Vietnam’s Gaming Industry in 2024: Robust Growth and Emerging Opportunities

Vietnam’s gaming industry experienced significant growth in 2024, fueled by mobile gaming, esports, and government support. However, challenges such as reliance on foreign games and a shortage of local talent continue to exist. Emerging opportunities include cloud gaming, the integration of virtual and augmented reality (VR/AR), and increased investment in local game development.

Vietnam’s gaming industry has emerged as a dynamic force in the entertainment sector, showcasing remarkable growth and resilience in 2024. Spearheaded by the Ministry of Information and Communications (MIC), the sector has seen strategic collaboration with game producers and distributors to guide its development.

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With projected revenue of approximately US$493 million and a 31 percent increase in employment, the industry is strengthening Vietnam’s position in the competitive global gaming landscape. However, the reliance on foreign-made games, which dominate 86 percent of the market, highlights ongoing challenges.

This article explores Vietnam’s gaming sector achievements, including key metrics, major events, and talent development initiatives, while addressing challenges and outlining future strategies. With a focus on fostering innovation, supporting local developers, and ensuring effective regulation, Vietnam is paving the way for sustained growth in 2025 and beyond.

Vietnam’s gaming industry in 2024: An overview

Growth trend

Vietnam’s gaming industry experienced a period of transformation and robust growth in 2024, building upon its remarkable performance in 2023. Vietnamese game developers achieved an impressive 4.2 billion downloads globally in 2023, growing at a rate 2.5 times higher than the world average. This momentum carried forward, with the industry showcasing its ability to innovate and adapt to the ever-evolving global market.

One notable trend is the shift from hyper-casual games to hybrid models. By integrating more complex gameplay mechanics and in-app purchase systems, local game studios are delivering richer, more immersive experiences. This transition is not only improving user engagement but also increasing the longevity of games, enabling developers to diversify their revenue streams in a maturing market.

Another transformative factor is the integration of AI into game development. Vietnam, ranked fifth in Southeast Asia on the Global AI Readiness Index in 2023, is leveraging artificial intelligence to optimize game production. AI technologies are being utilized to create lifelike, non-playable characters (NPCs), offer personalized content to users, and streamline development processes. These advancements highlight Vietnam’s commitment to becoming a regional hub for technological innovation in the gaming sector.

Supportive dynamics

The industry’s workforce remains one of its most substantial assets, characterized by youthful energy and adaptability. With approximately 35,000 game developers and 400 active game companies, Vietnam ranks among the top five globally for mobile game downloads. To further enhance workforce capabilities, universities such as PTIT and BUV have launched game design and development programs emphasizing scripting, game mechanics, and project management. Partnerships with international tech leaders like Google have also enhanced local education and skill-building efforts.

Government support has been instrumental in driving growth. The decision to forego a special consumption tax on gaming in 2023, coupled with the exploration of new tax incentives, underscores the government’s commitment to fostering a favorable business environment. Collaboration between local developers and international publishers, such as Roblox and EA, continues to strengthen the sector, combining local market knowledge with global expertise.

Emerging market opportunities in Vietnam’s gaming industry

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The Vietnam gaming market is experiencing dynamic growth, and several emerging trends are shaping its future. There are significant opportunities for the market, especially in the area of local game development. In 2023, over 200 games were developed by local studios, a sign of growing creativity and capability.

These efforts are expected to reduce the market’s dependence on international imports and allow Vietnamese culture and preferences to be more deeply embedded in the games that local players enjoy.

Surge in mobile gaming

The surge in mobile gaming remains a key driving force, with mobile devices becoming the primary platform for gaming in the country. As of 2024, smartphone penetration in Vietnam is at an all-time high, with over 84 percent of the population now using smartphones, which fuels the rapid expansion of mobile gaming. This shift has been further enhanced by the widespread availability of affordable internet and data plans, making gaming more accessible to a broad segment of the population.

Emergence of esports

Another significant trend is the explosive growth of esports. Esports viewership in Vietnam is on the rise, with 2024 projections indicating an audience of over 10 million, a sharp increase from 8.3 million in 2022. This surge is supported by rising sponsorship revenues and increasing investments from both local and international companies. The growing interest in esports is driving the establishment of professional teams and tournaments, which further enhances the competitive gaming landscape.

Integration of new technologies

Additionally, the integration of emerging technologies like virtual reality (VR) and augmented reality (AR) is expected to create new opportunities for innovation in the gaming sector. With advancements in digital infrastructure, including the expansion of broadband access in rural areas, the stage is set for the proliferation of VR and AR-based gaming experiences. These technologies could redefine the gaming experience for Vietnamese players, presenting new avenues for game developers and tech companies to explore.

New potential in cloud gaming, subscription-based services

The growing interest in cloud gaming and subscription-based services offers new revenue models for game developers, with platforms like Google Stadia and Microsoft xCloud making inroads into the Vietnamese market. These advancements will enable gamers to access high-quality titles without the need for expensive hardware, further broadening the market for gaming services.

Challenges remain for local developers

Despite the strong growth in the gaming industry, there are several challenges that may impact its trajectory. Regulatory barriers remain a significant hurdle, particularly when it comes to content censorship and licensing. The Vietnamese government enforces strict regulations on game content, which can lead to bans or significant modifications for games that are deemed inappropriate. Additionally, restrictions on gaming hours for minors can affect engagement, especially in multiplayer games that require extensive playtime.

A significant challenge in Vietnam’s gaming industry is the limited local talent in game development. Although the Vietnamese gaming market is growing rapidly, the majority of popular games are created by international companies. Local studios encounter various obstacles, including securing funding, attracting skilled professionals, and protecting their intellectual property.

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The quality of locally produced games needs improvement, and game lifecycles are often shorter than global averages. Additionally, a heavy reliance on eCPM-based revenue models limits growth potential, while foreign-made games dominate the market, leaving Vietnamese developers with only a 14 percent share. This dependence on foreign content restricts local developers’ ability to create games that resonate with Vietnamese players.

Overcoming these challenges requires targeted investments, enhanced intellectual property protections, and strategic initiatives to boost local content production. Consequently, there is an increasing demand for a more robust focus on fostering domestic game development, which opens up new horizons for prospective ventures.

Conclusion

Vietnam’s gaming industry in 2024 presents a landscape of significant growth potential alongside notable challenges. With a strong foundation in mobile gaming, increasing innovation driven by AI, and government support, the sector is well-positioned for the future.

However, to achieve sustainable growth, Vietnam must focus on improving the quality of local game production, fostering talent, and reducing reliance on foreign games. By capitalizing on emerging opportunities such as cloud gaming and VR/AR integration, Vietnam can enhance its global competitiveness and establish itself as a leading player in the gaming market.

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