Vietnam LED Lighting Market Outlook to 2030

Vietnam LED Lighting Market Overview

• In 2023, the Vietnam LED lighting market was valued at USD 690 million, showing consistent growth over the past few years, driven by rising demand for energy-efficient lighting solutions and favorable government policies that promote LED adoption.
• Several global and local players dominate Vietnams LED lighting market. Some of the key companies include Signify (Philips Lighting), Osram Licht AG, Rang Dong Light Source and Vacuum Flask JSC (Ralaco), and Dien Quang Light Source Company. These firms hold significant market shares due to their strong product portfolios and focus on technological advancements.
• In 2023, the Vietnamese government announced a project focused on installing 3.5 million LED streetlights across major cities to enhance public lighting efficiency and reduce energy consumption. This initiative is expected to significantly reduce the national electricity consumption by around 4 terawatt-hours annually, thereby boosting the LED lighting market.
• In 2023, Vietnams government launched the Energy Efficiency Program, which incentivizes the adoption of LED lighting in residential, commercial, and industrial sectors. This program offers financial incentives for retrofitting old lighting systems with LEDs, thereby encouraging the widespread use of energy-efficient solutions.
• Ho Chi Minh City and Hanoi are the leading cities in Vietnams LED lighting market. These cities dominate due to their large populations, extensive urban development projects, and strong focus on smart city initiatives. The increasing number of high-rise buildings and public infrastructure projects in these metropolitan areas has driven the demand for LED installations.

Vietnam LED Lighting Market Segmentation

By Product Type: The Vietnam LED lighting market is segmented by product type into bulb and tube lights, panel lights, street lights, downlights, floodlights, and others. In 2023, panel lights held the dominant market share, as they are preferred for their energy efficiency and versatility in various settings, including homes, offices, and public spaces. The declining cost of LED technology and government support for energy-saving initiatives have further increased their adoption.

By Application: The market is categorized into residential, commercial, industrial, and institutional applications. Residential applications led the market in 2023, driven by increasing consumer demand for energy-efficient lighting. As households increasingly replace traditional incandescent bulbs with LED solutions, the residential sector remains the largest contributor to market growth.

By Region: Vietnam's LED lighting market is also segmented by region into north, south, east, and west. The southern region, particularly Ho Chi Minh City, accounted for the largest market share in 2023 due to its economic significance and ongoing infrastructure projects. The citys focus on upgrading public lighting and urban infrastructure makes it a key market for LED solutions.

Vietnam LED Lighting Market Competitive Landscape

• Signify: Formerly known as Philips Lighting Group, has seen significant changes in Vietnam. After experiencing a 20% decline in net revenue in 2021, the company rebounded in 2022 with an increase of approximately 10%, equivalent to nearly 600 billion Vietnamese dong. LED lights account for 70% of the company's total sales, with a 7W LED bulb priced at 65,300 Vietnamese dong. Their after-tax profit, which was nearly 20 billion dong in 2020, grew by about 50% over the following two years.
• Rang Dong Light Source and Vacuum Flask JSC Rang Dong has increased its production capacity to 100 million LED products annually, alongside 5 million desk lamps and various lighting equipment. This expansion is part of the company's strategy to meet rising domestic and international demand for energy-efficient lighting solutions

Vietnam LED Lighting Market Analysis

Growth Drivers

• Government-Backed Energy Efficiency Programs: Vietnams Energy Efficiency Program (VNEEP), initiated by the government in 2023, aims to reduce national energy consumption by 10% by 2030. This has spurred the adoption of LED lighting, which is significantly more energy-efficient compared to conventional lighting systems. The program mandates that government buildings, public spaces, and large-scale industrial units convert to LED systems, driving up sales and installations in the sector. According to Ministry of Industry and Trade (MOIT), this shift is expected to save 10 TWh of electricity annually, directly impacting the markets growth.
• Electricity Price Hikes Encouraging LED Adoption: In 2024, Vietnam witnessed a 7.5% increase in electricity prices, a direct result of rising energy demand and strain on the countrys energy infrastructure. This price hike has led businesses and households to switch to energy-saving LED solutions, which consume 50-70% less power than traditional lighting. The Vietnam Electricity Corporation (EVN) has confirmed that the shift to LED lighting could help consumers save up to USD 1.5 billion annually by reducing electricity bills.
• Favorable Trade Policies: Vietnams favorable trade policies, including the EU-Vietnam Free Trade Agreement (EVFTA) enacted in 2020, have reduced import duties on LED components and materials. This has led to a reduction in manufacturing costs, fostering local production of LED lights and making the products more competitive. In 2024, the Vietnamese Ministry of Finance reported a major reduction in import tariffs on lighting equipment, allowing local companies to access cheaper materials and boosting the production of domestic LED lighting systems.

Challenges

• High Initial Installation Costs: Despite their long-term benefits, the upfront costs associated with LED lighting systems remain a barrier, especially for small and medium enterprises (SMEs). SMEs cited high installation and retrofitting costs as a major obstacle to adopting LED lighting technologies, despite government incentives.
• Lack of Skilled Labor for Installation: The Vietnam Energy Efficiency and Conservation Office (VNEECO) noted in 2024 that a shortage of skilled labor for the installation and maintenance of advanced LED systems is slowing down market penetration. This labor gap has resulted in delays in government-initiated public lighting projects and private sector installations, affecting the overall market performance.

Government Initiative 

• National Green Growth Strategy: In 2023, the Vietnamese government implemented the Green Growth Strategy 2021-2030, aiming to reduce greenhouse gas emissions and promote energy efficiency. This initiative mandates the use of LED lighting in all new government buildings and publicly funded infrastructure projects. The strategy is expected to reduce the countrys carbon emissions by 15% by 2030, largely driven by the shift to LED lighting.
• Public Lighting Upgradation Initiative: As part of its Smart City Initiative, Vietnams government has allocated USD 250 million for upgrading public lighting systems in major urban centers like Ho Chi Minh City and Hanoi by the end of 2025. This includes the replacement of traditional lighting with LED streetlights, which are expected to reduce energy consumption by 50% in public spaces.

Vietnam LED Lighting Market Future Outlook

The Vietnam LED Lighting Market is projected to grow exponentially by 2028. This growth will be driven by the government-backed Energy efficiency programs, electricity price hikes encouraging LED adoption and favorable trade policies.

Future Trends

• Expansion of Smart Lighting Solutions: By 2028, smart LED lighting systems will dominate the market, driven by the increasing adoption of smart home technologies. Government initiatives, such as the Smart City Program, will ensure that public lighting incorporates smart control systems, enabling remote monitoring and reducing energy consumption.
• Increased Use of Solar-Powered LED Solutions: The future of Vietnams LED lighting market will also see a significant shift toward solar-powered LED lighting, especially in rural areas. By 2028, rural lighting installations are expected to be solar-powered, driven by government efforts to reduce dependency on the national grid and promote sustainable development.