Before you travel to Vietnam, you need to understand four questions.
Editor’s note: This article is from the WeChat public account “Prophet’s Travel Report” (ID : yuyanjiayoubao), author: Deng Ying Chong Jaden Yuki.
The last week, the puffer fish found in the theater in Ho Chi Minh City, Vietnam, that “Dancing My Life 6” was already in the local area before the domestic heat show, and there was a burst of laughter around the movie; walk out of the theater, just beside the whole family The middle school students who are out of school gather together to eat and shake the international version of tiktok or play “Tianlong Babu Mobile Games”; when we go to Vietnam’s largest Internet game company VNG, we are even more amazed at the employees of their BD department. One does not speak Chinese.
“Vietnam’s domestic acceptance of Chinese products, companies and capital is really high.” In the Entertainment Capital Theory Matrix Prophet Travel (ID :yuyanjiayoubao) A group of three people visited the local game publishers VNG, SohaGame, VTC and e-sports kingdom vietnam, GTV, Vietnam National TV VTV, Vietnam E-commerce GTVSHOP, KIDS Smile and other more than ten companies in Vietnam on the 9th. In the middle, I continue to make such a sigh.
From the map, Ho Chi Minh City, which looks like Shanghai, separates areas like Pudong and Puxi along the Saigon River. In their “Pudong New Area” – the price of the top luxury homes in Thu Thiem has risen to 7,000 US dollars / square meter, the average apartment also has 4,000 US dollars / square meter, and the price of the luxury home in the “Puxi” North Bund area is More than 10,000 US dollars / square meter, from the high housing prices, the strong purchasing power of the Vietnamese middle class and above is far beyond our expectations.
In the domestic economic growth rateAfter the gradual increase in the uncertainty of economic development due to changes in Sino-US trade relations, the current economic situation in Vietnam, which has high acceptance of China and has an FTA (Free Trade Agreement) with all economies. Let it be the new goal of Chinese companies and capital to go out to seek more business opportunities.
What is the state of economic development in Vietnam? What opportunities do you have for domestic companies and investors? Entertainment Capital will focus on games, culture and film, TMT products, real estate and other fields, bringing you observation and analysis after our field visits, and will launch [2019 Vietnam Games and Internet Products Going Report].
2019 Vietnam Games and Internet Products Report:Vietnam will be the next China?
Prologue: 2019 China’s investment in Vietnam increased by 5.6 times, and Vietnam’s investment situation is detailed
From the GDP data of the world in 2018, Vietnam’s GDP ranks only 13th in the Asian region, and per capita GDP ranks 11th with US$2566.72.
But the annual growth rate of GDP has been steadily rising since 2012, basically staying at around 6% (and this increase is not excessively dependent on real estate and infrastructure), and China around 2006 The economic situation is similar, with greater room for improvement and opportunities for development.
In terms of population structure, 44.41% of the 96 million people are concentrated in the age of 25-54. At this stage, the market is rich in labor. The proportion of the population aged 24 and below to the total population is 43.9%, indicating that the supply of labor is still abundant in the coming decades.
According to Wikipedia, Vietnam’s higher education penetration rate is high, the national literacy rate has reached 94.5% in 2015, and the population with a high school diploma has reached 94%, the laborability of the labor force is strong, and the acceptance of new things is high, the population quality dividend and the demographic dividend are obvious.
This has led to the rapid development of labor-intensive manufacturing industries. In 2018, the total manufacturing output value increased by 13% year-on-year. The industry and construction industry have become the industries that have contributed the most to the Vietnamese economy, followed by the service industry. In the 2018 economy, the proportion was 42.7%.
The continued growth of the Vietnamese economy as a whole is due to its strong export momentum and FDI (foreign direct investment). Since 2010, Vietnam’s total exports have continued to climb and maintain a trade surplus. By 2018, total exports have risen to $244.72 billion.
