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.