In recent years, the door lock market in Vietnam has witnessed robust growth. According to Google data, the search volume for smart locks has increased by 550% in just 4 years from 2017 to 2020. This growth is primarily due to the trend of replacing traditional devices with modern ones. Smart locks are one of the main products leading the development in this field.
The door lock market in Vietnam is divided into two main segments:
Mechanical locks: These are familiar locks, low-cost and easy to use. However, their security level is not high.
Electronic locks: These are modern locks, using advanced unlocking technologies such as fingerprints, faces, PIN codes, magnetic cards. Electronic locks are divided into two segments:
Mid-range electronic locks: They are affordable, suitable for the majority of users.
High-end electronic locks: They are integrated with many modern features such as wifi connection, bluetooth, surveillance camera.
Although traditional mechanical locks are still widely used due to their reasonable price and ease of use, the demand for home security solutions and smart devices is increasing. The development of technology and global wireless communication, along with the growth of urbanization and user income, has driven strong growth in the field of electronic locks.
Smart electronic locks have been widely used in European countries for more than a decade, but in Vietnam, they have only started to become popular recently. Not until 2015 did these types of locks appear in luxury apartments and villas in Vietnam. In 2017, the electronic lock market in Vietnam began to expand and become more familiar, thanks to high consumer ratings for safety and modern features they offer.
According to information from the Ministry of Information and Communications, in 2023, the rate of Internet users in Vietnam reached 78.6%. In addition, according to a study, the value of the smart home market in Vietnam in 2023 reached 275 million USD and is expected to increase to over 500 million USD by 2028. With an impressive growth rate of 12.3% per year, this market is developing rapidly. This reflects the increasing demand for connected devices and IoT in Vietnam, along with concerns about safety and security. The increasing number of smartphones, along with the superior advantages of electronic locks compared to traditional mechanical locks, has made electronic locks and smart locks the top choice for many households, especially those living in apartments. Therefore, the smart lock market in Vietnam has great potential for future development.
YALE
Yale, one of the oldest international brands, has now become a symbol of prestige and quality in the door lock industry, with millions of the company’s products being used globally. Yale is a part of the ASSA ABLOY Group, headquartered in Switzerland. In Vietnam, ASSA ABLOY has been present since 2008, specializing in providing digital door locks and hardware accessories for the construction industry. The company continues to develop and bring to customers diverse door opening solutions, including mechanical locks, hinges, door closers, other door accessories, smart locks, electromechanical products, and automatic doors.
Yale & Assa Abloy Vietnam has shown strong transformations since after 2020, when both net revenue and after-tax profit recorded impressive growth figures far exceeding the figures achieved in 2020. Specifically, in 2022, the net revenue of Yale & Assa Abloy Vietnam reached over 2,5 trillion VND, corresponding to a strong growth rate of nearly 950% compared to the same period in 2020. Not only that, the company’s net profit at the end of 2022 also reached over 200 billion VND, this figure has increased nearly 70% compared to the same period last year.
HAFELE
Hafele, a leading company in accessory technology, was established in Germany in 1923. The company specializes in interior accessories, high-end construction accessories, and advanced electronic lock systems. With 37 subsidiaries and a diverse range of products, Hafele is present in over 150 countries worldwide.
Hafele began operating in Vietnam in 1998. Thanks to many years of experience in designing and manufacturing electronic locks, Hafele’s electronic locks come in a variety of models, styles, and functions, including fingerprint electronic locks and magnetic card electronic locks. In particular, Häfele’s Dialock lock and identification system can be used in almost all areas, from homes, hotels to large corporations.
The net revenue of Hafele Vietnam showed signs of stagnation in 2021 and then grew nearly 40% in 2022, reaching nearly 1,7 trillion VND. In terms of after-tax profit, Hafele Vietnam recorded many fluctuations when the net profit in 2021 decreased compared to 2020 but then ended 2022 with a strong recovery of nearly 75% compared to the same period last year, reaching nearly 150 billion VND.
VIET TIEP
Viet - Tiep Joint Stock Company, with the brand Viet Tiep, is one of the leading and most advanced companies in Vietnam in the field of door lock manufacturing. Established in 1974 with equipment from old Czechoslovakia, the company started operations in July 1976.
Viet Tiep focuses on producing various types of locks and some high-end consumer metal products. The company’s products are diverse, from smart locks, premium door locks, padlocks, horizontal locks, aluminum glass accessories to many other products. Viet Tiep not only manufactures door locks but also provides safety solutions, consulting and designing safe door lock systems, scientific services, and technology transfer.