The amount of FDI in Vietnam began to increase in 2011, and the FDI in the first quarter of this year has reached 3.22 billion US dollars, thanks to Vietnam’s loose foreign investment environment. Since the government introduced the Foreign Investment Law in 1987, it has been revised four times. By reducing market entry barriers, providing tax incentives, and shortening various administrative procedures, foreign investors and domestic investors are treated without discrimination.
In this thriving economic context, economic sectors have grown. Entertainment Capital is mainly aimed at games, cultural films, TMT products, real estate and other sections, in the form of a series of reports, for the bigThe family presents its specific development and investment opportunities.
I. Game to the sea
First, the four questions you need to understand before you travel to Vietnam.
With the fierce competition in the domestic mobile game market and the negative impact of the version policy, the sea has become a new choice for game makers. According to the “2019 China Game Industry Semi-annual Report” released by gamma data, in the first half of this year, the sales of China’s self-developed online games in overseas markets reached 5.73 billion US dollars, an increase of 23.8%.
According to a NewZoo data show, in 2019, the game market size of the entire Southeast Asia region is expected to reach 4.6 billion US dollars, an increase of 22%, becoming the fastest growing region in the global game market. In fact, in the past few years, Southeast Asia has been one of the key areas for domestic mobile games.
However, domestic game manufacturers choose Indonesia, Singapore, Thailand, Malaysia and other countries when they go to Southeast Asia. Vietnam is a close neighbor of China, but it is not favored by domestic manufacturers.
Last year, Google and Temasek predicted in a joint research report that Vietnam’s Internet economy value will jump from $9 billion in 2018 to $33 billion in 2025, becoming the third in Southeast Asia after Indonesia and Thailand. Big internet economy. The reason for this prediction is the growth rate of more than 50% of the mobile game market in the region in 2018. At the same time, according to the local investigation of entertainment capital theory in Vietnam, the mobile game market in the first half of this year has exceeded 400 million US dollars. That is to say, the probability of Vietnam’s 2019 mobile game market will approach 1 billion US dollars.
But according to the current Vietnamese mobile game market, some popular domestic games have gone out of Vietnam. Due to the unsatisfactory localization and operation, the flow and reputation are not as good as some domestic second-line games.
This market, which has yet to be developed and has great potential, has become the soil for domestic manufacturers. What kind of market is Vietnam? What type of dominant game is it? How to choose a distribution partner? What are the pits that need to be avoided? These issues have become issues of concern to them.
In this regard, Entertainment Capital Theory formed a small study tour to Vietnam in July, with local well-known publishers VNG, GTV, SohaGAme, VTC, Gamota, etc. have fully communicated on Vietnam’s current mobile game market policies and status, the different characteristics of Vietnam’s major mobile game publishing companies, the market size of different types of games and featured games, and future Vietnamese market mobile games. The four dimensions of industry trends have analyzed the Vietnamese mobile game industry.
This article is only the first chapter of the Vietnam Sea Report. I hope this report will bring new inspiration to the game makers who are in the midst of confusion.
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(1) Status of the Vietnamese market: the mobile game market has great potential, and domestic games dominate the market
In January 2018, a report by Vietnam’s social media marketing and advertising agency We Are Social pointed out that Vietnam’s existing smartphone users account for about 80% of the total population (about 75 million people), of which 53 % of people will play games on their mobile phones and are potential mobile game users.
In October 2018, the US-based Mobile Marketing Association (MMA) and the Vietnam market research organization Decision Lab jointly released a report stating that the Vietnamese mobile game market has been in a state of rapid development in recent years, with an estimated 2020. The number of mobile game players will reach 40 million in the year. The report also pointed out that mobile phone users in Vietnam spend an average of 51 minutes a day playing mobile games.
