Vietnam's 2G Network Shutdown Fuels 4G Smartphone Market Explosion: Xiaomi and OPPO Emerge as Top Winners

Vietnam's 2G Network Shutdown Fuels 4G Smartphone Market Explosion: Xiaomi and OPPO Emerge as Top WinnersThe official shutdown of 2G network services in Vietnam in October 2024 had a profound impact on the country's mobile phone market. A large number of users were forced to migrate from 2G to the more advanced 4G network, directly fueling a surge in demand for 4G phones

Vietnam's 2G Network Shutdown Fuels 4G Smartphone Market Explosion: Xiaomi and OPPO Emerge as Top Winners

The official shutdown of 2G network services in Vietnam in October 2024 had a profound impact on the country's mobile phone market. A large number of users were forced to migrate from 2G to the more advanced 4G network, directly fueling a surge in demand for 4G phones. To capitalize on this opportunity, Vietnamese telecom operators and retailers responded aggressively, launching various subsidy programs to encourage upgrades, encompassing 4G smartphones, feature phones, and accompanying data plans. This policy successfully boosted market activity and directly influenced the redistribution of market share.

According to Counterpoint Research, the Vietnamese smartphone market showed significant growth in the third quarter of 2024. Most striking was the sub-$200 segment, which saw a 38% year-over-year increase in shipments and captured 51% of the market sharethe highest since Q1 2022. This data clearly indicates that, following the 2G shutdown, affordable 4G phones became the consumers preferred choice, unleashing pent-up demand. The rise of the low-price segment also reflects Vietnamese consumers' focus on value for money and price sensitivity during the upgrade process.

Competition in the sub-$200 price bracket was fierce, with manufacturers launching competitive products to gain market dominance. Xiaomi ultimately secured the top spot with a 27% market share, driven by the strong performance of its Redmi 13 and Redmi 14C models. The Redmi series has always been known for its high value proposition, and its success in the low-price segment validates its precise market positioning and strong product competitiveness. Its key to success lies in maintaining core functionality while effectively controlling production costs, resulting in a significant price advantage that perfectly caters to the price-sensitive demand in the Vietnamese market.

Besides Xiaomi, OPPO also performed exceptionally well, achieving a remarkable 96% year-over-year growth in shipments. The strong sales of the OPPO A3x were the primary driver of this growth. The OPPO A3x attracted many young consumers with its stylish design, smooth operation, and relatively comprehensive features. OPPO's success stems from its product competitiveness and the Vietnamese market's demand for 4G upgrades.

The shutdown of Vietnam's 2G network was more than just a technological upgrade; it acted as a catalyst, accelerating the transformation of Vietnam's mobile phone market. It not only promoted the widespread adoption of 4G but also spurred the rapid development of the low-cost smartphone market. The success of Xiaomi and OPPO provides valuable lessons for other manufacturers on how to meet consumer needs, seize market opportunities, and ultimately enhance brand development. With the continued improvement and expansion of Vietnam's 4G network and the sustained growth in consumer demand for smartphones, the Vietnamese mobile phone market is poised for even more robust growth. Manufacturers must continuously improve their product competitiveness to thrive in this dynamic and competitive market.

This event also offers valuable lessons for other countries and regions: how to effectively guide users through equipment upgrades during network upgrades and how to balance market demand and pricing are crucial considerations. Only by carefully considering these factors can smooth network upgrades be ensured, ultimately achieving a win-win situation of technological advancement and social benefits. The explosion of the 4G smartphone market triggered by the shutdown of Vietnam's 2G network provides an excellent case study for observing the interplay between market changes and technological upgrades.

In conclusion, the shutdown of Vietnam's 2G network was a significant driver of 4G smartphone market growth. The success stories of Xiaomi and OPPO offer valuable experience and lessons for other manufacturers. The Vietnamese mobile phone market is expected to maintain strong growth momentum, further reshaping the global mobile phone market competition landscape.