c1792 netcitizens report final (en) 23 03-10

Vietnam NetCitizens Report Internet Usage and Development in Vietnam

March 2010

Vietnam NetCitizens Report

Copyright © 2010 Cimigo 1

Contents 1. INTRODUCTION ...................................................................................................................................... 4

1.1. BACKGROUND .......................................................................................................................................... 4 1.2. SURVEY METHODOLOGY ............................................................................................................................. 4

1.2.1. Sample size...................................................................................................................................... 4 1.2.2. Respondent selection ...................................................................................................................... 5

1.3. OTHER DATA SOURCES ............................................................................................................................... 5

2. INTERNET PENETRATION AND USAGE ..................................................................................................... 6

2.1. PENETRATION .......................................................................................................................................... 6 2.2. USAGE FREQUENCY AND LENGTH ................................................................................................................. 8 2.3. INTERNET ACCESS ................................................................................................................................... 10

3. DEMOGRAPHIC PROFILE OF INTERNET USERS....................................................................................... 12

3.1. AGE AND GENDER ................................................................................................................................... 12 3.2. SOCIO-ECONOMIC CLASS (SEC) ................................................................................................................. 13 3.3. EDUCATION AND OCCUPATION .................................................................................................................. 14

4. ONLINE ACTIVITIES AND APPLICATIONS ............................................................................................... 16

4.1. OVERVIEW ............................................................................................................................................ 16 4.2. INFORMATION GATHERING ....................................................................................................................... 19 4.3. ENTERTAINMENT .................................................................................................................................... 20 4.4. COMMUNICATION .................................................................................................................................. 22 4.5. BLOGGING AND SOCIAL NETWORKS ............................................................................................................ 23 4.6. ONLINE BUSINESS ................................................................................................................................... 25

5. VISITED WEBSITES ................................................................................................................................ 26

5.1. WEBSITES VISITED IN PAST 4 WEEKS ........................................................................................................... 26 5.2. WEBSITES USED FOR BLOGGING AND SOCIAL NETWORKING ............................................................................. 29 5.3. MOST FAVOURITE WEBSITES ..................................................................................................................... 30

5.3.1. Information gathering .................................................................................................................. 30 5.3.2. Online entertainment .................................................................................................................... 31 5.3.3. Online communication .................................................................................................................. 31 5.3.4. Online business ............................................................................................................................. 32

6. INTERNET ATTITUDES ........................................................................................................................... 33

6.1. OVERVIEW ............................................................................................................................................ 33 6.2. SOCIAL CONNECTION ............................................................................................................................... 34 6.3. INFORMATION GATHERING ....................................................................................................................... 34 6.4. TRUST / RELIABILITY ................................................................................................................................ 35 6.5. ONLINE BUYING ...................................................................................................................................... 35 6.6. ONLINE ADVERTISING .............................................................................................................................. 36



SUMMARY

Internet usage and access

• According to official sources, internet penetration in Vietnam was at 26% in 2009. Internet penetration in Vietnam is similar to countries like China, Philippines and Thailand. However, Vietnam has seen a more rapid growth of the internet over the last few years than most other countries in the region.

• In urban Vietnam, about 50% of the population have used the internet already. Usage is higher in Hanoi and HCMC.

• Two-thirds of internet users access the internet every day, with users spending about 2 hours and 20 minutes on the internet on weekdays, and slightly less on weekends.

• The internet is usually accessed from home (75%) or work (28%). Internet cafes (21%) are widely used by the younger age groups.

• Compared to the overall population, internet users are significantly younger, more likely to be male, and come from a higher socio-economic class.

• A third of internet users are still studying and 40% are white-collar workers.

Online Activities

• The most important activity on the internet is information gathering. More than 90% have used search sites and regularly read online news.

• Entertainment (e.g. listening to music, watching movies, gaming) is another key field of activity. 76% of internet users have listened to music and 40% have watched movies online. Entertainment is far more important among younger people.

• About 70% of internet users have already used chatting and email sites. 40-45% have used forums, blogs and social networks sites.

• Online shopping and auction sites are not used very frequently, but online shopping has seen a strong increase over the past years.



Visited websites

• Google, Zing and Yahoo are the most popular websites in Vietnam. 26% of internet users have used Zing and 23% Yahoo in the past 4 weeks.

• Online newspapers such as DanTri, VnExpress and Tuoitre are used by 15-20% of internet users. The usage of online newspapers strongly differs by geographical region.

• Google is the favourite website for search and research activities. Zing is the preferred provider of most forms of online entertainment (music, movies, gaming). Yahoo is favoured for communication activities such as e-mail, instant message and chatting.

Internet Attitudes

• Most users think that the internet is an important source for news and information. 70% also find it useful to find out about new trends and brands.

• The majority find the internet useful to connect with friends and meet new people. Very few people feel more lonely because of the internet.

• 40% generally trust the information found on the internet, but 20% do not. The internet is perceived to be less reliable than TV or newspapers.

• 50% would agree that there is a wide choice of products on the internet. However, only 15% think it’s safe to buy products online.

About Vietnam NetCitizens Report

Data in this report is based on a representative survey among nearly 3000 internet users in 6 cities in Vietnam. The study is conducted by Cimigo, and the report is available for free. If you are interested a more detailed target group analysis, please contact us to get a quotation.

Download this report for free: www.cimigo.vn Request your individual analysis: [email protected]

http://www.cimigo.vn/�

mailto:[email protected]�



1. INTRODUCTION 1.1. Background The internet in Vietnam has seen a rapid development over the last few years. Since 2003, there has been a steady increase in both internet users and number of websites in Vietnam, and technical resources to provide internet connections are constantly expanding. In a period of strong growth, it is vital for all companies involved with the online market to have reliable information about all relevant aspects of internet usage.

This study was initiated by Cimigo with the aim to create a better understanding of the Vietnamese internet market.

