The growing smartphone market has soared globally and Vietnam smartphone consumer market has been growing at a pace of 10% per year. In just 2017, Vietnam sold more than 15 million smartphones to become the largest market for manufacturers. Local buyers are, however, selective of their choices and big brands like Sony and Nokia remain the least popular among Southeast Asian countries. Samsung, having a long establishment in the country, dominates almost half of Vietnam’s smartphone market. As the market expands, local Vietnamese companies will compete in the market with lower-priced models. Vietnam’s competition of smartphone production has only just began.

Samsung dominates the smartphone market with 46.5% of shares, with China’s Oppo following at 19.4% and Apple at 9.2%. Oppo ventured into the Vietnamese market in 2012 with specialized selfie functions and surpassed Apple within 5 years to become Vietnam’s second largest smartphone provider. Xiaomi, a Chinese manufacturer, is partnering with Vietnam’s consumer electronic retailer Digiworld to expand its market presence.

Samsung has created a smartphone manufacturing hub in Vietnam, bringing in specialists, engineers and parts providers, in which many have joined local companies.

Vietnam-based companies, including Vingroup, Vietnam’s largest developer, announced its establishment of VinSmart, a subsidiary valued at USD 131 million, to launch its smartphone brand, Vsmart. The brand will tackle on artificial intelligence development and the production of smartphones and electronics.

Asanzo, an electronic manufacturer, plans to have 6 million smartphones produced by 2018 with a capital injection of USD 87.3 million, a 50% production increase from last year. Today, 90% of Asanzo’s revenue is produced from TV production and smartphone production contributes to less than 1%. Its plans is to vamp up the revenue to 30% by 2020. In 2017, Asanzo entered the smartphone market with two models and has since produced a total of 12,000 units. Asanzo plans to release its new low-prioced by 2018 models and produce more than 600,000 units.

Bkav, a leading Vietnam-based security software company has introduced its smartphone model, Bphone in 2015, with prices 40% lower than the iPhone. The company will launch a new model this summer.

To welcome an age of smart technology, local Vietnamese smartphone producers will compete in the market with lower-priced models. Samsung reacted to the changing competitiveness in the market and now targets markets in major cities like Hanoi and Ho Chi Minh City, whereas Oppo and Xiaomi will target the farming district’s niche markets. However, to retain its leading status in the market, Samsung has ran promotional events in the rural market to compete with China’s growing companies.

Source: Tech News