In 2023, Vietnam’s gaming industry marked a colossal leap, echoing its presence on the global stage. Fueled by the explosive growth of mobile and video gaming, this dynamic sector soared to record revenue levels, accompanied by a remarkable surge in the gaming community. With the explosion of the mobile gaming and digital game segments, this highly potential industry has achieved record-breaking revenue and witnessed a significant surge in the number of players. In this article, Gamegeek will give an overview of the achievements Vietnam’s gaming industry has accomplished in the past year and the challenges that still persist.

In 2023, the mobile gaming domain takes the spotlight as a rapidly expanding and highly promising segment in Vietnam’s gaming industry. According to a report cited from DataAI & AppMagic at Think Apps 2023, Vietnam has leaped from the 15th position to the 5th position worldwide in terms of app downloads. This corresponds to a remarkable figure of 4.2 billion downloads from 2019 to Q1-2023. [GlobeNewswire, 2023].

Vietnam's gaming sector claimed a remarkable position among the top 3 in terms of revenue and secured the 2nd spot for player numbers in the Southeast Asian gaming market.

Beyond surpassing revenue expectations, the triumph of this sector plays a pivotal role in establishing Vietnam's prominence on the global gaming stage. Swiftly ascending, Vietnam has now claimed the spot as the second-largest mobile gaming market in Southeast Asia, trailing only behind Indonesia. Even amidst the deep impact of the pandemic, the domestic mobile gaming industry in Vietnam persists in maintaining positive growth and attaining significant achievements. Bloomberg also recognizes Vietnam as one of the top 5 leading countries in the world for mobile game production. Domestic game studios have seen considerable success in the past year. Notably, at the Think Apps 2023 event, outshining numerous competitors, four prominent Vietnamese studios – Falcon Global, ABI Global, Zego Global, and Rocket Studio – secured positions among the top 50 global companies with the highest downloads for new applications in 2022.

Four Vietnamese app developers have successfully entered the global top 50 companies with the highest downloads for their new applications in 2022

Especially, Caravan War, released by Hiker Games (formerly known as Emobi Games), has captivated millions of players worldwide. Not only popular domestically, but this game has also become a favorite title in markets such as China and South Korea.

Caravan War has 10+ million downloads on iOS and Android, with a daily active player base of 1+ million.

Thanks to the outstanding performance of the mobile game segment, the Vietnamese gaming industry in 2023 has taken a solid step forward to assert its position on the global gaming map. The increasing presence of studios producing "home garden" games is an optimistic sign, indicating the creativity of human resources in the industry.

VIDEO GAMES: A "LUCRATIVE LAND" FOR THE VIETNAMESE GAMING INDUSTRY

While the mobile gaming sector has been a long-standing force driving the gaming industry in Vietnam, the emergence of video games is a notable trend in the 2023 market. Despite being a relatively new player, digital games have demonstrated impressive results. According to Newzoo's report, the revenue from digital games in Vietnam surged by 40% compared to 2022, reaching a significant milestone of $500 million. [Newzoo, 2023]

This field holds a distinctive advantage in delivering a varied and profound gaming experience for players. The gaming community in Vietnam has reached around 36 million individuals, constituting nearly 40% of the population. Notably, approximately 10% of gamers in Vietnam utilize VR/AR devices to immerse themselves in digital games. This percentage surpasses the global average of 7% [OCD, 2021], showcasing the significant interest and active adoption of digital technologies in gaming by the Vietnamese player base.a

Among the standout video games of 2023, Axie Infinity has garnered significant attention. Developed by Sky Mavis, this blockchain-based digital game has achieved remarkable milestones, boasting a cryptocurrency with a market capitalization of 2.7 billion USD.

Throughout 2023, Axie Infinity rolled out several new features, including mission systems, community events, enhancing player experiences, and boosting interaction among Axies to enrich the gaming experience.

Moreover, standout games like Cỏ Máu (Blood Field) and Hoa have attracted the interest of both investors and the gaming community in Vietnam. The year 2023 represents a significant turning point in the developmental trajectory of the video game industry in the country. The success in this sector also validates the creative capabilities and talent of domestic game developers, paving the way for new possibilities and substantial growth within the Vietnamese gaming industry.

UNLOCKING GOLDEN OPPORTUNITIES IN THE DIGITAL TECH REVOLUTION

Vietnam's gaming industry is currently experiencing a notable period of growth, driven by the thriving mobile gaming and video game segments. Projections suggest that the Vietnamese gaming market is poised to achieve a revenue of 922.8 million USD by the year 2027, with mobile games playing a predominant role. One of the key contributors to the success of Vietnam's gaming industry is the widespread use of smartphones and internet connectivity. According to a report by Google and Temasek, Vietnam had approximately 72 million smartphone users in 2023, accounting for 74% of the population. Additionally, Vietnam's internet access speed has significantly improved, reaching an average of 35Mbps [Google & Temasek, 2023]. Consequently, players can conveniently and comfortably experience various mobile games. According to data provided by Data.ai, Vietnam has secured a position in the top 11 largest global markets based on the number of application downloads. [Data.ai, 2024]

Thanks to the rapid development of technology, Vietnam ranks 11th globally in terms of application downloads. 

The introduction of the 5G network at the end of 2022 has further opened up new possibilities for Vietnam's gaming industry, such as supporting cloud gaming, virtual reality (VR), and augmented reality (AR). This presents a significant advantage for the Vietnamese gaming sector, enabling it to reach a massive and diverse customer base. Capitalizing on this expansive consumer base, Vietnam's gaming industry is acknowledged as a market with substantial potential, fueled by its youthful demographic and a fervor for cutting-edge technology. This not only serves as an avenue for domestic game developers to thrive but also encourages collaboration and investment from international enterprises. As per the Korea Creative Content Agency (KOCCA), Vietnam stands out as the Southeast Asian country with the highest import rate of South Korean games, constituting 23.4% [KOCCA, 2020]. Furthermore, the Vietnamese gaming landscape benefits from investments and support from foreign gaming giants like Tencent, Garena, VNG, Gameloft, and NetEase.

THE CHALLENGES AHEAD

On the whole, Vietnam’s gaming industry has taken substantial leaps in 2023, playing a pivotal role in the nation's economic expansion. However, this sector still faces formidable challenges, such as international competition, as consumers easily access thousands of games from around the world, especially from major markets like China, the United States, Japan, and South Korea. This demands continuous innovation and prudent policies from domestic game studios to captivate players. The industry also grapples with issues of inconsistency and transparency in the legal regulations pertaining to game production and business operations, failing to fully leverage the tax incentives provided by the state. Currently, Vietnam lacks mechanisms to protect the intellectual property rights of game developers, posing a hindrance for new developers entering the market. To overcome these challenges and fully tap into the prospects of the Vietnamese gaming industry, it requires enthusiastic collaboration from the government, game developers, and the gaming community. Beyond the ceaseless efforts and innovation of game developers, the Vietnamese government is proactively enacting policies to uplift the gaming market, enticing top talents to ensure the industry attains even more remarkable growth.