Vietnam plant development and infrastructure will drive domestic demand for LED lighting market

Trendforce LED Consulting Research Center (LEDinside) in Southeast Asia lighting market report said that in the LED lighting industry in recent years, rising in Europe and other mature market saturation, China market price competition, many suppliers. Therefore, Southeast Asia, South America, the Middle East and other emerging markets are becoming the layout of many vendors to the nuggets. The Vietnamese market because of low labor costs, attract a lot of foreign enterprises to set up factories, with per capita income growth, have the opportunity to drive the LED lighting market demand of local, LEDinside estimated that in 2016, LED lighting market size of $348 million, more than 40% penetration. Vietnam LED lighting scale rapid promotion, the penetration rate of more than 40% in several major countries in Southeast Asia, Vietnam LED lighting market share the fastest growth rate, the average annual 2013-2015 of more than 60% year-on-year growth rate to maintain. To 2016, LED lighting market reached $348 million, penetration of more than 40%. In the past the traditional lighting era, Vietnam annually consume 200 million pieces of traditional lighting, mainly in the more power consumption of traditional incandescent light bulbs. In recent years, the traditional lighting market in Vietnam continued to decline, while the LED lighting market has maintained a rising trend. Taking into account the growth of government subsidies and market demand brought about by the growth momentum, LED lighting penetration rate is expected to further increase. By 2018, penetration is expected to reach 51%. Low resource cost and economic development continues to attract new investment Vietnam is the world's fourteenth most populous country, has a population of 94 million. At present, the total population of Vietnam, half of the age of 30, and the working age of 60%. Human resources and labor costs are relatively low in Asian countries. Vietnam may use land resources of about 34 million 776 thousand hectares, from to 2015, the development of the use of 30 million 998 thousand hectares, of which industrial land of 130 thousand hectares, industrial land rental price of about 30-100 U.S. dollars / square meter / year. In addition, the government has been committed to strengthening social and political stability, revitalize the economy and investment boom, and increase efforts to develop infrastructure. According to the Vietnamese Ministry of planning and investment is expected to 2020, Vietnam will need to invest $1500~1600 billion in infrastructure construction. The rapid development of low cost of land and labor, infrastructure and political economy, which has been successful in attracting new investment in Vietnam electronics and electrical products. In particular, the South Korean manufacturers, have layout line in Vietnam, trying to take full advantage of local resources. Samsung has invested in Vietnam to set up mobile phones, batteries, electronic components, display, home appliances and other products production base and R & D center, with a total investment of more than $12 billion. Currently 50% of Samsung mobile phone production in vietnam. LG also invested $3 billion in Vietnam to produce OLED display modules as well as mobile phones, televisions and other household appliances. In addition, Seoul semiconductor and Lumens invested $300 million and $20 million in Vietnam production. In LED lighting manufacturers, the Vietnamese market is mainly for local lighting manufacturers and manufacturers in Europe and America dominated. Vietnam's well-known lighting companies have Dien Quang, Rang Dong, Duhal and so on, foreign investors are based on Philips, Cara, Eurolight and other enterprises. Nevertheless, due to the local manufacturers are mainly concentrated in the field of downstream lamp assembly, the lack of obvious industrial chain, the overall industry chain still has a larger space for development. Risks and opportunities coexist, the reasonable layout of the key to success drive in many favorable factors at the same time, will also face challenges and risks of several aspects of the Chinese lighting manufacturers to develop Vietnam market. First of all, Vietnam in 1975 ", the Chinese population is reduced, and English does not pass, so the local needs of Vietnamese talents will have way to develop business and factory management. In addition, the Vietnamese lighting market is mainly construction projects, mostly from the needs of the new plant LED lighting, or part of the government targets. Therefore, most of them need to work with the local lighting manufacturers in Vietnam, or the establishment of local assembly plant is likely to get the case. Although there are many local market threshold, but China manufacturers to enter Vietnam LED lighting market advantage is still evident. China, Japan, South Korea for the Vietnamese market will have the government to come forward to assist the local government to carry out infrastructure, and thus will be the country's suppliers and developers to the Vietnamese market to do development. In addition, foreign companies in Vietnam have more budget and manpower, and has a greater influence to help manufacturers develop the local market. Enterprises with the support of the government, it will be easier to obtain local targets. In addition, Chinese in emerging markets such as Guangxi extensive talent resources in Nanning minority college with Vietnamese language professionals, many Chinese school after a year, can be put into the Southeast Asian countries to the inauguration, the language barrier is relatively easy to solve. Overall, as an emerging market of rapid development, positive factors in the overall economy, infrastructure, resources and other aspects of the Vietnam in the promotion of LED lighting business investment and development of the local market. In addition, Vietnam's spending power is growing, after the past China, Thailand, Vietnam's domestic market has begun to flourish. Enterprises can through appropriate agents to promote products, and then by the government to support the creation of brand awareness in the local, or through the way of merging with the local channel, so as to expand the local domestic market, the success of the layout. (text: Terri/LEDinside) LEDinside 2016 southeast lighting market report publication date: 201