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Report: Vietnam SMBs to spend $1.4B on ICT

Posted: 25 Jan 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Vietnam SMB? IT? communications?

The latest study by Access Markets International (AMI) Partners Inc. found that small and medium businesses (SMBs) in Vietnam are on track to spend more than $1.4 billion on information and communications technology (ICT) in 2008, up some 11 percent over 2007.

"Small businesses will account for more than 75 percent of this spending, with the manufacturing industry driving almost 45 percent of total ICT spending," says James Cheng, Singapore-based SMB Research Manager at AMI-Partners. "Basic computing hardware in the form of desktop and notebook PCs will continue to dominate Vietnam SMBs' spending this year. However, Internet, storage and security spending is likely to also grow at a fast clip."

AMI's survey reveals that PC penetration among Vietnam-based SMBs was slightly above 50 percent in 2007. MBs are set to increase their adoption of mobility computing products such as notebook PCs this year.

"Indeed, notebook spending among Vietnam-based MBs is likely to hit US$19 million this year, up 16 percent over 2007," Cheng said. "This is due to a rise in mobile employees. Up to 71 percent of MBs said in AMI surveys that they had a mobile workforce and want to increase the number of mobile employees in the future. This trend will ensure the continued rise in notebook spending by Vietnam MBs."

MBs in Vietnam invested about $199 million in 2007 on computing hardware alone. Though spending on basic computing infrastructure will continue to dominate the bulk of IT spend this year, strong growth in areas such as the Internet, storage and security will be evident. More MBs will require higher bandwidth to boost collaboration among employees, especially for mobile employees who need to stay connected while out of the office.

Increasing amounts of data will continue to strain existing storage infrastructures. Hence, MBs may opt for storage management software to optimize current storage space. In addition, with increasing security threats on the horizon, there will be a continued focus on security to protect electronic data against virus attacks and sabotage.

"While investments in basic infrastructure will continue, the investment priorities for SMBs in the next 12 months will center on increasing bandwidth, improving storage and security capabilities to prepare for their next phase of organization growth," says Mr. Cheng. "This trend presents excellent business opportunities for channel partners to offer computing support, development and integration services in areas like storage and security."

Vietnam is expected to continue its strong economic growth in 2008 and MBs are likely to be the direct beneficiaries. MBs will invest more in higher-end IT infrastructure to increase employee productivity and ensure better competitiveness. With Vietnam only at the beginning of an economic boom, IT vendors will do well to focus on this country and listen to the requirements of SMBs. Vietnam could very well prove to be their fastest growing market in the next few years.

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