"New Trends in the Development of LED Display Industry in Southeast Asia" After more than ten years of rapid development in China, the LED display industry has become mature and saturated, and its advantages in terms of factory rent and human resources are gone forever. Display companies are developing towards high-end environmental protection. It is a difficult situation for LED display manufacturers without innovative capabilities to develop. In recent years, my country's LED display industry has developed rapidly, the market is in a saturated state, and it is difficult to continue to develop. Enterprises have shifted their targets to foreign countries. According to the report on the display market in Southeast Asia, mature markets such as Europe, America and Japan are gradually becoming more saturated, and emerging markets such as Southeast Asia, South America, and the Middle East are becoming gold nuggets for many manufacturers to actively deploy.
Among them, the Vietnamese market has attracted many foreign-funded enterprises to set up factories because of low labor costs. It is estimated that in 2016, the LED display market will reach 348 million US dollars, with a penetration rate of over 40%. In the era of traditional display screens in the past, Vietnam consumed about 200 million traditional lamp beads every year, mainly traditional high-power lamp beads that consume more power. In recent years, Vietnam's traditional display market has continued to decline, while the LED display market has always maintained an upward trend.
Taking into account the growth momentum brought about by government subsidies and rising market demand, the growth rate of LED display penetration is expected to further increase. By 2018, the penetration rate is expected to reach 51%. Vietnam’s LED display scale is rapidly increasing. my country’s LED companies are rationally deploying to open up the market. Vietnam’s LED display scale is rapidly increasing, with a penetration rate of more than 40%. Among several major Southeast Asian countries, Vietnam’s LED display market share has the fastest growth rate. In 2013 -In 2015, the company maintained a year-on-year growth rate of more than 60%.
By 2016, the LED display market size reached 348 million US dollars, with a penetration rate of over 40%. Low land, labor costs, and rapid development of infrastructure and political economy have enabled Vietnam to successfully attract new investment in electronics and electrical products. In particular, major Korean manufacturers have deployed production lines in Vietnam one after another, trying to make full use of local resource advantages.
Samsung has successively invested in the establishment of production bases and R&D centers for mobile phones, batteries, electronic components, display screens, household appliances and other products in Vietnam, with a total investment of more than 12 billion US dollars. Currently 50% of Samsung mobile phones are produced in Vietnam. LG is also investing $3 billion in Vietnam to produce OLED display modules as well as products for mobile phones, TVs and other home appliances.
In addition, Seoul Semiconductor and Lumens invested 300 million and 20 million US dollars for production in Vietnam, respectively. As for LED display manufacturers, the Vietnamese market is currently dominated by local display manufacturers and European and American manufacturers. Well-known local LED display companies in Vietnam include Dien Quang, Rang Dong, Duhal, etc., while foreign companies are mainly Philips, Cara, Eurolight and other companies.
Nevertheless, since local manufacturers are mainly concentrated in the downstream display assembly field, the industrial chain is obviously lacking, and the overall industrial chain still has a large room for development. Vietnam is the 14th most populous country in the world with a population of 94 million. At present, half of Vietnam's total population is under the age of 30, and 60% are of working age.
Human resources are abundant and labor costs are relatively low in Asian countries. Vietnam's usable land resource area is about 34.776 million hectares. From 2011 to 2015, 30.998 million hectares were developed and used, including 130,000 hectares of industrial land, and the rent price of industrial land is about 30-100 US dollars per square meter per year. In addition, the government has been committed to strengthening social and political stability, revitalizing the economy and investment boom, and intensifying efforts to develop infrastructure.
According to the estimates of the Ministry of Planning and Investment of Vietnam, by 2020, Vietnam will need to invest 150-160 billion US dollars in infrastructure construction. Although there are many thresholds in the local market, Chinese manufacturers still have obvious advantages in entering Vietnam's LED display market. The governments of China, Japan, and South Korea will come forward to assist the local government in infrastructure construction for the Vietnamese market, and use this to draw their suppliers and developers to the Vietnamese market for development.
In addition, foreign-related units have more budget and manpower in Vietnam, and have greater influence to assist LED display manufacturers to develop the local market. With the support of the government, it will be easier for enterprises to obtain local tenders. In addition, China has a wide range of human resources in emerging markets. For example, the Minority College in Nanning, Guangxi has a Vietnamese language major. Many Chinese can go to Southeast Asian countries to work after one year of study. The language barrier is relatively easy to solve.
Driven by many favorable factors, Chinese manufacturers will also face challenges and risks in several aspects when developing the LED display market in Vietnam. First of all, after the redification of Vietnam in 1975, the Chinese population decreased, and English was not widely spoken. Therefore, local Vietnamese-speaking talents are needed to develop business and factory management. In addition, Vietnam's LED display market is mainly based on engineering construction projects, most of which come from the demand for LED displays in new factories, or some government bids.
Therefore, most of them need to cooperate with local Vietnamese LED display manufacturers, or set up local assembly factories to obtain bids. As Vietnam, which is in the growth period, my country’s LED display market should have a period of explosion. In the early stage, enterprises can promote products through suitable agents, and then build brand awareness in the local area through government support, or through mergers and acquisitions. The way to win the local channels, so as to expand the local LED display domestic demand market, successful layout. .