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The IT hardware and software markets of Vietnam, which are driven by continued higher IT demand and outlay from the public sector, private sector and households, have grown rapidly at about 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 services as foreign suppliers. This trend is expected to continue to offer good sales opportunities for foreign suppliers for many years to come.

A recent HCMC Computer Association report shows that the hardware market grew at 20 percent in 2010 and is forecasted to grow at 17 percent in 2011. Key players in the hardware market include suppliers from Taiwan, China, the U.S., and Japan. According to International Data Corporation, the software market grew at 16 percent in 2010 and is estimated to grow at 14.4 percent in 2011. Major players in the software market include suppliers from the U.S., Germany, China, Russia, and Vietnam. Software market revenues would be markedly greater without the use of counterfeit software. Protection of software copyright is an issue; Business Software Alliance reported that Vietnam had a software piracy rate of 82 percent in 2010, down from 85 percent in 2009.

Best Prospects

Foreign 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 professionalism.

Hardware: A recent International Data Corporation report shows that the Vietnam’s personal computer (PC) market grew at 15 percent in 2010. As the Vietnamese economy is forecasted to grow at about 7 percent over the next few years, this growth trend in PC market is expected to continue at a stronger pace and offers excellent potential for foreign suppliers. Major suppliers of PCs in Vietnam include Taiwan (Acer and Asus), the U.S. (Hewlett-Packard and Dell), China (Lenovo), and Japan (Sony and Toshiba).

Wireless equipment is another best prospect in the IT hardware market for foreign 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. Key suppliers of wireless equipment in Vietnam include Taiwan (D-link and Asus), and the U.S. (Linksys, Net Gear and Proxim).

Network equipment, including access points, ADSL equipment, hubs, switches, and network adapters, is also a best prospect for foreign suppliers. Cisco Systems and Juniper Networks are two major foreign network equipment suppliers in Vietnam. In addition, the information security equipment sub-sector offers good potential for foreign suppliers as the Government and businesses in Vietnam are conducting more business transactions via the Internet and local and wide area networks.

Software: Security software, including anti-virus software and Internet security software, is a best prospect for foreign suppliers. Symantec and McAfee are successful foreign suppliers of security software in Vietnam. Database software is another best prospect for foreign 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 foreign 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.

Trade Events

1. Communication Asia, 21-24 June 2011, Singapore.

2. Vietnam Consumer Digital World Expo, 14-17 July 2011, HCMC, Vietnam.

3. Vietnam Internet and IT 2011, 16-19 November 2011, Hanoi, Vietnam.



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