Phone and component exports emerged as Vietnam’s second most valuable export commodities in the first quarter, propelling the country to the position of the second-largest global supplier of these products.
As reported by the General Statistics Office, phone and component exports for April totaled over $4.2 billion, marking a 9.1% increase compared to the previous year. Over the initial four months of the year, this figure soared to more than $18.4 billion, reflecting a 6.6% rise year-on-year.
HSBC’s report highlighted Vietnam’s significant increase in global smartphone market share since 2021. Vietnam now commands 13% of the total export market share, surpassing India and becoming the world’s second-largest smartphone exporter after China.
The United States has emerged as Vietnam’s largest customer, surpassing China (compared to the first quarter of the previous year). In the first quarter of the current year, the US imported over $3.05 billion worth of phones and components from Vietnam, a 30.4% increase year-on-year. Meanwhile, the Chinese market ranked second, with imports totaling more than $2.5 billion, a decrease of 28% year-on-year.
Notably, the United Arab Emirates has ascended to become Vietnam’s third-largest customer, importing nearly $898 million worth of goods, marking a sharp increase of 55.3% year-on-year.
Vietnam’s allure to phone manufacturers worldwide has increased. In April, Apple CEO Tim Cook visited Vietnam, indicating potential growth between the country and the US tech giant. During a meeting with Prime Minister Pham Minh Chinh, Cook proposed fostering high-quality cooperation and investment, committing to procure more components from Vietnamese suppliers, supporting innovation activities, and increasing spending with suppliers in Vietnam.
Also in April, Samsung Electronics Vietnam Thai Nguyen (SEVT), the world’s largest export phone manufacturing factory, celebrated a significant milestone of producing one billion Galaxy smartphones. SEVT’s primary products include smartphones and tablets.
Samsung initiated substantial investments in Vietnam in 2008 with the Samsung Electronics Vietnam (SEV) factory in Bac Ninh province. To date, Samsung has surpassed the milestone of manufacturing over 2.13 billion smart devices in the Galaxy ecosystem in Vietnam.
According to Counterpoint Research, global smartphone shipments in 2024 are projected to increase by 3% to 1.2 billion units. The high-end phone segment (priced at $600-799) is anticipated to maintain stable growth in 2024, with a 17% increase year-on-year, attributed to old high-end models and folding screen models.
Statista Market Research Company forecasts that in 2024, the smartphone market in Vietnam will reach $4 billion, with a compound annual growth rate of 1.45% from 2024-2028. Smartphone sales in Vietnam are expected to reach 21.4 million units in 2024.
