Vietnam’s Gaming Ecosystem and Recent Regulatory Changes

Vietnam’s Gaming Ecosystem and Recent Regulatory Changes

Over the past few days, we’ve seen significant news regarding the Vietnamese government’s decision to enforce stricter regulations on game submissions and approvals, following a similar path to China.

As many of us know, China only approves a few hundred games annually, creating a major hurdle for Western developers who want to reach Chinese players without relying on specialized local publishers or partners.

The key difference between China and Vietnam lies in the value of their markets. China boasts both high-quality users and immense scale, making any disruption or potential loss of earnings for Western developers a serious concern.

In contrast, Vietnam’s monetization potential is relatively modest. User behavior is similar to that of most Tier-3 markets, and LTV generally range between $0.10 to $0.40c, depending on the game genre.

That said, Vietnam has emerged as a dominant force in game development, becoming home to some of Southeast Asia’s largest publishers in recent years. However, the majority of their revenue comes from Tier-1 markets, not from domestic players.

In summary, while these regulatory changes will have a net-negative impact, the effect on Western developers is expected to be minimal. Local companies are well-positioned to continue thriving, as their focus remains on larger, more lucrative international markets.