Vietnam Information Technology Report Q3 2012 - New Study Released

New Computer Technology market report from Business Monitor International: "Vietnam Information Technology Report Q3 2012"

by Bill Thompson

(WireNews+Co) - Boston, MA - 15 October 2012

BMI View: Vietnamese IT spending is expected to reach US$2.6bn in 2012, up 14%, with BMI upwardly revising its forecast due to macroeconomic factors. Drivers such as rising PC penetration, economic growth, a range of government ICT initiatives and a campaign to develop Vietnam's domestic IT industry will help to sustain continued expansion going forward. Vietnam's improving ICT infrastructure will also drive the development of the nation's IT market in a country with below 20% PC penetration. Meanwhile, cloud computing revenues are expected to report at least 300% growth over the forecast period.

Headline Expenditure Projections

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Computer hardware sales: US$1.60bn in 2011 to US$1.85bn 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.

Software sales: US$191mn in 2011 to US$224mn in 2012, +17% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification, but will depend on the success in bringing down illegal software use.

IT Services sales: US$402mn in 2011 to US$478mn in 2012, +19% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification with growing demand for digital infrastructure projects in various sectors, such as banking, telecoms, energy and government.

Risk/Reward Ratings: Vietnam's score was 33.2 out of 100.0. Vietnam ranks 11th in our latest Asia RRR table, ahead of Sri Lanka. The country ranked only ninth for its IT market score of 36.

Key Trends & Developments.

- The Vietnam IT market is expected to grow around 14% in 2012. Government and business IT spending remain subject to fiscal restraints and external economic headwinds, and the devaluation of the dong will also inhibit demand. However, the Vietnamese economy is expected to remain generally strong and drive growth in IT investments.
- In 2011, a number of government ministries and organisations, including the Ministry of Education and Training, started to promote the roll out of cloud services. Plans to modernise IT in government agencies and the customs department, as well as the Tax Administration Modernization Plan for 2008-2013 represent opportunities for vendors of IT products and services.
- An ambitious government IT plan for 2010-2020 should shape many segments of the Vietnamese IT market, with the government pledging to invest VND2.4tn (US4,115mn) from the State Budget in the ICT sector over the next decade. The government's increasing focus on encouraging ICT development and foreign investment in the tech sector will also create opportunities. Many of the government's ICT development plans and programmes are still in a nascent stage and their ultimate effectiveness is yet to be determined.

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