Vietnam electronics market expected to rise substantially

Vietnam’s consumer electronics market is predicted to be worth about US$4.3 billion in 2010 and likely to hit US$6.6 billion by 2014, said a Vietnam Consumer Electronics Report Q2 2010.

This rise inmarket value is attributed by the report to increased product affordability. The report, posted by website “Companiesandmarkets.com” on April 19, added that in the final quarter of 2009, festive season sales of popular electronic products surged due to aggressive promotions and price cutting, with many goods cut in price by up to 50 percent.

The electronic device market, defined as computing devices, mobile handsets and video, audio and gaming products, is forecast to increase at an overall compound annual growth rate (CAGR) of 11 percent through 2014.

Demand for LCD TV sets continued to grow, although price cuts hit margins, especially as the price of the US dollar had increased by 6.12 percent by October in local currency terms.

The vast and relatively underpenetrated rural market presents a significant growth opportunity as the Government rolls out measures to boost rural incomes.

According to the report, computers accounted for around 35 percent of Vietnam’s consumer electronic spending in 2009. Vietnam’s domestic market computer hardware sales (including notebooks and accessories) are forecast to be worth US$1.5 billion in 2010, up from US$1.3 billion in 2009. Computer hardware CAGR for the 2010-2014 period will be around 14 percent, with notebooks accounting for about 30 percent of shipments.

Audio-video devices accounted for around 26 percent of Vietnamese consumer electronics spending in 2009. Vietnam’s domestic audio, video and gaming device market is forecast at US$1.1 billion in 2010. The market is expected to grow at a CAGR of 15 percent between 2010 and 2014 up to a value of US$1.8 billion at the end. Video applications account for around 76 percent of the total market.

Total Vietnamese market handset sales accounted for around 39 percent of Vietnamese consumer electronics spending in 2009 and are expected to grow at a CAGR of 11 percent to US$2.3 billion in 2014, as mobile subscriber penetration soars towards 256 percent.

The inaugural Vietnamese 3G mobile services launched by VinaPhone will provide a boost, but the market remains dominated by lowpriced handsets.

VOVNews

Tags: Vietnam electronics market