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Hardware
Overview The expansion of IT hardware has been thanks to the
In the International Telecommunication Union, Global ICT development of the network infrastructure, including fixed
Development Index (IDI) 2015. Vietnam was ranked and wireless broadband, which in turn, has encouraged the
102nd(1) from 167 countries. This placed the country at use of devices for both productivity and content.
the 6th(2) position in ASEAN and the 17th(3) in Asia-Pacific. Governmental spending has remained supportive of the IT
hardware development especially through initiatives in the
The Global Information Technology Report 2015 by education and healthcare sectors.
World Economic Forum showed that Vietnams Network
Readiness Index (NRI) ranked 85th(4) among 143 The Vietnamese PC market is surprisingly competitive. Most of
countries. Vietnam ranked 2nd(5) worldwide in terms of the major laptop vendor players having below 10%(11) local
network affordability which consists of three variables market share. According to IDC report in 2014, the leading
(mobile cellular tariffs, fixed broadband Internet tariffs position belongs to Dell, followed by ASUS. Lenovo and Acer
and the Internet and telephony sectors competition were the 3rd(12) and 4th(13) largest vendors. The cities of Hanoi
index). The index assesses the cost of accessing ICT, and Ho Chi Minh city are reported to contribute approximately
either via mobile telephony or fixed broadband internet, 85%(14) of national notebook sales. Tablet volume growth in
as well as the level of competition in the internet and 2015 increased with volumes up by 12.6%(15) to 1.34 million(16)
telephony sectors. in large due to the popularity of lower-cost tablets. There is
considerable potential for vendors of PCs as ownership still
According to Cushman & Wakefields Business Process relatively low in Vietnam and also there is also opportunity for
Outsourcing and Shared Service Location Index 2015, one hybrid notebook devices.
sector that has witnessed remarkable levels of growth
has been the IT software industry. Vietnam is now home
to over 1,000 software companies(6) that employ over
80,000 people(7). This makes Vietnam one of the worlds
largest software exporters and the second largest
software outsourcer in Japan(8). Rankings of Ho Chi Minh
city and Hanoi in Tholons 2016 Top 100 Outsourcing
Destinations are 18th(9) and 19th(10) respectively.
Source: BMI Research, Vietnam Information Source: BMI Research, Vietnam Information Source: BMI Research, Vietnam Information
Technology Report Q1 2016 Technology Report Q1 2016 Technology Report Q1 2016
Overview
According to the Ministry of Mobile Wireline Voice & Broadband
Information and Communications, According to Vietnam Due to former monopoly status as a
Vietnamese telecom corporations saw Telecommunications Authority (VNTA) State-owned entity and its continued
impressive results in 2015. Total - Ministry of Information and investment to expand its national
revenue of the sector was estimated Communication (MIC), the number of fixed-line infrastructure, the Vietnam
at VND 340 trillion (USD 15.1 mobile subscribers nationwide was Posts and Telecommunications Group
billion)(23) and profit at VND 56 trillion 120.3 million(28) in 2015. According to (VNPT) remains the dominant operator
(USD 2.5 billion)(24). World Bank and National Institute of in spite of the large number of
Information and Communications operators in the sector and the rising
Brand Finance listed three Strategy (NIICS) at the end of 2015, the competition encouraged by the MIC.
Vietnamese mobile phone operators, mobile subscriptions per 100 people in According to World Bank, Vietnams
among the Top 20 Most Valuable Vietnam was 131(29) and the number of fixed broadband subscriptions (per 100
ASEAN Telecom Brands in 2016 3G subscribers was 35.78 million(30), people) in 2015 was 8.14(31). The
Viettel (7th)(25), MobiFone (15th)(26) respectively. country has a plan in place to boost
and Vinaphone (20th)(27). All have Vietnam has delayed 4G licensing until nationwide broadband coverage by
improved their positions in the Global 2017 and the rollout of trial 4G services 2020. The objective is to reach 90%(32)
Telecom Rankings. has been limited to selected cities due by 2015 and 100%(33) by 2020.
to the low quality of the 3G network.
Vietnam is an emerging market with a Wireless technology is developing as Pay TV
high mobile subscription rate in Asia - an important platform for fixed State-owned Vietnam Television
Pacific (152% of population in 2015) broadband services due to the weak (VTV)s brands VCTV, Saigontourist
because of the aggressive price & and unreliable fixed-line infrastructure. Cable Television Company (SCTV) and
promotion competition among K+ held more than 70%(34) of the
operators in the domestic market market.
which is dominated by state-owned The Vietnamese pay TV market has
enterprises. seen strong competition in the past
two years. According to the Ministry of
Information and Communications, as
of the end of 2015, there were 31(35)
providers on the market, using four
different technologies, namely cable
TV (including IPTV), digital terrestrial
television, satellite television, and
mobile television.
The number of pay TV subscribers is
about 9.9 million(36), of which cable TV
subscribers account for 80.8 per
cent(37). The total revenue of pay TV
providers in 2015 was VND 9.624
Source: BMI Research, Vietnam Telecommunications trillion ($431.5 million)(38) .
Report Q1 2016
Strengths Opportunities
Highly competitive mobile sector Government approach to liberalise the telecoms industry
Fixed-line penetration levels and internet user rates are could see the entrance of more foreign investors.
high in major urban centres such as Ho Chi Minh City, Divestiture of MobiFone from Viet Nam Posts and
Hanoi, Danang and Haiphong. Telecommunications (VNPT), and the former's subsequent
planned Initial Public Offering (IPO) by 2016 could provide the
impetus for operators to launch better quality services.
Weaknesses Threats
Dependency on prepaid services exerts strong downward Geographical challenges to network deployments; nearly one-
pressures on average revenue per user (ARPU) levels. third of Vietnam's villages lie in mountainous areas without
Broadband growth continues to be highly dependent on access to telecommunications services. The total number of
digital subscriber line (DSL), considered to be an old- inactive mobile subscribers is unknown in the market that
fashioned transmission technology compared to fiber and lacks transparency and reliable data.
satellite. The Ministry of Information and Communication (MIC) will
Digital divide: many rural areas have little or no access to hold off 4G licensing until 2017; delayed introduction of 4G
telecommunications services despite advanced networks could cause Vietnam to trail behind its peers.
being rolled out in larger cities.
Source: BMI Research, Vietnam Telecommunications Report
Q1 2016
Source: BMI Research, Vietnam Telecommunications Report Q1 2016 Source: BMI Research, Vietnam Telecommunications Report Q1 2016
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To find out more about our services, TV Provides To Go Public. [online] Available at:
please visit: http://english.vietnamnet.vn/fms/science-it/151768/two-
http://bbgv.org/bbgv-bc-services major-cable-tv-providers-to-go-public.html