The information technology (IT) infrastructure in Vietnam will be upgraded this year to promote public services and create greater outsourcing opportunities, according to a report prepared by the International Data Corporation (IDC).The report says IT spending in the country would reach 3.25 billion USD, an annual growth of 19.2 percent in comparison with the 8.4 percent increase last year. This would make Vietnam o­ne of the top IT spending nations in the Asia-Pacific region. The Cloud application will be extensively applied as the Vietnamese government and businesses try to cut expenditures, the report says. IDC also believes that this year, big telecommunication corporations will buy up smaller o­nes because of market saturation, and fierce competition will take place among big players like VinaPhone, MobiFone and Viettel. The report also predicts stronger growth of smartphones. By the middle of last year, smartphones had taken 9 percent of total market share, with 400,000 units, but by the end of this year, the figure might reach 2.7 million. The growth of smartphones would help service providers improve their income because 80 percent of their turnover comes from voice services, which is decreasing, the report says. Value added services will be a necessary solution to keep customers, it adds. Another significant prediction is a 92 percent growth in tablet consumption, creating more difficulties for PC distribution. The security authentication market is expected to recover with growth of 28 percent despite a tough year in 2011, far from the 43 percent growth seen in 2010. The market will be helped by strong development of e-payment as Vietnam reaches 26 million Internet users towards the end of this year. The strong development of web-based social networks will also boost electronic trade, the report says.