1. The Player Market (Consumer Focus)
The Big Picture: Market at a Glance
Vietnam is no longer just an emerging market; it is now recognized as a global app powerhouse. The market is valued at $472 Million (2025), but its future trajectory is the key story: it's projected to grow at a strong **CAGR of 9.3%**, reaching over $620 Million by 2028. Domestically, the revenue is split dramatically: Mobile Games account for $150M and PC/Console Games contribute the larger share at $322M. While Mobile dominates exports, PC/Console is the largest domestic revenue driver.
This line chart clearly illustrates the aggressive growth forecast and market momentum through 2028.
Who is the Vietnamese Gamer?
Understanding the player is key. The Vietnamese gamer demographic is remarkably balanced and digitally native. Gen Z forms the largest cohort, and the player base is almost evenly split by gender. Device usage is overwhelmingly mobile-first, with 61.7% of players using Android and 37.3% using iOS.
Age Distribution
Gen Z (18-24) and young Millennials (25-34) dominate the market, making up the vast majority of players.
Gender Split
The market shows a near-even split, with 53% male and 47% female gamers, debunking outdated stereotypes.
Location
A large majority (65%) of players live in urban areas, benefiting from better internet infrastructure.
How They Play: Platforms
While mobile is the platform of export and scale, the domestic revenue split is highly unusual. The PC/Console segment accounts for $322 Million of the domestic market, making it the highest revenue driver, despite mobile being the primary device for consumption.
This pie chart shows the stark difference in domestic revenue share between Mobile and PC/Console.
How They Pay: Monetization Challenges
Monetization remains the biggest hurdle. The average revenue per user (ARPU) is only $12, far below the global average. Most players prefer Free-to-Play, and payment methods are highly fragmented and localized, creating friction for international publishers.
The chart illustrates the fragmented payment mix: E-Wallets (31%), Cards (27%), Bank Transfer (21%), and Cash (18%). This complexity necessitates local payment integration for success.
What They Play: Top Genres & Market Leaders
Player preferences diverge significantly between platforms. The mobile scene is dominated by deep, engaging RPGs and Strategy games, alongside accessible Puzzle titles. Local leaders like VNG and Garena maintain market dominance.
Top Mobile Genres
- 1. Role-Playing (RPG)
- 2. Strategy
- 3. Puzzle
Top PC Genres
- 1. MOBA
- 2. First-Person Shooter (FPS)
- 3. MMORPG
Top Publishers (Revenue)
- 1. VNG
- 2. Garena
- 3. VTC
Recent Local Excellence (Google Apps Summit)
iKame won the Best of Vietnam User Growth Champion, and ABI Game Studio won the Best of Vietnam Rising App award.
2. The Developer & Strategic Landscape (Studio Focus)
The Studio Engine: On-the-Ground Insights
Beyond the high-level numbers, on-the-ground analysis of local studios reveals a fascinating duality. Vietnamese teams possess incredible speed and trend-spotting abilities, but often lack the deep processes and strategic long-term planning of Western counterparts. This creates a unique operational dynamic.
Strengths: The "Go-Fast" Engine
✓ Cost-Effective Talent
Average cost per developer is extremely low, around 50% less than the average developer in LATAM, 60-70% less than the average developer in Europe, and 80% less than the average developer in the US.
✓ AI Leadership
Studios are rapidly integrating AI for code review, asset creation, and UA optimization, dramatically increasing efficiency.
✓ Rapid Creatives
New creatives are developed in very quick turnarounds.
✓ Market Scouting
Teams constantly scout digital intelligence tools for new trends.
✓ ROAS-Driven
Campaigns are highly focused on ROAS, with extremely short payback windows.
✓ Top Networks
Applovin is the #1 performing UA network for most.
✓ Quick Execution
Extremely fast at learning, changing, and executing on existing ideas.
✓ User Segmentation
Basic but effective segmentation based on attribution.
Weaknesses: The Need for Process
✗ Lack of Process
Little use of structured processes which lead to scalability issues.