Viet - Tiep Locks has grown strongly over time, with a capacity of more than 23 million products/year and more than 800 workers. The company’s distribution system is widespread, with 04 branches and more than 400 agents nationwide, to serve customers promptly and best. Viet - Tiep Locks also exports to many countries around the world such as Russia, South Africa, Nigeria, Cuba, Laos, Cambodia, Dubai,…
Regarding the business situation of Viet Tiep, after the decline in net revenue in 2021, stepping into 2022, the company’s net revenue showed a slight recovery, increasing nearly 3% compared to the same period last year, reaching nearly 890 billion VND. On the contrary, Viet Tiep’s after-tax profit continued to decrease over the years when it recorded a decrease of nearly 25% compared to 2021, only reaching over 30 billion VND at the end of 2022.
Explaining the above business situation, Viet Tiep stated that the company’s products are facing fierce competition from domestic and international products. The consumption of products also encountered many difficulties, especially in Q4/2022 when the consumer market decreased due to credit tightening policies and increased bank interest rates, forcing the company to reduce production and leading to a lack of work for some departments. In addition, the rampant situation of counterfeit and imitation goods on the market has had a major impact on the consumption of the company’s products. Furthermore, the continuous increase in the prices of materials, raw materials, and transportation costs has also significantly affected the company’s business operations.
HUY HOANG
Huy Hoang, a leading brand of door locks and accessories in Vietnam, has become a familiar name to consumers since its establishment in 1979. With quality and reputation that have been verified over time, Huy Hoang is an experienced and highly specialized lock manufacturer.
Currently, the company owns three factories in Quang Minh Industrial Zone, Me Linh, Hanoi, spread over an area of 70,000 m2. With impressive production capacity, Huy Hoang can supply up to 20 million products per year to the market.
Huy Hoang not only has a wide distribution network domestically, but also provides nationwide delivery services. This brand has crossed the borders of Vietnam, loved not only by domestic consumers but also exported to many countries around the world.
The year 2022 is perhaps a year marking the revival of Huy Hoang when both the net revenue and net profit of this company recorded growth after the business operations stagnated in previous years. Specifically, Huy Hoang’s net revenue surpassed the mark of over 400 billion VND, increasing more than 20% compared to the previous year. Along with that, the company’s net profit at the end of 2022 recorded a figure of over 5 billion VND, increasing more than 150% compared to the figure achieved in 2021.
VICKINI
Kim Gia Pham Joint Stock Company (KIGAPA), established in 2005, formerly known as Ich Van Limited Company, is a unit specializing in supplying and distributing products under the Vickini brand. Through nearly 20 years of formation and development, KIGAPA has affirmed its position in the market with more than 5000 products and over 200 agents across 50 provinces nationwide. The VICKINI brand mainly focuses on products such as wood accessories, doors and door locks, glass and aluminum accessories.
The period from 2020 to 2022 witnessed many fluctuations in Vickini’s business results when the company’s net revenue recorded a slight decrease in 2021 and then improved, increasing more than 16% compared to the same period last year, reaching nearly 170 billion VND. Vickini’s after-tax profit also showed positive signals when ending 2022 with a net profit increase of more than 100% compared to the same period in 2021, reaching nearly 23 billion VND.
SOLITY
Solity, a leading brand of electronic door locks from South Korea, was established in 1980. The company began manufacturing electronic locks in 2004 and expanded operations in Vietnam from 2016. Solity provides over 500 lock models with various features and is a pioneer in using facial recognition technology. Solity also developed the Solity Smart app to connect locks with smartphones. In addition, Solity is currently collaborating with large corporations such as Samsung, Epic, Hafele in design and manufacturing. Solity’s annual production capacity reaches over 5 million products.
The business situation of Solity Vietnam shows an improvement in net revenue after a stagnation period in previous years. In 2022, Solity Vietnam’s net revenue reached nearly 60 billion VND when previously it was just under 50 billion VND in previous years. However, Solity Vietnam’s net profit only reached over 5 billion VND in 2022, decreasing nearly 70% compared to 2021.
It can be seen that smart locks, with their superior features, have become the top choice compared to traditional mechanical locks, partly due to the influence of global trends and movements. However, the cost of electronic lock devices is much higher than that of mechanical locks, coupled with doubts about the origin and a lack of understanding about the product, have created barriers for consumers when approaching smart lock products. Moreover, the door lock market in Vietnam is also witnessing fierce competition between domestic and foreign suppliers, forcing businesses to continuously innovate products and services to attract customers. Therefore, the smart lock market in Vietnam is in a strong development stage and will certainly continue to grow in the future.
Source: Vietdata's 2022 Door Lock Market Report.