In every household today, alongside electronic appliances that support human life, there must be the presence of light bulbs. With the purpose of illuminating space, each family usually has many light bulbs in various forms, equipped in many areas. These can be mentioned as rooms, hallways, stairs or gardens.
LED lights tend to be a better solution than other types of lights such as halogen, compact, and incandescent lights with durability, flexibility, smaller size, longer lifespan, and environmental friendliness. Another big advantage of using LED lighting systems is that they don't emit heat like incandescent or compact bulbs. This helps LED lights from getting too hot or burning during use. Moreover, LED lights operate at low energy input while providing high brightness, which is the main reason they are widely deployed in outdoor and indoor environments.
It can be seen that raising consumer awareness of the benefits of LED lights, along with the shift in consumer preference towards "green" lighting, is expected to drive the demand for LED products in the future.
Global LED Lighting Market 2023-2030
The global LED lighting market is projected to reach USD 152,442.3 million by 2030, expanding at a compound annual growth rate (CAGR) of 10.5% from 2022 to 2030 (according to Grand View Research and Research And Markets). Previously, this figure was forecasted to be only 6.1% from 2017-2025. India recently announced plans to develop 100 smart cities by 2030 and approved an investment of nearly USD 15 billion for this project. This could potentially boost the increasing demand for LED lighting.
Vietnam LED Lighting Market 2023-2030
The Vietnamese government is strongly supporting the use of LED lights through two major projects: the Vietnam Energy Efficient Public Lighting Project (VEEPL) and the Vietnam National Energy Efficiency Plan (VNEEP) – aimed at reducing energy consumption and carbon emissions, with the goal of having 100% LED street lights by 2025.
According to statistics from the Ministry of Planning and Investment, in 2022, Vietnam's urbanization rate is estimated to reach 41.7% (1.2% YoY) and is projected to exceed 50% by 2030. Vietnam has over 400 industrial parks as of December 2022, and experts predict that this number will increase by 1.5 times by 2030. Additionally, in the first 9 months of 2023, international visitors to Vietnam are estimated to reach 8.9 million, 4.7 times higher than the same period last year. Tourism in Vietnam is becoming increasingly popular, leading to a positive impact on the LED lighting market due to the growing number of hotels. It is evident that the LED lighting market has great potential for the future and is expected to reach a value of USD 982.8 million by 2028, with a growth rate (CAGR) of 7% during the period 2023 – 2028 (According to IMARC Group's forecast).
Currently, there are over 200 companies registered with LED lighting product brands in the Vietnamese market, divided into 4 groups:
+ Group 1: consists of companies directly producing traditional lighting equipment on a typical scale (Rang Dong, Dien Quang, etc.).
+ Group 2: consists of small and micro-scale companies. Products are manufactured in the form of ODM, OEM - Vietnamese companies set requirements for products, then outsource ODM, OEM manufacturers to design, manufacture, and the Vietnamese companies will put their brand on those product lines.
+ Group 3: includes companies that do not invest in production, but only order products based on existing models in the market at low prices to sell to customers.
+ Group 4: consists of brands that switch from production to importing finished products for distribution in the Vietnamese market, according to the quality standards of LED lighting brands worldwide, at relatively high prices.
Rang Dong
Leading the industry is the Rang Dong brand under the Rang Dong Water-Proof Lamp Joint Stock Company. Established in 1961, Rang Dong products have been exported to over 47 countries and territories across 5 continents. The export market share in the G7/G20 bloc has made remarkable breakthroughs, such as 300% growth in the United States, accounting for over 37%; 60% growth in South Korea, accounting for over 22%. Every year, the company introduces 100 million LED products, 5 million desk lamps and lighting devices, and 32 million plugs and sockets to the market. Accompanying this is a sales team of up to 500 members. The price of a 7W LED bulb is 64,000 VND.
Rang Dong has maintained a strong growth momentum in sales revenue from 2015 to 2022 (2,700-7,000 billion VND). The company's net revenue reached around 5,000 billion VND in 2020, decreased by over 10% in 2021, and increased by over 50% in 2022. The after-tax profit has been steadily increasing, reaching around 350 billion VND in 2020, and increasing by about 20% in 2021 and 2022.
Dien Quang
Dien Quang is a leading technology company in Vietnam in the field of lighting and electrical equipment with nearly 50 years of development, exporting to over 30 countries and territories worldwide. The company has about 100 engineers. The total production of LED lights reaches 140 million products per year. The round 7W LED bulb is currently priced at 65,110 Vietnamese dong.
The brand's net revenue has fluctuated over the years. Specifically, it reached over 900 billion dong in 2020, decreased by over 20% in 2021, and increased by about 35% in 2022. After-tax profit also fluctuated similarly to net revenue, with an increase of nearly 25% in 2021, followed by a decrease of over 35% in 2022, reaching about 15 billion dong.
Signify
Signify is the new name of the Philips Lighting group, with over 125 years of lighting experience. In Vietnam, Signify has been applied as the legal entity since the beginning of 2019 with the full name of Signify Vietnam Limited Liability Company. The round 7W LED bulb is priced at 65,300 Vietnamese dong. LED lights also account for 70% of the company's total sales.
Net revenue decreased by nearly 20% in 2021, then increased by approximately 10% (nearly 600 billion dong) in 2022. After-tax profit reached nearly 20 billion dong in 2020 and increased by about 50% for the next 2 years.
