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Vietnam smartphone market grows 11% in 1H18

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The Vietnamese smartphone market returned to double digit growth in the second quarter, due largely to new product launches from Chinese brands, according to .

The total smartphone market grew 11% year-on-year, the strongest performance since the fourth quarter of 2016, the company said.

Samsung remained the market leader, but its market share fell to 37% in the second quarter of 2018, from 41% a year earlier.

Oppo remained in second place with a 22% share, while Xiaomi jumped into the top five for the first time with a 5% market share, up from 1% a year earlier.

Fourth-placed Apple's market share stayed flat at 5%, while Huawei and its Honor brand had a combined market share of 5%, up from 2% in 1H17.

Despite growth in the smartphone market, the overall handset market fell 6% year-on-year, mainly due to a steep decline in the feature phone segment.

“Even though the Vietnamese smartphone market is increasing at a healthy pace, the local players are facing stiff competition from Chinese and Global counterparts,” Counterpoint associate director Tarun Parthak .

“Further, amid the US-China trade war, the renminbi is weakening, resulting in cheaper Chinese products in Vietnam. This will favor the Chinese brands, which now hold around 39% of the market in Vietnam.”

Source: Counterpoint Research: Quarterly Market Monitor Q2 2018

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