1.2. Survey methodology Most of the report is based on results of NetCitizens, a research study conducted by Cimigo among Vietnamese internet users in urban Vietnam. This survey was conducted by Cimigo in October and November 2009, using Computer-Assisted Telephone Interview (CATI).

1.2.1. Sample size

Total 2940 internet users were interviewed. Respondents for the survey were selected from the 6 major cities in Vietnam using the following sample sizes:

Ho Chi Minh City n=528 Hanoi n=533 Da Nang n=506 Can Tho n=419 Nha Trang n=459 Hai Phong n=495

Additionally, about n=3000 demographic profiles of non-internet users were collected (about n=500 in each city) to compare the demographic data of internet users with the total population.

Cimigo has already conducted a similar study in previous years in Hanoi and HCMC (n=1000 interviews per year). Where possible, the report includes results from previous years. For other cities (Da Nang, Can Tho, Nha Trang, Hai Phong), no data from previous years is available.



1.2.2. Respondent selection

For the selection of respondents, a random-quota approach was applied. The approach to select respondents was slightly different for HCMC and Hanoi (where data from previous years was available) and other cities:

• In HCMC and Hanoi, data regarding internet penetration and the demographic profile of internet users was already available from Cimigo Express (a representative survey among n=12,000 residents in HCMC/Hanoi per year). Quotas for respondents to NetCitizens were set based on age and gender derived from Cimigo Express.

• For all other cities (Da Nang, Can Tho, Nha Trang, Hai Phong), no information about internet penetration and the profile of internet users were available. In each city, a representative sample of approx n= 1000 respondents was recruited using age/gender quotas from the general population. Overall n=4250 people were contacted, and a full interview was conducted among n=1879 internet users. For non-users, only demographic data was collected.

• The total results are weighted according to the general population by city size (to re-establish the original population proportion across cities) and socio-economic class (due to general under-representation of lower socio-economic classes in telephone surveys).

1.3. Other data sources • Data for internet usage and penetration in other countries was collected from

www.internetworldstats.com

• Data about the development of the internet penetration in Vietnam was taken from www.vnnic.vn (the website of VNNIC, the Vietnam Internet Network Information Center).



2. INTERNET PENETRATION AND USAGE

2.1. Penetration By the end of 2009, around 1.7 billion people use the internet worldwide, representing about 26% of the global population. The number of internet users has multiplied by five over the last 10 years. The highest internet penetration is found in North America (74%), Australia / Oceania (60%) and Europe (52%). In Asia, penetration is at 19% and thus second lowest next to Africa (source: internetworldstats.com).

In absolute numbers, however, more internet users can be found in Asia than in any other part of the world. Overall 43% of worldwide internet users are located in Asia. This is mainly due to the large population in China.

Within key Asian countries, two different patterns of internet penetration are found. In developed Asian countries (South Korea, Japan, Singapore, Hong Kong, Taiwan and Malaysia), internet usage is at 60-80%, with a slight year-to-year increase. In Asian emerging markets (such as China, Vietnam, Philippines and Indonesia), internet penetration is around 20-30%, however internet growth rates per year are much higher.

Fig. 1. Internet penetration in selected Asian countries

Source: www.internetworldstats.com

More than 50% of internet users in Asia are Chinese. The number of internet users in China is estimated at 360 million, which represents 20% of the worldwide internet population. Other Asian countries with a large number of internet users are Japan (96 million) and South Korea (37 million). In Vietnam there are currently 23 million internet users, slightly less than in the Philippines and Indonesia.

77%

76%

72%

69%

66%

66%

27%

26%

25%

24%

13%

0% 20% 40% 60% 80% 100%

South Korea

Japan

Singapore

Hong Kong

Taiwan

Malaysia

China

Vietnam

Philippines

Thailand

Indonesia



Fig. 2. Number of internet users in selected Asian countries (in millions)


Internet user growth rates differ strongly by country. In countries with high penetration rates, growth rates are lower than in countries with low penetration. Over the last 10 years, internet usage has grown by 100-200% in developed Asian countries (South Korea, Japan, Hong Kong, Taiwan and Singapore), and by around 500 - 1500% in Asian emerging markets.

Vietnam takes a unique position in this respect. Vietnam is the fastest growing internet country in the region and among the countries with highest growth rates in the world. Since 2000, the number of internet users in Vietnam has multiplied by about 100. Ten years ago, internet penetration in Vietnam lied far behind most other Asian countries. In the meantime, Vietnam has caught up and internet usage has reached the level of other key emerging markets.

Fig. 3. Internet user growth 2000-2009 in selected Asian countries


360

96

37

30

2423

56

ChinaJapanSouth KoreaIndonesiaPhilippinesVietnamOther

10882%

1500%

1150%

1100%

600%

357%

181%

142%

114%

104%

97%

0% 2000% 4000% 6000% 8000% 10000% 12000%

Vietnam

China

Indonesia

Philippines

Thailand

Malaysia

Singapore

Taiwan

Hong Kong

Japan

South Korea



According to VNNIC (Vietnam Internet Network Information Center), 22.5 million people in Vietnam were using the internet by the end of 2009, representing 26% of the overall population. Between 2003 and 2009, the number of internet users increased by 3.1 million on average. Internet growth rates were very high between 2003 and 2006 and then slowed down. 2009 was the first year with a growth rate below 10%; however the population of internet users still increased by nearly 2 million in 2009.

Fig. 4. Internet users in Vietnam 2004-2009

Source: www.vnnic.vn

2.2. Usage frequency and length Among the cities covered in NetCitizens study, the highest penetration is measured in Hanoi, where more than 60% of the population have accessed the internet already. In HCMC, internet has been accessed by about 50%. In other cities (Da Nang, Hai Phong, Nha Trang, Can Tho), the internet penetration is at about 40% each. Overall in urban Vietnam, about 50% have already accessed the internet.1

1 In the NetCitizens study, in internet user is defined as a person living in urban Vietnam age 15+ who has accessed the internet at any time in the past. Due to differences in definition, internet penetration figures may not fully be comparable with other data sources (e.g. VNNIC figures).

