Consumer electronics likely to boom

HCM City (VNA) – The consumer electronics market is set for a strong period of growth with many new stores opening amid a revival after a downturn, industry insiders forecast.

One consumer electronics company in the north, Tran Anh, has opened seven new outlets. PICO and Mediamart have also expanded by opening new stores in Hanoi and northern provinces in January.

The biggest retailer in the south, The Gioi Di Dong (Mobile World) Joint Stock Company, said its electronics business is booming.

According to Tran Kinh Doanh, its CEO, there were 20 Dien May Xanh stores at the beginning of last year, and the number has increased to over 70 now.

Besides the mushrooming of outlets, chains also reported strong growth in 2015.

Doanh said his company's consumer electronics business last year grew at over 96 percent to top revenues of nearly 4.5 trillion VND (206 million USD).

Tran Anh reported growth of nearly 40 percent in sales last year.

Research company GFK reported that demand for technology-based consumer goods including electronics grew strongly in the third quarter of 2015. In the period consumer electronics sales alone grew at nearly 20 percent.

The industry expects growth to remain very strong.

A Pico spokesperson was quoted by business website cafebiz.vn as saying that 2016 would be a boom year for her company. It plans to open five more stores in Hanoi, enter more northern provinces and, importantly, planning to go back to HCM City by mid-year.

Tran Anh plans to open more than 10 stores this year.

Mobile World told Vietnam News that it plans to expand into all provinces and cities in the country by the second quarter of this year.

Doanh said: "The market will keep growing this year. Many products with advanced technologies will be introduced, attracting more customers.

"Moreover, there are a large number of households that don't have modern electronic gadgets like TVs and washing machines. But their living standard are improving. So the market will boom."-VNA