상품DB/베트남 B2B ICT 시장동향(2013.8)

[일출산]

제목

베트남 B2B ICT 시장동향(2013.8)

게시일

2015-12-07

국가

베트남

작성자

오새봄(하노이무역관)

품목

그 밖의 기기

품목코드

854370

작성일자: 2013.8.23

작성자: 하노이 무역관 Ms Nguyen Quynh Chi (nqchi.kotra@gmail.com)

1. Vietnamese ICT Overview

□ Internet Resources

 ○ According to the statical data of the Vietnam Internet Network Information Center(VNNIC), by the end of 31st October 2012, the total number of domain names ‘.vn’ reached 225970, ranking first in the countries having registration and using country-code domain names in ASEAN.

Structures of ‘.vn’ domain name by regions

 ○ Also provided by VNNIC, at the end of October 2012, the total number of registered international domain names by Vietnamese enterprises, organizations and individuals notified to the Ministry of Information and Communications reached 102,575 domain names.

Rates of international domain names according to regions

Structure of ‘.vn’ domain name by ending of domain name

Domain names	Rate (%)
.vn	47.95
com.vn	41.66
net.vn	1.90
gov.vn	0.62
edu.vn	3.51
org.vn	1.03
Other domain names without business purposes (info.vn, health.vn, int.vn, name.vn…)	2.85
Other domain names with business purposes (biz.vn, pro.vn…)	0.48

Source: Gathered from Vietnam Internet resources report 2012 - VNNIC

 ○ In 225,970 ‘.vn’ domain names being operated, there were 142,828 domain names(about 63.21%) registered by organizations. Excluding the domain names of health care, education, non-profit organizations, state agencies(the domain names such as gov.vn; edu.vn; org.vn and the other domain names without business purposes), it is estimated that about 55.2%(equivalent to 124,730 ‘.vn’ domain names) was registered by enterprises.

Structures of domain names by registration subjects

□ Telecommunications and Internet services market

 ○ Telecommunications

Number of new telephone subscribers

                        (Unit: Thousand)

Type of tele-subscribers	2008	2009	2010	2011	2012
Fixed telephone	-	4,000	793	49.6	15.6
Mobiphone	-	37,700	43,700	11,800	12,500
Total	27,600	41,700	44,493	11,849.6	12,515.6

Market shares of telecommunication providers by the number of subscribers

Source: MIC website, www.mic.gov.vn 2012

Telecommunication revenue over the years

Source: Vietnam ICT White Book 2012

 ○ Internet

Growth of Internet users

Source: VNNIC

Percentage of Internet users among 100 people

Source: VNNIC

Number of enterprises certified as Internet providers

Source: Gathered from Vietnam ICT White Book 2011

  - According to the data provided by the Ministry of Information and Communications, by the end of 2011 there were 91 enterprises having certificates to provide Internet services, among which 50 have operated. However, the Internet services market remains highly concentrated, with more than 94% of market being held by 3 top leading enterprises, which are VNPT, Viettel and FPT.

Market shares of Internet providers in 2012 by the number of subscribers

Source: VNNIC

2. Mobile based B2B Market in Vietnam

□ Mobile Market

 ○ Smart phone and market growth

  - Introduced to the audience just since the early years of 21st century, smart phone has made its way to become the future of the technology world. According to the report by Gartner, number of smart phone sold internationally boomed over the past few years. Particularly, the figure has risen from 279 million units in 2010 to more than 472 million phones in 2011, making the year-on-year sales reach 58% increase. The upward trend of smart phone sales internationally has strongly influenced the domestic market of Vietnam. Over last 2 years, despite the sluggish economic situation, number of smart phones sold in Vietnam has increased by more than 44%, which strikingly surpassed the 15.9% growth of mobile phone in general.

  - The vigorous growth of smart phones sales in Vietnam is driven by three major factors:

 ① Economic factor: Vietnamese economy boomed over the past decade. Since 2001, the GDP growth rate has always perched on more than 6%. In the height of development (around 2008), this figure even rose to 8.46%. Even though in the last 3 years (2010 and 2011, 2012) while the Western world was struggling with depression and financial crisis, Vietnam, as well as most of other Asian countries, still witnessed growth in GDP of approximately 6%. Along with the vigor development of the economy comes the great lift of living standard. GDP per capital has doubled since 2001, and in spite of dangerous inflation, Vietnamese people are way richer than they used to be several years ago. As a result, people are willing to spend more, on more stuffs than just necessities, luxurious goods are paid more attention and the demand for high-end products rose sharply over the past few years. In the meantime, smart phones, which appeared in Vietnam only 5 years ago, has greatly diversified both in term of design, brand name and price to meet customers’ need. With wide range of price (from normal line to high-end lines) and abundant source, now smart phone has become something more affordable and accessible. The result is tangible, sales of smart phone in Vietnam has risen sharply over the last 2 years. Some of the most popular smart phones in Vietnam include familiar brand names such as Samsung, iPhone, HTC, Sony and Blackberry. This makes iOS and Android become the two most widespread mobile operating systems in Vietnam market.

 ② Young population: Internet users in Vietnam are significantly younger than the internet users from many other countries in this region.

Internet Audience 15+ accessing Internet from Home or Work

Source: comScore Media Metrix, Dec 2010

     38% of the internet users aged from 15~24 years old forming the predominant group of internet users in Vietnam followed by 33% of them from the age group of 25~34 years old. Also it is said that 95% of the 15~24 years old population in Vietnam are already connected to the internet, hinting a bright prospects of the future digital media usage in Vietnam.

 ③ Availability of telecommunication: The Vietnam telecommunications in general and its mobile market is one of the most dynamic markets in the region. The mobile market has experienced an strong growth of 39.8% from 2009 to 2010, whereby the number of mobile phone subscribers have increased up to 154 million. Amongst all the internet users, nearly 40% of them have already accessed the internet via their mobile phone or smart phone. The mobile penetration rate currently stands at 120% and it is expected to pass the 200% mark in 2011, with a subscriber base of 184.49 million people.

     Vietnam’s mobile market has been experiencing double digit growths due to the marketing efforts of the country’s mobile operators. Its largest three operators are: Mobifone, Viettel and Vinafone, and their market share totals over two thirds of the market. Vietnam is also in the midst of developing its 3G infrastructure as the popularity for smartphones has been rapidly increasing in the country. Six months after 3G services was first introduced into the market in 2009, only 3% of the mobile users signed up for the services. However, subscription rate jump up to 11% of mobile users another six months following that. It is also estimated that the number of 3G users would increase from approximately 8 million in 2011 to 16 million by 2014. This is in view that 98% of Vietnam would have 3G coverage by end 2012. The availability of telecommunication, especially 3G coverage, is also a factor driving up the demand for smart phone in Vietnam.

Source: Nielsen Smartphones Insight

     As the research result of Nielsen, the number of smart phone users have gained 30% of mobile subscribers ranking No.6 in Asia. To an economy ranking No.6 of South-eastern Aisa and No.42 of the world like Vietnam, this statistic the number of smart phone users in particular or the growth rate of mobile market in general. The number of smart phone users in Vietnam is in the positive expectation of growth time by time. As the survey, 91% surveyed users have intention to change to smart phone in the near time, and 30% of them have already got the new smart phones in the last 6 months.

 ○ Mobile content using

  - A result of survey report on behavior of smart phones users in Vietnam, a part of Google's research program made in 48 countries by QI/2013 have pointed out that the smart phones are changing consumer behavior of Vietnamese people. Specifically, more smart phone users in Vietnam looking for news, watch videos, download applications or in social networks. Smartphone is a means of a supporting tool when shopping, 60% of respondents expressed that they use to buy the product.

  - In addition, 97% of smartphone users search for information on the phone, based on the information search to decide to buy products, 95% of users pay attention on advertising, 78% of surveyed people every day looking for information, 48% search for information about travel, 44% look for information on restaurants, bars on smartphone...

  - This fact also means the open opportunities for business by approaching to consumers via smartphones. However, at present there are still many businesses in Vietnam on media advertising. That means, M-commerce now is expected a very interesting potential business channel.

  - Suggesting for businesses, Google representatives also expressed that enterprises should redirect to catch this new trend, such as optimizing website interface on mobile platforms, expanding ads, TV multimedia to reach consumers more effectively ...

  - The wide spread of smart phone has made way to the vigor development of applications running on iOS and Android. According to the recent survey, of more than 1,000,000 users logging on the website appstore.vn (the most popular website where Vietnamese applications can be marketed and downloaded),

Number of appstore.vn users categorized to cities and provinces

Source: appstore.vn

     Users mostly concentrate in major cities such as Hanoi(40%), Saigon(47%) and Danang(8%). Other cities and provinces only hold a fracture share of the pie(5%). The figure can be easily understood considering the difference in standard of living, demography and average education level.

  - Of the iOS and Adroid application downloaded from app store, Games appear to be the most interested area.

Application downloaded by appstore.vn users

□ B2B on Mobile Situation

 ○ Market Size and Perspective

  - B2B ICT solution is a new and potential market because of the increasing demand on information technology modernization to meet the problems of administrative capacity and cut costs.

  - Vietnam now has lot of advantages and potential for developing B2B ICT market. The development of mobile phones in Vietnam has largely been driven by State-owned Telecommunication corporations which have enough financial and positional capacity to invest all costs for building infrastructure while keeping prices low for the user, grants effective for plan services. This shows that Vietnam is considered as one of countries having the most reliable mobile services and 3G services in the Southeast Asian region. As of May 12/2012, there were 121.7 million mobile, among it 30% of them using smartphones, 60% of 3G subscribers in urban areas.

  - Beside that’s, approaching high-tech equipments and solution of Vietnamese people reach a high score in comparing with other countries in Asia.

% Of smart phone users access internet frequently 

 Source: Nielsen Smartphones Insight

  - Currently, B2B ICT solution market in Vietnam is earning profit and enlarge size mostly on the sectors of e-government, Banking and securities ; and manufacturing of which system integration is estimated to be most profitable as the vertical of this table of research on B2B market on the vision by 2015 by Mackinsey Vietnam.

Source: Mckinsey Vietnam 2012

  - All big operators like Viettel, Mobifone, Vinaphone are just approached this B2B ICT sector. However, all of them estimated this business sector as a new potential trend and lot of profitable opportunities. It is the really new and low competitiveness.

  - Viettel has established ‘Viettel IT Center’ to take care B2B market for 1 year. Since 10/2012, Viettel has launched the first B2B IT business testing with Vinamilk with the system of online sales management on 3G infrastructure.

  - Mobifone also already has a new center which is studying on B2B ICT market based on the main sectors such as centralized sales system, automation system office, data warehouse systems, DMS, VAS projects such as Background Music, MobiEZ, FastPay, Voice SMS, MobiFone Portal MCA, OTA, the security project.

  - Vinaphone has yet penetrated into this business sector, they simply just provide infrastructure and data of subscribers for marketing on mobile. The partners have to build the system and solution by themselves. B2B activities just is limited in the field of banking and logistic.

  - Besides of mobile services, the MNOs in VN are earning money through value-added services to customers, to the B2B model , MNOs are providing the DC network services, data transmission (Internet lease line), IP Voice, SMS marketing. The business areas such as M2M, Security, Cloud infra, Groupware, Building & Energy management, Mobile security are still new in Vietnam.

  - The big major vendors providing B2B ICT solutions in Vietnam includes IBM, HP, Cisco from overseas and FPT, CMC, HPT, and Viettel. Of which FPT and CMC now are the biggest vendors in Vietnam.

  - As CMC, one of the main vendor, the business model is still mainly IT Sales(HW & SW), but the trend is shifting gradually to the SI model Solution installation/ AS, Managed Service. However, it depends on each co-operating construct between the partners.

 ○ Earning B2B areas

  - Mobile Banking services

   · Mobile banking is seen as the great potentials for developing electronic payment, it is expected that 98 percent of Vietnamese would use mobile banking services in the next five years.

