Vietnam has banned imports and production of 2G and 3G handsets, but has plans to give 2.1 million smartphones to low-income families during 2021-2025, according to Vietnamnet.

According to the ban imposed by Vietnam's Ministry of Information and Communications, starting July 2021, all mobile telecommunication devices produced in or imported into Vietnam need to support 4G network or higher.

Affected vendors include HMD Global, Itel, Masstel and Mobell that have been major suppliers of feature phones in Vietnam. With the new regulation, Itel projects a 70% decline in usage of its 2G feature phones.

Itel is among the top-3 feature phone importers in Vietnam. Most of Itel's 2G phone cost no more than VDN500,000 (US$21.8). Itel was cited as saying it will import more 4G smartphones in the future with reasonable prices. Its 4G feature phones are priced around VDN700,000.

For now, 2G and 3G devices can still work and circulate in Vietnam. However, the ministry will not renew permits for 2G and 3G networks when they expire in September 2024.