Date: Wednesday 11 December 2019
Host: VAST and UNDP
Event: Project Debrief on the Development of the LED Lighting Sector in Viet Nam
Your Excellency, Mr. Phan Ngoc Minh, Vice President of Viet Nam Academy of Science and Technology;
Mr. Nguyen Van Thao, National Project Director, Director General of the Centre of High Technology Development
Distinguished representatives from government agencies, institutions, academia, associations and enterprises;
Ladies and gentlemen;
I am very delighted and honoured to join Professor Minh in welcoming you to this important workshop to exchange the results of the Project “Local Development and Promotion of LED Technologies for Advanced General Lighting in Viet Nam” (LED project) and further development of LED lighting sector in Viet Nam.
Good lighting is critical to enhancing quality of life and for achieving the Sustainable Development Goals. It is essential for most productive and non-productive activities in an economy, including for operating schools, medical facilities and businesses, for transportation, for providing security and much more.
As economies grow and populations expand, the demand for lighting also increases, and along with its energy consumption and greenhouse gas emissions. Around 15 per cent of global electricity demand is used for lighting and here in Viet Nam lighting accounts for 25 per cent of total electricity consumption.
At the same time, the sector also has great impact on energy saving while providing an equal or better quality of light. The LED lighting technology could reduce the energy use by 50 per cent to 80 per cent compared to Florescent Lights (FLs), High Intensity Discharge (HID) lights and traditional incandescent lamps. This contribute significantly to meet the greenhouse gas emission targets set in the Viet Nam’s Nationally Determined Contribution and Sustainable Development Goals.
In this connection I would like to highlight the greenhouse gas emission reduction that resulted from LED project. It contributed to the direct reduction of 1,246 tonnes of CO2 and indirect reduction of around 2,000 ktonnes of CO2. This is equivalent to the amount of CO2 emissions that is generated from 240 passenger vehicles and nearly 400,000 passenger vehicles respectively, each driven for 18,500 km for one year. As the lighting market shifts towards LED across the country, this impact will be amplified.
The strides that we have made together in four years through the LED project have been significant. In 2014, prior to the LED project’s Inception, Vietnamese companies produced less than 1% of the domestic market share of LED lights and today they hold 49% of the domestic market share, with around 15,000 retailers selling certified LED lights. That means the LED transition unlocks multiple benefits for governments, businesses, and consumers:
- Locally produced LED products are both high-quality and affordable. Local LED producers are able to master LED technology from the design to the production management and quality control to provide LED products that meet national and international standards.
- Households, schools, and businesses alike are lighting their spaces using less energy and burning less C02 while saving their electricity bills.
- The government is to be commended for their strong commitment in setting up the enabling environment for developing the LED lighting industry. The introduction of product standards and energy labeling system for LED lights helps to eliminate poor quality LED lights from the Vietnamese market, while incentivizes for more ambitious domestic producers who would like to go beyond the minimum requirements,
- Trained engineers and students alike are now able to use their technical skills to make a positive climate-conscious change by producing LED lighting products. The availability and operation of the first ever on-line training course on LED technology in Viet Nam will further enhance these technical skills to meet the rapid development of LED technology.
These achievements would not have been possible without the active engagement and strong partnership among government, lighting association, lamps producers, lighting companies, scientific and academic institutions, etc. I would like to take this opportunity to extend our sincere thanks to all project partners and individuals for their valuable contribution to the project success and for making industry-wide changes to the local LED technology. We would also like to express our great appreciation to the Global Environment Facility for their financial contribution to the important project.
Ladies and Gentlemen,
As we move to the next phase of transforming the domestic LED market, targeted action might be needed in several areas and I would like to highlight the following points for your consideration:
1) Small and medium LED producers might need support that helps them meet the minimum requirements of product standards. Technical assistance for upgrading business and production management systems and infrastructure would be key, as well as innovative financing mechanisms that suits this market segment.
2) Private investments are crucial for retrofit the public street lighting infrastructure with LEDs considering the limited availability of public finance in Viet Nam. Public Private Partnership models that suit the Vietnamese context need to be piloted and upscaled to reduce or transfer the risks for private investors.
3) The domestic LED industry in Viet Nam has started taking into consideration the role of LEDs in the changes happening globally in terms of the energy transition towards cleaner energy as well as their links with Information and Communication Technology (ICT) and smart systems. For these changes to accelerate in Viet Nam this aspect needs to be proactively considered in both the public and corporate planning and policy making and requires coordination between various governmental and private sector stakeholders that influence LED production, sales and application.
Ladies and Gentlemen
Today you will hear discussion among the Government of Vietnam, the domestic lighting industry, and International and national experts to help better understanding of the lessons learnt from the past and how to collaboratively navigate the future towards a competitive, resilient and low carbon lighting market in Viet Nam.
I wish you a fruitful discussion today that will advance our understanding and key next steps towards or sustainable and smart lighting for everyone.
Wish you with good health and success!
Xin cảm ơn!