✗ Lack of Long Term Strategy
Focus is on short-term execution, not long-term roadmaps or strategy.
✗ Insufficient Testing
A/B testing is done, but often lacks the necessary rigor to be meaningful.
✗ Feedback Gaps
Teams execute quickly but are not used to getting feedback rounds, leading to suboptimal releases.
✗ Risk Averse
Hesitant to increase payback windows or try new things, potentially limiting scale.
✗ Shallow Analysis
Tend to repeat patterns without a deep critical analysis of *why* something works.
✗ Language Barrier
Most developers struggle communicating in English. Translators are often required.
Vietnam’s Strategic Pivot: Insights from Google Apps Summit
The recent Google Apps Summit confirmed Vietnam's status as a top global export hub (6.7 billion downloads, surpassing China) and highlighted a shift in focus toward long-term, sustainable growth via hybrid monetization and leveraging AI for competitive advantage.
Hybrid Default
New Monetization Focus
Studios are moving away from pure Hyper-Casual to layering IAP on top of Ads to boost long-term value (LTV).
AI as Table Stakes
Operational Competitive Edge
90% of global developers use AI. Local studios are integrating Gemini for code review and seeing up to a 40% increase in ad content output with Gemini.
Precision Formula
New Success Blueprint
App Success = Product x Precision x Monetization, emphasizing the right audience and right AI features.
Government & Regulation
The government's stance is primarily supportive of the digital economy, recognizing the value of the game industry for job creation and technological development. However, the regulatory landscape includes specific controls, particularly around content, licensing, and access for minors.
Pro-Development Policy
The government offers tax incentives and favorable policies to encourage the growth of domestic digital content creation and high-tech startups.
Licensing Requirement
All games published in Vietnam must obtain a content license from the Ministry of Information and Communications (MIC) before launch, impacting time-to-market.
Age & Content Control
Strict regulations exist to protect minors, including time limits for online games and content restrictions that limit violence, gambling, or political themes.
Strategic Implications for Global Partners & Outlook
Vietnam’s unique dual role as a high-volume exporter and a cost-effective development hub presents both competitive threats and major opportunities for established Western studios and publishers. Success requires recognizing these market dynamics, building defense and taking advantage. Momentum Games Consulting can help you navigate this competitive landscape to come ahead.
⚠ Competitive Threats
- Hyper-Competitive UA: Vietnamese studios are your competitors on major UA networks, leveraging extremely low development costs to sustain aggressive ROAS campaigns globally.
- Speed of Replication: Their rapid execution speed means successful Western concepts are copied and exported worldwide within weeks.
- Revenue Shift: The global app economy is rebalancing towards APAC; Western markets are seeing slower growth compared to Vietnam's export explosion.
★ Partnership Opportunities
- Co-Development/Outsourcing: Leverage the 80% lower developer cost for non-core development, asset creation, and rapid prototyping.
- Process Mentorship: Partnering can offer Western studios a way to commercialize new products faster in exchange for installing mature production and monetization processes.
- Local Market Access: Use Vietnamese partners to navigate the complex local payment landscape (fragmented wallets) and regulatory hurdles (MIC licensing) for domestic releases.
Vietnam's Strategic Outlook: The Four Global Priorities
The market is rapidly maturing, moving past simple volume toward sustainable long-term value (LTV). Based on the latest industry data, the focus is now on achieving success through high-level strategic alignment.
1.
Hybrid Monetization
The new default model, layering IAP on top of Ads to capture value from both the 5% paying and 95% non-paying user segments.
2.
AI-Driven Precision
AI is essential for UA optimization, asset testing, and code iteration. Success = Product x Precision x Monetization.
3.
LTV & Quality Focus
Protecting LTV is paramount; studios must avoid disruptive ad experiences, as 6-7% of users abandon a game after one poor exposure.
4.
Global Center Shift
Vietnam is a key accelerator in APAC, which is projected to drive the app economy to $750 Billion by 2030, shifting the industry's center of gravity.