Vietnam Smartphone Market, By Operating System (Android, iOS, Others), By Display Technology (AMOLED, OLEO, LCD, Others), By Sales Channel (Supermarkets/Hypermarkets, Multi-Brand Stores, Exclusive Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Vietnam smartphone market was valued at USD 6.71 Billion in 2024 and is expected to reach USD 11.50 Billion by 2030 with a CAGR of 9.4% during the forecast period. The Vietnam smartphone market is experiencing robust growth, driven by rising disposable incomes, increasing digital literacy, and rapid urbanization across the country. With a young and tech-savvy population, smartphone adoption is soaring, fueled by strong internet penetration and expanding 4G and 5G infrastructure. Vietnam's shift towards a digital economy, with initiatives promoting cashless payments, e-learning, and e-governance, is further boosting smartphone demand. Mid-range and budget-friendly smartphones continue to dominate, as local consumers seek value-for-money devices with competitive features, particularly in camera quality, battery life, and processing power. Additionally, aggressive marketing campaigns, product launches, and financing schemes by both global and regional smartphone brands are accelerating consumer interest and purchase decisions. E-commerce platforms and online retail channels have become increasingly important, offering convenience, discounts, and wider access to the latest models, especially post-COVID-19. Environmental consciousness is also shaping market dynamics, with increasing interest in sustainable and longer-lasting devices, as well as growth in refurbished smartphone sales. The entry of Chinese manufacturers such as Xiaomi, Oppo, and Vivo has intensified competition, compelling market leaders like Samsung and Apple to innovate and localize offerings. The government’s efforts to promote domestic production and reduce import dependency through initiatives like “Make in Vietnam” are also expected to attract investment in local smartphone assembly and component manufacturing. Furthermore, the growing popularity of mobile gaming, short-form video content, and AI-powered applications is influencing consumer preferences toward higher-specification devices. Overall, the Vietnamese smartphone market is positioned for sustained expansion, underpinned by technological advancement, rising consumer aspirations, and favorable government policies supporting digital growth.

Key Market Drivers

Growing Youth Population and Increasing Digital Adoption

Vietnam’s demographic profile, with a median age of around 32 years, plays a crucial role in driving smartphone market growth. As of January 2025, Vietnam’s population reached approximately 101 million, with a median age of 33.4 years—up from around 32—indicating a young, economically active demographic highly receptive to smartphone adoption. The country boasts a large, young, and increasingly digital-native population that actively engages with online platforms for communication, entertainment, education, and commerce. The rising digital literacy, especially among Gen Z and millennials, is fueling demand for smartphones as essential tools for daily life. With widespread adoption of social media platforms such as Facebook, TikTok, and Instagram, there is a continuous push for feature-rich smartphones that offer high-quality cameras, fast processors, and seamless internet connectivity. Additionally, the rise of mobile-first behaviors—such as streaming, gaming, and online learning—has made smartphones not just communication devices but central to lifestyle and work. This generational digital shift is expected to sustain long-term growth in smartphone penetration and replacement cycles.

Expansion of 4G/5G Infrastructure and Government Support for Digitization

The rapid expansion of 4G networks and the gradual rollout of 5G services are crucial enablers of smartphone adoption in Vietnam. As of early 2024, Vietnam achieved 99.8% 4G population coverage, surpassing even some high-income nations (versus a global average of ~99.4%). The Vietnamese government has prioritized digital transformation through programs such as the National Digital Transformation Program by 2025, which aims to integrate digital technologies across public and private sectors. These initiatives include boosting internet infrastructure, encouraging e-governance, and expanding digital payments—all of which necessitate the use of smartphones. The anticipated commercial deployment of 5G by major telecom operators is further expected to drive demand for compatible devices, particularly in urban centers. These infrastructure improvements are also likely to support new applications such as cloud gaming, real-time translation, and IoT-based services, all of which require high-performance smartphones. As rural areas gain better network access, the smartphone market is poised to penetrate deeper across geographies.

Rising Affordability and Growth of E-commerce Channels

Vietnam’s smartphone market has benefited significantly from increasing affordability of devices and widespread access to online sales channels. The presence of multiple global and regional brands, particularly Chinese manufacturers like Xiaomi, Realme, and Vivo, has led to intense price competition, resulting in high-quality smartphones being available at competitive price points. This trend has expanded access to smartphones among low- and middle-income consumers. Moreover, the rise of e-commerce platforms such as Tiki, Shopee, and Lazada has transformed smartphone retail, offering flash sales, discounts, installment options, and doorstep delivery. Online platforms have become particularly influential in shaping consumer choices through influencer marketing, detailed reviews, and AI-based recommendations. The convenience and reach of these digital channels are accelerating smartphone purchases, making them a key driver of market expansion.

