In Vietnam, the sales of laptops in 2005 increased by 100% compared to 2004, while desktop computers only grew by 20%. In 2006, the laptop market promised even higher growth than the previous year, driven by a series of events aimed at boosting this market.
The product segment priced around 1,000 USD remains the target for most laptop brands (both domestic and foreign), and compared to 2005, the specifications for products priced under 1,000 USD have significantly improved in the first five months of 2006. Unlike desktop computers, the laptop market in Vietnam is still dominated by foreign manufacturers, who hold the majority of the market share.
The “events” under 1,000 USD
• At the beginning of 2006, in January, HP announced the sale of the HP Compaq Presario M2235AP (Intel Celeron M 370J – 1.5GHz) priced at 777 USD; the first 100 customers received a voucher worth 200,000 VND.
– Mid-February 2006, CMS sold the Sputnik C4 (Intel Celeron M – 1.5GHz) for 10,800,000 VND.
• In March 2006, Acer sold the Aspire 3620 (Intel Celeron M 370 – 1.5 GHz) for 699 USD, excluding VAT, with customers receiving a free upgrade of DDR2 RAM from 256MB to 512MB.
• In April 2006, Digiworld, an HP laptop distributor, introduced the HP Compaq Presario V2359AP (Intel Celeron M 380 – 1.6GHz) priced at 866 USD excluding VAT. Immediately, at the same time, FPT Distribution, an HP laptop distributor, offered the HP Compaq nx9040 (Celeron M 360 1.4 GHz) for 686 USD excluding VAT. HP also gave a gift worth 20 USD to the first 150 students who purchased the nx9040.
• At the end of April 2006, Acer sold the TravelMate 4082 (Intel Centrino Sonoma Pentium M 740 – 1.73GHz) for 999 USD excluding VAT.
• In May 2006, NEC launched the P8100 laptop (Intel Pentium M 1.7GHz) for 999 USD. Customers received a voucher worth 500,000 VND.
This information indicates that throughout the first five months of 2006, every month the IT market witnessed the launch of at least one laptop priced under 1,000 USD (excluding VAT). This does not include the ongoing promotional programs and gifts that are common for nearly all laptop products currently available in the Vietnamese market. The specifications of these products are becoming increasingly powerful, as evidenced by the “shocking” event when Acer sold laptops using the Centrino Sonoma Pentium M 740 – 1.73GHz or the NEC P8100 running Intel Pentium M 1.7GHz for under 1,000 USD. Meanwhile, most other products have processing speeds of 1.5 GHz or higher. It is worth noting that in 2004, there was only one product using the Centrino M 7251 1.6 GHz processor priced at 999 USD (excluding VAT), which was produced by a Vietnamese manufacturer – G.C.C, model Genuine Mobibook MS-1016.
As the laptop market in Vietnam is expected to develop increasingly, companies are competing vigorously, component prices are decreasing, and many manufacturers have announced plans to release laptops using AMD processors, etc. Many experts believe that the price war will continue in the market for products priced under 1,000 USD.
You may know that according to the IT industry trend, the later it gets, the more beneficial it is for users as product prices decrease while specifications improve. If this trend continues, Vietnamese users can hope that in 2006, for just 500 USD, a price that currently only buys low-spec second-hand products, they can purchase a brand new laptop from a foreign manufacturer. This is also one of the main reasons threatening the used laptop market, which was quite developed in 2005.
Of course, over the past five months, not only has the market for laptops under 1,000 USD “stirred,” but laptop manufacturers (especially foreign brands) have also rushed to launch many high-end products for those who consider “price is not everything.” The latest processor technologies such as Intel Centrino Sonoma and Intel Core Duo (Yonah) have been incorporated into most laptop brands in Vietnam. Brands like Acer, Apple, Dell, HP, NEC are the most active in announcing new products. They cater to every customer segment by releasing products specifically for business people, students, and even for women.
New Hopes
As laptop prices continue to decline, new technologies are increasing their capabilities and power. The emergence of Wi-Fi internet in many locations, combined with the growing dependence of almost everyone on computers for work and entertainment, makes the laptop market truly “promising.”
In Vietnam, in addition to the above factors, the laptop market has only developed in the last 1 to 2 years, the number of laptop owners is still low, and the increasingly developing economy has made Vietnam a “hub” for almost all major computer manufacturers worldwide such as Acer, Apple, Asus, BenQ, Dell, HP, IBM (now Lenovo), NEC, Sony, Toshiba, and not less than 20 domestic manufacturers. They are continuing to initiate “wars” to compete for market share.
According to Mr. Than Trong Phuc, General Director of Intel Vietnam and Indochina: “In the past year, there has been a unique trend in the world as well as in Vietnam: more and more users are using laptops. In Vietnam, the laptop ratio increased by 10% in 2004, and at this rate, by the end of 2006, it will be 20%. Intel will focus on helping local companies develop the laptop market to create more conditions and choices for many potential laptop owners.” It is also because Vietnam is a large market for laptops that “Intel cannot sit on the sidelines,” said Mr. Thieu Phuong Nam, Senior Business Director for Intel in Vietnam and the Indochina region.
However, with no less than 20 domestic manufacturers announcing their participation in the laptop market, the number of products remains limited, and their market share is extremely modest compared to foreign manufacturers. Looking back to last year, in an effort to promote the domestic laptop market, the world’s largest processor manufacturer, Intel, and its partners initiated a flexible laptop assembly program based on user requirements (build-to-order). With this program, users can customize configurations and place orders through the dealer system of Vietnamese computer companies.
Intel Vietnam works with partners such as Microsoft, Seagate, Crucial, and Targus to provide users with the best-priced products to meet their needs. However, up to now, products from this program are very few. According to Mr. Nam: “The reasons why Vietnamese brand laptops have not succeeded in the domestic market are: pricing, lack of product diversity, inadequate warranty services, limited standardization of components, and weak competitive foundations.”
Based on the above reasons, in May 2006, Intel and its partners announced a new initiative, the “Verified by Intel” program, with the hope of creating a change in the domestic laptop market. To promote this program, Intel has partnered with three leading laptop manufacturers in the world: Asus, Compal, and Quanta Computer (according to Intel, 60% of laptops in the global market are produced by these three companies under various brands) to standardize seven components (CBB) used for laptops: LCD screens, hard drives, keyboards, optical drives, batteries, power supplies (AC adapters), and machine casings. Any retailer, dealer, or laptop manufacturer can select these components to produce laptops. Beyond the benefit of interchangeability, the widespread implementation of these seven products will also improve after-sales service and the availability of replacement parts.
The official distributor of Intel products, GCC, will be responsible for importing equipment and distributing it to participating dealers in the program. Notably, when purchasing products under the “Verified by Intel” program, customers can personalize their laptops by requesting the supplier to print images on the exterior of the machine according to their preferences, and can change the images up to 100 times. The laptop models from this program will come with a quality certification from Intel and will be covered by this manufacturer’s global warranty. “We hope the ‘Verified by Intel’ program will change the game in the laptop market in Vietnam, where domestic manufacturers have not achieved as much success as they have in the desktop computer market,” Mr. Nam from Intel said.
If Mr. Nam’s hopes come true, this will be a positive signal for the domestic IT industry. Although results may not come overnight, we have every right to hope.
Nhat Binh
