Vietnam has region’s second fastest growing smartphone market

According to GfK, a German market research firm, Vietnam has the second fastest growing smartphone market in Southeast Asia in terms of volume turnover in the past year. Vietnam showed a 56 percent increase in smartphone demand from September 2013 to August 2014, compared to the same period the year before. Vietnam comes behind Indonesia, which had a 70 percent increase in smartphone demand, and precedes Thailand, which had a 44 percent increase.

Overall, GfK found that total smartphone sales in seven markets in the region rose to nearly 120 million units, with smartphone sales in these countries increasing by 44 percent in volume and 24 percent in value. Gerard Tan, account director for Digital World at GfK Asia, believes the big developing countries, like Vietnam, are the ones fueling the demand, while the rest – outside big cities – are most likely just switching from basic feature phones to smartphones. Moreover, low-end models by new Chinese manufacturers are fueling the strong market performance, making smartphones in developing countries more affordable, and thus the market more intensely competitive.