Vietnam's consumer electronics devices market, defined as the addressable computing devices, mobile handsets and video, audio and gaming products, is projected to be worth around US$4.3bn in 2010, according to a new report by market research firm Business Monitor International (BMI). This is expected to increase to US$6.6bn by 2014, driven by growing affordability of key products.
In the final quarter of 2009, festive season sales of popular electronics products surged due to aggressive promotions and price cutting, with prices of many goods cut by up to 50%. 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% by October in local currency terms.
The electronics devices market is forecast to increase at an overall compound annual growth rate (CAGR) of 11% through 2014. The vast and relatively underpenetrated rural market presents a significant growth opportunity as the government rolls out measures to boost rural incomes.
Computers accounted for around 35% of Vietnam's consumer electronics spending in 2009. BMI forecasts Vietnamese domestic market computer hardware sales (including notebooks and accessories) of US$1.5bn in 2010, up from US$1.3bn in 2009. Computer hardware CAGR for the 2010-2014 period will be around 14%, with notebooks accounting for about 30% of shipments.
AV devices accounted for around 26% of Vietnamese consumer electronics spending in 2009. Vietnam's domestic audio, video and gaming device market is forecast at US$1.1bn in 2010. The market is expected to grow at a CAGR of 15% between 2010 and 2014 up to a value of US$1.8bn at the end of the forecast period. Video applications account for around 76% of the total market.
Vietnamese mobile handset sales accounted for around 39% of Vietnamese consumer electronics spending in 2009. Total Vietnamese market handset sales are expected to grow at a CAGR of 11% to US$2.3bn in 2014, as mobile subscriber penetration soars towards 256%. The inaugural Vietnamese 3G mobile services launch by VinaPhone will provide a boost, but the market remains dominated by lowpriced handsets.
Consumer electronics market driven by growing affordability
Vietnam's consumer electronics devices market is projected to be worth around US$4.3bn in 2010, according to a new report.
Source: dtinews.vn