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Key Market Challenges

Market Saturation in Urban Areas and Slowing Replacement Cycles

One of the key challenges facing the Vietnam smartphone market is the increasing saturation in urban regions. Major cities such as Ho Chi Minh City, Hanoi, and Da Nang have already achieved high smartphone penetration, leaving limited room for organic growth. As a result, the pace of new user acquisition has slowed, forcing brands to rely heavily on replacement purchases. However, with advancements in smartphone technology, many users are holding onto their devices for longer periods, extending the replacement cycle. This trend dampens the overall market growth, especially for high-end segments where customers tend to retain phones for 2–3 years or more. To sustain momentum, manufacturers must innovate rapidly and differentiate their products in a highly competitive and mature market, which can strain R&D resources and marketing budgets.

Price Sensitivity and Low Brand Loyalty

Vietnamese consumers are highly price-sensitive, particularly in the mid- and low-end smartphone segments that constitute a significant portion of the market. Despite growing aspirations, many consumers remain cautious about spending large amounts on premium devices. This price sensitivity often leads to frequent switching between brands based on promotions, discounts, or slight feature advantages, resulting in low brand loyalty. It also makes the market highly susceptible to economic fluctuations. Inflationary pressures, currency depreciation, or increases in import duties can quickly dampen demand. This environment forces manufacturers to compete on price, which can erode profit margins and limit investments in innovation or after-sales services. Moreover, consumers’ growing reliance on online reviews and peer recommendations puts additional pressure on brands to constantly outperform competitors in both quality and affordability.

Supply Chain Constraints and Component Dependency

Vietnam’s smartphone industry is still heavily reliant on imported components and foreign technology, making it vulnerable to global supply chain disruptions. The COVID-19 pandemic, geopolitical tensions, and raw material shortages have highlighted how dependent the market is on external sources for semiconductors, displays, batteries, and other critical parts. Any disruption in the global supply chain can lead to shipment delays, cost escalations, and reduced availability of popular models. Additionally, while the government is encouraging domestic manufacturing under initiatives like “Make in Vietnam,” the local ecosystem for high-tech component manufacturing is still underdeveloped. This limitation affects the scalability and responsiveness of domestic production, hindering the ability of brands to meet fluctuating demand efficiently. Without a robust local supply base, the market remains exposed to external shocks and pricing volatility.

Key Market Trends

Rising Popularity of Refurbished and Second-Hand Smartphones

Amid increasing environmental awareness and economic considerations, refurbished and second-hand smartphones are gaining significant traction in Vietnam. Refurbished models often cost 15–50% less than new ones. Many buyers saving hundreds of dollars—e.g., a second‑hand iPhone 13 Pro giving USD 650 in savings. Many consumers, especially in rural and price-sensitive segments, are now opting for used or certified pre-owned devices that offer high-end features at a fraction of the original price. This trend is supported by the growing presence of organized players and marketplaces that provide warranties, quality checks, and after-sales support for refurbished products, improving consumer trust in such alternatives. Furthermore, trade-in programs offered by major smartphone brands and retailers are also encouraging customers to exchange their old devices for discounts on new purchases, feeding the refurbished supply chain. As sustainability becomes a stronger influence on consumer behavior, this trend is expected to grow, especially among first-time users and students who seek affordable entry points into the smartphone ecosystem.

Integration of AI and Smart Features Across Device Segments

Artificial Intelligence (AI) is no longer confined to premium smartphones but is increasingly being integrated across mid- and low-tier segments in the Vietnamese market. AI is being used to enhance various functions such as photography (AI-based scene detection and beauty filters), voice assistants, battery optimization, and app usage prediction. Brands are promoting AI-driven personalization as a key differentiator, appealing to consumers who seek smarter, more intuitive devices. The popularity of smart assistants like Google Assistant and the use of voice commands in Vietnamese language are also increasing, driven by improved language support and user familiarity. As consumers become more accustomed to AI capabilities in everyday use, demand for smarter features will likely continue to shape product design and software development across price categories.