3.1

6.3

10.7

14.7

17.7

20.8 22

.5

4%

8%

13%

18%

21%

24%26%

0%

5%

10%

15%

20%

25%

30%

0

5

10

15

20

25

30

2003 2004 2005 2006 2007 2008 2009

Use

rs in

% o

f pop

ulat

ion

Use

rs (m

illio

n)

Users (million) Penetration



Fig. 5. Internet usage by city

Source: Cimigo NetCitizens (Da Nang, Hai Phong, Nha Trang, Can Tho) and CimigoExpress (Ha Noi, HCMC)

In Vietnam, internet users surf the internet very frequently. Nearly 90% of internet users access the internet more than once a week, and about 70% use it daily. Only a small minority of internet users (5%) use the internet less than once a week. The frequency of internet usage is higher in metro Vietnam (Hanoi and HCMC) compared to other cities, and internet usage increases with higher socio-economic class.

Fig. 6. Frequency of internet usage by city

Source: Cimigo NetCitizens (base: internet users)

Internet users in Vietnam spend considerable time online. During weekdays, the average user is online for 2 hours and 20 minutes. Males use the internet about 20 minutes longer than females. The length of internet usage decreases with age and increases with higher socio-economic status. Nearly half of users surf the internet more than two hours a day.

61%

48%

41%

40%

40%

39%

0% 20% 40% 60% 80% 100%

Ha Noi

HCMC

Da Nang

Hai Phong

Nha Trang

Can Tho

67%

69%

70%

60%

62%

65%

54%

24%

23%

23%

26%

26%

24%

28%

4%

4%

2%

3%

3%

5%

8%

5%

3%

6%

11%

9%

6%

10%

0% 20% 40% 60% 80% 100%

Total

HCMC

Ha Noi

Hai Phong

Da Nang

Nha Trang

Can Tho

Everyday Few times a week Once a week Less often



On weekends, internet usage is reduced by about 10 minutes. About 10% do not use the internet on weekends at all. Among young people (15-24 years), usage of the internet does not decrease on weekends.

Fig. 7. Length of internet usage

Source: Cimigo NetCitizens

2.3. Internet access Most people access the internet from home (75%). Other popular places to use the internet are at work (28%), and in an internet shop or cyber café (21%). On weekends, access from work and internet shop / cyber café declines.

In metro Vietnam (Hanoi and HCMC), access from home is more frequent than in other cities, and internet shops / cyber cafes are less common. Internet cafes are most frequently visited by young age groups and lower socio-economic classes.

Fig. 8. Places of internet access


Over the last 2 years, home access has gained in importance and is slowly replacing internet shops / cyber cafes. Internet access from home has increased by 15%, while on the same

25%

28%31%

15% 22%

21%30%

15%

11% < 1 hour

1-2 hours

2-5 hours

> 5 hours

don’t use

75%

28%

21%

5%

4%

73%

5%

16%

0%

3%

0% 20% 40% 60% 80% 100%

At home

At work

At internet shop\Cyber cafe

At college or school

Other

Weekday

Weekend

Weekdays: 139 minutes

Weekends: 130 minutes



time the access from internet shops / cyber cafes has dropped by more than 10%. Access from work increased slightly and has become the second most frequent place of internet access (data based on internet usage on weekdays in Hanoi and HCMC)

Fig. 9. Places of internet access 2007-2009 (weekdays)

Source: Cimigo NetCitizens (Hanoi / HCMC only)




61%

73%77%

26% 27% 30%29%23%

18%

5% 5% 5%

0%

20%

40%

60%

80%

100%

2007 2008 2009

At home

At work

At internet shop\Cyber cafeAt college or school





3. DEMOGRAPHIC PROFILE OF INTERNET USERS

3.1. Age and gender Internet users are significantly younger than the overall population in Vietnam. In the six cities included in the study, the average age of internet users is 29 vs. 36 in the total population. 50% of the internet users are below 27 years vs. 34 years in the total population. Only about a quarter of internet users are 35 years or older. 2

Fig. 10. Age of internet users vs. total population

Source: Cimigo NetCitizens and Cimigo Express

Internet users in Hanoi and HCMC are older compared to other cities. In Hai Phong, Da Nang, Nha Trang and Can Tho, the average age is 26-27, while an average internet user in Hanoi / HCMC is 32 / 30 years.

These results do not consider the frequency of internet access. Since younger people spend more time on the internet, the population that is online at one given point of time will be younger on average.

2 All figures refer to the population as defined in the NetCitizens study (urban Vietnamese population aged 15-64). People below 15 years are not included.

38%

21%

36%

31%

19%

33%

7%

16%

0% 50% 100%

Internet users

Total population

15-24 25-34 35-49 50-64

average: 36

average: 29



Fig. 11. Age of internet users by city


The internet is slightly more popular with males. 54% of internet users are male and 46% female, while in the general population the split is 49:51.

Fig. 12. Gender of internet users vs. total population


3.2. Socio-economic class (SEC) The socio-economic class of internet users is higher compared to the general population. More than half of internet users are from socio-economic class A and B, while in the general urban population the share of SEC A and B is at about 35%. Conversely, there are considerably more people from SEC D and E in the total population (35%) compared to the population of internet users (17%).

