Vietnam’s smart home device market is rapidly expanding as urbanization, rising incomes, and growing digital adoption drive demand for connected living. Increasing affordability and stronger ecosystem support are helping the market shift from niche to mainstream, positioning Vietnam as one of Southeast Asia’s most promising growth markets. While challenges persist, the sector offers significant long-term potential for investors as consumer readiness and technology infrastructure continue to advance.

Market size and Growth trajectory

Vietnam’s Smart Home market generated approximately USD 358.59 million in revenue in 2024 and is expected to reach USD 506.4 million by 2028, reflecting a compound annual growth rate (CAGR) of 11.41% over the 2024-2028 period[1].

Vietnam smart homes market size (2024 – 2033)

Unit: million USD

Source: Statista

The growth of smart home devices is supported by Vietnam’s ongoing urbanization, rising disposable incomes, and increasing internet connectivity, especially in major cities such as Hanoi and Ho Chi Minh City. Before 2018-2019, there were around twenty to thirty companies operating in the smart home sector. However, this number has now increased to about 600-700 companies, including both major firms and startups[2].

In 2024, Smart Appliances dominated Vietnam’s smart home device market with USD 165.21 million, accounting for by far the largest share. Control & Connectivity devices (USD 51.59 million) and Home Security devices (USD 48.88 million) followed, reflecting strong demand for seamless integration and household safety. The remaining segments, including Home Entertainment, Environment & Lighting, and Energy Management, contributed smaller portions but indicated growing interest in comfort and energy optimization[3].

Vietnam Smart Home Device Market Revenue by Segment (2024)

100% = 358.6 million USD

Source: Statista

Household penetration and Consumer behavior

The household penetration rate of smart home devices in Vietnam was 15.4% in 2024 and is projected to rise to 25.7% by 2028[4]. By the same year, Energy Management will emerge as one of the largest user segments, reflecting rising consumer interest in energy efficiency, sustainability and ESG-driven behavior. The number of users for this category in 2028 are expected to reach 4.26 million, lifting it from near the bottom of the rankings in 2024 to the second-largest Smart Home segment, ahead of Smart Appliances (3.86 million users)[5].

Vconnex reports that the cost for an average Vietnamese household to install a full smart home package typically ranges from 540 to 960 USD. However, users with more limited needs can still access smart home solutions at much lower prices, starting from just 15 USD to 50 USD[6].

Specifically, Vietnamese consumers have sharply increased their spending on smart home devices, with average expenditures for Smart Appliances rising from USD 33.8 in 2017 to nearly USD 99 in 2023, and Comfort & Lighting increasing from USD 21.3 to over USD 90 in the same period. Control & Connectivity also shows steady growth, reaching USD 36.9 in 2024, indicating a shift toward more integrated smart-home ecosystems. Although some categories slightly decline after 2025, overall spending trends highlight strong and sustained demand for convenience, automation, and connected living[7].

Market Trends and Key Updates

Manufacturing Expansion and Foreign Investment

Vietnam is rapidly emerging as a strategic manufacturing hub for smart home devices, with major technology companies shifting production from China. In October 2024, Apple announced plans to produce its new smart home device lineup in Vietnam, partnering with Chinese manufacturer BYD Co. for final assembly, testing, and packaging[8]. This represents a significant shift, as Apple traditionally manufactures new products in China first. The product range includes indoor security cameras, household command hub displays, and advanced tabletop robots with motion capabilities planned for 2027. BYD’s initial investment in Phu Tho province totaled USD 269 million in September 2021, and later increased to USD 413 million, demonstrating the scale of manufacturing infrastructure being developed specifically for smart home device production.

ICT Infrastructure and 5G Commercialization

Vietnam’s Information and Communications Technology sector reached USD 10.07 billion in 2024, with projections to grow at 12.60% CAGR to reach USD 32.99 billion by 2034[9]. The Ministry of Information and Communications licensed 5G deployment in April 2024, with Viettel and VNPT securing business licenses for 5G band usage. As of late 2024, Vietnam has deployed approximately 11,000 5G base stations nationwide, reaching 26% of the population, with plans to expand to 68,000 base stations, achieving 90% coverage[10]. Viettel has invested approximately USD 1.2 billion in 5G network development, while MobiFone launched commercial 5G services in October 2024 with approximately 3 million subscribers. This enhanced connectivity infrastructure reduces latency for cloud-controlled smart home devices and enables real-time automation capabilities critical for advanced smart home ecosystems.

Energy Efficiency Regulations and Sustainability Focus

Vietnam has established aggressive energy efficiency targets, aiming to reduce national energy consumption by 10% by 2030. The Ministry of Industry and Trade introduced Decision 14/2023/QD-TTg establishing mandatory energy efficiency standards for household appliances, including smart refrigerators, effective July 15, 2023[11]. Smart refrigerators meeting these standards consume less energy than traditional models, creating market advantages for premium energy-efficient smart home device manufacturers.

