Wednesday, January 10, 2007

Vietnamese companies join forces to regain laptop market share


VietNamNet Bridge – Nine domestically owned information technology (IT) companies have decided to form an alliance, the Lien Viet Thanh Technology Joint Stock Company, which aims to produce and trade V-Open brand name laptops.


According to Pham Thien Nghe, Chief Representative of the Vietnam Electronics Businesses’ Association, HCM City Branch, Vietnam’s WTO membership will bring about opportunities and challenges to the personal computer and laptop market. Now 90% of personal computers are being assembled by domestic companies, while only 10% of laptops are being made by local companies.

Mr Nghe said that Vietnamese companies had been successful with personal computers because they had been cooperating with each other closely. Mekong Green, for example, now holds the biggest personal computer market share, because it is a product of an enterprise which has been set up by 12 directors of IT companies in the south.

The statistics released by GFK, a market surveyor, showed that the demand for laptops of Vietnamese people is increasingly high and stable. More than 90% of the laptop market share is being held by foreign brand names, like Dell, Acer, Toshiba and HP. In fact, domestic companies have thought of expanding their market share, like CMS, Wiscom and Vibird, but they have not succeeded. This has prompted the founders of Lien Viet Thanh, who are doing IT business themselves, to set up a company powerful enough to raise the competitiveness of Vietnamese brand names.

Lien Viet Thanh’s representative said that the biggest issue of the made-in-Vietnam laptop is the building of a trademark, while assembling technology has become global technology. No company can get involved in the whole production chain. There are only four or five companies in the world which specialise in producing the backbone parts of computers. They account for 60% of parts. Even big laptop producers in the world have to buy separate parts of laptops for assembly.

In order to find a solution to the trademark issue, Lien Viet Thanh said that in the immediate time, the company will offer special post-sales services with preferential conditions. For example, the key parts of laptops will be guaranteed for three years.

Lien Viet Thanh is planning to provide 1,000 laptops a month in 2007, 60% of which will be provided to students and priced at VND9mil/unit ($562.5).

Nguyen Sa

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