The high growth rate of the technology market which was seen in the last many years has leveled off due to the falls of the global market, and especially from the inner macroeconomic problems, including the escalating costs, and the tightened spending policy.
The high growth rate of the technology market which was seen in the last many years has leveled off due to the falls of the global market, and especially from the inner macroeconomic problems, including the escalating costs, and the tightened spending policy.
Experts say that in 2008-2009, Vietnam’s information technology face big difficulties mainly due to the pressure from outside. Meanwhile, in 2010-2011, the difficulties come from the domestic market.
In 2008-2009, the global economic crisis forced big technology groups in the world to cut down software outsourcing contracts to Vietnam. Meanwhile, in the last two years, Vietnamese enterprises have been facing the dong/dollar exchange rate fluctuations, high inflation and high input costs.
Falls seen in many sectors
Chu Tien Dung, Chair of the HCM City Computing Association HCA, said at the ICT Outlook conference held in HCM City late last week; that the information technology market development would slow down, with the growth rate expected to reach 15 percent, lower than the 20-25 percent growth rates in previous years. The government initiated tightened monetary policies will certainly have impacts on the business environment of technology enterprises.
In 2010, the total revenue of the industry reached seven billion dollars which represented a 15 percent growth rate in comparison with 200. However, the growth rates have been found as different at different sectors
According to HCA, in hardware sector, foreign enterprises are still dominating the market, especially after Intel officially put its factory in Vietnam into operation. The hardware revenue still kept increasing in 2010, but the growth rate was less than 15 percent.
The revenues of the manufacturers of the computers bearing Vietnamese brands have been decreasing continuously by 25 percent, mostly because of the overly stiff competition in the market.
The information technology retail sector has witnessed a growth rate of 15 percent. However, the figure does not make significance if noting that the consumer price index CPI in the first six months of the year reached 16.03 percent.
The gloomy market has forced information technology and telecommunication enterprises to cut down expenses on marketing activities. This can be seen in the modest number of technology groups which participated in the “digital era” international exhibition. Only Sony, HP, Asus and Samsung were the “big names” which participated in the exhibition. Meanwhile, the big guys, who once attended previous exhibitions, namely Canon, Nikon, Lenovo, Toshiba, LG and Dell were not present. Especially, even big domestic technology companies, such as CMC, CMS, FPT or VTC also stayed out of the exhibition
High hopes put on software industry
In the current gloomy circumstances, software proves to be the only sector which still can bring optimism. The software outsourcing projects have helped maintain the 25 percent growth rate in 2010.
According to Dung, the number of outsourcing orders began increasing in 2010 and soared in early 2011, which has reasons to analysts to predict the growth rate of 40 percent in this sector in 2011. The big names such as FPT, TMA, CSC, GCS, GHP Par East, ISB, or Capgemini would make great contribution to the high growth. The world’s software market has recovered after a difficult period, including the two Vietnamese loyal markets – North America and Western Europe.
According to Gartner, the expected spending on software in North America would reach 121 billion dollars in 2011 (it was 112.9 billion dollars in 2010). Meanwhile, the figure for Western Europe would be 78.3 billion dollars (70.3 billion dollars).
Denny Nguyen, Managing Director of LogiGear, said that now Vietnamese enterprises can undertake many different kinds of projects, including the software testing. Meanwhile, Ngo Van Toan, Deputy General Director of Global CyberSoft (GCS), has also revealed that GCS has received a lot of orders from North America and Japan.
(Source: TBKTSG)
 |
In 2008-2009, the global economic crisis forced big technology groups in the world to cut down software outsourcing contracts to Vietnam. Meanwhile, in the last two years, Vietnamese enterprises have been facing the dong/dollar exchange rate fluctuations, high inflation and high input costs.
Falls seen in many sectors
Chu Tien Dung, Chair of the HCM City Computing Association HCA, said at the ICT Outlook conference held in HCM City late last week; that the information technology market development would slow down, with the growth rate expected to reach 15 percent, lower than the 20-25 percent growth rates in previous years. The government initiated tightened monetary policies will certainly have impacts on the business environment of technology enterprises.
In 2010, the total revenue of the industry reached seven billion dollars which represented a 15 percent growth rate in comparison with 200. However, the growth rates have been found as different at different sectors
According to HCA, in hardware sector, foreign enterprises are still dominating the market, especially after Intel officially put its factory in Vietnam into operation. The hardware revenue still kept increasing in 2010, but the growth rate was less than 15 percent.
The revenues of the manufacturers of the computers bearing Vietnamese brands have been decreasing continuously by 25 percent, mostly because of the overly stiff competition in the market.
The information technology retail sector has witnessed a growth rate of 15 percent. However, the figure does not make significance if noting that the consumer price index CPI in the first six months of the year reached 16.03 percent.
The gloomy market has forced information technology and telecommunication enterprises to cut down expenses on marketing activities. This can be seen in the modest number of technology groups which participated in the “digital era” international exhibition. Only Sony, HP, Asus and Samsung were the “big names” which participated in the exhibition. Meanwhile, the big guys, who once attended previous exhibitions, namely Canon, Nikon, Lenovo, Toshiba, LG and Dell were not present. Especially, even big domestic technology companies, such as CMC, CMS, FPT or VTC also stayed out of the exhibition
High hopes put on software industry
In the current gloomy circumstances, software proves to be the only sector which still can bring optimism. The software outsourcing projects have helped maintain the 25 percent growth rate in 2010.
According to Dung, the number of outsourcing orders began increasing in 2010 and soared in early 2011, which has reasons to analysts to predict the growth rate of 40 percent in this sector in 2011. The big names such as FPT, TMA, CSC, GCS, GHP Par East, ISB, or Capgemini would make great contribution to the high growth. The world’s software market has recovered after a difficult period, including the two Vietnamese loyal markets – North America and Western Europe.
According to Gartner, the expected spending on software in North America would reach 121 billion dollars in 2011 (it was 112.9 billion dollars in 2010). Meanwhile, the figure for Western Europe would be 78.3 billion dollars (70.3 billion dollars).
Denny Nguyen, Managing Director of LogiGear, said that now Vietnamese enterprises can undertake many different kinds of projects, including the software testing. Meanwhile, Ngo Van Toan, Deputy General Director of Global CyberSoft (GCS), has also revealed that GCS has received a lot of orders from North America and Japan.
(Source: TBKTSG)
