Vietnam Online Game Market Overview - Briefing Report Updated 2014, made by B&Company Vietnam

1. B&Company Vietnam
B&COMPANY VIETNAM
VIETNAM ONLINE GAME MARKET OVERVIEW
June, 2014
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Overview
Summary
Source: Press research
• 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

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Market size
Vietnam online game market continuously increase, reaching 250 million revenue and 20 million PC gamers in 2012.
Source: Press research
55
80
120
200
250
5 6 12 15
2007 2008 2009 2010 2011 2012 2013
Games market revenue (MUSD)
Total game market
Of which, Mobile
game sector
7 7
5
14
7
2 2
0 0
2
8
5
5
12
2006 2007 2008 2009 2010 2011 2012
• As a life cycle, a game go through growing stage to mature, then
decline stage. In 2013, Vietnam has 76 games still in operation.
• Web games first appeared in Vietnam in 2008 and quickly raise in
term of number
• In 2009, there happened a boom in games registration with
surprisingly high number of games released and survive until 2013
Notice
Number of online PC games by type
Web games
Client games
Total = 76 games (2013)
• In 2012, beside 250 Million USD revenue from direct gamers,
gaming industry generate over 1 billion USD revenue from
advertising.
• Almost games in Vietnam allow gamers to start free-of-charge,
then charge fee if they want to upgrade their characters

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Market size
Despite the domination of Chinese games, Vietnamese games are growing fast, especially web game sector.
Source: Press research
59
17
14
4 3 3
100% = 76 operating games
• Overall, Vietnamese gamers like adventurous and fighting games, with
ancient Chinese theme. This is a result of the long-time dominating
coverage of Chinese films in Vietnam
• Japan pays little attention to games for PCs. They focus more on games
for game box (play station, Wii, XBoX, …) , which are offline games
• Beside the above 76 games registered by domestic publishers, gamers
may play unlicensed games and games at oversea servers
3 3
4
17
10
4 4
0 0
1
2
1
3
6
4
3
1 1 1
0
1
2006 2007 2008 2009 2010 2011 2012
China
Vietnam
Korea
Number of games from China, Korea and Vietnam
• In 2009, Chinese games boomed the market with 17 in total
of 22 games released. China always keeps top position in
gaming source.
• Korea is reducing quantity of games published in Vietnam
• Vietnam companies are quickly raising number of games
produced. However, almost Vietnamese games have simple
design and game-play. Vietnam is focusing on web games due
to low requirement of technology and investment.
China
Vietnam
Korea
Japan
Other
US
Number of online PC games by country of origin, 2013

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Types of Games
Games for mobile, in any type. is raising significantly, after the booming of Web game sector.
Source: Press search
Channel
Types of
games
Features Trend
PC and
laptop
Offline
game
• Can be played without internet connection
• Very old and extremely diverse market with variety of products
• Offline games are changing into
online games by Network-creating
programs
• Game with 3D graphics are getting
more attention
• Web games are upgrading designs
and game-plays
Client
games
• The largest and also most profitable game sector
• Play online by using an application in PC or laptop
• Long life expectancy (averagely at least 2 years)
• Good graphic and design, with strategy and stories
Web games
• Play on web sites without any required application in PC or laptop
• New trend recently.
• Convenient, but risky option
• Not so good design and not as strategic as offline and client games
Mobile
devices
Mobile
games
• Play on mobile phones and tablets
• Started as very simple games on mobile phones, gradually became
an independent and profitable industry.
• Quickly rising recently
• Games stay at peak for only3-6 months
• Rapidly growing
• Mobile game creators are becoming
more specialized and independent
upon PCs games
Trend of creating multi-platform
games (an online game can be played
in all channels)
Game box

