Users look for smartphones that support 5G connection at a store in Phan Rang - Thap Cham city, Ninh Thuan province. (Photo: VNA)

This segment also grew 38% in the third quarter of this year compared to the same period in 2023.

Within the under 5 million VND price range, Xiaomi held the largest market share at 27%, with its best-selling models being the Redmi 13 and Redmi 14C. OPPO also recorded significant revenue growth in this segment, up 96% year-on-year, driven by the OPPO A3x.

This growth was heavily influenced by the shutdown of the 2G mobile network.

The share of 4G smartphones will remain high in the coming months in Vietnam, and OEMs (original equipment manufacturers) will look to clear off their 4G stocks in the entry-level segment, Counterpoint Research stated, calling the phase-out of 2G a ‘milestone.’

In preparation for the 2G network shutdown, the Vietnamese government and telecom operators implemented various measures to encourage users to switch to 4G-compatible devices. Some telecom providers covered the cost of device upgrades for subscribers committing to long-term 4G plans, even offering free 4G phones to customers unable to afford new devices.

For instance, Viettel has supported many customers in purchasing 4G smartphones with a 50% discount, providing subsidies of up to 1.1 million VND.

Viettel Telecom established 10,000 service points nationwide to assist with device upgrades and collaborated with mobile retailers to offer users affordable options for upgrading to 4G phones. The telecom provider also reportedly spent around 300 billion VND to distribute 4G phones to 700,000 2G subscribers.

One of the largest retailers, The Gioi Di Dong (Mobile World), encouraged customers to trade in old 2G phones for vouchers worth 480,000 VND (19 USD) toward purchasing a 4G SIM. Similarly, FPT Shop introduced a programme to support the exchange of old 2G devices for new 4G devices with gift vouchers worth up to 600,000 VND (24 USD).

From a commercial perspective, the device upgrade programme presents an opportunity for the smartphone market to boost sales while helping mobile retailers clear inventory of 4G smartphones and older 4G models.

Vietnam plans to phase out 3G, which has 38.2 million subscribers, by September 2028 and aims to achieve 99% 5G coverage by 2030.