CatalogueThe LED lighting segment alone shows fierce competition among many domestic and foreign enterprises. Most of the electrical equipment products manufactured domestically are facing fierce competition from products originating from abroad. The issue of investing in technological innovation is raised again.
According to Mr. Doan Quoc Tu – Deputy General Director of Vonta Vietnam Co., Ltd., the LED light bulb market is currently very competitive. Previously, with traditional light bulb products only counted on the fingers, now there are countless domestic and foreign enterprises jumping into this market.
Holding a newly launched LED light product of the company, Mr. Doan Quoc Tu said that Vonta light bulbs are using Japanese LED chip technology that is “strong enough” to compete; otherwise, it will be difficult to maintain the market.
According to Mr. Doan Quoc Tu, developing new technology is considered one of the decisive factors to increase competitive advantage to develop domestic electrical equipment market share and increase exports.
At the Vietnam ETE 2018 International Exhibition on Electrical Technology and Equipment held in Ho Chi Minh City in July 2018, Deputy Minister of Industry and Trade Do Thang Hai said that with increased investment and innovation in science and technology, domestic enterprises in this industry have been making a lot of progress.
According to Mr. Hai, domestic electrical equipment manufacturing enterprises supply the market with many products with high technology content, not only meeting the domestic market demand but also gradually meeting the export market demand.
However, Mr. Hai noted that domestic mechanical enterprises have currently produced about 90% of the main accessories and equipment for the power grid, but for the field of electrical equipment technology and energy-saving products, domestic production capacity is not commensurate with the development potential.
According to estimates, the demand for purchasing electrical equipment in the domestic household electrical market is currently up to hundreds of billions of VND per year. However, in addition to the market share in the light bulb and LED segment, which is considered to be somewhat balanced with foreign brands, domestic brands have not yet captured a significant market share in other electrical equipment segments.
The problem lies in the fact that many domestic electrical equipment products are considered not to be highly competitive because their prices are more expensive than foreign products, while they are less diverse and rich in types, as well as limited in meeting the demand for energy saving.
The electrical equipment market is expected to continue to heat up as major brands from Asian countries continuously appear in the form of imports, distribution, and retail, or carry out mergers and acquisitions (M&A) to quickly dominate the market.
It is known that the goal of the domestic electrical equipment manufacturing industry in the next 2 years is to reach an advanced level in the region in the electrical equipment and electrical materials industry. This is also one of the 5 industrial sectors that the Government is prioritizing for development at present.
Therefore, to increase competitiveness, domestic enterprises need to invest in new technology, invest in depth in electrical equipment with advanced technology to quickly improve the capacity to manufacture electrical equipment, and improve the competitiveness of products. Only then can we meet most of the domestic demand, replace imported equipment, and promote product exports to regional and world markets. However, the capital source for domestic enterprises to invest in technological innovation and new investment in electrical equipment is still a big challenge. Current loan incentives are still given priority to enterprises producing energy-saving equipment and exploiting renewable energy.
MC.
