Vietnam’s PC market up in Q1

IDCIt looks like Indonesia is not the only market where PC sale is still heading north. Vietnam’s PC market grew by 13 percent in Q1 compared to the same period last year, according to IDC’s Vietnam Quarterly PC Tracker.

Nearly 500,000 PCs were shipped despite concerns over high inventory.

Anticipation of growing consumer demands in under-penetrated areas of Vietnam spurred vendors to increase consumer PC shipments. 

“In light of aggressive competition and pressure from smartphones and tablets, vendors have shifted strategies to focus on mid to low-end PCs in a bid to gain market share in the consumer space,” said Yen Phan, Market Analyst for PCs at IDC Vietnam.
She explained that in the commercial space though, sentiments are weak with many SMEs facing bankruptcies since the previous year. “The SME sector has been facing major difficulties, but government spending has picked up and helped the overall commercial market record YoY growth of 8 percent.”
Despite the concerns over the market’s long-term stability, IDC is still forecasting 5 percent growth for Vietnam’s PC market in 2013.
 “Vietnamese PC vendors have just come out of a tough year. The banking crisis has triggered a spike in corporate bankruptcies and consumer sentiment is diminished. However, there are signs that government reforms and new policies could rejuvenate IT spending, and public sector spending is also expected to pick up in the second half of 2013. Therefore, we remain optimistic on Vietnam’s outlook,” said Daniel Pang, ASEAN Research Manager for Client Devices Research at IDC Asia/Pacific.
From a vendor perspective, Dell has been actively working with its channel partners to improve its inventory management and channel margins. This allows the vendor to be more price-competitive in the low- to mid-range segment in the consumer space.
HP, meanwhile, continues to do well in the commercial space as it had fulfillment for a government project as well as steady buying from its large enterprise accounts. In the consumer market, it has started to focus on low- to mid-range notebooks as well.
ASUS adopted an aggressive pricing strategy to clear out stocks and improve inventory levels, with good results.
Tagged with: