Wednesday, 26/12/2007 18:40

Project 112 letdown hurts computer market

Most computer sellers say the failure of Project 112 damaged the computer market which was 10% weaker in December 2007 compared to previous years

Due to project 112’s failure, development and implementation of IT education programs at State agencies is very slow.

“Computer sales used to be very good near year’s end because State agencies often tried to invest in IT projects but this year is different. I’ve never seen such a fall in the computer market before,” said Hoang Anh Tuan, business manager of Tran Anh, a well-known computer distributor in Vietnam.

“The failure of a major IT project like 112 serves as a reminder to IT managers that they need to be more careful and organized before implementing a tech project,” Tuan added.

Many other computer distribution companies share the same opinion. They said their usual sales stemming from large IT projects began dropping in November. Meanwhile, the retail market has also suffered, falling more than 15% in December compared to November and October.

But retailers are still optimistic about the future, saying the market will recover in the next few weeks. “I think computer sales will increase again in January, along with the growth of securities,” executive manager of Dang Khoa IT Plaza said.

Hanoi Computer’s Nguyen Thanh Son said: “I believe that computer purchasing power will grow by 30% in March to compensate for current losses. From now to the end of February 2008, only digital cameras, MP3 and MP4 players, USBs and headphones will sell well.”

The sales volume of laptops and desktops is forecasted to grow next year by 18% and 20%, respectively. Competition on the laptop market will be very fierce as of 2008 thanks to popularity and a diverse retail market that includes retailers Nguyen Kim, Viet Long and Mobile World, analysts say.

According to the Customs Agency, laptop imports in September 2007 were equivalent to all of 2006, boasting 120,000 units, bringing the total to 200,000 for 2007.

GFK, a reputed market research company, forecasts that around 320,000 laptops will be sold in Vietnam next year, worth around $336 million.

VNN

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