Vietnam Emerges as a Thriving Destination for Game Companies
Vietnam is rapidly becoming a prominent hub for game companies around the world. With a young population and easy access to new technologies, the country is attracting major players from Japan, South Korea, China, and North America. According to recent data, Vietnam and the Southeast Asian region have the highest growth rate in mobile gaming globally, with a projected annual increase of 7.4% from 2022 to 2025.
Recognizing the potential, the Information and Communications Ministry in Vietnam has set a target for the gaming industry to reach a revenue of $1 billion by 2030. This goal seems achievable as the gaming industry is experiencing a tremendous boom worldwide. In Southeast Asia alone, the market scale is projected to climb from $4.75 billion in 2021 to $7.14 billion in 2026.
Among the countries in Southeast Asia, Indonesia currently leads in revenue from online games, followed by the Philippines, Thailand, Malaysia, and Vietnam. In Vietnam, the industry has already generated over $500 million in revenue, with more than 50% of the population engaging in gaming activities.
Vietnamese game companies are taking advantage of the country’s abundant and skilled workforce to develop various genres of games, including multiplayer online role-playing games (MMORPGs), turn-based tactical battle games, multiplayer online arena games (MOBAs), casual games, tactical simulation games (SLGs), and role-playing games (RPGs).
Emily Nguyen, Head of Sales for Google Ads – Gaming and Apps in Vietnam, highlights the country’s position as one of the top five countries globally in terms of app downloads. Vietnam boasts over 35,000 game programmers, a figure comparable to China. These programmers are young, technically skilled, and excel in mathematical analysis and programming.
Despite the industry’s success, the profit margin of Vietnam’s game industry remains modest, with only 3 to 5 percent of total revenue. Additionally, Vietnamese enterprises contribute only 22 percent to the revenue of the mobile gaming market segment, with the majority of revenue belonging to companies based outside of Vietnam. The current revenue of the Vietnamese game industry represents less than 0.5 percent of the global market value.
To further develop the industry, the Department of Radio, Television, and Electronic Information (DIT) of the Information and Communications Ministry plans to collaborate with the Vietnam Academy of Posts and Telecommunications and VTC Corporation to provide formal training programs for game development in 2023. While attracting investment is crucial for growth, industry experts emphasize the importance of producing quality games that resonate with the gaming community. Investment capital may be necessary, but it is the industry’s achievements and success that will drive further development in Vietnam’s game market.
Additional facts that are relevant to the topic:
1. Vietnam has a strong presence in the outsourcing market for game development. Many international game companies choose to outsource their game development projects to Vietnamese studios due to the country’s skilled and cost-effective workforce.
2. The Vietnamese government has also implemented supportive policies to attract foreign investment in the gaming industry. This includes offering tax incentives, providing investment subsidies, and creating favorable conditions for foreign companies to set up game studios in Vietnam.
3. The Vietnamese gaming market is not only focused on mobile games but also includes a growing interest in PC and console games. This expanding market presents opportunities for game companies to diversify their offerings and target different types of gamers.
4. Esports is gaining popularity in Vietnam, with the country hosting various esports tournaments and competitions. The Vietnamese government recognizes the potential of esports and has plans to promote its development further.
Key questions and answers:
1. What is driving the growth of the gaming industry in Vietnam?
The growth of the gaming industry in Vietnam is driven by several factors, including the country’s young population, easy access to new technologies, a skilled workforce, and supportive government policies.
2. What are the challenges associated with the Vietnamese game industry?
One of the main challenges is the relatively low profit margin for Vietnamese game companies. Additionally, the industry faces competition from international game companies based outside of Vietnam that dominate the market.
Advantages:
1. Skilled Workforce: Vietnam has a large pool of technically skilled game programmers, providing a competitive advantage in game development.
2. Cost-Effectiveness: Vietnam offers cost-effective solutions for game development, making it an attractive outsourcing destination for international game companies.
3. Growing Market: The Vietnamese gaming market is experiencing rapid growth, presenting opportunities for both domestic and foreign game companies to expand their operations.
Disadvantages:
1. Low Profit Margin: The profit margin for Vietnamese game companies remains modest, limiting the financial gains of the local industry.
2. International Competition: Vietnamese game companies face stiff competition from international game companies that have a strong presence in the global market.
Key challenges or controversies associated with the topic:
1. Copyright Infringement: Vietnam has faced challenges regarding copyright infringement in the gaming industry. Some companies have been accused of copying or using copyrighted materials without permission.
2. Regulatory Environment: The Vietnamese government has implemented regulations that require game companies to comply with certain guidelines and restrictions, which may pose challenges for industry growth and creativity.
Suggested related links to the main domain:
Vietnam Briefing
PwC Vietnam
Vietnamese.io
The source of the article is from the blog myshopsguide.com