38%

29%

49%

50%

47%

49%

36%

37%

38%

35%

33%

30%

18%

25%

10%

13%

15%

17%

8%

9%

2%

3%

5%

4%

0% 20% 40% 60% 80% 100%

HCMC

Ha Noi

Hai Phong

Da Nang

Nha Trang

Can Tho

15-24 25-34 35-49 50-64

Average30

32

26

26

27

27

54%

49%

46%

51%

0% 20% 40% 60% 80% 100%

Internet users

Total population

male female



Fig. 13. Socio-economic class of internet users vs. total population


3.3. Education and Occupation About half of internet users have studied at university / college or are currently studying. 8% are post graduates, and 10% have an education at a vocational or technical college. About a third have reached grade 10-12 or less. Internet users in Metro Vietnam (Hanoi and HCMC) have slightly higher levels of education compared to other cities.

Fig. 14. Education of internet users


A third of internet users are students. The share of students is higher in cities such as Can Tho and Nha Trang compared to metro Vietnam, because the population of internet users in these cities is younger. Among the age group of the 15-24 years old, 80% are students.

Most common occupation of internet users are officers / executives, professionals and factory / retail workers. Overall about 40% of internet users can be classified as white-collar workers vs. 13% blue collar.

16%

10%

36%

26%

31%

27%

13%

23%

4%

13%

0% 20% 40% 60% 80% 100%

Internet users

Total population

A B C D E

8%

46%

11%

30%

5%

Post graduateUniversity / CollegeVocational or technical collegeGrade 10-12Grade 1-9



Fig. 15. Occupation of internet users





33%

15%

10%

9%

6%

5%

5%

4%

3%

3%

2%

1%

1%

1%

1%

0%

0% 10% 20% 30% 40%

Student

Officers / Executives - Junior

Professional (Doctor / Lawyer / Engineer / Teacher)

Factory / retail / construction / domestic worker

Officers / Executives - middle/senior

Retired / Seeking employment

Housewife

Business owner (less than 10 employees)

Clerical / Sales

Business owner (self-employed)

Small trader

Business owner (more than 10 employees)

Self-employed professional (Doctor / Lawyer / Engineer / Teacher)

Shop owner

Skilled trade / machine operator

Farmer / Fisherman





4. ONLINE ACTIVITIES AND APPLICATIONS

4.1. Overview What are Vietnamese people are doing when they are online, and how frequently do they use different online applications? This chapter covers usage data of 22 different online activities, classified into five categories:

• Information gathering • Online entertainment • Online communication • Blogging and social networks • Online business

Overall, the most frequent activity on the internet is information gathering, such as reading the news or using search sites. More than 90% have used such sites, and about half do it daily. The internet is also used to conduct research for school or office by more than half of internet users once a week or more often.

Another key field of online activity is entertainment. Music is the most popular area in this respect, with three-quarters of internet users having listened to music and nearly 60% having downloaded music already. More than 40% watch movies online, and one in five have already downloaded movies. Online gaming is slightly less frequent, with a usage of 35% for web games (games that can be played online without downloading an application) and 25% for online applications (games that have to be downloaded and installed first).

Communication is also a further key activity on the internet. Key activities in this area are chatting and e-mails (usage at about 70%). 20-25% have sent SMS online and used instant messaging.

With new interactive websites and online applications, users have the opportunity not only to retrieve information, but also to contribute their own content. In Vietnam, social networking and blogging are used frequently. 40-45% of users have already visited forums, blogs and social networks. Users take a more passive role on these sites, as only 15-20% have personally written their own blogs or posted in forums.

Online commerce is not very developed in Vietnam yet. The most popular commerce sites are online auctions and shopping websites, which 40% of users have visited already. Online banking is still in its infancy. The usage of online shopping and e-banking services has seen a strong growth over the last few years.



Fig. 16. Online activities done in the past


The usage of online activities and applications differs between age groups. In general, young internet users use more websites, and nearly all online activities measured in this report are more frequent with the age group 15-24 vs. 25-65. The largest difference is measured for online gaming, sending sms and posting in forums / blogs. These activities are nearly twice as frequently used by the young age groups.

However, some activities that do not follow this pattern: reading news, using search sites, e-mail, searching for jobs, and online shopping are done by all age groups to the same extent.

93%

91%

76%

73%

69%

68%

59%

46%

43%

40%

39%

38%

35%

25%

24%

22%

22%

21%

19%

19%

16%

10%

0% 20% 40% 60% 80% 100%

Use for news

Use a search site (e.g google)

Listening to music

Research for school\office work

Chatting

Email

Downloading music

Visiting forum

Watching movies

Visiting blogs

Visiting a social network

Shopping\Auctions

Playing games on web game

Playing games on online applications

Sending SMS

Searching for a job

Instant messaging

Downloading or uploading pictures

Downloading movies

Writing blogs

Posting in forum

E-Banking

Online information gatheringOnline entertainmentOnline communicationBlogging and social NetworksOnline business



Fig. 17. Online activities done in the past by age group


94%

88%

66%

66%

55%

67%

46%

38%

37%

29%

32%

38%

24%

16%

17%

21%

17%

15%

16%

11%

10%

14%

92%

97%

91%

84%

90%

69%

79%

59%

53%

55%

49%

38%

52%

38%

33%

24%

29%

30%

24%

31%

26%

4%

0% 20% 40% 60% 80% 100%

25-64 years 15-24 years

Use for news

Use a search site e.g Google

Listening to music


Chatting

Email

Downloading music

Visiting forum

Watching movies

Visiting blogs


Shopping\Auctions



Sending SMS

Searching for a job

Instant messaging


Downloading movies

Writing blogs

Posting in forum

E-Banking



4.2. Information gathering The category “Information gathering” includes the following four activities: 1) use for news, 2) using search sites, 3) research for school or office, and 4) searching for a job.

Reading news is the most popular activity on the internet. More than 90% are reading news on the internet, and 50% do it daily. Search sites such as Google are also visited daily by half of internet users. Research for school / office is slightly less frequent, but is still done by more than 50% once a week or more. Online job searching is only done by few people on a regular basis.

Reading news and using search sites are the most common online activities across all age groups and geographical regions in Vietnam. Males are using news sites more frequently than females, and usage is higher in Metro Vietnam (Hanoi and HCMC). The regularity of reading news on the internet increases with age. On the other hand, search sites are visited slightly more often by younger people.