   · As the statistic of the State Bank of Vietnam, 26 commercial banks had been providing SMS Banking by July 2012. It was estimated that 4.1 million clients had used the services who had made over 2.2 million transactions. By that time, 19 commercial banks had been providing Mobile Banking service which had had 2.9 million clients who had made 11.9 million transactions. 9 non-bank institutions have been providing payment services, allowing Vietnamese to approach more convenient payment services through Internet and mobile phones.

   · As of March this year, 48 of the 52 registered bank and financial organizations had issued 57.1 million cards. Most of them, 93.6%, were debit cards. Forty-six commercial banks have installed 14,300 ATMs and 101.400 POS that accept payment by cards. By the end of 2012, the total number of e-wallets that had been issued by these nine organizations climbed to over 1.3 million, with the number of transactions reaching over 16 million worth nearly VND 5.83 trillion. Over 76,000 POS belonging to 720 bank branches have been connected with 20,600 units that accept card payment(credit/ debit) cards. Over the last few years, credit institutions such as the Social Policies Bank, Agriculture and Rural Development Bank and People's Credit Fund together with some other financial organizations have taken measures to expand and diversify financial products, especially for people who live in rural and remote areas.

   · Moreover, for boosting the business and attracting more clients, the banks are taking effort to upgrading and acquiring the latest technology to improve their management ability and meet customers' demand, to mention their ability to control risk and handle huge amounts of data.

   · In December 2011, the Prime Minister approved Decision No.2453 that aimed to boost non-cash payments through the banking system and further popularize them during the 2011~2015 period. Under the plan, the Vietnamese market will have 250,000 points of sale(POS) installed that can handle about 200 million transactions per year.

   · Going with the new trend of e-payment, all operators in Vietnam have launched the B2B business cooperating plans with the banking sectors to enhance and popularize mobile banking service to clients. In November 2011, Mobifone announced that postpaid subscribers that used Vietin Bank's system for payments would enjoy a 10% discount until January 31 2012. The promotion was made possible because of a bill payment cooperation between Mobifone, Vietnam Payment Solution Joint Stock Company and Vietin Bank.

   · Viettel and Vietcombank introduced Mobile Bank Plus in January 2012, enabling the operator's mobile subscribers to bank with Vietcombank through mobile devices. The service allows Viettel's subscribers to transfer money from one account to another within Vietcombank, as well as pay phone bills and access their account balance and transaction details. Subscribers can access their banking accounts via their mobile phones without connecting to 3G or Wi-Fi. The strategic cooperation would allow both parties to take full advantage of the number of customers and the network of both sides.

   · There is a doubtful prediction about the rapid development of mobile banking services in Vietnam. A problem is that though more and more Vietnamese use smart phones, they still prefer making payment in cash or using ATM cards to withdraw cash from ATMs instead of making transactions via mobile phones. The problem lies in the fact that banks have been focusing modern banking services only in big cities and developing services based on the clients’ private accounts.

   · According to data compiled by the World Bank, only about 30% of Vietnamese people of working age, mostly in major cities and provinces, are able to use modern financial and payment services. Moreover, these modern financial and payment services have only been developed based on individual accounts of customers at credit institutions. This means that people in rural and remote areas who do not have individual accounts cannot reach these services.

   · One situation is that the absence of M-commerce in Vietnam market is attributed to the lack of cooperation among vendors selling goods or services and banks accepting the payment via mobile as well as the IT companies providing payment solution. Therefore, the mobile banking services just stopped by the transaction between Banks and clients.

   · Another reason is the low capacity of IT and payment technology in Vietnam as well as the unwillingness of retailers and suppliers to invest in the infrastructure of mobile payment. Additionally, customers in Vietnam are pretty skeptical about the mobile payment and concerned about the information and financial security when implementing mobile shopping. Thus, despite its convenient advantages, mobile shopping has not set foothold in Vietnam’s market yet.

