The year 2005 was considered a relatively smooth year for the Vietnamese IT product market. Large investment projects and increasing consumer demand drove market sales growth to 22%, with an estimated total consumption value reaching 370 million USD. Experts are quite confident that at this pace, 2006 will continue to witness significant improvements in computer business.
Assembled Computers Remain Popular
According to research data from GfK Asia experts, desktop computer sales alone increased by 18% in 2005. The policy of integrating IT into the community and computerizing the State administrative machinery, along with many incentives, remained key factors driving growth.
The explosion of online gaming and the development of computer purchase support programs from businesses and banks also significantly contributed to the total of 500,000 computers sold, of which 63% were consumed through retail channels.
Last year saw the decline of budget computer configurations with Celeron processors, replaced by new technologies with faster and more powerful processing speeds. The prices of computer components have consistently trended downward. This explains why desktop computers priced under 8 million VND have continued to capture the most attention from users.
LCD Screens on the Rise
For just over 3 million VND, customers can own a reasonably good quality LCD screen. The advantages in quality and price of this type of monitor have distinctly changed user trends in 2005.
At major computer supermarkets in Hanoi, the most consumed products remain 17-inch CRT flat screens and LCD monitors. Although LCD screens have not yet fully replaced CRT monitors at this moment, they are expected to dominate the competitive market in the near future. The focus will shift more towards brand and technology rather than just price.
Opportunities and Challenges for Laptops
700 USD for a laptop is indeed an attractive figure. The last months of 2005 marked strong growth in low-cost laptop lines, as well as the emergence of many supermarkets specializing in laptops.
Low-cost laptops initiated by local companies like CMS and Elead a few years ago are now joined by foreign names like HP and Acer. The growth rate of 38% for laptops in 2005 is expected to rise to 50% in 2006. This year’s market trend will continue to focus on low-cost laptops, but the specifications will be enhanced due to new technologies lowering the prices of older technologies.
The price segment under 1000 USD is considered very promising, currently accounting for over 41% of market consumption. Some new suppliers like NEC, Asus, and Gigabyte are also beginning to enter this market segment. Therefore, 2006 will be a very dynamic year for laptops, creating strong competition among low-cost laptop providers.
Affordable Laser Printers Maintain Dominance
In 2005, laser printers confirmed their leading position with 78% of the total market of 180,000 units, particularly thriving in the low-cost home printer segment. The largest consumption was still in Ho Chi Minh City, accounting for about 60% of the national market. Consumers typically choose high-speed printers, with this year’s laser printers achieving speeds of 15 to 20 pages per minute.
In 2005, printers priced under 200 USD accounted for about 60% of the total market. Most manufacturers participating in the Vietnamese market offer at least three product lines priced under 200 USD. This will create a competitive and vibrant market in 2006, with the major players being HP and Epson.
