B&COMPANY VIETNAM

VIETNAM ONLINE GAME MARKET OVERVIEW

B&Company Vietnam
June, 2014
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Overview
Summary

• Vietnam game market is continuously raising, reaching 250 Million USD and 20 million gamers in 2012. Vietnam is the largest
game market in South East Asia

• Vietnam is dominated by Chinese games, followed by Korean in term of number. Vietnam ranks third with only 6 games, all of them
have basic design and simple game-play

• VNG keeps being the largest player in Vietnam gaming market, with adventurous and fighting games, taking ancient Chinese
theme. FPT and VTC develop more diversified types of games, including shooting, sport, modern war, … However, these two key
players are going downward.

• Mobile games and web games have had tremendous increase.

- Web games have stopped their booming and on the saturation stage, they need more improvement for the design, story and
game-play in order to keep their fast development rate.
- Mobile games are on the way up. Revenue of mobile games is jumping significantly with annual growth rate of averagely 50%.
Mobile game market is still potentially profitable
- Mobile game is taking more attention and interest: from being mobile version of PC games, now more and more developers
are creating mobile games independently.

• Vietnamese regulation on games, especially mobile games has various problems:

- Long time process in comparison with their short profitable duration
- These restricted regulations weaken Vietnamese mobile games in competition with imported games (which don’t need to
have license) and games on international server
- On other side, Vietnam is loosening regulation on Client games (PC online games) and web games; therefore those games’
quality is not ensure d

Source: Press research

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 Market size
Vietnam online game market continuously increase, reaching 250 million revenue and 20 million PC gamers in 2012.

Games market revenue (MUSD) Number of online PC games by type

250 Total = 76 games (2013)

200
Notice
8
Total game market
120
Of which, Mobile
80 game sector 5
55 12 Web games
0 0 14
2
5
12 15 7 7 7
5 6 5
2 2 Client games
2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012
• In 2012, beside 250 Million USD revenue from direct gamers, • As a life cycle, a game go through growing stage to mature, then
gaming industry generate over 1 billion USD revenue from decline stage. In 2013, Vietnam has 76 games still in operation.
advertising.
• Web games first appeared in Vietnam in 2008 and quickly raise in
• Almost games in Vietnam allow gamers to start free-of-charge, term of number
then charge fee if they want to upgrade their characters
• In 2009, there happened a boom in games registration with
Source: Press research surprisingly high number of games released and survive until 2013
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 Market size
Despite the domination of Chinese games, Vietnamese games are growing fast, especially web game sector.

Number of online PC games by country of origin, 2013 Number of games from China, Korea and Vietnam
100% = 76 operating games
17
Other
Japan
US 3
4 3
10 China
Korea 14 China
Vietnam
6 Korea
4 4 4 4
59 3 3 3 3
17 2
11 1 11 1
Vietnam 0 0 0

2006 2007 2008 2009 2010 2011 2012

• Overall, Vietnamese gamers like adventurous and fighting games, with • In 2009, Chinese games boomed the market with 17 in total
ancient Chinese theme. This is a result of the long-time dominating of 22 games released. China always keeps top position in
coverage of Chinese films in Vietnam gaming source.

• Japan pays little attention to games for PCs. They focus more on games • Korea is reducing quantity of games published in Vietnam
for game box (play station, Wii, XBoX, …) , which are offline games
• Vietnam companies are quickly raising number of games
• Beside the above 76 games registered by domestic publishers, gamers produced. However, almost Vietnamese games have simple
may play unlicensed games and games at oversea servers design and game-play. Vietnam is focusing on web games due
Source: Press research to low requirement of technology and investment.
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Types of Games
Games for mobile, in any type. is raising significantly, after the booming of Web game sector.

