Vietnam mobile phone Q2 shipment falls amid weaker economy

Shipment of feature phones and smartphones in the country falls for second quarter in a row sequentially, as inflation and recession in the economy hold back spending.
Written by Ellyne Phneah, Contributor

Vietnam's mobile phone market has continued to decline along with its economic problems, with inflation and recession creating a barrier to consumer spending, says IDC. 

According to the research firm's Asia-Pacific quarterly mobile phone tracker released Thursday, the country's mobile phone market experienced a decline of 18 percent in the second quarter of 2012. However, year-on-year it grew 10.9 percent.

The mobile phone shipments had fallen for two quarters, from close to 8 million units in the fourth quarter of 2011, to 7 million in the first quarter of 2012.

Feature phone shipments too recorded a significant sequential decline of 20.3 percent while smartphone shipments fell 4.1 percent despite the continued migration to smartphones among consumers.

The fall is due to the slowdown in consumer purchases in light of inflation and recession in the country, which has hindered disposable income in Vietnam, IDC said.

Economic problems have created a barrier to consumer spending, but the downward trend should come to a stop in the second half of 2012, Võ Lê Tâm Thanh, client devices research senior market analyst at IDC Vietnam observed in the statement.

"While economic uncertainties have dampened enthusiasm somewhat, we still expect the smartphone market to bounce back strongly in the second of the year as local vendors introduce more affordable smartphones and carriers reduce prices of 3G data plans," Thanh said.

According to a GfK Asia report in September, Vietnam had been one of the seven key markets in Southeast Asia where smartphone volume sales had grown the fastest. The region also recorded the fast increase in market share of smartphones as compared to feature phones. 

Editorial standards