7. 6
V.N.G occupies dominant market share. FPT and VTC, despite their decreasing revenue, keep their places in top 3
Key Player of Game Market
Source: Press search, Companies’ websites
No Game
publisher
Establis
hment
Revenue
(2012)
MUSD
Famous games Origin Current situation
1 V.N.G 2004 130 • Vo Lam
Truyen Ky
• Kiem The
• Gunny
• Boom Online
• Zing games
• China
• China
• China
• Korea
• Vietnam
• Going up from 81
Mil USD revenue in
2011, taking over
50% market share
of Vietnam
Gaming market in
2012
2 VTC
Game
2006 30 • Cross Fire
• Fifa Online 2
• Audition
• Korea
• US
• Korea
• Having trouble in
general
• Closed some of its
famous games
• Raising in Mobile
Game sector
3 FPT
Online
2007 10 • Thien Long
Bat Bo
• MU Online
• China
• Korea
• Going down from
15 Mil USD
revenue in 2011
Top Game Publishers in Vietnam, 2012
52
12
4
32
100% = 250 MUSD
V.N.G
VTC
FPT
Other
Vietnam Games market share, 2012
Key players

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Key players
Mobile games sector is shifting from being mobile version of PC games to being independently developed
Key player in Mobile Game sector
Source: Press search; MCC, 2013
Key players of Mobile games market
42
25
17
8
8
MeCorp
McCorp
Teamobi
VTC
Vietnam Mobile Games market share, 2012
Other
• Top 3 companies in Mobile games in Vietnam, 2012: MeCorp, McCorp and
Teamobi
• They all specialize in providing mobile games
• MeCorp and McCorp quickly succeed in Mobile games market
- They are both established in 2010 and early 2011, the hot time of
Mobile games
- They both set partnership with big Telecom Operators: Viettel,
VinaPhone, MobiFone … to introduce and sell their products.
- They focus on the taste of Vietnamese gamers: online community
games, with good design and adventurous game-play like a PCs game.
- They take advantage of technology to consistently improve their
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
with offline games (40 offline games and only 5 online games)
- 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
100% = 12 MUSD

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Game release
Vietnamese publishers are negatively influencing game industry by violating standard procedure of game releasing
Game release procedure
Source: Press search
• Allow few pro-gamers to
test and find out game bugs
• These game testers work as
company’s collaborators, or
game developers
• Takes 1 – 3 months
• Allow more gamers
to test and find out
game bugs
• Takes 2 – 3 months
• Allow a large amount
of gamers to play game
as a trial version to test
server capacity.
• Start Releasing the game for
gamers to play
• At the end of trial time, all
properties must be reset
• Almost games start free-of-
charge, then charge fee later
then
Standard procedure of Client and web game releasing ( 3 – 6 months)
Current situation of Game release in Vietnamese market
Consequences
• Games come to the market within short time and large
amount, making the game industry competitive
• Publishers do not ensure game’s quality: game bugs, lag,
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
Current situation
• Vietnamese publishers are violating the standard
procedure of game release by minimizing or even
skipping trial steps to quickly release the game,
attract gamers and get revenue
Pre-closed beta
(Internal trial to
test game quality)
Closed beta
(Public trial to test
game quality)
Open beta
(Public trial to test
server capacity)
Official Release

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Game release
Vietnamese publishers are facing various problems raising from license of game releasing.
Games release in Vietnam, difficulties and suggestions
Source: Press search
Difficulty Proposed solution
Mobile games
• Each publisher has a large amount of new mobile games
• Long time processing license (2-3 months)
• Short profitable time (first 3-6 months)
• Competition from Games from oversea server, which comes
to customer faster as they are free from license regulations
• In order to have a game released, a
license is needed for only the publishers,
not the particular games
• Improve domestic games’
competitiveness
PC games (Offline
games, Client games
and Webgames)
• Unlicensed games, mostly from China is ruining the
profitability of Vietnam gaming market
• Competition from oversea servers
• Hack, cheat in games
• Need more management over the
release of Online games
• Game publishers need to invest more
into their products
Game release, difficulties and suggestions