Types of
Channel Features Trend
games
Game box • Offline games are changing into
Offline • Can be played without internet connection online games by Network-creating
game • Very old and extremely diverse market with variety of products programs
• Game with 3D graphics are getting
• The largest and also most profitable game sector more attention
Client • Play online by using an application in PC or laptop • Web games are upgrading designs
PC and games • Long life expectancy (averagely at least 2 years) and game-plays
laptop • Good graphic and design, with strategy and stories

• Play on web sites without any required application in PC or laptop

• New trend recently.
Web games
• Convenient, but risky option
• Not so good design and not as strategic as offline and client games

• Play on mobile phones and tablets • Rapidly growing

• Started as very simple games on mobile phones, gradually became • Mobile game creators are becoming
Mobile Mobile
an independent and profitable industry. more specialized and independent
devices games
• Quickly rising recently upon PCs games
• Games stay at peak for only3-6 months

Trend of creating multi-platform

games (an online game can be played
Source: Press search in all channels)
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Key players
Key Player of Game Market
V.N.G occupies dominant market share. FPT and VTC, despite their decreasing revenue, keep their places in top 3

Top Game Publishers in Vietnam, 2012 Vietnam Games market share, 2012
100% = 250 MUSD
No Game Establis Revenue Famous games Origin Current situation
publisher hment (2012)
MUSD
1 V.N.G 2004 130 • Vo Lam • China • Going up from 81
Truyen Ky Mil USD revenue in Other
V.N.G
• Kiem The • China 2011, taking over
• Gunny • China 50% market share
• Boom Online • Korea of Vietnam 32
• Zing games • Vietnam Gaming market in
2012
52
2 VTC 2006 30 • Cross Fire • Korea • Having trouble in
Game • Fifa Online 2 • US general
• Audition • Korea • Closed some of its 4
famous games
• Raising in Mobile 12
FPT
Game sector
VTC
3 FPT 2007 10 • Thien Long • China • Going down from
Online Bat Bo • Korea 15 Mil USD
• MU Online revenue in 2011

Source: Press search, Companies’ websites

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Key players
Key player in Mobile Game sector
Mobile games sector is shifting from being mobile version of PC games to being independently developed

Key players of Mobile games market Vietnam Mobile Games market share, 2012

• Top 3 companies in Mobile games in Vietnam, 2012: MeCorp, McCorp and 100% = 12 MUSD
Teamobi

• They all specialize in providing mobile games

Other
• MeCorp and McCorp quickly succeed in Mobile games market
- They are both established in 2010 and early 2011, the hot time of VTC 8
Mobile games MeCorp
8
- They both set partnership with big Telecom Operators: Viettel, Teamobi
VinaPhone, MobiFone … to introduce and sell their products.
- They focus on the taste of Vietnamese gamers: online community 42
games, with good design and adventurous game-play like a PCs game.
- They take advantage of technology to consistently improve their 17
products, becoming more independent instead of keep being Mobile
versions of PCs games

• Teamobi was established earlier (2007), however their market share is not
so large:
- They do not focus on Vietnamese gamers’ taste, but rather serve them 25
with offline games (40 offline games and only 5 online games) McCorp
- They do not team up with Telecom Operators to fasten the distribution
and payment process.
• VTC is focusing more in mobile games due to their
downward revenue in PC games

Source: Press search; MCC, 2013

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Game release
Game release procedure
Vietnamese publishers are negatively influencing game industry by violating standard procedure of game releasing

Standard procedure of Client and web game releasing ( 3 – 6 months)

Pre-closed beta Closed beta Open beta

(Internal trial to (Public trial to test (Public trial to test Official Release
test game quality) game quality) server capacity)

• Allow few pro-gamers to • Takes 1 – 3 months • Takes 2 – 3 months • Start Releasing the game for
test and find out game bugs • Allow more gamers • Allow a large amount gamers to play
• These game testers work as to test and find out of gamers to play game • At the end of trial time, all
company’s collaborators, or game bugs as a trial version to test properties must be reset
game developers server capacity. • Almost games start free-of-
charge, then charge fee later
then

Current situation of Game release in Vietnamese market

Current situation Consequences
• Vietnamese publishers are violating the standard • Games come to the market within short time and large
procedure of game release by minimizing or even amount, making the game industry competitive
skipping trial steps to quickly release the game, • Publishers do not ensure game’s quality: game bugs, lag,
attract gamers and get revenue server capacity
• Publishers are not experienced to hacks, cheat, bugs,… so
they can’t control the game properly
• Low quality games, with bad game management and fast
break-even point makes games’ life cycle much shorter
Source: Press search
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Game release
Games release in Vietnam, difficulties and suggestions
Vietnamese publishers are facing various problems raising from license of game releasing.

