Viettel launched V8505 smartphone with two cameras in April 2014. The corporation import components from abroad, mostly China, and design and produce smartphones in Viet Nam. — Photo vietnamplus.vn

On November 25, 2014, the VNPT Technology Company launched the Vivas Lotus S2 and S2 Eco smartphones, priced at VND1.59 million (US$75) and VND2.19 million ($105) respectively. In August 2013, the firm had introduced Vivas Lotus 1, its first-ever smartphone manufactured in the country and worth VND3.9 million ($185) each.

However, only a few customers have bought the Vivas Lotus product lines and it is difficult to find the phone in mobile stores.

At the launching ceremony of Vivas Lotus S2 and S2 Eco, VNPT Technology Marketing Director Nguyen Van Nam said, "We have been criticised a lot since smartphone production began in Viet Nam. Just a few people supported us. The local customers always doubt the quality of our products, and even do not believe in the abilities of the Vietnamese people."

Viettel had launched Viettel V8403, its first smartphone, in October 2012. It was introduced as the first product designed and produced by the corporation. In reality, the phone has technical specifications and configurations similar to the Chinese ZTE V790 sold in other markets such as Russia and India.

Vivas Lotus S2 launched by VNPT in November 2014. Only a few customers bought Vivas Lotus product lines in the country. — Photo vnexpress.net

In August 2013, Viettel announced that it was manufacturing the made-in-Vietnam smartphone Viettel V8502 for local and international markets.

A senior official of Viettel said that 90 per cent of its products are exported abroad and only a few phones are sold in Viet Nam.

The fact is that Viettel's and VNPT's smartphones cannot compete with those of the United States-based Apple, South Korea's Samsung as well as China's OPPO and Huawei. They cannot also compete with other Vietnamese smartphones of FPT, Q-Mobile and Mobiistar. The main reasons for the falling sales of VNPT and Viettel phones are bad designs, weak configuration and inadequate pricing of their products.

Viettel and VNPT import most of their smartphone components from China. Bui Nguyen Nam Son from Viettel's M1 Communication One Member Limited Liability Company said that the enterprise imports 70 per cent of its phone components. Nam added that all parts of VNPT mobile phones are imported.

China is the world's largest smartphone component provider, with large manufacturers in the sector such as ZTE and Huawei. Therefore, only design and integrated software processes are carried out in Viet Nam.

Viettel is implementing its strategy to expand the use of smartphones in Viet Nam. Viettel General Director Nguyen Manh Hung said that the corporation hopes that each Vietnamese person will own a smartphone by 2020. Viettel aims to produce smartphones costing less than VND1 million ($47) with a data package of VND70,000 ($3.3), he added.

While the smartphone production by Viettel and VNPT is encouraging, customers will turn their backs on them if the two enterprises continue to operate the way they are doing. — VNS