BMI View: Vietnam is a rapidly developing IT market, with strong momentum across the hardware,software and services segments. We expect this growth dynamic to be maintained over the medium termbased on robust economic performance and a supportive policy framework that is both helping to grow themarket and develop Vietnam's IT industry. For the retail hardware market broad-based economic growththat will deepen the retail hardware market, as well as easing price sensitivity in the higher-valuereplacement market is a central component of our outlook. For software and services economicmodernisation and the development of higher productivity verticals in the economy present majoropportunities to vendors. We forecast an IT spending CAGR of 10.2% over 2016-2020 to total sales ofVND103.4trn in 2020.
Latest Updates And Industry Developments
- Computer Hardware Sales: VND42.3trn in 2016 to VND55.3trn in 2020, a compound annual growthrate (CAGR) of +6.9%. Outlook downgraded in Q216 due to expectation for greater cannibalisation oftablet purchases by smartphones, but overall outlook still positive due to income growth trends.
- Software Sales: VND10.8trn in 2016 to VND17.8trn in 2020, a CAGR of +13.3%. Substantialopportunities exist in enterprise software market where there is low penetration.
- IT Services Sales: VND17.1trn in 2016 to VND30.3trn in 2020, a CAGR of +15.4%. Potential for coresolution spending growth, and a booming cloud computing and outsourcing markets expected to underpinIT services outperformance 2016-2020.
Table Of Contents
Vietnam Information Technology Report Q2 2016 BMI Industry View 7 SWOT 9 IT SWOT 9 Industry Forecast 11 Latest Updates 11 Structural Trends 11 Table: Enterprise Trends - GVA By Vertical (Vietnam 2015-2020) 16 Table: IT Industry - Historical Data And Forecasts (Vietnam 2013-2020) 17 Industry Risk Reward Index 18 Table: IT RRI Score Breakdown By Region 19 Table: Asia Pacific IT Risk/Reward Index - Q2 2016 21 Market Overview 22 Recent Developments 22 Hardware 22 Software 28 Cloud Computing 34 Services 38 Industry Trends And Developments 43 Regulatory Development 49 Table: Government Authority 49 Regulatory News 52 Competitive Landscape 54 International Companies 54 Table: Global CyberSoft 54 Table: Intel 55 Table: LG Electronics 56 Table: Samsung Electronics 57 Local Companies 58 Table: Sara Vietnam 58 Regional Overview 59 Demographic Forecast 63 Table: Population Headline Indicators (Vietnam 1990-2025) 64 Table: Key Population Ratios (Vietnam 1990-2025) 64 Table: Urban/Rural Population and Life Expectancy (Vietnam 1990-2025) 65 Table: Population By Age Group (Vietnam 1990-2025) 65 Table: Population By Age Group % (Vietnam 1990-2025) 66 Methodology 68 Industry Forecast Methodology 68 Sources 70 Risk/Reward Index Methodology 70 Table: IT Risk/Reward Index Indicators 71 Table: Weighting Of Components 72