New Market Report Now Available: Vietnam Consumer Electronics Report Q3 2012

Fast Market Research recommends "Vietnam Consumer Electronics Report Q3 2012" from Business Monitor International, now available

by Bill Thompson

(WireNews+Co) - Boston, MA - 18 October 2012

BMI View: We project that Hong Kong consumer electronics spending will grow by about 19% in US dollar terms in 2012 to US$5.5bn, with vendors reporting healthy sales in the run-up to the 2012 Lunar New Year shopping season, as retailers launched new promotions. The country's vast, underpenetrated rural market offers the most growth potential, with Hanoi and Ho Chi Minh City accounting for most sales. In 2011 Vietnamese retail demand for consumer electronics products grew robustly, despite pressure on consumer incomes from rising inflation. Growth areas include smartphones, where a surge in demand has been fuelled by lower prices, and flatscreen TV sets, which now comprise more than twothirds of TV set sales.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/451420_vietnam_consumer_electronics_report_q3_2012.aspx) (http://www.fastmr.com/prod/451420_vietnam_consumer_electronics_report_q3_2012.aspx)

Headline Expenditure Projections

- Computer hardware sales: US$1.6bn in 2011 to US$1.8bn in 2012, +12% in US dollar terms. Forecast in US dollar terms unchanged, but due to lower prices, tablets are expected to provide a strong growth area in 2012.
- AV sales: US$1.2bn in 2011 to US$1.4bn in 2012, +15% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV sets expected to provide the most dynamic development.
- Handset sales: US$1.6bn in 2011 to US$2.0bn in 2012, +29% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.

Business Environment Rating:

Vietnam's score was 41.7 out of 100.0, which gave it twelfth place in our latest Asia CE RRR table. BMI expects Vietnam to attain a higher place in our rankings over time due to the rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets.

Key Trends & Developments

- Handset market growth will be driven by smartphones as falling prices enhance affordability. The market growth rate moderated in Q411, but was still comfortably in double-digits due to strong sales of smartphones. The overall handset growth rate in 2011 was estimated at around 22%, while smartphones recorded triple-digit growth and comprised around one-quarter of the market. The average prices of smartphones have fallen significantly due to the release of more low-cost models.
- Demand for LCD and plasma TV sets will drive AV growth. TV upgrades should be spurred by Vietnam's gradual progress towards digital TV broadcasting, which is supposed be available nationally by 2020. In April 2010 the government published a draft plan for the digital migration, which set out a number of key targets, including assistance for people to buy digital TV equipment.
- Currently, Hanoi and Ho Chi Minh City are understood to account for around 85% of notebook sales. The spread of fixed and mobile broadband services will spur purchases of mobile PCs as connectivity devices. As elsewhere, telecoms operators such as Viettel are emerging as significant distribution channels for notebooks as vendors seek tie-ups.

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