Fig. 18. Information gathering: usage frequency


Over the last 3 years, the usage of online search sites has gained in importance. While less than 75% used search sites in 2007, more than 90% did so in 2009. Also, reading the news online and doing research for office / school increased since 2007.

54%

49%

29%

2%

29%

31%

28%

6%

5%

5%

8%

6%

6%

6%

8%

8%

0% 20% 40% 60% 80% 100%

Use for news

Use a search site e.g Google


Searching for a job

Everyday Once a week or more Once a month or more Less often

Total

93%

91%

73%

22%



Fig. 19. Information gathering: usage 2007-2009


4.3. Entertainment Online entertainment includes the following activities: 1) listening to music, 2) downloading music, 3) watching movies, 4) downloading movies, 5) downloading or uploading pictures, 6) playing games on web game,3 and 7) playing online games on online applications.4

3 Web games are games that can be played on a website without downloading to the computer 4 Online application games have to be downloaded to the computer first and can then be played independently from the website

Entertainment is a key field of internet usage in Vietnam. The main activity related to entertainment is listening to music, which more than half of internet users do on a regular basis. 60% have downloaded music already and 40% do it once a week or more often. Nearly half of internet users have already watched movies online. Gaming is less popular for the majority of internet users, however there is a core of about 10% of internet users who game every day.

Entertainment is clearly an activity for younger people. Internet users from 15 -24 years use all online entertainment activities significantly more often. The largest age difference can be found for listening / downloading music and application / web gaming.

Some entertainment activities are slightly more popular with males than females. A gender specific usage difference is mainly observed for activities that require more advanced technical equipment, such as playing games on online applications and downloading movies. No difference between genders is observed for other entertainment activities,

89% 89%94%

74%85%

92%

66% 69% 73%

25% 25% 22%

0%

20%

40%

60%

80%

100%

2007 2008 2009

News

Search

Research for school / office

Job searching



Fig. 20. Entertainment: usage frequency


Online entertainment has gained in importance over the last few years. The share of internet users that download music has increased by 9%, and watching movies on the internet has become more popular since 2007 (for other entertainment related activities, no trend data is available).

Fig. 21. Entertainment: development 2007-2009


30%

12%

5%

10%

9%

2%

3%

30%

25%

17%

13%

8%

7%

6%

8%

12%

9%

5%

3%

6%

6%

8%

10%

12%

6%

5%

6%

4%

0% 20% 40% 60% 80% 100%

Listening to music

Downloading music

Watching movies




Downloading movies


50%

60% 59%

37%41% 43%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Downloading music

Watching movies

Total

76%

59%

43%

35%

25%

21%

19%



4.4. Communication The category “Communication” in this report includes the following 4 activities: 1) e-mail, 2) chatting, 3) sending SMS, and 4) instant messaging.

Communication plays an important part in internet usage. Most frequent communication forms are chatting and e-mail. While the usage of both chatting and e-mailing is about 70%, people chat more frequently in an average week compared to e-mailing. Sending SMS online or instant messaging is less popular (20-25%).

Young people use online communication more frequently. Chatting is one of the most popular activities for young internet users. nearly half of the age group of 15-24 chat on a daily basis. E-mail, on the other hand, is used more frequently by the 25-34 year olds.

Fig. 22. Communication: usage frequency


The usage of communication functions on the internet decreased slightly from 2007 to 2009. Both chatting and e-mails decreased by about 10%, and also instant messaging is used significantly less often.

30%

24%

5%

6%

24%

23%

8%

8%

6%

10%

5%

3%

8%

11%

7%

4%

0% 20% 40% 60% 80% 100%

Chatting

Email

Sending SMS

Instant messaging


Total

69%

68%

24%

22%



Fig. 23. Communication: development 2007-2009


4.5. Blogging and social networks The category “Blogging and social networks” includes the following five activities: 1) visiting forums, 2) posting in forums, 3) visiting blogs, 4) writing blogs, and 5) visiting a social network.

Blogs and social networks are used by a substantial number of people in Vietnam and constitute an important part of the internet life. Nearly half of internet users have already visited forums, blogs and social networks. Daily usage is highest for social networks (13%), while forums and blogs are more often visited on a weekly basis. An average user takes a rather passive role in blogging: while 40% have visited blogs, only 20% have actually written a blog themselves. The same pattern is observed for forums: 50% have already visited a forum, but only 16% have actively posted in a forum.

Blogging and social networks are clearly a field of activity for the young people. The majority of internet users below 25 have already visited a forum, blog and social network, and usage is about 50% higher compared to older age groups. The main difference between age groups, however, lies in the active contribution of content to the internet: users below 25 years are posting three times as often in forums and writing blogs compared to users 25-65 years.

An interesting difference can be observed between gender. Females are more often visiting and writing blogs, while visiting and posting in forums is more popular with males. With social networks, no clear gender difference can be observed.

There is also a geographical difference: in the North (Hanoi and Hai Phong), blogging and social networking are more popular than in other areas. The largest difference is seen for activities that involve any form of self-expression. Internet users in Hanoi are 40% more likely to having written a blog, and twice as many have posted in a forum compared to internet users in HCMC.

78%74% 70%

79% 76%69%

25% 23% 23%

34% 36%

23%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Email

Chatting

Sending SMS

Instant messaging



Fig. 24. Blogging and social networks: usage frequency


Usage of blogging and social networks has slightly declined since 2007. The biggest decrease can be found for writing blogs with at drop from 27 to 20%. The main reason for this might be the closing of Yahoo 360 in 2009, which had been by far the most popular blogging application in previous years.

It has to be considered that these figures are percentages and not absolute numbers. With growing internet penetration in the Vietnamese population, the absolute number of people using blogs and social networks might still have increased.