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Hot games
Source: Press search
Game Logo
Game
publisher
Type Producer Free/Paid
CUU*/registration
number/frequent login
Gunny VNG Webgame
7Roads
(China)
Free
Maximum 170,000 CCU
Monthly login: 4 million
Fifa online 2 VTC Client EA (US) Free
Maximum 100.000 CCU
Daily login: 1 million
World of
Tanks (WoT)
VTC Client
Wargaming
(Belarus)
Free Maximum 250,000 CCU
Cross fire VTC Client
SmileGate
(Korea)
Free
Maximum 60,000 CCU
1.5 million registration
accounts
World of JX
(Kiem The)
VNG Client
KingSoft
(China)
Free Maximum 80,000 CCU
*CCU (concurrent users): number of users playing game at the same time

12. B&Company Vietnam
COMPANY INTRODUCTION
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13. Company Overview
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Japan
B&Company Joint Stock Company
Established : 1997 (2007 switched to Joint Stock Company)
Representative: Shigemasa Ohta
Business • Strategic marketing
• Support newly established companies.
• Venture investment.
• Foreign business investment (Vietnam).
Founded in 1997, B&Company dedicates to provide reliable business expansion support, research and consulting
services.
Representative profile
• Advisor on overseas market development –
The Organization for SME and Regional
Innovation, Japan
• Advisor of Center Tokyo Area, Tokyo Small
and Medium Enterprise Management
Consultant Association.
• Advisor SMEs on overseas market expansion
– Tokyo Stock Exchange.
• Special Advisor for government and business
reform – Osaka Prefecture and Osaka City.
• Senior Advisor for SMEs on international
ventures.
• Member of the National Research Committee
for TEPCO Fukushima Nuclear Power Plant
accident.
Company’s qualifications
• Member of ESOMAR.
• Member of Japan Business Association in
Vietnam.
• Consultant for SME of the Tokyo Chamber of
Commerce & Industry
• Partner of JETRO Hanoi.
Vietnam
B&Company Vietnam Co., Ltd.
Established : 2008
Representative: Shigemasa Ohta
Business • Market research: Desk research, Industry
interview, Costumer survey, etc.
• Investment consulting and supports.
• Business tour/ Business matching.
• M&A supports.
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14. Service Menu
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With reliable market data, we provide highly competent market research services.
※For further information, please contact us via email: info@b-company.jp or telephone.
Service menu Descriptions
Industry Interview
Interactively interview customers, governmental officials, industry insiders or experts
working in relevant industries to collect needed data or information.
Consumer Survey
Survey targeted local consumers to understand their behaviors and awareness by various
methodologies namely street survey, focused group interview, family visits, etc.
Business Matching
Support client’s whole expansion process from finding potential local customers, partners and
suppliers; negotiating until official execution.
Business Tour
Properly adjust contents of field trips or business talks with enterprises (in relevant
industries) according to clients’ various requirements.
General Investment
Consulting
Support client’s successful establishment in term of investment regulations, business
establishment related documents and procedures.
Other services
Desk research, Exhibition participation support, M&A supports, Business event planning,
Marketing supports and Document interpretation, etc.
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15. 14
Contacts
Tokyo Hanoi Ho Chi Minh
Name B&Company, Inc. B&Company Vietnam Co., Ltd.
Contact
person
Sugiyama (Mr.) Van Nguyen (Ms.) Phuong Bui (Ms.)
Address
3F, Kinshichou Sunrise Building,
2-14-7, Kotobashi, Sumida-ku,
Tokyo, Japan
〒130-0022
3F, TH Building, 1 Do Hanh
Str., Hai Ba Trung Dist.,
Hanoi.
2F, Indochina Building, 4
Nguyen Dinh Chieu Str.,
Dist. 1, Ho Chi Minh city.
Telephone 03-3846-2680 (84)-4-3978-5165 (84)-8-3910-3913
URL http://b-company.jp
Email info@b-company.jp
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