Oct 26, 2016: Vietnam’s LED lighting market is likely to hit US$348 million in 2016, a 28% increase from US$271 million in 2015, according to a report by TrendForce. The steady development of the Vietnamese lighting market has created a buzz across the industry. Before the launch of LED into the nation, Vietnam consumed about 200 million conventional light bulbs every year. Majority of the conventional bulbs were the less energy-efficient incandescent lamps.
However, over the past few years, the constant development of LED lighting into Vietnam has resulted in the reduction of the local market for conventional lighting products.
Vietnam’s LED market has witnessed robust growth. The penetration rate of LED in the nation is likely to reach around 35% in 2016, according to the report. Industry experts believe that Vietnam’s LED market enjoys rapid growth as compared to other Southeast Asian nations due to its comparatively shorter base period.
In addition, Vietnam’s income per capita has been increasing in recent years. The nation’s LED demand has steadily shifted from infrastructure projects to the residential lighting market.
Vietnam’s LED market to hit US$348 million in 2016
A number of global LED companies have also set up factories in Vietnam because of the low cost of labor. Furthermore, the Vietnamese government has embarked on a chain of big infrastructure projects that are made possible by the growth aid from South Korea, China and Japan. These projects push the local demand for outdoor LEDs.
As public projects commissioned by the government tend to support domestic firms, global LED companies are required to work with local firms to enter the Vietnamese infrastructure market.
Increasing per capita income for Vietnamese people is also contributing towards the rapid development in the local market for residential LED lighting, according to the experts