Mobile Gaming Boom Driving Hardware Specifications

Vietnam has emerged as one of Southeast Asia’s most active mobile gaming markets, and this cultural shift is significantly influencing smartphone demand and specifications. Younger consumers, especially in urban areas, prioritize performance aspects such as GPU power, high refresh rate displays, advanced cooling systems, and larger RAM/storage capacities to support immersive gaming experiences. The popularity of competitive games like PUBG Mobile, Free Fire, and Mobile Legends has led to a spike in demand for gaming-optimized phones, with brands launching dedicated gaming models or marketing mainstream phones with gaming-friendly features. This trend is pushing smartphone makers to tailor offerings for gamers across multiple price tiers, with a focus on enhanced performance and durability. Accessory ecosystems around gaming—such as gamepads and cooling attachments also see increased demand, adding another layer of value to this trend.

Segment Insights

By Operating System (OS) Insights

In the Vietnam Smartphone Market, Android dominates the market due to its wide accessibility, affordability, and compatibility with a broad range of devices. It powers smartphones from various brands such as Samsung, Xiaomi, Oppo, Vivo, and Realme, which are popular across mid- and entry-level price points. The flexibility and customization offered by Android appeal to a large segment of Vietnamese consumers, particularly those looking for value-for-money devices. Android’s open-source ecosystem also enables local app developers and OEMs to adapt the software for Vietnamese users, contributing further to its widespread adoption. iOS, developed by Apple, represents the premium segment and appeals mainly to urban consumers, tech-savvy professionals, and brand-conscious users. While Apple holds a smaller market share compared to Android, its presence is significant in terms of value and brand equity. The iOS ecosystem is known for its performance, security, seamless integration across Apple devices, and regular updates. The rising popularity of Apple’s installment purchase plans and increasing availability of older generation iPhones at lower price points have helped expand its user base, particularly among young professionals and students.

By Display Technology Insights

LCD remains the most used display technology by unit volume, owing to its inclusion in affordable devices catering to mass-market consumers. LCD (Liquid Crystal Display) technology remains prevalent, particularly in entry-level and mid-range smartphones. It is cost-effective and adequate for basic tasks, which makes it a popular choice for budget-conscious buyers. LCDs are durable and energy-efficient, often used by brands such as Realme, Xiaomi (in lower-tier models), and certain Samsung A-series models. However, limitations in contrast ratio and color reproduction make it less appealing for high-end users.

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Regional Insights

In the Vietnam Smartphone market, Southern Vietnam, particularly Ho Chi Minh City and provinces like Binh Duong and Dong Nai, leads the Vietnamese smartphone market in both volume and value. Ho Chi Minh City, being the country’s commercial and economic hub, sees the highest concentration of smartphone retailers, exclusive brand stores, service centers, and tech-savvy consumers. Southern Vietnam is the most dynamic region in terms of consumer preferences, with a high appetite for the latest models and a strong inclination toward premium brands like Apple and Samsung. This region also leads in digital adoption, mobile gaming, and e-commerce activity, making it the most influential market for smartphone launches and brand strategies. Strong purchasing power, a young working population, and robust retail infrastructure position Southern Vietnam as the leading region for smartphones in Vietnam. It is often the first market to receive new models and innovations, and consumer expectations here drive national trends.

Recent Developments

• In January 2025, Oppo's Reno13 series launched just before the Lunar New Year, achieving over 20,000 pre-orders in early January—130% higher than its predecessor.
• In 2024, Honor introduced its premium Magic V3 foldable smartphone in Vietnam for around VND 40 million (~USD 1,575). As the thinnest and lightest foldable available locally, it represents a strategic push into the nascent high-end folded category.
• In 2024, Oppo re-entered Vietnam’s premium space by launching the Find X8 globally on November 21, with pre-orders beginning immediately in-country.

Key Market Players

• Samsung Vina Electronics Co Ltd
• Guangdong OPPO Mobile Telecommunications Corp., Ltd,
• Apple Inc
• Vivo Communication Technology Co Ltd
• Xiaomi Corp
• Huawei Technologies Vietnam Co Ltd
• LG Electronics Vietnam Co Ltd
• Microsoft Corp
• Sony Electronics Vietnam Ltd
• HTC Corp

Report Scope:

In this report, the Vietnam Smartphone market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Vietnam Smartphone Market, By Operating System:

o   Android

o   iOS

o   Others

• Vietnam Smartphone Market, By Display Technology:

o   AMOLED

o   OLEO

o   LCD

o   Others

• Vietnam Smartphone Market, By Sales Channel:

o   Supermarkets/Hypermarkets

o   Multi-Brand Stores

o   Exclusive Stores

o   Online

o   Others

• Vietnam Smartphone Market, By Region:

o   Northern Vietnam

o   Southern Vietnam

o   Central Vietnam  

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Smartphone market.

Available Customizations:

Vietnam Smartphone market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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