Overall economic analysis
As the 14th largest country in the world in population and emerging market, its GDP has been rising year by year. In recent years, the GDP growth rate has surpassed 6%. At this stage of economic take-off, Vietnam has influx of foreign capital and the vigorous development of the Vietnamese market is just around the corner. The LED lighting opportunities in Vietnam, in addition to the economy is taking off stage, but also due to the rise in electricity consumption, making Vietnam LED business opportunities not to be underestimated.
With the continuous influx of foreign direct investment into Vietnam, the establishment of an industrial zone has become an important means of attracting foreign direct investment in Vietnam as Vietnam is trying to modernize its industrial production. One of the strategies is to develop a number of industrial zones to promote industrial investment. At present, there are 328 industrial zones in Vietnam and nearly 73% of the industrial zones in operation.
Lighting market size analysis
Vietnam traditional lighting market continued to decline in the past few years, while the LED lighting market has been rising, the LED lighting market in 2017 is expected to reach 420 million US dollars. In terms of product type, the LED lighting market in Vietnam currently has the highest degree of application of replacement light sources such as light bulbs, tubes and spotlights, accounting for about 78% of the total revenue in 2017, due to the relatively light lighting needs. In the recent two years, due to the rise of local production and the booming industry, Vietnamese manufacturers began to assemble their own parts from China to save costs, resulting in a year-on-year decline in the scale of imports from China. Vietnam lighting market is gradually getting rid of a high degree of dependence on imported products, turn to a more healthy form. But also make the competitiveness of China's LED lighting foundries affected by some negative impact.
Lighting manufacturers introduction and strategy analysis
Vietnam's lighting import chain structure can be divided into five categories: by foreign manufacturers for the local lighting plant to provide components, imported components + local assembly, imported lighting products + local assembly, foreign OEM direct ODM shipped to countries and abroad Vendor-owned brands sell through engineering or wholesale channels. Overall, due to the lack of local manufacturing capacity, the Vietnamese market is still the highest share of international companies such as Philips and Osram, followed by local manufacturers Rang Dong and Dien Quang.