  - Online sales management system

   · At the moment, both Viettel and Mobifone are developing and popularizing this business module in Vietnam. However, Viettel with the rapid business orientation, Viettel studied and tested this system from October 2012. Till 21.12.2013,Viettel officially provided this system to Vinamilk, the biggest milk producer and suppliers in Vietnam with the largest distribution nationwide. Viettel eval‎uated this system is the biggest online sales system in the world.

   · This is the overall sales management system built by Viettel to enhance centralizing data, online processing, monitoring positions and route instantaneously for Vinamilk. The system includes hardware, software, terminals which are connected to the Internet via 3G and broadband cable. Model business is Solution IS installation/ AS, Viettel pre-provided all solution and equipments and Vinamilk uses the services under the rental.

     • Online sales management system in real time with unlimited number of users.

     • The system is based on habits and current management needs of the enterprise.

     • the model of rental service is to accelerate the project, create a peace of mind to the using enterprises and reduce business risk when deploying IT applications.

   · This system helps the vending process of Vinamilk including distributors, sales supervisors and sales staffs will be connected on a unified software, online centralized database, instantly and continuously. Thus, wherever and whenever the manager can see every carton of milk sold, every penny is collected.

   · With the specific object of constantly moving as salespeople, sales supervision will be equipped with 3G tablet, global positioning system(GPS) and digital cameras. When exposing to the point of sale, every relevant information about sales such as goods situation, goods prices at one point will be updated right when the sales staff come. Image for products, display, signage, of distributors, at the point of sale also are updated by real time. For combination with digital maps, sales supervisors can also know the location, migration routes and all activities of visiting sales points of the sales staffs rather than just following a few lines as previously. The information about the online activities across business continuously updated on the system to help managers gain a comprehensive and timely decisions by market fluctuations.

 ○ Risk to Outlook

  - Government Policy

   · The spotlight in the Government of Vietnam‘s IT strategy is ‘the Project of accelerating IT in Vietnam’ from Ministry of Information and Communication(MIC); pursuing to the Decision 1755/QĐ-TTg of Prime of Minister in order to drive Vietnam to become a IT country of the world.

   · Over the past decade, Information and Communication Technology(ICT) has transformed societies world-wide. Its cross-sectoral influence has contributed to accelerated economic growth and opened up many opportunities for trade, job growth, efficiency improvement and economic development globally. Aware of these developments, and the fact that ICT usage and availability in Vietnam is still in at an early stage, the Government of Vietnam(GoV) has placed strong emphasis on national ICT development in recent years. This includes promulgating directives and setting a series of ICT Master Plans reflecting its commitment to employing ICT to further domestic economic development.

   · The government strategy for IT Development covers the 2010~2020 period and focuses on 4 major areas: enhancing IT application, developing local IT industry, developing ICT infrastructure and developing IT HR. In November 2010, the GoV pledges to invest $ 8.5 billion in the ICT sector and orients to drive the development of 3 production centers of software, services, and digital content: Hochiminh, Hanoi, and Da Nang city. This strategy is to spread the development utilization of IT application include of developing e-citizens, building e-Gov and e-business, as well as developing transaction and e-commerce.

   · As the GoV’s plan, the revenue target for the ICT sector was stated between $17 billion~19 billion in all of software, services, hardware, and electronics. Revenues are projected at $2 billion from software, $12 billion from hardware, $2 billion from digital content, and $1.5 billion from IT services.

   · Electronic framework for IT industry also is emphasized with the GoV’s plans to set a target of increasing investment in scientific research to 3.5~5% by 2015 and 8~10% by 2020. The investment in technological upgrades will be raised from the current 8~10% to 10~15% by 2015 and to 20% by 2020.

   · For the short-term plans, the GoV proposed a two-year plan outlined by Prime Minister Nguyen Tan Dung to enhance IT use by government agencies to basic public services such as information exchange, sending and receiving documents as well as making payments online. Also according to the target, by 2020, about 50% of directives from central, municipal and province governments are to be published online.

   · Cloud computing is emerging as a cost-saving objective to manage and enhance resource efficiency in applying IT into Government with the first proposes in education raised by Ministry of Education and Training(MOET) and in virtualizing IT infrastructure of Ministry of Natural Resource and the Environment(MONRE).

