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Made in Vietnam phone shipments fall 23.1% in Q1 2023

Affected by macro headwinds and a weak consumer electronics market, the total shipments of ‘Made in Vietnam’ mobile phones in Q1 2023 decreased by 22.9% YoY in terms of units, according to Counterpoint Research’s Market Monitor data. Samsung, which dominates the ‘Made in Vietnam’ mobile phone shipments, was the biggest contributor to the decline. Samsung’s shipments declined by 22.5%, primarily in the smartphone category, while Nokia’s decreased by 40.2%, mainly in the feature phone category. In terms of overall global shipments, Samsung experienced a 19% YoY decline in Q1 2023.

Counterpoint Research

Senior Analyst Ivan Lam said, “Vietnam, a mobile phone manufacturing center for Samsung and North American markets, has been impacted by global economic fluctuations and regional conflicts, resulting in weak regional demand and consumption.”

Over the years, Samsung has dominated Vietnam’s computer and electronic manufacturing, with its supply chain partners also becoming key contributors to the growth. Hundreds of vendors have established their manufacturing facilities mainly in the country’s north, followed by the south and central regions. Following Samsung, multiple EMS (electronics manufacturing services) providers like Foxconn, Compal and Pegatron have also set up their manufacturing units in Vietnam.

According to Counterpoint’s ‘Made in Vietnam’ Manufacturing Ecosystem Tracker, Q1 2023, Samsung dominated Vietnam’s total mobile phone manufacturing output, but Foxconn was leading among the EMS providers due to its more advanced production facilities and relatively lower service charges.

Counterpoint Research

Lam added, “Vietnam has already directly benefited from the past China-US frictions. Due to the geographical proximity of China and Vietnam, the transfer of manufacturing activities has been comparatively easy. Vietnam was the third-largest mobile phone manufacturing country in the world in 2022, with China and India ranked first and second, respectively. However, Vietnam needs better infrastructure and sustained stable policies to maintain its growth potential.” Counterpoint Research

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