BMI View: There is some downside risk to our consumer electronics spending outlook in 2015 due to a n ongoing tightening of domestic credit conditions in the second half of 2014 due to a build of bad debts by Vietnamese banks. However , we maintain that Vietnam's consumer electronics market has a bright outlook as rising incomes and falling average device prices in key device categories over the medium term catalyse strong growth in spending. W e maintain a positive outlook for the duration of our five - year forecast period, with CAGR of 4.8 % . The country's vast, underpenetrated rural market offers the greatest growth potential, while Hanoi and Ho Chi Minh City accounted for the majority of sale. Across the country, g rowth areas include smartphones, particularly low-cost devices from Chinese and local brands, and LED TV sets as Vietnam transitions from analogue to digital broadcasting . Vietnam is also rapidly becoming a key destination in global consumer electronics supply chains, with large investments announced by Samsung Electronics , Nokia and LG Electronics in 2013 and 2014 .
Headline Expenditure Projections
Computer Hardware Sales: USD1.41bn in 2014 to USD1.48bn in 2015, +5.5% in US dollar terms. The low penetration of PCs means vendors can still tap the first-time buyer market, with low-cost tablets from Chinese OEMs proving especially popular with consumers, but tightening credit conditions pose downside risk.
AV Sales : USD1.1bn in 2014 to USD1.1bn in 2015, +2.7% in US dollar terms. In 2015 and over the medium term it will be digitisation of TV services that drives growth by triggering upgrades.
Handset Sales : USD2.5bn in 2014 to USD2.6bn in 2015, +5.3% in US dollar terms. We expect another strong year of growth for smartphone sales in Vietnam in 2015, which will drive up the average selling price in the handset market.
Key Trends And Developments
Vietnamese brand Bach Khoa Anti-virus Group (BKAV)...
The Vietnam Consumer Electronics Report has been researched at source and features latest-available data covering both the manufacture and sale of consumer electronics products, critically analysing - and forecasting - the market dynamics affecting each sub-sector, including audio-visual, computers, mobile handsets, gaming and automotives electronics. Furthermore, the report analyses the domestic and global economic trends driving device demand and provides company rankings and competitive landscapes covering leading multinational and national consumer electronics companies and analysis of latest industry news and trends in Vietnam.
BMI Research's Vietnam Consumer Electronics Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the consumer electronics industry in Vietnam.
- Benchmark BMI's independent consumer electronics industry forecasts for Vietnam to test other views - a key input for successful budgeting and strategic business planning in the Vietnamese consumer electronics market.
- Target business opportunities and risks in Vietnam through our reviews of latest industry trends and major deals, projects and investments.
- Exploit the latest competitive intelligence with company SWOT analyses.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering consumer electronics, major investments and projects.
Consumer Electronics Market
Analysis of the size of the domestic market for electronics products, with in-depth assessment and data covering the dynamics driving each sub-sector; audio-visual, computers, mobile phone handsets and gaming devices, as well as demand for automotives electronics.
Analysis and data of the domestic electronics manufacturing sector. We assess the regulatory and business operational issues facing manufacturers - including openness to foreign investment, infrastructure, IP issues and the global demand context - and their impact on the production of electronics goods, which is again broken down via market sub-sectors.
Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key risks to the main forecast, covering computers, communications and gaming devices. Indicators include:
Industry value (US$bn); population (mn); nominal GDP (US$bn); real GDP growth (%), GDP per capita, industrial production Index (% y-o-y ave.) unemployment % of labour force.
Business Environment Rankings
BMI's Consumer Electronics Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors and participants in the regional consumer electronics market. The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.