[investment] - groupwork2.pptx

Stable foreign exchange market with fairly steady

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Stable foreign exchange market with fairly steady USD/VND exchange rate is supported by an abundant source of foreign currency. The stock market is growing rather too fast with potentially reversing risks. Vietnam’s Economy
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INDUSTRY ANALYSIS
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13 Global LED lighting market growing at a CAGR of around 13% between 2017 and 2022. International market Vietnam market Grow at a compound annual growth rate (CAGR) of 18.2 per cent from 2016-2022, reaching $729 million by 2022. LED consumption increased by 133% on average per year from 2013-2016 and is expected to reach VND 2048 billion in 2018. RAL’s sale growth prospect Overview
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14 Regulations No national quality standards for LED products Preferential tariff for LED products Regulation on minimum energy efficiency level Prices of LED products decline rapidly Global: retail price of LED products reduced by 30-40% in 2015 (LED inside). Vietnam: LED prices also declined. Trends LED prices decline along with the reduction in prices of LED chips. => Help maintain the profit margin of LED products LED technology is constantly changing.
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15 $158-million project increase electricity price Rising environmental concerns LED is getting incorporated into more high-tech products Applied in various fields ranging from medical to agriculture. Urbanization and rising population Growing usage of LEDs in high-tech products Electricity supply shortages and price hike Environmental awareness and government responding policies. Demand drivers Population growth in Vietnam: 25,000 in 1950 to 96,227,378 Demand for sustainable and efficient infrastructure
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16 Five-force analysis Rivalry within the industry Threat of new entrants Threat of substitutes Supplier power Buyer power
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17 Five-force analysis Rivalry China is the largest LED manufacturer in the world with high specialization Global Strong competition in both global and Vietnamese LED market Over 200 firms manufacturing and importing LED lights Vietnam
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18 Five-force analysis Rivalry Rivalry within Vietnam’s market Dien Quang (DQC) and Rang Dong (RAL) are 2 leading lighting companies 25% 40% 15% 20% Market shares in Vietnam’s lighting industry Rang Dong Dien Quang Phillips Others RAL DQC LED production capacity (million units/year) 18 20 About 20 large multi-national companies in high-end segment, including: Philips, Osram, Panasonic, Duhal, etc. LED products imported from China, and assembled products from domestic companies in low-end segment
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19 Five-force analysis Rivalry Rivalry within Vietnam’s market Competitive factors RAL’s position in the lighting industry 500 distributors 6,000 retail outlets 6 Central and Southern branches RAL and DQC’s products excel in terms of usage time, lighting quality, and after-sales services => not easy to be recognized in the
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