Company plans for consumer business group (CBG)'s market share to reach double figures next year.
Huawei, who specialize in information and communication technology (ICT) solutions, has announced that the target for its consumer business group (CBG) next year is to stake out a 10 per cent market share in Vietnam.
Mr. Dang Kim Long, Media Manager at Huawei Technologies (Vietnam), confirmed with VET that its CBG targets a 5 per cent market share as at December 2016. Its CBG held a 3.7 per cent market share in smartphones in the third quarter after one year of entering Vietnam.
In 2017 the smartphone brand will launch more products to increase its market share. Products are targeted at the middle-high segments, in accordance with Huawei Global’s plans.
Huawei is divided into three business groups: enterprises, telecommunications, and CBG, and in Vietnam has adopted the same model as the global company. Of these, CBG focuses on consumers through developing smartphones.
Huawei CBG Global sold 108 million smartphones in 2015 with revenue of $20 billion. As at October 14 the company had sold 100 million smartphones, exceeding its annual plan. It had sold more than 10 million smartphones in Western Europe and Latin America as at November. Accounting for a 9.9 per cent share of all smartphones around the world in December 2015, Huawei then accounted for a 12 per cent share by June this year.
In Vietnam, among the three Chinese smartphone brands, Oppo was in second position overall, Huawei targets to account for a 5 per cent market share, and Vivo targets to be among the Top 5 brands. According to the latest report from Counterpoint Technology Market Research released in July, Huawei ranked third, followed by Oppo and Vivo. Samsung and Apple took the global lead.
The Chinese telecoms giant will invest $1 million into Vietnam’s ICT industry in the 2017-2019 period. The investment includes three major programs of creative application, ICT human resources training, and public utilities, Mr. David Sun, President and CEO of Huawei, Southeast Asia Region, said. "With this investment, Huawei commits to long-term development and the training of more ICT talent in order to boost Vietnam’s ICT industry," he said in early December.
The company will cooperate with the Ministry of Information and Communications (MoIC) to launch programs and plans to expand its collaboration with universities in the near future.
When asked about Huawei’s plans to open a factory in Vietnam like Samsung, Mr. Sun said that as a global company it needs to integrate the capacity of each country and assemble qualified human resources to be successful in all industries, including in Vietnam.
Vietnamese youth, according to Mr. Sun, have significant potential for development but there is a lack of ICT talent. “We will focus on training the local ICT workforce, as well as building and expanding the management staff,” he said. “We won’t expand the market with low standards but will focus on quality and devote ourselves to Vietnamese society in the long term. The next step is to increase the number of employees at Huawei’s Vietnam office.”
Huawei Vietnam now has 272 employees with the ratio of local staff reaching 82 per cent; well over the average of local employees around the world of 75 per cent. The company expects to create opportunities for promotions and include benefits as well as other opportunities for its Vietnamese employees.