions further. Furthermore, the growing research and development activities conducted by the market leaders in the development of smart lighting systems are anticipated to drive the Vietnam market for LEDs in the forecast period. For instance, in April 2023, Phenikaa Group introduced its new LED lighting technology, Phenikaa Natural TrueCircadian LED Lighting. This technology allows for the development of light sources that offer the closest light spectrum to natural sunlight, while also enhancing the biological spectrum regions for human eye absorption.

Key Players in the Vietnam LED Lighting Market Landscape

The report provides a detailed analysis of the following key players in the Vietnam LED lighting market, looking into their competitive landscape, capacity, and latest developments like capacity expansions, plant turnarounds, and mergers and applications:

Regional Players:

• Rang Dong Light Source and Vacuum Flask JSC (Ralaco) 
• Dien Quang Light Source Company
• Asled Co., Ltd
• Others

Global Players:

• Signify (Philips Lighting)
• Osram Licht AG
• Nichia Corporation
• Cree Inc.
• Seoul Semiconductor Co Ltd
• Others

The EMR report gives an in-depth insight into the market by providing an analysis of the value chain and Porter’s five forces. It also provides a SWOT analysis of the market.