The IT hardware and software markets of Vietnam, which are driven by higher IT demand and outlay from the public sector, private sector and households, have grown rapidly at 13-15 percent per year for the past five years. To meet its dynamic market growth, Vietnam has been importing the lion’s share of IT hardware and software as Vietnamese manufacturers are still relatively new and may not be able to offer the same range of solutions and technical support as foreign competitors. This trend is expected to continue to offer good sales opportunities for U.S. suppliers for many years to come.
The hardware market, dominated by foreign suppliers’ 89 percent market share, expanded at approximately 10-15 percent per year from 2005 to 2009, and is forecasted to grow at 15 percent in 2010. Key players in the hardware market include suppliers from Japan, China, the U.S., Taiwan and Vietnam. The software market grew at 15-20 percent per year in the period of 2005-2009 and is expected to grow at 17 percent in 2010. Local and foreign suppliers of software hold 75 and 25 percent of the market share, respectively. Major players in the software market include suppliers from Vietnam, the U.S., Germany, China, and Russia. Software market revenues would be markedly greater without the widespread use of counterfeit software. Business Software Alliance reported that Vietnam had a software piracy rate of 85 percent in 2009.
U.S. IT suppliers have good opportunities for success in penetrating or expanding their business in Vietnam thanks to their reputation for high-quality products, state-of-the-art technology and superior professionalism.
A recent International Data Corporation report shows that the Vietnam’s personal computer (PC) market grew at 8 and 10 percent in 2008 and 2009 respectively. As Vietnam’s economic forecast over the next few years is bright, the growth trend in the PC market is expected to accelerate and offers excellent potential for U.S. suppliers. Examples of successful U.S. PC suppliers in Vietnam include Hewlett-Packard and Dell.
Along with the strong growth in the personal computer market, the market for computer accessories, including hard disk drives, sound cards, speakers, and memory sticks is expected to also grow robustly and present good sales opportunities for U.S. suppliers.
Wireless equipment is another best prospect in the IT hardware market for U.S. suppliers. Government agencies, enterprises, department stores, hotels, restaurants, high-end coffee shops and households in Vietnam are increasingly equipping themselves with Wi-Fi equipment to meet the growing connection demand from their employees and clients. Network equipment, including access points, ADSL equipment, hubs, switches, and network adapters, is also a best prospect for U.S. suppliers. Cisco Systems is widely known as a major U.S. network equipment supplier in Vietnam. In addition, the information security equipment sub-sector offers good potential for U.S. suppliers as the Government and businesses in Vietnam are more actively providing and exchanging information via the Internet and local and wide area networks.
Security software, including anti-virus software and Internet security software, is a best prospect for U.S. suppliers. Symantec and McAfee are successful U.S. suppliers of security software in Vietnam.
Database software is another best prospect for U.S. suppliers, especially in the finance and banking sectors. Key players in the database software market in Vietnam are Oracle, IBM and Microsoft.
Application software for Small and Medium-sized Enterprises (SMEs), including Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) and Human Resources Management (HRM), is also expected to present good potential for U.S. suppliers.
According to industry analysts, while most SMEs in Vietnam tend to use low-priced Vietnamese software, a number of large State-owned and private corporations, especially in finance and banking, aviation, energy, telecommunications and construction, prefer to use high-end software, including customized solutions as well as off-the-shelf products.