Fig. 25. Blogging and social networks: development 2007-2009


12%

6%

13%

2%

2%

19%

14%

12%

6%

6%

8%

8%

6%

4%

4%

8%

11%

8%

7%

4%

0% 20% 40% 60% 80% 100%

Visiting forum

Visiting blogs


Writing blogs

Posting in forum


49% 47%

47% 46%41%

24% 27%20%

18% 16%0%

20%

40%

60%

80%

100%

2007 2008 2009

Visiting forum

Visiting blogs

Writing blogs

Posting in forum

Total

46%

40%

39%

19%

16%



4.6. Online Business The category “Online business” includes the following activities: 1) e-banking, and 2) online shopping / visiting buy and sell sites / auctions.

Online business is not yet very developed in Vietnam. Only about 40% of internet users in Vietnam have ever visited an online shopping or auction site, and very few have ever used e-banking.

Online shopping is more frequent in the north (Hanoi and Hai Phong) and most popular with the age groups 15-35. Both online shopping and e-banking increases with higher socio-economic class.

Fig. 26. Online business: usage frequency


Online business is one of the areas that has seen the strongest increase of all measured activities in the last few years. Online shopping has increased by 12 percentage points and reached 40% in HCMC / Hanoi. Also e-banking has become more popular in this time period with an increase from 7 to 11%.

Fig. 27. Online business: development 2007-2009


5% 15% 8% 10%

0% 20% 40% 60% 80% 100%

Shopping\visting buy and sell sites\Auctions

E-Banking


28%34%

40%

7% 7%11%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Online shopping

E-banking

Total

38%

10%



5. VISITED WEBSITES

5.1. Websites visited in past 4 weeks This chapter highlights the websites that survey respondents have recently used. Data refers to the time period Oct-Nov 2009.5

5 Results in this chapter refer to the penetration of websites in the overall population of internet users in Vietnam. Penetration is measured with the % of internet users who have used specific websites in the past 4 weeks. Penetration doesn’t take into consideration the frequency of visit, length of visit, or number of clicks. Therefore, numbers reported in this chapter might differ from results reported by analytical website measurement tools, where website performance is usually measured with ‘page views’, ‘unique visitors’, ‘unique visits’ or similar metrics.

Google is the most widely used website in Vietnam. Nearly half of internet users have used google in the past month. Google is the most often used website across gender, age groups, socio-economic class and geographical regions.

Zing shows the second largest penetration. One in four internet users in Vietnam have used one of the various Zing websites in the past month. Among the different services Zing offers (movies, music, games, news, chat etc), mp3.zing.vn is the most popular.

About one in four internet users has recently used Yahoo. Included in this figure are yahoo.com, yahoo.com.vn, Yahoo messenger and Yahoo mail.

Vietnamese online newspapers follow as the next popular websites. Dan Tri (dantri.com.vn) has been visited by nearly 20%, and nearly 50% of internet users in Hanoi. VnExpress (vnexpress.net) and Tuoi Tre (tuoitre.com.vn) both have been used by 16-17%. Users of VnExpress are concentrated in Metro Vietnam (Hanoi / HCMC), and Tuoi Tre users are primarily located in the South. 24h (24h.com.vn) and Thanh Nien Online (thanhnien.com.vn) rank 8 and 9 with about 10% penetration to each.

The following ranks consist of a mix of online music (nhaccuatui.com, nhac.vui.vn, nhacso.vn), websites targeted to the youth (ngoisao.net, kenh14.vn), social networks, gaming sites etc.



Fig. 28. Websites visited in past 4 weeks6


a) incl. google.com, google.com.vn b) incl. mp3.zing.vn, zing.vn, me.zing.vn , kiemthe.zing.vn, movie.zing.vn, news.zing.vn, volam.zing.vn c) incl. yahoo.com, yahoo.com.vn, yahoo messenger, mail.yahoo.com, yahoo 360plus

Overall more than 2000 different websites were captured. To give a better overview, websites were classified based on their main content and aggregated.

Half of the websites accessed in the past 4 weeks were either online newspapers or music / entertainment sites. Other popular website groups are social networks, games, shopping and movies.

6 Time period Oct-Nov 2009

46%

26%

23%

19%

17%

16%

11%

11%

9%

8%

6%

6%

5%

5%

3%

3%

1%

1%

1%

1%

0% 20% 40% 60% 80% 100%

Google

Zing

Yahoo

Dantri.com.vn

VnExpress.net

Tuoitre.com.vn

Nhaccuatui.com

24h.com.vn

Thanhnien.com.vn

Facebook

Ngoisao.net

Vietnamnet.vn

Kenh14.vn

Nhac.vui.vn

Nhacso.net

Youtube.com

Trochoiviet.com

Bongda.com

Congan.com.vn

Mobifone.com.vn

a

b

c



Fig. 29. Websites visited in past 4 weeks (classified)


There is strong differences in website usage by age group. In general, younger people tend to use more websites than older people; therefore penetration is usually higher amongst young people.

Among the age group 15-24, Google and Zing are the two top sites, with penetration above 40%. Internet users aged 25-34 are predominantly focused on online newspapers, and usage of the major music and entertainment sites drops considerably. Internet users 35+ are solely focused on online newspapers and use entertainment sites to a very small extent.

Fig. 30. Websites visited in past 4 weeks by age group



The usage of online newspapers differ by geographical region. Dantri and Vietnamnet are mainly used in Hanoi, while penetration of Tuoitre and Thanh Nien is high in HCMC.

