The Vietnamese Gaming Market: An Overview
•With a population of 100 million, Vietnam is gaining attention in the Southeast Asian gaming market due to its abundant human resources, which are expected to lead the growth of the mobile gaming market through low-cost IT developers.
•As of early 2023, Vietnam had 77.93 million internet users, accounting for approximately 79% of the population. The Ministry of Information and Communications (MIC) of Vietnam reported that these users spend an average of about 4 hours per day using apps.
•According to the United Nations (UN), Vietnam has a predominantly young population, with an average age of 32.8. The high rate of smartphone usage serves as a key factor driving the continuous growth of Vietnam’s gaming industry.
•Statista estimates that Vietnamese gaming market revenue in 2024 will be $456.5 million (approximately KRW 631.3 billion), and it is expected to grow at an average annual rate of about 8.68% from 2024 to 2027, reaching $586 million (approximately KRW 810.4 billion) by 2027.
•Based on a report from market research firm Data.ai, Vietnam recorded 3.5 billion app downloads in 2022, making it the second highest in Southeast Asia.
•Another report from the MIC indicates that mobile games account for the majority of app downloads and app-related expenditures in Vietnam. From January to May 2023, a total of $100 million (approximately KRW 138.3 billion) was spent on in-app purchases.
•Due to these consumer trends, the Vietnamese mobile gaming market is increasingly seen as a lucrative opportunity for foreign game developers and publishers.
Characteristics of the Vietnamese Game Market
1. Main Publishers
•As Vietnam’s gaming market is rapidly growing, there has been a shift from the past practice of releasing games through foreign imports to shorten the payback period of production costs. Now, more Vietnamese companies are producing and operating online games directly.
•The number of downloads for mobile games developed directly by Vietnamese developers has reached a total of 4.2 billion from 2019 to the first quarter of 2023, indicating a growing presence in the market.
•The global media outlet Bloomberg recognized Vietnam as one of the top 5 countries in mobile game production as of the first half of 2023.
•Major publishers in Vietnam include Amanotes, VTC Game, VNG Games, SohaGame, and Gamota, all of which are releasing games developed by international developers, including those from South Korea.
2. Popular Genres
•Based on a 2022 survey by Statista, the most popular game genre in Vietnam is RPGs, accounting for 37% of the market. The RTS and FPS genres are tied for second place at 32%, while casual and sports games are tied for fourth place at 17%. Additionally, the action-adventure genre is also growing in popularity.
•According to a game ranking published by local media outlet VN Express in 2023, <Garena Lien Quan Mobile> ranked first, followed by the battle royale game <Free Fire: Winterlands> in second place, and <Play Together> in third place.
3. Esports
•Currently, the esports industry is rapidly growing among Vietnam’s youth. A 2021 survey by Statista indicates that more than 40% of respondents enjoy esports at least once a day.
•Notably, esports were included as an official sport at the 31st Southeast Asian Games (SEA Games 31) held in 2022, with a total of eight games, including <Arena of Valor>, <League of Legends: Wild Rift>, <PUBG Mobile>, and <Free Fire> being selected.
•The formal recognition of esports, including mobile games, as an official sport suggests that Vietnam’s mobile gaming market has entered a mature stage.
Vietnam Gaming Industry: Outlook
•Vietnam’s most popular social media is Facebook, with 65.93 million users, and 64.8% of mobile game advertisements are placed on Facebook.
•When foreign game companies consider entering the Vietnamese market, it is essential to collaborate with local partners due to regulations, license classifications, and application requirements related to gaming in Vietnam.
•KOTRA has selected mobile games as a “promising export item” in its “2024 Vietnam Entry Strategy.”
•In an interview conducted by KOTRA, a Vietnamese game industry expert mentioned that “For foreign investors to distribute online game services in Vietnam, a Business Cooperation Contract (BCC) with a Vietnamese partner holding a G1 to G4 license or a joint venture is required. In the case of a joint venture, the foreign capital contribution cannot exceed 49% of the joint company’s legal capital.”
•Therefore, it may be worth considering entering the Vietnamese mobile gaming market through a business cooperation contract or joint venture with major Vietnamese gaming companies that have partnerships with Korean firms.
