Speaking at a seminar on Vietnam ICT Outlook and Vietnam Consumer Digital World Expo 2011 in HCMC on Thursday, Chu Tien Dung, chairman of the HCMC Computer Association, forecast this year’s growth rate for the market at around 15% compared to 20% to 25% in previous years.
Macro economic difficulties as well as the Government and enterprises’ budget tightening policies for IT projects are attributed as reasons for the slow growth rate this year.
In the hardware segment, foreign businesses still play an important role in Vietnam, especially since the Intel chip assembly and testing factory started operating. The segment saw total revenue growth of 15% last year.
Meanwhile, Vietnamese enterprises in 2010 and the first half of 2011 saw revenue reduced by 25% due to tough competition and unfair tariffs.
Computer assembly companies are subject to component import taxes while imported computers enjoy a zero tax rate.
The retail sector posted a growth rate of 15%, but the figures are modest due to high inflation.
Industry insiders are concerned that ICT manpower training is on the wane as the number of contestants for the ICT faculty has declined. Revenue of enterprises in the training sector in 2011 dropped 15% year-on-year and the sector is forecast to see slow growth for the rest of the year.
For solutions and system integration, the growth rate slowed down to around 5% while some enterprises in the sector suffered a decline.
Software outsourcing, meanwhile, had the most positive growth rate given the economic recovery of Japan, North America and Australia. According to the HCMC Computer Association, the number of software outsourcing contracts rose sharply in 2010 and was expected to grow by 40% this year.
Experts said the slowdown of the ICT market is in line with the whole economy. To help the sector regain strong growth rates like in previous years, enterprises must find out new business plans, focus on newly-emerged sectors and seize cooperation opportunities with global enterprises. Enterprises should also invest in study and development to raise added value for their products.
The four-day Vietnam Consumer Digital World Expo 2011 kicked off on Thursday at Saigon Exhibition and Convention Center in HCMC’s District 7, displaying 400 booths of 300 local and international enterprises. The organizers expect to lure 220,000 visitors to the event.
Source: SGTSpeaking at a seminar on Vietnam ICT Outlook and Vietnam Consumer Digital World Expo 2011 in HCMC on Thursday, Chu Tien Dung, chairman of the HCMC Computer Association, forecast this year’s growth rate for the market at around 15% compared to 20% to 25% in previous years.
Macro economic difficulties as well as the Government and enterprises’ budget tightening policies for IT projects are attributed as reasons for the slow growth rate this year.
In the hardware segment, foreign businesses still play an important role in Vietnam, especially since the Intel chip assembly and testing factory started operating. The segment saw total revenue growth of 15% last year.
Meanwhile, Vietnamese enterprises in 2010 and the first half of 2011 saw revenue reduced by 25% due to tough competition and unfair tariffs.
Computer assembly companies are subject to component import taxes while imported computers enjoy a zero tax rate.
The retail sector posted a growth rate of 15%, but the figures are modest due to high inflation.
Industry insiders are concerned that ICT manpower training is on the wane as the number of contestants for the ICT faculty has declined. Revenue of enterprises in the training sector in 2011 dropped 15% year-on-year and the sector is forecast to see slow growth for the rest of the year.
For solutions and system integration, the growth rate slowed down to around 5% while some enterprises in the sector suffered a decline.
Software outsourcing, meanwhile, had the most positive growth rate given the economic recovery of Japan, North America and Australia. According to the HCMC Computer Association, the number of software outsourcing contracts rose sharply in 2010 and was expected to grow by 40% this year.
Experts said the slowdown of the ICT market is in line with the whole economy. To help the sector regain strong growth rates like in previous years, enterprises must find out new business plans, focus on newly-emerged sectors and seize cooperation opportunities with global enterprises. Enterprises should also invest in study and development to raise added value for their products.
The four-day Vietnam Consumer Digital World Expo 2011 kicked off on Thursday at Saigon Exhibition and Convention Center in HCMC’s District 7, displaying 400 booths of 300 local and international enterprises. The organizers expect to lure 220,000 visitors to the event.
Source: SGT |