Game release, difficulties and suggestions

Difficulty Proposed solution

• Each publisher has a large amount of new mobile games • In order to have a game released, a
• Long time processing license (2-3 months) license is needed for only the publishers,
Mobile games • Short profitable time (first 3-6 months) not the particular games
• Competition from Games from oversea server, which comes • Improve domestic games’
to customer faster as they are free from license regulations competitiveness

• Unlicensed games, mostly from China is ruining the • Need more management over the
PC games (Offline profitability of Vietnam gaming market release of Online games
games, Client games • Competition from oversea servers • Game publishers need to invest more
and Webgames) • Hack, cheat in games into their products

Source: Press search

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Hot games

Game CUU*/registration
Game Logo Type Producer Free/Paid
publisher number/frequent login

7Roads Maximum 170,000 CCU

Gunny VNG Webgame Free
(China) Monthly login: 4 million

Maximum 100.000 CCU

Fifa online 2 VTC Client EA (US) Free
Daily login: 1 million

World of Wargaming
VTC Client Free Maximum 250,000 CCU
Tanks (WoT) (Belarus)

Maximum 60,000 CCU

SmileGate
Cross fire VTC Client Free 1.5 million registration
(Korea) accounts

World of JX KingSoft
VNG Client Free Maximum 80,000 CCU
(Kiem The) (China)

*CCU (concurrent users): number of users playing game at the same time

Source: Press search

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COMPANY INTRODUCTION

B&Company Vietnam

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Company Overview
Founded in 1997, B&Company dedicates to provide reliable business expansion support, research and consulting
services.

Representative profile
• Advisor on overseas market development –
Japan The Organization for SME and Regional
B&Company Joint Stock Company Innovation, Japan
Established : 1997 (2007 switched to Joint Stock Company) • Advisor of Center Tokyo Area, Tokyo Small
Representative: Shigemasa Ohta and Medium Enterprise Management
Business • Strategic marketing Consultant Association.
• Support newly established companies. • Advisor SMEs on overseas market expansion
– Tokyo Stock Exchange.
• Venture investment.
• Special Advisor for government and business
• Foreign business investment (Vietnam). reform – Osaka Prefecture and Osaka City.
• Senior Advisor for SMEs on international
Vietnam ventures.
B&Company Vietnam Co., Ltd. • Member of the National Research Committee
Established : 2008 for TEPCO Fukushima Nuclear Power Plant
accident.
Representative: Shigemasa Ohta
Business • Market research: Desk research, Industry Company’s qualifications
interview, Costumer survey, etc. • Member of ESOMAR.
• Member of Japan Business Association in
• Investment consulting and supports.
Vietnam.
• Business tour/ Business matching. • Consultant for SME of the Tokyo Chamber of
• M&A supports. Commerce & Industry
• Partner of JETRO Hanoi.
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 Service Menu
With reliable market data, we provide highly competent market research services.

Service menu Descriptions

Interactively interview customers, governmental officials, industry insiders or experts

Industry Interview
working in relevant industries to collect needed data or information.

Survey targeted local consumers to understand their behaviors and awareness by various
Consumer Survey
methodologies namely street survey, focused group interview, family visits, etc.

Support client’s whole expansion process from finding potential local customers, partners and
Business Matching
suppliers; negotiating until official execution.

Properly adjust contents of field trips or business talks with enterprises (in relevant
Business Tour
industries) according to clients’ various requirements.

General Investment Support client’s successful establishment in term of investment regulations, business
Consulting establishment related documents and procedures.

Desk research, Exhibition participation support, M&A supports, Business event planning,
Other services
Marketing supports and Document interpretation, etc.

※For further information, please contact us via email: [email protected] or telephone.

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Contacts

Tokyo Hanoi Ho Chi Minh

Name B&Company, Inc. B&Company Vietnam Co., Ltd.

Contact
Sugiyama (Mr.) Van Nguyen (Ms.) Phuong Bui (Ms.)
person
3F, Kinshichou Sunrise Building, 3F, TH Building, 1 Do Hanh 2F, Indochina Building, 4
2-14-7, Kotobashi, Sumida-ku, Str., Hai Ba Trung Dist., Nguyen Dinh Chieu Str.,
Address
Tokyo, Japan Hanoi. Dist. 1, Ho Chi Minh city.
〒130-0022

Telephone 03-3846-2680 (84)-4-3978-5165 (84)-8-3910-3913

URL http://b-company.jp

Email [email protected]

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