28%

23%20%

7%

5%

4%3%

10%Online Newspaper

Music/ Entertaiment

Searching

Social Network

Game

Shopping

Movies

Others

Website Total 15-24 25-34 35-49 50-64Googlea 46% 53% 45% 39% 34%Zingb 26% 44% 18% 9% 5%Yahooc 23% 25% 25% 18% 14%Dantri 19% 15% 24% 20% 20%VnExpress.net 17% 11% 26% 14% 8%Tuoitre.com.vn 16% 10% 19% 20% 34%Nhaccuatui.com 11% 17% 9% 4% 4%24h.com.vn 11% 11% 13% 9% 5%Thanhnien.com.vn 9% 4% 11% 12% 21%Facebook 8% 13% 7% 1% 0%



Fig. 31. Websites visited in past 4 weeks by city



5.2. Websites used for blogging and social networking At the time the survey was conducted (Oct / Nov 2009), facebook was the most popular social networking website. Nearly 50% of those who use social networks had a membership on facebook. The newly introduced Yahoo 360 Plus was used by about 10%. Other popular social networks are Zing, truongton.net and HI5.7

Fig. 32. Websites used for Social Networks

Source: Cimigo NetCitizens (percentages based on users who are a member of a social networks)

7 Social networks are defined as websites where you can create your own profile, invite friends and communicate with other website members

Website Total HCMC Hanoi OtherGooglea 46% 48% 36% 51%Zingb 26% 28% 18% 27%Yahooc 23% 27% 15% 21%Dantri 19% 9% 46% 21%VnExpress.net 17% 18% 23% 9%Tuoitre.com.vn 16% 23% 2% 14%Nhaccuatui.com 11% 13% 7% 8%24h.com.vn 11% 10% 12% 13%Thanhnien.com.vn 9% 10% 1% 12%Facebook 8% 9% 11% 4%

47%

11%

6%

3%

2%

0% 20% 40% 60% 80% 100%

Facebook

Yahoo 360 Plus

Zing

Truongton.net

Hi5



Yahoo 360plus, the successor of Yahoo 360, was the most important blog website at the time of the survey. More than 50% used Yahoo 360plus to write their blog. Facebook was used for blogging by about 30%. None of the other websites had a share above 2%.8

Fig. 33. Websites used for blogs

Source: Cimigo NetCitizens (percentages based on users who have their own blog)

5.3. Most favourite websites Respondents specified their preferred website for individual activities. Activities are grouped the into the following categories:

• Information gathering • Online entertainment • Online communication • Online business

5.3.1. Information gathering

Google is the unchallenged favourite in Vietnam for any form of internet search or research. 80% use google as their preferred search site, and nearly 50% prefer it for school / office research.

Preference for online newspapers is more varied. Overall, the favourability of Tuoitre, Vnexpress and Dantri is on a similar level. However, there are large differences by region. Tuoi Tre is the preferred news site in HCMC (32%), but in Hanoi very few would agree to this. On the other hand, Dantri is favoured in Hanoi, but not really preferred in HCMC. VNExpress is favoured amongst the two big cities, but less in smaller cities.

8 A Blog is defined as a personal online journal that is frequently updated and intended for general public consumption

53%

31%

2%

1%

1%

0% 20% 40% 60% 80% 100%

Yahoo 360 Plus

Facebook

My.opera.com

Zing

Multiply.com



Fig. 34. Favourite websites for information gathering

Source: Cimigo NetCitizens (percentages based on users of each activity)

5.3.2. Online entertainment

Online entertainment in Vietnam is clearly dominated by Zing. Zing is the most preferred website for nearly all kinds of online entertainment, such as watching movies, listening to and downloading music, gaming etc.

Besides Zing, there are some other favourite websites in specific areas. Youtube and Xuongphim are popular for movies. Nhaccuatui, Nhacso and Nhacvui are preferred for online music. For web gaming, Trochoiviet and Facebook are favoured by about 10%.

Fig. 35. Favourite websites for online entertainment


5.3.3. Online communication

Yahoo is the most preferred provider of all forms of online communication. The majority would name Yahoo as their favourite provider for e-mail, instant message, chatting and sending SMS. Yahoo’s popularity is slightly lower in Hanoi than in HCMC.

Next to Yahoo, a minority prefer Google for e-mail (gmail) and instant message. Mobifone is the preferred provider to send SMS and instant messages for 5-10%.

Search NewsGoogle 81% Tuoitre.com.vn 17%Yahoo 1% Vnexpress.net 17%

Dantri.com.vn 16%

Research (school /office) Job searchGoogle 45% Google 19%Vnexpress.net 2% Vietnamworks 18%Dantri.com.vn 1% 24h.com.vn 6%

Watching movies Downloading movies Listening to musicZing 11% Zing 12% Zing 38%Youtube 7% Youtube 4% Nhaccuatui 21%Xuongphim 5% Xuongphim.com 4% Nhacso.net 11%

Downloading music Web gaming Application gamingZing 45% Zing 18% Kiemthe.zing.vn 10%Nhaccuatui 23% Trochoiviet.com 10% Volam.zing.vn 9%Nhac.vui.vn 9% Facebook 9% Audition 5%



Fig. 36. Favourite websites for online communication


5.3.4. Online business

The most popular online shopping and auction sites are 5giay.vn, raovat.com and 123mua.com.vn. However, preferences strongly differ by region. In Hanoi, the most preferred sites are enbac.com and muare.vn, while these sites are not frequently used in the South. In contrast, 5giay and 123mua are used infrequently in the North.

Preferred providers of e-banking are Vietcombank, DongA bank and ACB.

Fig. 37. Favourite websites for online business





E-mail Instant messageYahoo 67% Yahoo 64%Gmail 16% Mobifone 6%Facebook 1% Google 4%

Chatting Sending SMS onlineYahoo 87% Yahoo 68%Zing 1% Mobifone 8%Facebook 1% Vinaphone 5%

Online shopping E-banking5giay.vn 13% Vietcombank.com.vn 22%Raovat.com 10% Dongabank.com.vn 10%123mua.com.vn 8% Acb.com.vn 9%





6. INTERNET ATTITUDES

This chapter will investigate the perceptions that users have towards the internet attitudes are divided into the following areas: social connection, information gathering, trust, reliability, online buying and online advertising.

