BMI View: Vietnam's consumer electronics market has huge potential for growth as incomes rise. We have a positive outlook for broad based economic growth that should sustain increases in device spending over the medium term as vendors will be able to tap into existing low device penetration rates. There is however , some uncertainty around the PC market, where sales dived in H116, which has increased concerns that the proliferation of smartphone ownership could see consumers bypass the PC era. Our core scenario is for total device spending to increase at a CAGR of 5.9% over 2016-2020.
Latest Updates And Industry Developments
Computer Hardware Sales: USD1.4bn in 2016 to USD1.7bn in 2020, a compound annual growth rate (CAGR) of +4.1%. Outlook downgraded to reflect threat from smartphones, but we still have a positive assessment of hybrid notebook and all-in-one desktop volume growth as incomes rise.
AV Sales: USD1.4bn in 2016 to USD1.8bn in 2020, a CAGR of 5.5%. The TV set market is booming and will make Vietnam an outperformer, but growth will decelerate over the medium term as flat-panel penetration rates rise and the first-time buyer opportunity diminishes.
Handset Sales: USD3.4bn in 2016 to USD4.4bn in 2020, a CAGR of 6.9%. Due to relatively low penetration the first-time smartphone upgrade engine still has momentum, which should mean handset spending growth outperforms over the medium term.
|Smartphone Boom Has Downside For PCs|
|Consumer Electronics Forecast By Segment|
|f = BMI forecast. Source: BMI.|
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.