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Philippines, Vietnam and India to lead Asia tech growth in 2022

04:25, 28 February 2022

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Philippines, Vietnam and India expected to be 2022 star players in Asia tech growth – Photo: Shutterstock

Philippines, Vietnam and India are likely to post the highest growth rate on technology-related purchases of goods and services in 2022, a recent report from Forrester Research indicates. 

Other Southeast Asian nations like Malaysia and Indonesia follow closely as vaccinations picked up pace in these countries leading to resurgence in business.  

Forrester expects Philippines, Vietnam and India will grow by 9.1%, 9% and 8.7%, respectively, when it comes to the tech sector. 

Southeast Asia to bounce back

“We also expect markets in Southeast Asia to bounce back strongly after a lacklustre growth in 2021. Tech spending in Malaysia and Indonesia will grow by about 8%, while that in Thailand would be 7.1%. 

China’s tech market growth will slow a bit, from 9.7% in 2021 to 8.2% in 2022. In Australia, we expect massive 6.6% growth in 2002, well above the CAGR (compound annual growth rate) from 2015 to 2019,” the report said.

The three other key markets in the region — Singapore, South Korea and Japan — will see slower growth of 4.4%, 3.5% and 3.3%, respectively.

Australia will continue to grow

Australia’s tech market, which began to bounce back in 2021, will continue to do so in 2022. Forrester forecast the country’s tech market will grow by 6.6% in 2022. In this year, software spending will grow by 9.8%, the most of any tech category. 

Following the epic surge in 2021, hardware investment will soften to pre-pandemic levels, the report noted.

China’s tech market returned to rapid growth in 2021 but expected to slow in 2022. The country’s tech spending growth will slow due to declining factory activity and supply chain constraints, softening consumer consumption, and a slowing property sector.

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India growth rate was 9.8% for 2021

India’s tech market forecast indicates a 9.8% growth in 2021 and 8.7% in 2022. Following 2021’s spending spree, growth in hardware and communication equipment will dip while tech consulting and tech outsourcing will continue to grow. 

After cutting hardware spending in 2020, technology leaders in India spent 7% more on it in 2021. Communication equipment also saw strong 6.9% growth as telecommunications companies expanded their investment in 5G. Software was the only spending category that did not take a significant blow during the 2020 contraction.

Software to lead growth

The growth in Asia-Pacific technology markets will be led by software with a 9.2% growth. Customer relationship management, business intelligence, digital experience and human capital management projects will drive software investments in 2022 across APAC. 

The demand for emerging technology such as 5G, the Internet of Things, artificial intelligence and blockchain will also fuel growth, albeit from a much lower base. As a result, overall software spending will grow by around 9.2% in 2022.

Driven by modernisation initiatives, tech consulting and software integration services will grow by nearly 6% as cloud migration projects will accelerate across the region, and application modernisation will increasingly replace lift-and-shift projects.

Computer equipment growth will slow to 4% after a strong 2021, when an urgent need to support employees working from home drove a surge in investment in personal computers, tablets and peripherals. 

Chip shortage still a concern

Cloud infrastructure providers and large data centre operators increased spending on servers to support higher transaction volumes. Growth in 2021 could have been higher had it not been for the chip shortage, but in 2022, growth would slow as supply chain issues continue to plague the industry and reopening of offices across limit further home equipment purchases.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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