6.1. Overview As shown in chapter 5, information gathering and communication are the most important activities on the internet. Accordingly, the vast majority of internet users would strongly agree that ‘the internet is an important source for news and information’, and that ‘the internet helps to connect with friends and meet new people’. Only very few people think that the internet ‘makes them feel more lonely’.

The internet also plays an important role for product selection and buying. Three quarters of internet users find out about new brands and products on the internet and about half of them think that they can buy a very wide choice of products online. However, trust in online payment is still low, as very few people think it is safe to buy products online.

Fig. 38. Overview of internet attitudes


91%

80%

73%

49%

42%

14%

13%

0% 20% 40% 60% 80% 100%

The internet is an important source for news and information

The internet helps to connect with friends and meet new people

The internet helps me to find out about new products and brands

I can buy a very wide choice of products on the internet

I generally trust the information founf on the internet

I think it is safe to buy products online

In the age of internet, I feel more lonely

agree



6.2. Social connection Establishing and maintaining connection with friends is a key area of the internet in Vietnam and chats, email, blogs and social networks are widely used. 80% of internet users think ‘the internet plays an important role in connecting with friends and meeting new people’. Younger age groups agree to this statement more than older age groups.

The negative side of the growing internet usage is a potential social isolation. This aspect seems to be marginal in Vietnam, as only 10-15% people think that they feel more lonely in the age of the internet. The effect of social isolation was higher for older age groups, male internet users and users from the south. These are also the groups that tend to use less social activities online, such as blogging, chatting or social networks.

Fig. 39. Attitudes towards social connection


6.3. Information gathering As shown in chapter 5, using search and news sites are the most common activities on the internet. Accordingly, most internet users agree that the internet ‘plays an important role as a source for news and information’. Agreement to this statement is slightly higher among older age groups and users from higher socio-economic classes.

Most users would agree that the ‘internet is useful to find out about new products and brands’. Agreement is slightly higher among males and users in the North.

Fig. 40. Attitudes towards information gathering


80%

13%

12%

14%

8%

73%

0% 20% 40% 60% 80% 100%

The internet helps to connect with friends and

meet new people

In the age of internet, I feel more lonely

Agree Neutral Disagree

91%

73%

6%

17%

3%

10%

0% 20% 40% 60% 80% 100%

The internet is an important source for news

and information

The internet helps me to find out about new

products and brands




6.4. Trust / Reliability There is a mixed level of trust in the Vietnamese population towards information found on the internet. About 40% think information on the internet is trustworthy in general, but 20% wouldn’t agree. In metro Vietnam (mainly HCMC), people are slightly more sceptical towards the information on the internet. The level of trust increases with age.

Fig. 41. Attitudes towards trust


Compared to other media channels such as TV and newspaper, the information on the internet is perceived as less reliable. People would rely more on the information on TV and in newspapers. Overall, TV is perceived as the most reliable medium.

In Hanoi and HCMC, the internet is rated significantly less reliable than in other cities. In HCMC, people are also more sceptical towards TV.

Fig. 42. Perceived reliability of different media channels (average 1-10)


6.5. Online buying Buying products on the internet is not very common in Vietnam. As seen in chapter 5, only a minority of internet users are using shopping and auction sites regularly. Most internet users would actually agree that they ‘can buy a wide range of products on the internet. However,

42% 36% 22%

0% 20% 40% 60% 80% 100%

I generally trust the information found on the internet


7.5

6.8

6.4

1 2 3 4 5 6 7 8 9 10

TV

Newspaper

Internet

1= totally unreliable totally reliable=10



only very few think it is ‘safe to buy products online’. 60% do not have trust in online payment systems.

Fig. 43. Attitudes towards online buying


6.6. Online advertising The feelings towards online advertising are mixed. A small group of internet users find online ads very intrusive and irritating, but some find them quite entertaining. About half of users have a rather indifferent attitude towards online advertising, either ignoring or not noticing them at all. 35% sometimes click on an online ad that catches their attention. Young internet users have a slightly more positive attitude towards online advertising and also tend to click more on ads that catch their interest.

Interest in online advertising has decreased slightly over the last few years. Also, TV advertising is rated as slightly more interesting than internet advertising.

Fig. 44. Attitudes towards online advertising


49%

14%

21%

27%

31%

59%

0% 20% 40% 60% 80% 100%

I can buy a very wide choice of products on the

internet

I think it is safe to buy products online


10%

35%

30%

15%

10%

0% 20% 40% 60% 80% 100%

I find some of them quite entertaining

I have occasionally clicked on them

I don't really notice them

I totally ignore them

I find them very intrusive\irritating

45% interested

55% not interested



CIMIGO COMPANY PROFILE

Cimigo is an independent team of marketing and brand research specialists. Cimigo employs over 200 research specialists contributing to great brands and their effective communications.

Founded in Ho Chi Minh City, Vietnam in 2003 Cimigo then expanded across major cities in Vietnam and beyond. Within 12 months Cimigo opened offices in Ha Noi, Hai Phong, Da Nang, Can Tho, and Nha Trang. In 2004 Cimigo developed operations in China and India. Today Cimigo operates across the Asia Pacific region from Japan to Cambodia.

Cimigo provides research based consulting. Cimigo advises four of the top five advertisers in Vietnam.

Cimigo regularly publishes reports that are publicly available in Vietnam. For example, Cimigo just released the first report about the advertising market in Vietnam (Vietnam Online Advertising Report 2009, published in March 2010). To see an overview of the latest studies, visit www.cimigo.vn.

Contact Information Cimigo 9 Nguyen Huu Canh Street Binh Thanh District HCMC Vietnam T: (84 8) 3822 7727 Ext: 320 E: [email protected] www.cimigo.vn







c1792 netcitizens report final (en) 23 03-10

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