Vietnam now has one of the highest internet growth rates in the world and this represents a huge potential market for vendors like Dell, said Bui Dinh Truong, country manager of Dell Vietnam.
Truong told Vietnam Investment Review that Dell considers Vietnam as a key emerging market and has committed further investments to this market.
Reporter: Dell plans to build a series of global solution centres in different markets, Singapore for example. Do you think the Vietnamese market is big enough for Dell to set up a solution centre as mentioned in this plan?
Mr Truong: The Dell Solution Centre (DSC) in Singapore is part of the company’s US$1 billion investment in services around the world and a step for Dell to deliver on our promise of providing end-to-end solutions, bringing customers affordability and flexibility to generate revenue and promote innovation.
Although situated in Singapore, customers from around the region will be able to access our DSC. The centre boasts remote capabilities that enable customers from virtually anywhere to access our services and solutions including those that are not yet available at the Singapore centre. Additionally, customers can also tap into our Dell experts based at other global solution centres. We are breaking down boundaries to deliver the best services for our customers. This sums up what Dell is all about to meet customer requirements.
The Vietnamese IT market is estimated to report 18 percent growth in 2011 and PC imports grew by a double-digit factor in dollar terms. This signifies a huge growth potential for the local PC market, the highest potential being in rural areas. Vietnam is also experiencing rapid growth in internet penetration, surpassing neighbouring countries such as Thailand and the Philippines. The country now has one of the highest internet growth rates in the world, which represents great potential for vendors like Dell. From that, we can see Vietnam as a key emerging market in which we are continually investing. Experts at Dell solution centres will work closely with every customer to help them select the right solutions and IT systems for their needs, thus allowing them to budget more wisely, spend less on managing the status quo and invest more on technological innovations to drive business value.
Reporter: Dell, together with your local partners, has implemented a plan to build 100 sales outlets in Vietnam. What benefits has this plan brought to Dell Vietnam?
Mr Truong: Vietnamese customers can expect a seamless experience with Dell. It is more than just a product or service; it is an experience. Our solutions empower customers to do and achieve more. We at Dell see our role as simplifying IT for our customers so they can focus on their core business and generate revenue.
In addition to 100 sales outlets, we have established Dell service centres across 52 provinces in Vietnam to offer a comprehensive suite of support and solutions for our partners and customers. The success we enjoyed in 2011 stems from our philosophy of placing our customers at the forefront of everything we do, and we are currently reaping the rewards. Moving forward into the New Year, we will continue listening to our customer reaction.
Reporter: Many technology companies in Vietnam have stepped up their business in cloud computing. Has Dell made any move to promote this business area?
Mr Truong: Cloud will continue to be a mainstay of the Asian CIO’s agenda as customers are looking for ways to manage their IT systems and optimize their business environment more effectively.
There is a wide disparity in the use of cloud services by businesses in the Asia-Pacific region. While it is still in the early stages, Gartner predicts that public cloud services will grow five times faster than overall enterprise IT spending in the next four years.
Dell has been rolling out a comprehensive array of cloud solutions for businesses of all sizes to help them migrate to the cloud, as well as test-bed cloud deployments. We are investing US$1 billion to deliver leading solutions, services and cloud-based delivery options, including opening DSCs around the world. These centres are technical labs with extensive customer engagement capability, giving customers access to Dell technology and solutions experts. Our centres offer architectural design workshops that explore the best solutions for the customers’ requirements and business needs, and proof of concept testing to make sure the solution will work in the customers’ environment.
Reporter: What was Dell’s revenue in 2011 and predictions for 2012?
Mr Truong: On November 15, 2011, we announced strong global profitability in the third quarter with the earnings per share of US$0.49 (GAAP) and US$0.54 (non-GAAP), up 17 and 20 percent, respectively. Operating income was up 12 percent (GAAP) and 10 percent (non-GAAP). Our enterprise solutions and services revenue reached an all-time high of US$4.7 billion and cash flow from operations for the quarter was US$851 million, with a total of US$5.2 billion for the past four quarters.
Our outstanding fourth quarter and full-year 2011 results align well with our long-term value creation framework, and we are pleased with the sustainable operational improvements we have made across the company, including in our consumer business. With our strong cash flow, solid balance sheet and improving overall profitability, we believe we are well positioned to deliver strong performance for our shareholders. We are bullish about our 2012 fiscal year results which will be released in mid-February.
Source: Vietnam Investment Review