Vietnam’s smartphone shipments decreased by 5% YoY in Q1 2025, according to Counterpoint’s Monthly Vietnam Smartphone Tracker. The country’s economy is on a growth trajectory, having achieved its highest Q1 GDP growth in five years. While sectors like manufacturing and agriculture continued to show growth in Q1, they were not able to impact the smartphone market positively.

Even in this environment, Apple’s shipments increased by 37% YoY in Q1 2025, helping the brand hold its top-three position for the second consecutive quarter. The iPhone 16e launch received a lukewarm response from Vietnamese consumers, with the iPhone 16 Pro Max remaining the brand’s top model. The discounts offered during the Tet festival sales made iPhone an attractive offering for consumers for premium models.

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5G share in Vietnam’s smartphone shipments reached 46% in Q1 2025, its highest ever. Mobifone was the latest operator to roll out 5G services in the country in Q1 2025, after Viettel and VNPT in the previous quarter. Telecom operators have been upgrading infrastructure, expanding services and lowering prices to attract users. The adoption of 5G has also improved Vietnam’s internet ranking.

The tariffs imposed by the US could pose a threat to Vietnam as exports form a substantial part of its GDP. However, the premium smartphone segment is expected to remain unaffected by these developments. The decline in lower price bands’ contribution also indicates the increasing affordability of smartphones as well as preference for higher price bands and better features. We expect the 5G smartphone shipments to continue to rise as the coverage increases across the country, making the technology accessible to a broader base.