The reason why many 'strange' phone brands enter the Vietnamese market

The past two years have seen a wave of Chinese mobile brands entering the market. However, the domestic market is saturated, leaving little room for new brands.

ZTE phone line, one of the companies invited to enter the Vietnamese market. Photo: Masable .

Recently, many “strange” and less popular mobile brands have appeared on the shelves of Vietnamese retailers and e-commerce platforms such as Honor, Tecno, ZTE, Nubia or Nothing. Most of them originate from China. Some have also appeared on the market in the past but quietly withdrew when their business was not effective.

The entry of many new companies shows that the domestic smartphone market is showing signs of recovery, with purchasing power gradually increasing again. However, the opportunity for these units to make a difference is not large when the market share has been divided. Before their participation, the domestic mobile segment had a high level of competition.

New company joins, old guy returns

Instead of big events and grand launches, new Chinese mobile brands have chosen to enter the market quietly. These companies seek domestic distributors and partners and focus on sales. Initially, they operate mainly through online channels and mid-range agents to cut costs and reduce product prices.

Among them, Honor, a brand formerly owned by Huawei, was a well-known manufacturer. They used to do business in Vietnam before Huawei was banned by the US. In 2023, when the company separated from the old business, they returned to Vietnam by selling some mid-range products.

Among the Chinese companies that have just entered the market, Honor has shown the most serious attitude, investing in communication and distribution network. After the initial phase of selling only at FPT Shop and some small retail channels, this company has entered the Mobile World chain, selling even flip phones with prices above 40 million VND.

A retailer's catalog features many new mobile phone brands. Photo: HHM.

Tecno, a subsidiary of Transion, is also a notable player. This manufacturer rose to fame by selling low-cost phones in Africa, India, and some Southeast Asian countries such as the Philippines and Indonesia. The company also sold some models in Vietnam in 2017-2018, but did not leave much of an impression and then quietly left.

On the shelves of some dealers, Meizu, ZTE or Nothing phones have also begun to appear again. In fact, even in their home country of China, these brands do not gain market share or have outstanding achievements.

Hard to win with cheap price

In addition to Honor's diverse distribution, with many mid-range and expensive devices, Chinese companies that have just entered the market still use a low-cost strategy. Tecno, ZTE or Meizu all launched strategic cards in the 2-5 million VND segment. Manufacturers focus on parameters such as large batteries, large screens or lots of RAM to attract buyers.

The participation of new brands gives Vietnamese users more options when considering phone lines. Competition also helps reduce product prices and popularize many new technologies. Talking to Tri Thuc - Znews , Mr. Lac Huy, representative of retailer CellphoneS, said that there is a gap in the low-end segment when big brands do not pay attention, there is an opportunity to penetrate.

Vietnam mobile market share in Q1/2025. Photo: Counterpoint Research.

“This comeback partly shows that the Vietnamese market has recovered its purchasing power after a period of decline from late 2022 to mid-2023. They assess this as a potential market, recovering quickly, especially in the mid-range and popular segments,” said Ms. Hoang Tam, representative of the Hoang Ha Mobile system.

However, the reality shows that the Vietnamese market does not lack mobile phone brands and popular phone options.

Currently, Samsung, Xiaomi, Oppo are competing fiercely in every segment. Vivo and Realme have been trying for many years but still cannot break into the top 3, and their market share is also unstable. In recent years, Apple has continuously extended the life cycle of its phones and reduced the price of iPhones, making the competition in the 10 million VND segment more intense.

The big brands have the advantage of prestigious brands, loyal users, extensive distribution networks and well-planned business strategies. Experts say that new manufacturers will find it difficult to differentiate themselves if they only sell cheap phones.

Source: https://znews.vn/ly-do-nhieu-hang-dien-thoai-la-gia-nhap-thi-truong-viet-nam-post1571032.html