OREANDA-NEWS. RnR Market Research Offers Report by Research on Vietnam Information Technology Report Q3 2016.

BMI View: Vietnam is emerging rapidly as a production centre for both IT hardware and services such as software development outsourcing - as well as having one of the strongest regional spending growth outlooks. The two are linked, with the huge foreign investment taking place in manufacturing driving investment in software and services, as well as providing higher productivity (and so wage) employment that is boosting the retail PC outlook. We expect this momentum to support an IT spending CAGR of 10.2% over 2016-2020 in Vietnam.

Latest Updates And Industry Developments

- Computer Hardware Sales: VND42.3trn in 2016 to VND55.3trn in 2020, a compound annual growth rate (CAGR) of +6.9%. The prospect for cannibalisation of notebook and tablet spending by the proliferation of smartphone ownership exists, but overall outlook still positive due to income growth trends.

- Software Sales: VND10.8trn in 2016 to VND17.8trn in 2020, a CAGR of +13.3%. Major foreign investment in manufacturing and outsourcing industries will be a positive for the enterprise software market where there is low penetration.

? IT Services Sales: VND17.1trn in 2016 to VND30.3trn in 2020, a CAGR of +15.4%. Low penetration means there is potential for core solution spending growth alongside higher growth in a booming cloud computing market.