2023 has been a period of remarkable growth and transformation. How about 2024? It is also predicted to be a promising, yet challenging for the Vietnam game industry by many industry experts from Google and Meta. We are aiming for a billion-dollar worth-market and are striving daily to achieve that goal.
So, if you are a gaming business, an indie game developer or literally anyone who is fascinated by the Vietnam market entry, you are in the right place. Here’s a look at the data and insights shaping our vibrant industry in 2024
Booming Mobile Game Development
Vietnamese game developers achieved 4.2 billion downloads globally, growing at a rate 2.5 times higher than the world average in 2023. This explosive growth highlights the incredible talent and innovation within the Vietnamese game development community. Such a massive download volume not only underscores the popularity of Vietnamese games but also points to the increasing quality and appeal of the content being produced.
Read more Game Trends and Forecasts in Vietnam for 2023-2024
Transition from Hyper-Casual to Hybrid Games
The Vietnam game industry is witnessing a significant shift as many game studios move from hyper-casual to hybrid models. By incorporating more complex content and in-app purchases, developers are enhancing user engagement and increasing lifetime value. This trend reflects a maturing market where gamers are seeking richer and more immersive experiences. The shift to hybrid games also allows developers to diversify revenue streams, making the industry more sustainable and resilient.
Embracing AI Integration
Vietnam is ranked 5th in the AI readiness index. 2024 marks a pivotal year where AI is being incorporated into game production and user acquisition. We’re seeing more game studios using AI to gain a competitive edge. Our in-house game studio, Grabros, is doing just the same. AI is enhancing various aspects of game development, from creating more realistic NPCs to optimizing user engagement through personalized content recommendations. The integration of AI technologies is a game-changer, setting the stage for unprecedented innovation in the Vietnamese gaming industry.
Youthful and Adaptable Workforce
The Vietnamese game development community is characterized by its youthful energy and adaptability. With approximately 35,000 game developers and around 400 game companies operating in Vietnam, our developers are quick to embrace market changes, helping Vietnam rank in the top 5 downloads worldwide. This youthful workforce brings fresh perspectives and a willingness to experiment with new ideas, driving the industry’s dynamic growth. Their adaptability is a key asset in navigating the fast-paced and ever-evolving gaming landscape.
Restructuring Human Resources
To keep up with trends, game studios are restructuring teams and investing in training. This focus on education is crucial as we aim to fill skill gaps and cultivate expertise in roles like game design and project management. Two universities in Vietnam, PTIT and BUV, have opened courses for game design and development, marking a significant step forward. These programs focus on areas such as script design and game development, providing a solid foundation for students. Partnerships with major tech firms like Google further enhance the educational offerings and skill development opportunities.
Collaborations with Publishers
We’re seeing more indie game studios and even big corporations like Roblox, EA, and many more partnering with local publishers. These collaborations are essential for navigating market challenges and bringing exceptional games to a Vietnamese audience legally. By working together, both local and international companies can leverage their strengths to produce high-quality games that meet the demands of an increasingly sophisticated player base.
Government Support and Milestones
Vietnam’s government has played a crucial role in fostering the growth of the gaming industry. In 2023, the government decided against imposing a special consumption tax on gaming, recognizing its potential for economic growth. The Ministry of Information and Communications is exploring tax incentives to further support the industry. This governmental backing is pivotal in providing a conducive environment for game development and innovation.
Addressing Industry Challenges
Despite the successes, the Vietnamese game industry faces challenges. The quality of games and applications needs improvement, and the lifecycle of games is shorter than the global average. Additionally, there is heavy reliance on eCPM for revenue, which limits growth potential. Addressing these challenges through innovation and strategic investments will be crucial for sustained growth.
Conclusion
Vietnam’s game industry is on a trajectory of remarkable growth and transformation. With strong government support, international recognition, and a focus on innovation and education, the industry is well-positioned to achieve its billion-dollar revenue goal. The youthful and adaptable workforce, combined with strategic collaborations and AI integration, ensures that Vietnam remains a vibrant and dynamic player in the global gaming landscape.
