Ho Chi Minh City has recently issued an investment certification to Kim Dinh (Vietnam) and Fawoo Technology (Korea), allowing them to establish LED lights (for residential and industrial purpose) production base in the High-Tech Park. This was a first co-operation between Kim Dinh and Fawoo Technology and cost them about 1.23 million dollars. They believed that Vietnam LED market has great potential.
SHTP indicated that this joint venture belonged to new energy industry, in line with the new energy industry development policy issued by Vietnamese government. In the beginning of 2011, SHTP accepted 4 new energy investments (7.76 million dollars in total), including HPT, Amvi biotech, and Vietnam Oil and Gas RD led street lights Centre.
Ho Chi Minh City now has nearly 110,000 public lighting bulbs and around 110,000 bulbs for residential use. From the very beginning of 2011, Vietnamese government started to replace all old traditional public lighting instruments and installed new electronic ballasts, which can save more energy. Even so, Vietnamese government still paid an electric bill of 120 billion VND (Vietnamese Dong) and another 25 billion VND for maintenance fees. Government decided when VEEPL finished at the end of 2011, Vietnam Ministry of Industry and Commerce will continue to implement plan to replace core wire bulbs with high-performance lamps (this plan is also funded by GEF). It is expected that after 2014, the utilization of LED lamps in Vietnam will be more than 50%. Economic experts felt confident about Vietnam LED market.
Urbanization, urban infrastructure, rapid construction and development prompted a huge demand of lighting products. Vietnam’s urbanization rate was expected to increase from 27% to 45.2% by 2020. The implementation of urbanization and the rapid development of economy have greatly stimulated the demand for lighting products, both indoors and outdoors. Vietnam lighting market has entered a golden age.
In the next 10 years, Vietnam will invest over 60 billion U.S. dollars in the construction of roads, airports, ports and other public transport network. The Vietnamese Government has approved an urban renewal plan. By 2020, the total investment amount will reach up to 90 billion dollars in reconstruction of old urban. Also, in commercial areas, in hotel/resort industry and leisure entertainment, the Vietnamese Government prepared development plans.
All signs pointed out that in the next decade, Vietnam LED market will explode.