We maintain a positive outlook for the Vietnamese IT market in the Q4 update, but we highlight increased downside risk from a tightening of domestic credit conditions in H214 as a result of a build up of bad debt. Credit markets could cause short term disruption but our forecast for robust medium term growth in Vietnamese IT spending remains in place, with a forecast for a compound annual growth rate ( CAGR ) of 12.6 % between 2014 and 2018 . We expect growth will be driven by rising incomes, enterprise modernisation and the policy environment put in place by the government. We also highlight larger opportunities in the retail market where penetration of devices and services remains below the level in neighbouring markets , which vendors will be able to tap as incomes rise. Meanwhile, Vietnam 's development as an outsourcing destination is a significant medium term factor , with the services segment expected to expand rapidly. T here is also increasing momentum towards Vietnam becoming a global centre for electronics production as wages rise in China and manufacturers look to protect margins by moving to Vietnam , where wages are as little as a third of those in China.
Full Report Details at
- http://www.fastmr.com/prod/888221_vietnam_information_technology_report_q4_2014.aspx?afid=301
Headline Expenditure Projections
* Computer Hardware Sales: VND38.9trn in 2014 to VND58.3trn in 2018, CAGR of +11.3% in local currency terms. Rising incomes and declining device prices, along with PC subsidy schemes, will support demand growth across all three main device categories over the medium term.
* Software Sales: VND10.1trn in 2014 to VND17.9trn in 2018, CAGR of +16.1% in local currency terms. There are considerable opportunities in business software and security solutions for vendors willing to accept narrow margins in a price-sensitive market.
* IT Services Sales: VND14.2trn in 2013 to VND25.1trn in 2018, CAGR of +15.1% in local currency terms. Domestic demand for services remains weak, but we expect adoption to increase markedly as...
The Vietnam Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's Vietnam Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Vietnam.
Key Benefits
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
You may also be interested in these related reports:
- Indonesia Information Technology Report Q4 2014
- China Information Technology Report Q4 2014
- Czech Republic Information Technology Report Q4 2014
- Mexico Information Technology Report Q4 2014
- Kuwait Information Technology Report Q4 2014
"Vietnam Information Technology Report Q4 2014" Published
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001