But in contrast, Vietnamese people are not willing to pay. According to Statiscs, the monthly average payment (ARPU) for Vietnamese users is only $10.54. According to eMarketer data, the ARPU of the US mobile Internet in 2018 exceeds $300. Of course, the ARPU value of Vietnamese users belongs to the average level in Southeast Asia. After all, the average ARPU of the entire Southeast Asia region is only about $10.
According to these data, we can roughly draw the conclusion that Vietnam has a population of nearly 100 million, mobile game users of about 50 million, and the game market has an annual output value of more than 1 billion US dollars. It is a fast-growing, high-potential but currently There is also a market to be developed.
Since the PC game era, Vietnamese users have been deeply influenced by Chinese games. Among them, “JX.com Online Edition” still retains a record monthly record of 10 million US dollars. Such an influenceStraight to the era of mobile games. A large part of this is due to the fact that Vietnamese gamers prefer Chinese style to images and user interfaces.
According to relevant data, in the first half of 2019, the ARPU value of the Vietnamese mobile game market has increased rapidly. Compared with the same period of 2018, the number of games released by the Vietnamese mobile game market in the same period of this year was only 80% of last year, but Overall market revenue has increased by 30%, and about 50% of this revenue comes from Chinese games.
According to a local senior operating person in charge to the entertainment capital theory, the mobile phone market developed by China has a market share of over 80%, of which S-class products have a monthly flow of more than 3 million US dollars, and A-level products have a monthly flow of 50%. Between $1 million.
In terms of payment channels, Vietnam does not have a dominant market payment tool. Therefore, almost every company has its own payment website, including SohaCoin used by SohaGame, zalopay used by VNG, and Vtcpay used by VTC. In addition, because 80% of Vietnamese players do not have credit cards, and the concept of electronic wallet is also very embarrassing, players through online banking, game cards and even SMS SP accounted for the bulk.
So from this perspective, many mobile game rankings based on Apple pay and Google store data can only represent the real situation of some Vietnamese mobile game market.
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(2) Different characteristics of major mobile game publishing companies in Vietnam
In Vietnam, overseas game companies want to release games. There are two necessary conditions: one must obtain the version number. Of course, even if there is no version number, it can be operated in cooperation with local Vietnamese manufacturers, but the game of Supercell was previously If the version number is not available, it will be a precedent for forced removal. The second is to cooperate with the local distribution company in Vietnam to save the data.Stored in Vietnam, not issued independently.
Therefore, it is very important to know the major distribution companies in Vietnam. At present, the main distribution companies in Vietnam are VNG, SohaGame, VTC, Gamota and Garena.
VNG was established in 2004 and is currently the largest Internet company in Vietnam. Its business scope includes mobile games, PC games, e-commerce and payment services. Among them, Zamo, a chat software developed by VNG, defeated WeChat and Line and became the most used chat software in Vietnam. ZaloPay is considered a Vietnamese version of WeChat payment.
Vietnamese VNG Company
In VNG’s gaming business, 25% of revenue comes from self-study. At present, VNG has a research and development team of more than 300 people. The team mainly produces some casual games, VR/AR and chess games. In fact, although it owns Zalo, Vietnam’s largest chat software, Zalo is more like Line than WeChat, and it does not have the channel promotion capabilities of hardcore games. Therefore, Zalo is mostly a casual game of VNG self-developed.
The corner of Vietnam VNG company
The other 75% of the flow comes from the issue of income, of which 20-30% of the income will be distributed to domestic developers. VNG prefers Chinese martial arts MMO games. The “JX.” is the most profitable of these kinds of themes. The monthly flow in the Vietnamese market has reached 10 million US dollars.
In terms of product selection, VNG will select products suitable for local distribution in Vietnam according to the best-selling list in China. In the second half of the year, VNG promoted key products such as “PUBG Mobil”, “A lot of self-propelled flag”, “Cross Fire” and SLG mobile games. Among them, “PUBG Mobil” has reached a million DAU.
SohaGame has 8 years of publishing experience. Currently, some MMORPGs are mainly issued.