Việt Nam’s IT market is estimated to grow at a compound annual growth rate (CAGR) of 9% over the 2010-2014 period, reported Companiesandmarkets.com, a leading online business information aggregator.

Consumer retail spending reached recorded high in 2009 despite the economic slowdown, in part due to tariff reductions and aggressive price cutting. Government and business IT spending took a hit, but is expected to pick up in 2010.

According to Companiesandmarkets.com, the overall Vietnamese IT market outlook for 2010 is of a broad recovery that gathers pace in the second half of the year. PC sales were slower than expected during the Lunar New Year peak shopping season in Q110, partly because steep price discounting in 2009 had weakened the attraction to consumers of traditional seasonal discounts.

The addressable domestic market for IT products and services is projected by to reach US $2.9 billion by 2014.

Việt Nam’s gradual integration into global trade networks such as the Association of Southeast Asian Nations (ASEAN) and the WTO has helped to bring down prices and increase opportunities for importers.

Vietnamese software producers have a greater presence in their domestic market. Local products accounted for around 75% of market value in 2008 while foreign vendors have around 25%.

Việt Nam has around 10,000 firms currently licensed to provide IT services, but only one-third are actually operating.

It is projected that sales in Việt Nam’s computer hardware market will be worth around US $1.3 billion in 2010, up from an estimated US $1.2 billion in 2009. The main growth driver will be affordable notebooks, with various models of the smaller form factor netbooks selling well in 2009.
In 2010, Vietnamese software sales are projected to grow to US $178 million, despite the uncertain economic conditions, and software CAGR for 2010-2014 should be in the region of 12%. Software spending comprises around 10% of total Vietnamese IT spending.

The market is expected to reach a value of around US $312 million by 2014, with steady growth in demand for licensed software from government, enterprise and household segments.
Vietnamese IT services spending is forecast to reach around US $343 million in 2010, up from US $297 million in 2009. The economic crisis had an impact in 2009, with projects being put on hold. However, sectoral CAGR is projected at 11% over the forecast period, as the market approaches US $588 million by 2014.  

Việt Nam has an exceptionally high penetration rate in the mobile market, reaching 126% at the end of 2009, and registering around 110.8 million subscribers. This has been aided by mobile network operators reducing tariffs to encourage growth of their respective subscriber bases, as well as increased investment in the expansion of infrastructure to areas outside major towns and cities. Demand for mobile broadband has also been accelerated by the changing lifestyles of consumers, who use the service for accessing the internet for work and leisure./.