According to data from market research company GfK, by the end of last November, total smartphone shipments in Vietnam reached 13,563 million.
While Vietnam smartphone market is said to reach its saturation point, the level of competition in this industry has become higher and higher when there are more and more businesses entering. Currently, there are nearly 20 brands of smartphones being in use in Vietnam.
The local market is dominated by foreign manufacturers including Samsung, Oppo and Apple.
Samsung, which produces smartphones in Vietnam, has taken a 46.5 per cent share of market, followed by China's Oppo at 19.4 per cent and Apple at 9.2 per cent.
Samsung has created a smartphone production hub in Vietnam by bringing in South Korean, Japanese and other suppliers. In fact, Samsung is also currently the largest enterprise in Vietnam which employs more than 100,000 Vietnamese workers and makes Vietnam the second largest smartphone exporter in the world (ater China).
China's brand Oppo ranked second and its market share has been substantial for a long time thanks to fashionable mid-class products and a lot of many effective advertising and marketing campaigns focusing on young customers.
Apple ranked third in terms of market share but its iPhone with price at roughly $600 and more is still the number one choice for consumers in the premium segment.
Compared to the three leading brands, the market share of the rest is low, not more than five per cent.
However, despite the dull market, some Vietnamese companies plan to launch or expand production of smartphones in a challenge to foreign brands within one year, in which they will embark on marketing offensives with low-priced models with features and technologies meeting the needs of consumers. .
Vingroup recently set up VinSmart with a capital of $131 million to enter the smartphone market through production of smart electronics starting with the production of smartphone branded Vsmart. Vsmart plant with international standards will be built at VinFast auto manufacturing complex in the Hai Phong's Dinh Vu – Cat Hai economic zone.
Home electronics maker Asanzo, which primarily produces TVs, also spent $8.73 million capturing cheap phone market. Last year, Asanzo produced 12,000 units with price at VND2 million (nearly $87) and it hopes to produce more than 600,000 units this year. This maker considered releasing inexpensive models, priced at VND1 million (roughly $43).
Asanzo aims to turn smart phones into a strong part of bussiness, contributing 30 per cent to its total revenue.
A leading security software company in Vietnam BKAV put the first domestically made smartphone on the market under Bphone brand in 2015 and it will introduce the third-generation Bphone in the second half of this year.
Mobiistar, the fourth-largest smartphone brand in Vietnam, has recently been exported to India. However, its strategy is like that of other local manufacturers, starting with the low-end smartphone segment.