Vietnam smartphone market declined by 5% QoQ and 46% YoY in 1Q23

According to the International Data Corporation’s IDC Worldwide Quarterly Mobile Phone Tracker, the Vietnam smartphone market declined by 5% quarter-over-quarter (QoQ) and 46% year-on-year (YoY) in 1Q23, shipping 2.4 million units.

Even as the country continues to attract foreign direct investment from other countries in the region, consumer demand remained stagnant due to the mass layoffs among the garment, footwear and wood workers industry in the country’s export-reliant economy, as the sluggish global economy slashed demand for these goods.

The use of installment plans to buy smartphones, which had become a common trend and saw the rapid growth over the past few years, also started to drop under higher interest rates and lower maximum limits.

“As consumers tightened their spending and fewer financing options became available, smartphone vendors and channel partners launched more promotions and discounts,” said Thanh Vo, research analyst with IDC’s Devices Research team. “Demand has not picked up, and the market will need more time to recover in conjunction with growth in manufacturing and exports.”

IDC