Gaming industry potentially a billion-dollar market
Gaming industry potentially a billion-dollar market
Vietnam's gaming industry, having generated over $600 million in revenue in 2022, is rapidly positioning itself as a potent player in the Southeast Asian market, according to data from a Vietnam Game Development Alliance report from October.
Despite currently trailing behind Indonesia ($1.8 billion), Thailand ($1 billion), Malaysia ($900 million), and the Philippines ($850 million), the Vietnamese gaming market is burgeoning with an average growth rate of 9 per cent per year, surpassing the regional average of 8.2 per cent. With a substantial user base of 54.6 million players, the nation's potential as a gaming market is increasingly evident.
"The gaming sector consistently leads in innovation within the digital industry," states the report, emphasising the pioneering adoption of advanced technologies and methodologies by Vietnamese gaming companies.
The industry's impact extends beyond revenue and profit, significantly influencing the revenues of various other sectors and positioning itself as a pillar of the digital economy globally.
Nguyen Ngoc Bao, CEO of VTC Multimedia Corporation, points out the transformative role of gaming in creating a new sphere - eSports. "We can expect eSports to spearhead the digital economy, growing at 8.1 per cent annually with a projected audience of 640 million by 2025," said Bao.
Le Quang Tu Do, head of the Broadcasting and Electronic Information Authority under the Ministry of Information and Communications, revealed ambitious plans to rapidly increase gaming revenues to $1 billion. "The target also includes expanding the number of gaming enterprises from 30 to as many as 150 and drawing in 400 startups to the community," Do said.
Nguyen Duc Toan, executive director of Google Cloud Vietnam, said, "There are four crucial factors for the industry's growth. Skilled human resources, infrastructure, a young population, and the application of modern technology in game production."
In the upcoming National Forum on Vietnam's Gaming Industry on October 31, stakeholders will discuss global and regional investment trends in gaming, explore the Vietnamese gaming ecosystem's investment opportunities, and envision the future of the sector, including positioning eSports as an innovative and creative industry.
Vu Quoc Huy, director of the National Innovation Centre, said, "Vietnam's gaming industry can compete globally, and Vietnam has the potential to become a powerhouse in gaming."
However, he noted that despite the rapid growth of some gaming companies, the overall industry pace is moderate. Huy attributes this to the lack of a cohesive gaming ecosystem in Vietnam, where companies don't fully leverage each other's strengths.
He also highlighted a disconnect between talented game developers and experienced publishers, hindering broader user reach. Experienced publishers, conversely, struggle to find high-quality Vietnamese games.
Echoing this sentiment, Do stated, "The Ministry of Information and Communications is leading the formation of a gaming alliance to foster mutual support and propel the industry's growth, while we are also inviting foreign investors and enterprises to explore collaborative opportunities in Vietnam."
Nguyen Dinh Khanh, founder and CEO of Wolffun Game, also called for more proactive governmental policies, including tax incentives and increased startup funding, to fuel the sector's growth.
"Such support, long advocated by gaming studios, is yet to see significant positive changes," he said.
