Vietnam Mobile Gaming and Esports Market

Vietnam mobile gaming and esports market valued at USD 1.2 Bn, driven by smartphone penetration, internet connectivity, and youth engagement. Growth fueled by microtransactions and streaming platforms.

The Vietnam Mobile Gaming and Esports Market is valued at USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing penetration of smartphones, improved internet connectivity, and a burgeoning youth demographic that is highly engaged in mobile gaming and esports activities. Additional growth drivers include the proliferation of microtransactions, downloadable content, and the rise of game streaming platforms and influencers, which have expanded both user engagement and monetization opportunities.

Key cities such as Ho Chi Minh City and Hanoi continue to dominate the market due to their high population density, urbanization, and vibrant tech ecosystems. These cities host a large number of gaming companies and a significant portion of the gaming community, fostering a competitive environment that encourages innovation and growth. Regional analysis confirms that Northern and Southern Vietnam are the primary hubs for gaming activity and industry development.
In 2023, the Vietnamese government implemented regulations to promote the development of the esports industry, including the establishment of a legal framework for esports tournaments and player contracts. The principal regulatory instrument is the "Decision No. 721/QD-BVHTTDL, 2023" issued by the Ministry of Culture, Sports and Tourism, which sets operational standards for esports event organizers, requires licensing for official tournaments, and mandates contractual protections for professional players. This initiative aims to create a more structured environment for esports, enhancing its legitimacy and attracting investment.

Vietnam Mobile Gaming and Esports Market Segmentation

By Type:

The mobile gaming market in Vietnam is diverse, encompassing various types of games that cater to different consumer preferences. The major subsegments include Action/Adventure Games, Casino Games, Sports and Role-Playing Games (RPG), Strategy and Brain Games, Puzzle Games, Simulation Games, and Others.

Action/Adventure Games are particularly popular due to their engaging narratives and immersive gameplay, appealing to a wide audience. Casino Games have also gained traction, especially with the rise of online gambling platforms. The market is characterized by a growing trend towards mobile gaming, driven by the increasing availability of high-quality games, the convenience of mobile devices, and the expansion of localized content and culturally relevant marketing campaigns.

By End-User:

The end-user segmentation of the mobile gaming market includes Casual Gamers, Competitive Gamers, Professional Esports Players, and Streaming Content Creators.

Casual Gamers represent the largest segment, driven by the accessibility of mobile games and the appeal of quick, engaging gameplay. Competitive Gamers and Professional Esports Players are also significant, as the esports scene continues to grow, attracting more players and viewers. Streaming Content Creators have emerged as a vital part of the ecosystem, influencing game popularity and driving engagement through platforms like Twitch and YouTube. The rise of game streaming and influencer marketing has further expanded the reach and impact of this segment.

Vietnam Mobile Gaming and Esports Market Competitive Landscape

The Vietnam Mobile Gaming and Esports Market is characterized by a dynamic mix of regional and international players. Leading participants such as VNG Corporation, Garena Vietnam, MoMo (M_Service JSC), Funtap, Appota Group, SohaGame (VCCorp), Gameloft Vietnam, NetEase Games, Tencent Games, Riot Games, Electronic Arts (EA), Ubisoft, Axie Infinity (Sky Mavis), PUBG Mobile (Krafton/Tencent), Kingsoft contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Mobile Gaming and Esports Market Industry Analysis

Growth Drivers

Increasing Smartphone Penetration:

As of future, Vietnam's smartphone penetration rate is projected to reach 73%, with approximately 72 million smartphone users. This surge is driven by affordable devices, with prices averaging around $150. The World Bank reports that mobile internet subscriptions have increased to over 100 million, facilitating access to mobile gaming. This growing user base is expected to significantly boost engagement in mobile gaming and esports, creating a vibrant ecosystem for developers and players alike.

Rising Disposable Income:

Vietnam's GDP per capita is anticipated to rise to USD 4,300 in future, reflecting a 6% increase from the previous year. This economic growth is leading to higher disposable incomes, allowing consumers to spend more on entertainment, including mobile gaming. The average monthly expenditure on gaming is projected to reach USD 15 per user, indicating a robust market potential. As disposable income rises, more individuals are likely to invest in mobile games and esports, driving market expansion.

Expanding Internet Connectivity:

By future, Vietnam's internet penetration is expected to exceed 75%, with over 70 million active internet users. The government’s initiatives to improve infrastructure, including the rollout of 5G technology, are crucial in enhancing connectivity. Faster internet speeds, averaging 50 Mbps, will facilitate smoother gaming experiences and attract more players. This improved connectivity is essential for the growth of online gaming and esports, enabling real-time interactions and competitive play.

Market Challenges

Intense Competition:

The Vietnamese mobile gaming market is characterized by fierce competition, with over 400 active game studios. Major players like Garena and VNG dominate the landscape, making it challenging for new entrants to gain market share. The influx of international titles further intensifies this competition, as local developers struggle to differentiate their offerings. This saturation can lead to reduced profit margins and increased marketing costs, posing significant challenges for sustainability.

Regulatory Hurdles:

The Vietnamese government imposes strict regulations on gaming content, including licensing requirements that can take several months to process. In future, the Ministry of Information and Communications is expected to enforce new regulations regarding data protection and age restrictions, complicating compliance for developers. These regulatory challenges can hinder innovation and slow down the entry of new games into the market, impacting overall growth potential.

Vietnam Mobile Gaming and Esports Market Future Outlook

The future of Vietnam's mobile gaming and esports market appears promising, driven by technological advancements and a growing user base. The rise of cloud gaming and augmented reality (AR) experiences is expected to reshape the gaming landscape, attracting more players. Additionally, the increasing popularity of esports tournaments will likely foster community engagement and investment. As local developers adapt to regulatory changes, the market is poised for innovation, creating a dynamic environment for growth and collaboration among stakeholders.

Market Opportunities

Expansion of Mobile Payment Systems:

With mobile payment transactions projected to reach USD 15 billion to USD 20 billion in future, the integration of seamless payment solutions in gaming can enhance user experience. This growth presents an opportunity for developers to implement in-game purchases and subscriptions, driving revenue. As more users adopt mobile wallets, the potential for monetization in mobile gaming will significantly increase, benefiting both developers and players.

Development of Local Gaming Content:

The demand for culturally relevant gaming content is on the rise, with local developers expected to create games that resonate with Vietnamese players. By future, the local gaming industry is projected to generate over USD 400 million in revenue. This focus on local narratives and themes can attract a broader audience, fostering community engagement and loyalty, ultimately enhancing the market's growth trajectory.