Vietnam's 2G Shutdown: Xiaomi and OPPO Emerge as Biggest Winners in the 4G Phone Rush

Vietnam's 2G Shutdown: Xiaomi and OPPO Emerge as Biggest Winners in the 4G Phone RushVietnam officially switched off its 2G network in the third quarter of 2024, triggering a significant transformation in the country's smartphone market and presenting both opportunities and challenges for mobile manufacturers. A recent report from Counterpoint Research reveals that the subsequent wave of upgrades saw entry-level 4G smartphones become the best-selling products, with Xiaomi and OPPO emerging as the biggest winners

Vietnam's 2G Shutdown: Xiaomi and OPPO Emerge as Biggest Winners in the 4G Phone Rush

Vietnam officially switched off its 2G network in the third quarter of 2024, triggering a significant transformation in the country's smartphone market and presenting both opportunities and challenges for mobile manufacturers. A recent report from Counterpoint Research reveals that the subsequent wave of upgrades saw entry-level 4G smartphones become the best-selling products, with Xiaomi and OPPO emerging as the biggest winners.

The report highlights that Vietnamese carriers launched various promotions to encourage 4G upgrades, including offering free phones with extended contracts, bundled phones with prepaid plans, and even outright free 4G handsets. These initiatives stimulated demand, leading to a surge in sales of entry-level smartphones priced under $200.

Models like the Redmi 13, Redmi 14C, and OPPO A3x stood out as bestsellers. Counterpoint's emphasis on these specific models underscores their strong performance in the Vietnamese market.

Xiaomi's excellent performance in the entry-level segment solidified its dominance in the sub-$200 price bracket, achieving a market share of 27%. OPPO demonstrated impressive growth, boasting a remarkable 96% year-on-year increase, making it the fastest-growing brand.

The report suggests that, with widespread 5G coverage still some time away in Vietnam, entry-level 4G phones will continue to receive policy support for the next few months, or even a year, providing manufacturers with an excellent opportunity to clear existing 4G inventory.

The report's omission of other brands hints at their relatively weaker performance in the Vietnamese entry-level market. This serves as both a warning and an opportunity for other domestic brands to catch up.

Significant growth potential remains in the Vietnamese market. While Xiaomi and OPPO lead the entry-level segment, other domestic brands still have opportunities to gain market share through active competition. Capitalizing on the 2G shutdown-driven upgrade wave is crucial. This requires thorough market research, competitive product offerings, and aggressive marketing.

For Xiaomi and OPPO, despite their current success, complacency is dangerous. They need to consolidate their lead in the entry-level market while simultaneously expanding into the mid-to-high-end segments with more competitive products to cater to a wider consumer base. Success in the entry-level alone is insufficient for long-term market dominance; continuous innovation and product upgrades are key. Relying solely on price advantages in the entry-level market won't guarantee long-term profitability or sustainability.

The Vietnamese market is characterized by its structure and price-sensitive consumers. Maintaining competitiveness in the entry-level while simultaneously expanding upwards is a crucial strategic consideration for both Xiaomi and OPPO. Balancing price and features, and providing services that meet consumer needs, will be key to their continued success.

In conclusion, the shutdown of Vietnam's 2G network has drastically reshaped the smartphone market. Xiaomi and OPPO's strong performance in the entry-level segment has made them the biggest winners. However, this isn't necessarily bad news for other brands; it presents an opportunity to overtake the leaders. They must seize this chance, becoming more proactive to succeed in this vibrant market. For Xiaomi and OPPO, consolidating existing advantages and expanding into mid-to-high-end segments are crucial for maintaining their lead. The development of the Vietnamese market will continue to be closely watched, as its future trajectory will determine the fate of many smartphone manufacturers. This 2G shutdown-induced upgrade wave has not only changed Vietnam's communication landscape but also reshaped the competitive landscape of its smartphone market.

Brands not mentioned in the report may have shortcomings in market strategy, product positioning, or channel expansion, preventing them from fully capitalizing on this opportunity. They need to carefully analyze the success of Xiaomi and OPPO, adapting their strategies to their own strengths to secure a place in future competition. This requires increased investment in product development, along with effective improvements in marketing and channel building. The Vietnamese market holds immense potential, but it is also fiercely competitive. Only brands that adapt to market changes and continuously innovate and improve will ultimately succeed.

The future direction of the Vietnamese market will largely depend on the speed of 5G adoption. While 5G coverage is expanding, widespread adoption will take time. Therefore, entry-level 4G phones will remain important in the foreseeable future. Brands that effectively leverage this window of opportunity will gain significant market share and higher profits. Continuously monitoring Vietnamese market dynamics and consumer needs is crucial for all manufacturers to remain competitive in this increasingly challenging environment.