   · Some main tasks and requests needed to be done in the period of 2010~2020 as the content of the Project and the Decision from Prime of Minister based on developing the IT service and the services on the IT foundation.

     • Complete the broadband network infrastructure (digitalizing transmission; 3G and 4G based on LTE technology; throw a new Vinasat satellite; upgrading the ground and sea fiber cable systems…)

     • Complete specified telecommunication network for Government, Parliament

     • Build the national data-base system provided for developing e-Government

     • Build the national digital information safety system (building National Network Safety Center; implementing eval‎uation and verification systems, alarm system; authentication and security systems for government information systems)

  - Legal Tariff

   · For providing a favorable environment and conditions for Vietnam IT development, the Decision no 1755 of Prime of Minister based on the ‘Project of accelerating IT development in Vietnam’ also purposes to target a completed sustainable legal foundation with the opener policies about investment, tax and fund in ICT to attract more investment opportunities and to boost foreign cooperation.

① Investment Policies

  - Enhance financial sources and funds for developing IT industry, researching and promoting trade and investment activities in ICT and IT.

  - Apply the best concession policies for investment projects of developing the broadband network infrastructure and the project of building collective IT areas.

  - Encourage entrepreneur and private sector to participate into applying IT in social life, and state-owned units. It tends to boost the cooperation between entrepreneurs and Government.

  - Complement and complete investment management structure in order to make favorable conditions for implementing the stated-invested projects about ICT and IT.

② Tax Policies

  - Submit the more advantageous concession policies and structure for ICT and IT area with the orientation of applying the highest concession pursuing to the Law of high technology over VAT, income tax, import-export tax over the IT-related activities include of investing, building and manufacturing, making business the IT products and services.

  - Lower import tariff (As of January 2009, duty on complete build unit(CBU) electronic products from ASEAN countries was reduced to 0~5%. The average import tax on components was reduced from 9.41% to 6.36%. As Vietnam implements its WTO commitments, more than 300 IT products will enjoy a zero tariff in three to seven year's time, compared with previous tariffs of 2~8%. The lower tariffs for AV products such as TV sets, laptops and cameras will be in force in five to 10 years, with the tax reductions gradually being lowered year by year)

③ Fund Sources

  - Diversifying financial sources for the investments in IT and ICT areas:

   · Government budget

   · ODA fund

   · Credit fund

   · Enterprise fund

   · Public benefit Telecom Service Fund

     Name of projects and fund sources are listed in the Appendix 1.

④ Foreign cooperation policies

  - Boost the cooperation with the international organizations in transferring technology and education.

  - Participate into the regional and inter-regional IT projects

  - Mobilize foreign investment budgets via ODA

  - Focus on opening international market

 ○ Recommendation of key success factors

  - As the eval‎uation of some Vietnamese experts from Viettel, MIC and CMC, this business sector is really new and potential. At the moment, just FPT and Viettel are running business strongly in this field. The opportunity is still opened to both local and foreign competitors and partner for the big potential of a market of 12 million subscribers.

  - Some key success factors are that :

   · Competitive cost

   · Suitable and friendly solution

   · Good relationship

   · Good after services

  - One of key success factors from Viettel should be considered is the pre-testing program. As Mr. Tong Viet Trung, Deputy General Director of Viettel Group, Investment in ICT businesses now have a pretty big barrier which  is the initial capital investment and the risk of efficiency investments of the solution that investor pay money on. Viettel is willing to invest before, inviting enterprises to try. Also, Viettel also is willing to design the product as the requirement of the investors or buyers  but not change the practices on management and operating capital.

  - In fact, To the solutions of sales management online system(DMS.ONE) for Vinamilk, Viettel has been piloted in HCM City with the scale over 300 sales staffs from January 10/2012. After 4 months of free trial, on 02/21/2013, Vinamilk and Viettel officially signed a contract to deploy large scale systems to more than 200 distributors, 2,000 employees and 200,000 retail stores in the whole country.