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Why LED lighting did not pick up in Vietnam

Why LED lighting did not pick up in Vietnam

By BizLED Bureau

August 3, 2015: It seems that Vietnam is not very excited about LED technology. Despite several studies and surveys predicting that LED lighting will dominate the world?s lighting market in 2015 and onwards, this energy efficient lighting technology is still not popular in Vietnam. However, despite all the advantages of LED lighting, neither it is popular in households nor in commercial and industrial applications.

Vietnam-based Rang Dong light and vacuum flask company has spent billions of dong on a research and development of a center to use LED technology in lighting products, yet it failed to spread mass awareness in the country. Currently, LED technology is being used only in the advertisement industry, and in cheap lights to decorate shops and buildings.

According to Nguyen Doan Thang, deputy chair of the Vietnam Lighting Association, the higher cost of LED lights compared to conventional lights is the hindrance in convincing people to shift to this new technology. LED lights still cost 4-5 times more than an incandescent or fluorescent bulb. For example, a set of 100-160W LED lights cost VND15-20 million, while a set of incandescent lamps for street lighting cost VND3.5 million.

Lack of transparency of the market is another barrier for LED lighting to become popular in Vietnam.

While there are several facilities that assemble low-quality Chinese-made LED lights or other LED products in Vietnam, Vietnam-made LED products are not available.

The existence of low-quality LED lighting products in the Vietnam market has created doubts in the minds of the consumers about cost-benefit of LED technology. In a random test by the Center for Energy Conservation Lamp and Electronic Solution, many Chinese 3-watt LEDs were found to measure 1.5 watts, and last for only two months, whereas high quality LED lights last for about 50,000 hours. While Chinese LED lights cost about 60% less than the branded LED lights, yet they are much more expensive than the fluorescent lamps. Now consumers in Vietnam expect cheaper LED lights but with high life expectancy, a conference had stated.

Why LED lighting is essential in Vietnam

According to a recent research, geographically, China, Germany, Japan, the UK and the US represent the largest lighting product markets while the strongest annual growth is forecast to occur in Vietnam (11.3%), even more than the US (11.1%).

After 25 years of economic liberalization, Vietnam has prioritized its expansion over sustainable development, which is threatening its non-renewable resources, leading to a looming energy deficit. Vietnam is expected to have a power deficit of 70% by 2025.

The government should, therefore, wake up immediately to applications of energy-saving technologies like LED in commercial buildings, industrial facilities, street lighting and household lighting.

As Vietnam continues to develop, it offers a large potential market for LED lighting. Many new satellites areas are coming up, calling for the development of commercial areas, residential housing, hospitals, schools, retail, etc. These new construction projects offer immense business opportunities for LED multinational manufacturers.


None of the facts and figures mentioned in the story have been created by BizLED.co.in. BizLED is not responsible for any factual errors.
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