LED technology is expected to dominate the market in 2015 and afterwards. LED turnover is estimated to rise at a CAGR of 14%, which means the turnover would grow from US$2.2 billion in 2011 to US$3.7 billion in 2016. However, LED lights are still not popular in both household use and public works.
According to industry insiders, LED lights have only been applied in the ad industry, and used to decorate streets and buildings. The biggest disadvantage of LED lights is that they are more expensive than products using other technologies, as a LED light costs 4-5 times higher than the price of an incandescent bulb or fluorescent bulb.
Industry insiders point out that the lack of transparency of the market is another reason behind the lack of popularity of the lights in Vietnam. There are many low-quality Chinese-made LED lights or products assembled in Vietnam with Chinese-sourced components available in the market, which has caused misunderstandings about LED lights and LED lighting technology.