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              Home Technology Computer Science

              What Opportunities are There for Vietnamese Brand Laptops?

              by Sci
              June 26, 2006
              in Computer Science
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              Under 10 million VND to own a laptop… Perfect quality and warranty comparable to international brands… These are the expectations of experts regarding laptops assembled in Vietnam. The recently announced “Verified by Intel” program has indeed provided a significant boost for this product line. But is that all there is to it?

              From the story of Vietnamese laptops five years ago…

              MTXTFive years ago, as Vietnamese laptops were about to launch, they were met with curiosity and admiration for the remarkable development of the local computer assembly industry…

              One year later, the first Vietnamese laptops made waves in the market, as their prices were much lower than imported counterparts.

              In the following two years, customers began to remember these laptops as models only suitable for exhibitions. A vision for the domestic laptop assembly industry that had not yet taken shape quickly faded away.

              This was the story of laptops assembled in Vietnam over the past few years….

              Mr. Pham Hong Phuoc, Editor-in-Chief of eChip Magazine, was one of the first to own a Vietnamese laptop as soon as it was launched. He has been attached to the first product of the domestic laptop assembly industry for two years. The challenge arose when two years later, he wanted a machine with higher specifications for work. At that time, the previous manufacturer was closed, and offers received only head shakes. Simply put, “Vietnamese laptops, especially second-hand ones, who would buy them!”

              The dynamics of the Vietnamese laptop market during those years made local assemblers struggle. Just one week after a new model was launched in Vietnam, the price of a similar foreign model would immediately drop to the same level or lower. Not only could they not continue to maintain or develop, but the fight for survival of the assembly units also came to a quick end.

              Not only did they fail to establish credibility, but Vietnamese laptops also lost to foreign brands in the price race due to spontaneous imports of components and assembly. Cheaper components meant lower quality. And the lack of clarity regarding origins led to warranty difficulties. For high-tech products like laptops, essential factors were not met.

              However, now the return of laptops assembled in Vietnam promises a completely new and promising direction.

              The Transformation of Vietnamese Brand Laptops

              Everything changed when the information technology and communications sector in Vietnam developed far beyond expectations. Now, wireless Wi-Fi has become a familiar concept, and wireless broadband Wimax has also begun to be tested. Favorable environmental conditions, combined with the global trend of affordable laptops, make this moment, more than ever, ripe for Vietnamese laptops to reactivate.

              Last May, a significant event reignited the domestic laptop assembly industry: the “Verified by Intel” program. From this point, the two most significant challenges for Vietnamese laptops have been addressed: acquiring quality components at low prices and ensuring that Vietnamese products are globally certified and warrantied.

              Mr. Thieu Phuong Nam, Business Director of Intel for Indochina, stated: “Intel believes that laptop manufacturers in Vietnam have a tremendous opportunity, as the current laptop market is growing rapidly, and the trend is shifting from desktop to laptop is becoming increasingly clear and is being promoted in Vietnam. In 2005, while the desktop market grew by only 20%, laptops grew by 100%. Therefore, the opportunity is enormous, and we have great confidence in the growth of manufacturers in Vietnam.”

              According to the Verified by Intel program, three Taiwanese computer component manufacturers—Asus, Comband, and Quanta—who hold 60% of the global market share, will be the official partners providing components for assemblers in Vietnam, under Intel’s protection. GCC will act as the intermediary distributor.

              This ensures that Vietnamese laptops will have transparent imported origins, guaranteeing quality for customers. Currently, over 90% of well-known computer brands like IBM, HP, Dell… use components from these manufacturers. Even strict Japanese producers like Toshiba and Sony are gradually reducing in-house component production and shifting to order from Taiwan.

              As a result, a laptop assembled in Vietnam with the same specifications will be 30-50% cheaper than imported computers and will be globally warranted by Intel.

              One of the new advantages for consumers using “Verified by Intel” products is that Intel, along with suppliers, has launched 14 laptop models standardized on seven basic components, including: hard drives, optical drives, LCD screens, batteries, casings, power supplies, and keyboards. These laptop models can easily interchange components with one another…

              If five years ago, the environment in Vietnam was not conducive and the necessary support was lacking, leading to the disadvantages of Vietnamese laptops in the market, now, “timing and location” are sufficiently present. The question now is how the Vietnamese laptop assemblers will operate?

              Many manufacturers are hoping that the glorious history of the past ten years of the desktop computer assembly industry in Vietnam will be repeated. However, with the unique characteristics of laptops, such as being suitable for high-end users, demanding in assembly techniques, and requiring high levels of personalization… the story of bridging the digital divide with the early “Thánh Gióng” computers will surely need to be told in a completely new tone.

              Quality, pricing, and accompanying services will undoubtedly be the key to promoting the growth of the domestic laptop assembly industry. However, how to effectively combine these factors while maintaining production and ensuring profitability? A more significant question arises for Vietnamese enterprises: Transforming quantity into quality for development, or vice versa?

              Vietnamese Laptops – The “Egg and Chicken” Dilemma

              Up to this point, CMS Vietnam is one of the first companies to announce its return to the laptop assembly stage. The initial results with 150-200 units sold per month are impressive and leave many companies dreaming. However, these numbers may still be too small for us to expect a widespread laptop campaign across the country in the coming years.

              Focusing on niche markets—segments where foreign laptops are still unaddressed—will help Vietnamese laptop companies find their position.

              Identifying their place in a market filled with numerous well-known laptop manufacturers will help Vietnamese companies stay on the right track and develop appropriate strategies. The value of Vietnamese laptop products at this time, when brand credibility is still far off, must lie in the value-added services for customers, in technical consulting programs, and after-sales support… that suppliers can provide.

              Initially, Vietnamese laptops are not only sold at affordable prices with guaranteed quality but also carry their own identity. Manufacturers will support users in expressing their personality on their laptops. Images of your favorite stars, beautiful landscapes, or loved ones can be directly printed on the laptop casing. The ability to peel off and replace stickers up to 100 times will allow you to express yourself freely!

              Next are services such as one-for-one exchanges, 24-hour warranties; or later on, multi-sector collaborations will allow customers to buy laptops on installment… These are advantages that only Vietnamese suppliers can create. They are also attractive to the broad public with a demand for laptops.

              These positive moves from Vietnamese laptop assembly companies partly reflect their efforts to capture market share in a challenging yet promising market like Vietnam.

              Building a Vietnamese brand for high-tech products like laptops is undoubtedly not easy. Vietnamese computer assemblers will need to strive even harder to assert their real position among numerous other valuable brands.

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