Affordable Device proliferation

Entry-level smart home devices have achieved mass-market price points, with smart bulbs, smart plugs, and basic automation kits available for under USD 100 as of 2024. This affordability has democratized smart home device access beyond affluent early adopters, accelerating adoption among Vietnam’s expanding middle class. Chinese manufacturers, particularly Xiaomi, dominate the affordable segment by offering premium-quality products at competitive prices that resonate with cost-sensitive Vietnamese consumers[12].

Compatibility among Smart Home Ecosystem

The emergence of Matter protocol, a universal smart home standard that allows devices from different brands to connect and work seamlessly together, addresses longstanding compatibility challenges that have fragmented Vietnam’s smart home device market. This open-source standard, supported by Amazon, Apple, Google, Samsung, and other major manufacturers, enables seamless integration of devices across multiple ecosystems. Samsung’s partnership with Google provides multi-admin capabilities, allowing users to simultaneously onboard Matter-compatible devices to SmartThings and Google Home platforms.

Security on the rise

Security has become a top priority for Vietnamese households as concerns over intrusion, fire hazards, and electrical leaks grow. By 2025, consumers expect smart home systems to go beyond simple alarms and instead provide intelligent, predictive protection[13]. Real-time alerts delivered via mobile apps or email are now standard, while AI-powered cameras can detect unusual behavior, trigger automated actions such as lighting or door control, and send video to homeowners or building security teams.

Main Players in Vietnam’s Smart Home Device Market

The Vietnam smart home device market exhibits moderate fragmentation with competition between international technology giants and local Vietnamese specialists. International players, particularly Samsung, Xiaomi, Google, and Amazon, leverage extensive product portfolios, established brand recognition, and sophisticated ecosystems to capture market share. These companies typically target middle-to-upper income consumers seeking premium features and comprehensive integration.

Vietnamese domestic companies like Lumi, Rang Dong, FPT, and BKAV have established defensible market positions through localization strategies including Vietnamese language support, climate-appropriate hardware design, extensive local distributor networks, and competitive pricing. Lumi’s 6,000 m² manufacturing facility and 150-strong distribution network exemplify how local players compete effectively against multinational corporations through rapid installation, local-language customer support, and products optimized for the Vietnamese electrical infrastructure.

Regional cooperation remains limited, with Vietnamese companies rarely collaborating despite market fragmentation. Industry experts have emphasized the need for greater cooperation to build stronger value chains and compete more effectively against Chinese imports, which dominate the affordable smart home device segment.

Table 1. Main players in Vietnam’s Smart Home Devices Market

B&Company synthesis

Implications for Foreign Investors

Investment Opportunities

Vietnam’s smart home device market growth rate significantly exceeds global averages, presenting early-mover advantages for foreign investors. The combination of low current penetration and strong growth trajectory creates substantial upside potential. The Vietnamese middle-class population is expected to reach 44 million by 2025, with GDP per capita reaching USD 4,700 in 2024[15]. This expanding consumer base possesses increasing disposable income and propensity for technology adoption, driving smart home device demand.

Vietnam’s National Digital Transformation Program and Smart Cities Development Project demonstrate governmental commitment to digital technology adoption, creating favorable policy environments for smart home device investments. Tax incentives and infrastructure investments support market development.

Vietnam has emerged as a preferred manufacturing location for electronics and IoT devices due to competitive labor costs, improved infrastructure, and government incentives. The China+1 diversification strategy has accelerated foreign investment in Vietnamese manufacturing, with companies like Lumi demonstrating successful local production models.

Significant opportunities exist in providing localization services, including Vietnamese language interfaces, climate-appropriate product adaptations, local customer support, and installation services. These value-added services differentiate offerings in competitive markets. Vietnam’s construction boom, particularly in urban centers, creates opportunities for integrated smart

home device solutions in new residential and commercial developments. Developers increasingly position smart homes as standard rather than premium features.

Investment Challenges

The Vietnamese smart home device market remains fragmented with multiple competing platforms and limited interoperability, historically creating consumer confusion. While Matter protocol addresses some concerns, legacy systems and platform preferences continue to fragment the market.

Significant investment in consumer education is necessary, as many Vietnamese consumers remain unfamiliar with smart home device benefits, installation requirements, and ongoing costs. Average installation costs of USD 1,000 for comprehensive systems represent substantial barriers for price-sensitive consumers[16].

Low-cost Chinese smart home device imports dominate Vietnam’s affordable segment, creating intense price competition. Many Vietnamese companies primarily import Chinese products with Vietnamese branding rather than developing indigenous technologies, limiting differentiation opportunities. Additionally, Vietnam’s intellectual property protection framework, while improving, remains weaker than developed markets. Foreign investors must implement robust IP protection strategies and carefully evaluate technology transfer agreements.

Establishing effective distribution networks requires significant time and resources. Vietnam’s retail landscape combines traditional electronic stores, emerging e-commerce platforms, telco bundles, and independent distributors, each requiring distinct strategies. Furthermore, providing adequate post-sale technical support, warranty service, and software updates necessitates local presence or partnerships with established service providers. Vietnamese consumers increasingly demand responsive local-language support.

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