STRENGTHENING REGULATIONS ON THE VIDEO GAME INDUSTRY IN VIETNAM

Video game industry in Vietnam has experienced remarkable growth, driven by a young, tech-savvy population and increasing internet accessibility. However, the Vietnamese government has implemented stringent regulations in this field, particularly concerning foreign investment and content control. Understanding these regulations is crucial for foreign investors aiming to enter or expand within Vietnam's gaming market.

Overview of the video game industry in Vietnam

Vietnam has emerged as a significant player in the global gaming arena, leveraging its youthful demographic and enthusiasm for technology. 

Why Vietnam is becoming a gaming hotspot

Vietnam's video game industry presents significant growth potential, driven by its sizeable population, growing middle class, and large, internet-savvy youth cohort. The country's gaming sector has seen substantial growth, with Vietnamese game developers achieving an impressive 4.2 billion downloads globally in 2023, growing at a rate 2.5 times higher than the world average. This momentum showcases the industry's ability to innovate and adapt to the ever-evolving global market. gaming market trends in vietnam

The industry's revenue is projected to reach US$1,664.00m in 2025, and is expected to demonstrate an annual growth rate (CAGR 2025-2029) of 9.77%, leading to a projected market volume of US$2,416.00m by 2029. Employment in the sector has grown substantially.  This growth is a direct result of the cooperation and alliances forged among local developers, distributors, and the government to strengthen the position and gaming market trends in Vietnam in the global gaming landscape.

Vietnam's video gaming industry is poised for significant growth

Entering the games market

Vietnam's game market may be challenging for foreign developers, given the strict censorship laws and extensive administrative procedures. However, the strong growth potential of the gaming industry in Vietnam means the market continues to be attractive to many companies. It is important for companies looking to enter the Vietnamese video game market to be aware of the evolving regulatory landscape as the country continues to crack down on illegal and unlicensed games. Any games considered for launch in Vietnam must either be localized to meet the country's content restrictions or carefully selected based on the content. Partnering with a local company, which is a prerequisite for entering the market, does have the major benefit of significantly simplifying procedures for foreign companies. 

Understanding Vietnam’s regulations for video games

Understanding the specific requirements and restrictions is essential for compliance and successful business operations.

Foreign companies must establish an entity in Vietnam

Under Decree No. 72/2013/ND-CP, foreign companies that provide video game services in Vietnam are required to establish a local entity in accordance with the country's foreign investment legislation. This means that cross-border provision of video games, without an entity in Vietnam, is prohibited. Foreign investors must set up a joint venture with a Vietnamese partner licensed for the provision of game services if they wish to engage in the online games distribution service. In such joint ventures, the foreign investors' capital must not exceed 49%. Foreign investors must navigate these complex regulations to operate legally in the Vietnamese market. 

Foreign companies must establish a local entity in Vietnam to provide video game services

Content restrictions and compliance challenges

Vietnam imposes strict censorship regulations on video game content to ensure alignment with cultural values and social norms. Under Decree 72, the following content is prohibited:

• Images or sounds that are horrifying, incite violence and brutality, are vulgar, erotic, and obscene, immoral, contrary to traditional ethics and culture, or distort and undermine history.

• Images or sounds that depict suicide, drug use, alcohol, tobacco, terrorism, child maltreatment, abuse, and trafficking, or other harmful or illegal acts.

• Content that opposes the State of the Socialist Republic of Vietnam, undermines national security and social order, sabotages national unity, or incites division among ethnicities, races, and religions.

• Content that propagates and incites violence, obscenity, pornography, crimes, superstitions, and social vices.

• Content that discloses state, military, economic, and diplomatic secrets, or spreads false and untruthful information.

Companies must obtain approval from the Ministry of Information and Communications (MIC) to ensure their content is not prohibited. The MIC has broad discretion in determining the legality of game content, making compliance a critical aspect for foreign investors. Challenges in Vietnam's gaming industry for foreign gaming companies require careful adherence to avoid legal issues.

Companies must obtain approval from the MIC to ensure their game content is not prohibited

Vietnam's video game industry holds immense potential for growth, offering significant opportunities for both local and foreign investors. However, foreign investors must comply with Decree 72 and other related regulations while establishing partnerships with local entities to streamline their entry into the market. For expert guidance on establishing a company of the video game industry in Vietnam, Contact G2B today!