Unleashing Potential: Navigating the Rising Tides of Vietnam’s Gaming Revolution

Vietnam’s gaming sector saw substantial expansion in 2024, driven by mobile gaming, esports, and governmental backing. Nonetheless, issues like dependence on imported games and a lack of domestic talent persist. New possibilities include cloud gaming, the fusion of virtual and augmented reality (VR/AR), and increased investment in local game creation.

Vietnam’s gaming domain has emerged as an energetic influencer within the entertainment industry, demonstrating extraordinary growth and resilience in 2024. Led by the Ministry of Information and Communications (MIC), the sector has engaged in strategic partnerships with game makers and distributors to steer its progress.

With estimated earnings of nearly US$493 million and a 31 percent boost in employment, the sector is reinforcing Vietnam’s stance in the global gaming marketplace. However, the reliance on games developed abroad, which constitutes 86 percent of the market, underscores prevalent challenges.

This article delves into the accomplishments of Vietnam’s gaming industry, highlighting critical metrics, major milestones, and talent enhancement initiatives while addressing obstacles and outlining prospective strategies. By concentrating on nurturing innovation, aiding local developers, and ensuring efficient regulation, Vietnam is setting the stage for continuous growth in 2025 and beyond.

Overview of Vietnam’s gaming industry in 2024

Growth pattern

In 2024, Vietnam’s gaming industry witnessed a transformation and vigorous growth phase, building on its impressive performance in 2023. Vietnamese game creators recorded a remarkable 4.2 billion downloads globally in 2023, expanding at a pace 2.5 times above the global average. This positive trend continued, with the industry demonstrating its capacity to innovate and adapt to the continually changing global landscape.

A significant trend is the transition from hyper-casual games to hybrid formats. By incorporating more intricate gameplay mechanics and in-app purchase frameworks, local game companies are providing richer, more engaging experiences. This evolution enhances user interaction while prolonging the life span of games, allowing developers to diversify their revenue sources in a maturing market.

Another pivotal element is the inclusion of AI in game development. Vietnam, ranking fifth in Southeast Asia on the Global AI Readiness Index in 2023, is utilizing artificial intelligence to enhance game production. AI technologies are employed to craft realistic, non-playable characters (NPCs), deliver personalized content to users, and streamline development workflows. These advancements underscore Vietnam’s ambition to become a regional center for technological innovation in the gaming arena.

Supporting dynamics

The industry’s labor force remains one of its most considerable advantages, marked by youthful vigor and flexibility. With around 35,000 game developers and 400 operational game companies, Vietnam ranks among the top five worldwide for mobile game downloads. To further develop workforce skills, universities like PTIT and BUV have introduced game design and development programs focusing on scripting, game mechanics, and project management. Collaborations with global tech leaders such as Google have also bolstered local educational and skill enhancement initiatives.

Governmental support has played a crucial role in promoting growth. The choice to eliminate a special consumption tax on gaming in 2023, alongside the examination of new tax incentives, illustrates the government’s dedication to cultivating a conducive business atmosphere. The partnership between local developers and international publishers, such as Roblox and EA, continues to bolster the sector, merging local market insights with global proficiency.

Emerging opportunities in Vietnam’s gaming sector

The Vietnamese gaming market is witnessing vibrant growth, with various emerging trends shaping its trajectory. Significant opportunities for the sector are arising, particularly in local game development. In 2023, over 200 games were produced by domestic studios, reflecting a rise in creativity and capability.

These advancements are anticipated to diminish the market’s reliance on international imports and

enable Vietnamese traditions and preferences to be more intricately woven into the games that local enthusiasts favor.

Proliferation of mobile gaming

The proliferation of mobile gaming continues to be a significant motivating factor, with mobile devices emerging as the foremost platform for gaming within the nation. By 2024, smartphone adoption in Vietnam has reached unprecedented levels, with over 84 percent of the populace now utilizing smartphones, propelling the swift growth of mobile gaming. This transition has been additionally supported by the widespread accessibility of budget-friendly internet and data packages, rendering gaming more attainable to a wider demographic.

Rise of esports

Another notable trend is the remarkable expansion of esports. Esports viewership in Vietnam is increasing, with projections for 2024 suggesting an audience of over 10 million, a significant increase from 8.3 million in 2022. This growth is bolstered by escalating sponsorship income and heightened investments from both domestic and international businesses. The mounting enthusiasm for esports is prompting the formation of professional teams and competitions, which further enriches the competitive gaming arena.

Incorporation of new technologies

Moreover, the incorporation of cutting-edge technologies such as virtual reality (VR) and augmented reality (AR) is anticipated to unveil new prospects for innovation in the gaming domain. With improvements in digital infrastructure, including the enhancement of broadband access in rural regions, conditions are ripe for the widespread adoption of VR and AR gaming experiences. These advancements could transform the gaming experience for Vietnamese players, offering new pathways for game developers and technology firms to investigate.

Emerging potential in cloud gaming and subscription services

The increasing enthusiasm for cloud gaming and subscription services introduces new revenue models for game creators, with platforms such as Google Stadia and Microsoft xCloud making inroads into the Vietnamese market. These developments will allow gamers to engage with high-quality titles without the necessity of costly hardware, further expanding the market for gaming services.

Obstacles for local developers

Notwithstanding the robust growth in the gaming sector, several challenges may influence its future. Regulatory obstacles continue to pose significant challenges, especially regarding content censorship and licensing. The Vietnamese government upholds stringent regulations on game content, which may lead to prohibitions or extensive alterations for games considered unsuitable. Additionally, restrictions on gaming hours for minors can impact participation, particularly in multiplayer games requiring prolonged engagement.

A major hurdle in Vietnam’s gaming industry is the scarcity of local talent in game development. Although the Vietnamese gaming market is rapidly advancing, most popular games are produced by foreign companies. Local studios face numerous challenges, including attracting investment, drawing talented professionals, and safeguarding their intellectual property.

The standard of domestically produced games requires enhancement, with game lifecycles frequently being shorter than the global averages. Furthermore, a heavy dependence on eCPM-based revenue models curtails growth prospects, while internationally produced games dominate the space, leaving Vietnamese developers with merely a 14 percent market share. This reliance on foreign content limits local developers’ ability to craft games that connect with Vietnamese gamers.

Tackling these challenges necessitates focused investments, improved intellectual property protections, and strategic initiatives aimed at boosting local content creation. As a result, there is a growing need for a more determined focus on nurturing domestic game development, which opens up new possibilities for future endeavors.

Conclusion

In 2024, Vietnam’s gaming industry showcases a landscape of considerable growth potential alongside noticeable challenges. With a solid foundation in mobile gaming, a surge in innovation propelled by AI, and governmental backing, the sector is favorably positioned for future progress.

However, to realize sustainable advancement, Vietnam must prioritize enhancing the quality of local game development, nurturing talent, and reducing dependence on foreign games. By seizing emerging opportunities such as cloud gaming and VR/AR integration, Vietnam has the potential to elevate its global competitiveness and secure its place as a prominent player in the gaming sector.