Troubled History of Vietnam’s Mobile Game Market

Key insights

6 takeaways

01
Vietnam’s mobile game market generated $365 million in revenue in 2018, with local developers contributing approximately $200 million of that total.
02
Government regulations significantly hinder the market, including the 2018 ban on phone card payments and the forced removal of unlicensed titles like PUBG and Rules of Survival from app stores.
03
Strict licensing requirements have forced international publishers to either comply with local mandates or exit the market, as seen with Supercell’s departure in July 2019.
04
Mobile gaming has overtaken PC gaming in both total revenue and user base, with MMORPGs driving the highest revenue despite the popularity of casual titles and battle royales.
05
The market is projected to see 25% revenue growth by the end of 2019, supported by a user base of 30 million gamers out of 50 million smartphone owners.
06
While local publishers face increased competition and regulatory hurdles on app stores, the domestic indie scene is finding success by developing casual and hyper-casual games for global markets via ad-based monetization.

Summary

The Vietnamese mobile gaming market occupies a complex position within the Southeast Asian landscape, characterized by significant growth potential tempered by stringent government regulation. As of 2018, the country emerged as the region’s leader in mobile game revenue, generating $365 million, with local developers contributing approximately $200 million of that total. Despite a user base of 30 million mobile gamers and a projected 25% revenue increase for 2019, the industry faces persistent operational hurdles that have forced both domestic and international publishers to navigate a restrictive legal environment.

Governmental intervention remains the primary driver of market instability. Authorities have implemented aggressive measures, including the 2018 ban on phone card payments—a critical revenue channel—and the enforcement of strict licensing requirements for all titles. These policies have led to the removal of major international titles from app stores and the forced exit of global publishers, such as Supercell, who could not comply with local mandates. Furthermore, the influx of local games following the 2018 opening of major app stores in Vietnam has created a saturated, highly competitive landscape where many titles struggle to gain traction.

While the broader publishing sector faces these regulatory headwinds, the domestic indie development scene has shown resilience. Many independent studios have pivoted toward the global market, finding success by developing casual and hyper-casual titles monetized through advertising. Ultimately, the market remains a high-growth but high-risk environment where success is contingent upon navigating a rigorous, state-controlled regulatory framework that prioritizes local compliance over global accessibility.