Internet

in

Vietnam
Hanoi, 5.10.2010

Internet high growth

Internet users
30000000 100 90 80

25099411
25000000

22779887 20834401
20000000

70
60 50 40

17718112
15000000

14683783 10710980

10000000

6345049
5000000

21.95 17.67 12.9

24,4

26.55

29.24 30
20 10 0

3098007 7.69 3.8

0 2003 2004 2005 2006 2007 2008 2009 2010 (T7)

Ngun VNNIC

Vietnam - Leading country in ASEAN

Number of internet users
Cambodia 78000 Brunei 0% 318900 1% Lao 300000 0% Singapore 3658400 4% Philippines 5955100 7% Malaysia 15823700 18%

Myanmar 110000 Viet Nam 0% 24000000 27%

Indonesia 20000000 23%

Thai lan 17486400 20%

Ngun VNNIC - ITU

Global advertising expenditure

By medium
(US $ millions) Newspapers Magazines Television Radio Cinema Outdoor Internet Tng cng (%) Newspapers Magazines Television Radio Cinema Outdoor Internet
Source: Zennith Optimedia Ngun Zennith Optimedia

2008 118,896 55,067 180,55 36,511 2,213 31,877 49,767 474,882 2008 25.0 11.6 38.0 7.7 0.5 6.7 10.5

2009 97,99 44,148 166,931 32,453 2,082 28,292 54,244 426,139 2009 23.0 10.4 39.2 7.6 0.5 6.6 12.7

2010 95,066 43,234 177,679 32,005 2,215 29,415 61,312 440,925 2010 21.6 9.8 40.3 7.3 0.5 6.7 13.9

2011 93,632 42,739 187,368 32,651 2,344 30,745 71,114 460,592 2011 20.3 9.3 40.7 7.1 0.5 6.7 15.4

2012 92,788 42,79 197,603 33,989 2,485 32,141 82,709 484,505 2012 19.2 8.8 40.8 7.0 0.5 6.6 17.1

Vietnam advertising expenditure

By medium
(US$ millions) Newspapers Magazines Television Radio Outdoor Internet Total % Newspapers Magazines Television Radio Outdoor Internet
Source: TNS Media & Group M estimate

2008 83 45 389 2 32 4 555 2008 15% 8% 70% 0,5% 5,8% 0,7%

2009 83 49 556 5 37 6 736 2009 11% 7% 76% 0,7% 5,0% 0,8%

2010 (forecast) 96 57 630 6 41 10 840 2010 (forecast) 11% 7% 75% 0,7% 4,9% 1,2%

Internet & The users

Internet the second preferred medium after television

Home Internet access using a computer

Ngun: Yahoo- TNS Net Index 2010

Weekly hours spent on Internet

Ngun: Yahoo- TNS Net Index 2010

Key online activities

1. Online news reading : 97% internet users read online news

Ngun: Yahoo- TNS Net Index 2010

Key online activities

1. Online news reading : 97% internet users read online news

Ngun: Yahoo- TNS Net Index 2010

Key online activities

2. Online gaming - a dominant activity within entertainment Category especially younger males

71 55 48 49 40 31 20 50 43 48

51

Total

15-19 years

20-29 years

30-39 years

40+ years

Male

Female

SES A

SES B

SES C

SES D/E/F

Ngun: Yahoo- TNS Net Index 2010

Key online activities

2. Play not just to compete but also to socialize and earn money
Male To compete with other players
As a way to spend time with friends To get a break from worries To get a sense of achievement Earn money Purely entertainment To connect with other gamers (community spirit)
Ngun: Yahoo- TNS Net Index 2010

Femal e 41

1519 159

20-29
92

30-39
73

40+
36

150

119
120 113 137 111 141

77
77 85 56 87 52

186
154 160 206 147 134

91
105 99 90 101 109

51
59 63 32 64 91

10
24 23 0 47 0

Key online activities

3. Online transaction emerging trend among young upscale females
Total Age Gender SEC

Ngun: Yahoo- TNS Net Index 2010

Key online activities

3. For clothes and household items
Total Electronic goods (Mobile phone , Cameras etc.) 34.4 Male 52.9 Female 15.7

Household items
Airline Tickets Games Clothes Books /Audiobooks/Magazines Software for Computer Pre-Paid phone vouchers/Top ups for Mobile phone Service Movie Tickets Ringtones /Themes/Applications for Phone

27.6
17.6 16.7 16.2 15.5 13.6 11.3 10.9 7.1

18.3
19.9 29.4 8.5 16.7 19 14.4 10.4 4.9

37.1
15.2 3.7 24 14.2 8.1 8.3 11.4 9.4

Music
Hotel Bookings Investment items like shares, insurance etc Movies
Ngun: Yahoo- TNS Net Index 2010

7.1
6.7 6.3 3 1.7 1.7

6.2
12 8.7 3.3 2.6 3.3

7.9
1.3 3.9 2.6 0.8 0

Beauty products Accessories

Key online activities

4. Social media: Content/opinion sharing more prevalent than social networking

Ngun: Yahoo- TNS Net Index 2010

Summary
Opportunities
Internet growth, and high home penetration Positive perception and appreciation from the internet users the second preferred medium behind television Online activities varies and getting popular. The internet is not only a source of information, but entertainment, making friends, sharing opinions and experiences as well as a market place for sales and purchase products.

Favorable conditions to develop internet advertising

Summary
Challenges:
The freedom of the internet users requires
Eye catching, attractive creative Content and format is inspiring enough to manipulate participation from the internet surfers Assurance of brand positive experience so that the word of mouth shared/expressed online have favorable to ones services or products

Comparable to other medium

Needs to create required conditions to facilitate the growth of internet advertising .

Cm n.

Thank you. Merci.