2013-02-28 12:31:13 - Fast Market Research recommends "Vietnam Information Technology Report Q1 2013" from Business Monitor International, now available
BMI View: Vietnamese IT spending is expected to reach US$2.9bn in 2013, up 15%, with BMI upwardly revising its forecast due to macroeconomic factors. Drivers including 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. Vietnam's improving ICT infrastructure will also drive the development of the nation's IT market in a country with 20% PC penetration. Meanwhile, there is strong demand for ERP solutions and cloud computing revenues are expected to report at least 300% growth over the five-year forecast period to 2017.
Headline Expenditure Projections
Computer Hardware Sales: US$1.8bn in 2012 to US$2.1bn in 2013, +13% in US dollar terms. Forecast in US dollar
terms unchanged; however, Windows 8 tablets and notebooks are expected to provide a growth area in 2012.
Full Report Details at
- www.fastmr.com/prod/541299_vietnam_information_technology_report ..
Software Sales: US$223mn in 2012 to US$264mn in 2013, +18% 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$477mn in 2012 to US$569mn in 2013, +19% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification with growing demand for digital infrastructure projects in various sectors, such as banking, telecoms, energy and government.
Risk/Reward Ratings: Vietnam scores 33.2 out of 100 in our Asia Risk/Reward Ratings table. This places the country 11th, ahead of Sri Lanka. The country ranks only 11th for its industry rewards score, with 36.9.
Key Trends & Developments.
* In 2012, vendors reported continued robust sales of ERP solutions, despite the uncertain economic situation. There is still a lot of potential for Vietnamese enterprises to increase spending on basic solutions. A number of Vietnamese companies embarked on large-scale ERP implementations, including Hoang Anh Gia Lai Group (HAGL), which launched a VND100bn ERP system. However, while the ERP market is strong, it is estimated that only about 10% of Vietnamese businesses have used CRM.
* A number of government ministries and organisations, including the Ministry of Education and Training, have started to promote the rollout of cloud services. Plans to modernise IT in government agencies and the customs department, as well as the Tax Administration Modernization Plan for 2008-2013, represent opportunities for vendors of IT products and services.
* An ambitious government IT plan for 2010-2020 should shape many segments of the Vietnamese IT market, with the government pledging to invest VND2.4tn (US4,115mn) from the State Budget in the ICT sector over this period. The government's increasing focus on encouraging ICT development and foreign investment in the technology sector will also create opportunities. Many of the government's ICT development plans and programmes are still in a nascent stage and their ultimate effectiveness is yet to be determined.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Vietnam IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated)
- Table: Telecoms Sector - Internet - Historical Data And Forecasts
- Macroeconomic Forecast
- Ratings Downgrade Failed To Surprise Investors
- Early Signs Of A Recovery
- Threat Of Slower Growth Yet To Undermine Efforts For Reforms
- Expenditure Breakdown
- Table: Vietnam - Economic Activity
Industry Risk Reward Ratings
- Industry Risk/Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings, Q113
- Asia Pacific Regional Market Overview
- IT Penetration
- IT Growth and Drivers
- Sectors And Verticals
- Table: Vietnam
Industry Trends And Developments
- FPT Software
- Vietnam Demographic Forecast
- Table: Vietnam's Population By Age Group, 1990-2020 ('000)
- Table: Vietnam's Population By Age Group, 1990-2020 (% of total)
- Table: Vietnam's Key Population Ratios, 1990-2020
- Table: Vietnam's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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