PARAGON
Minh Hung Long Manufacturing and Trading Limited Liability Company established its first factory in Vietnam in 1998. After over 25 years of operation, the company has expanded its market to many countries such as Cambodia, Laos, Myanmar, Sri Lanka, Bangladesh, etc. The 7W LED bulb is priced at 73,000 Vietnamese dong.
The enterprise's net revenue fluctuated over the years. Specifically, it reached around 250 billion dong in 2020, decreased by over 10% in 2021, and increased by nearly 40% in the following year. After-tax profit recorded a significant fluctuation in 2021, nearly 500%, and then increased by over 150% in 2022, reaching about 2 billion dong.
TLC
In June 2014, Thien Loc Construction and Trading Limited Liability Company was established with a scale of about 50 production and management personnel. In 2022, TLC LIGHTING officially transformed its model into the TLC Group Corporation. Unlike other companies, which produce round LED bulbs in 3W, 5W, 7W, 9W, TLC's LED products prioritize even numbers such as 6W, 8W, 10W. The price of an 8W bulb is 74,000 VND.
The growth has been maintained steadily in the gross revenue figures of the enterprise. Specifically, it reached around 60 billion in 2020, increased by nearly 35% in 2021, and surged by over 100% in 2022. As for the after-tax profit, there was a remarkable increase of nearly 1000% in 2021, followed by a slight increase to about 2 billion in 2022.
MPE
Manh Phuong Electrical Trading and Services Limited Liability Company was established in 1999. The prices of 7W and 9W LED bulbs are 56,700 and 67,000 VND respectively.
The gross revenue has been consistently increasing over the years. Specifically, it reached about 2,000 billion in 2020, increased by nearly 40% in 2021, and grew by almost 30% in 2022. Although the after-tax profit increased by 15% in 2021, it sharply decreased by nearly 60% in 2022, reaching about 2 billion.
KingTec
In 1985, Kingtec Lighting Co., Ltd. was established in Shun Lin, New Taipei City, Taiwan. The company's main activities include the production of lighting and components. In 2015, Kingtec Group Vietnam Co., Ltd. was established in Ben Cat, Binh Duong, Vietnam. The primary LED products that KingTec focuses on are interior lights and desk lamps.
The company's net revenue fluctuated from 2020 to 2022 but remained around 1,500 billion. The after-tax profit for 2021-2022 was similar, reaching about 50 billion.
LIOA After 30 years of establishment and development, LIOA Electrical Equipment Co., Ltd. has exported its products to more than 10 countries worldwide, including Myanmar, Cuba, and Indonesia. The 9W round LED bulb is currently priced at 50,000 VND/piece.
Similar to KingTec, LIOA experienced insignificant fluctuations in net revenue, reaching around 2,500 billion. The after-tax profit for 2020-2021 was nearly 15 billion, decreasing by over 10% for the following year.
PLE PLE is a brand under the Pacific Lighting Equipment Manufacturing and Trading Joint Stock Company. It currently invests in 3 large factories and produces approximately 7 million products per year, mainly focusing on interior lighting.
The Pacific Lighting Equipment's net revenue experienced slight fluctuations around 300 billion from 2020 to 2022. The after-tax profit also mirrored the net revenue, fluctuating around 30 billion over the 3 consecutive years.
Neo-Neo Neo-Neo is a subsidiary of the international conglomerate Neo-Neon Holdings Ltd., based in Hong Kong. It is an independent investment enterprise in Vietnam since 2007, with over 1,000 employees specializing in manufacturing and exporting processing for major brands worldwide in markets such as Europe, the US, Canada, Australia, Russia, Africa, Asia, and Southeast Asia. Its main focus is on the production of LED round tube lights.
In 2020, the brand achieved over 250 billion in net revenue, increasing by over 70% in 2021 and decreasing by nearly 20% in 2022. The after-tax profit fluctuated significantly over the years, specifically reaching about 23 billion in 2020, decreasing by over 120% in 2021, and increasing by over 100% in 2022.
Mocal Creative
Mocal Creative Co., Ltd. is a branch of the Mospen Group in Vietnam, with over 38 years of experience in the lighting equipment industry. The group's products are present in many countries such as the USA, UK, Canada, etc.
The company has recorded a gradual increase in net revenue over the years. In 2020, it reached about 200 billion VND, nearly 50% growth in 2021, and over 15% increase in 2022. However, the company has reported losses for 3 consecutive years. Specifically, the losses were over 50 billion in 2020, over 20 billion in 2021, and over 30 billion in 2022.
The LED market in Vietnam is undergoing a period of strong development, with many opportunities and challenges. One of the biggest advantages is that the world has been and is listening to the "Green Deal" of the EU. Vietnam is also rapidly transitioning from incandescent and compact lamps to LED lamps. Policies and initiatives are being put in place to encourage the use of LED lamps, which is becoming increasingly effective and is an important factor in market development. Although LED lamps are considered the product of the future, there are still many factors slowing down the development of LED lamps in the Vietnamese market, such as: blue and white LED lamps are said to emit light exceeding the safety standard with excessive blue light, which is harmful to the eyes according to the health ministry's standards; The LED coverage in urban areas is quite high, but for areas with lower incomes such as rural areas, being willing to pay for LED products is truly a concern and difficult decision.
Source: Vietdata's 2022 market report on lighting production in Vietnam