VietNamNet – Online gaming has surged in Vietnam and local producers are looking at designing their own products but face stiff competition, short funds and cultural considerations over scripts.
2010: US$150mil projected from game market
The gaming industry includes the production of commercial games and related services, computer, digital and mobile forming no small part of the industry.
2004 was a successful year for the Vietnamese software industry, with a yearly revenue of $170mil, 33.3% up over 2003. However, the gap between the real result and the target ($400-500mil per year) is still wide and gaming is considered a new way for software developers to meet their target.
The Vietnam Software Association (Vinasa) has proposed some breakthrough ideas in response: intensify cooperation with Japan, which has a software market worth over $130bil; strengthen the capability to produce software; develop games for computers and other equipment; and develop ERP solutions for enterprises.
Vinasa now aims to realise a $150mil turnover from games and other services in 2010, gradually replacing foreign products with local products. To develop locally, the association proposes to build an "incubator" for game developers, devise a programme to connect Vietnamese software firms with groups such as Intel, Cisco, IBM, HP, Nokia, Motorola, LG, and Samsung, build training, research and development centres, launch game-writing and playing contests, and organize game fairs and exhibitions all as part of a long-term plan.
“The development of the game online market is a motive power for software firms to have game processing contracts for foreign partners and to learn experience to develop games online themselves,” said Vinasa Chairman Truong Gia Binh.
Service providers also forecast the online games industry will bring in $10-15mil for Vietnam in 2006, and could grow between 300 and 400% per year. Opportunities and challenges
There are many aspects to online games development that companies must consider. First, demand is on the rise in Vietnam. Thousands of players spend untold hours at their machines. Estimated turnover for a game called Vo Lam Truyen Ky, provided by VinaGame, was around VND80bil (VND5mil) for 2005.
In the eyes of game providers, demand is in fact at the highest level ever in Vietnam and they would like to move the emphasis away form imported games, especially multi-user persistent role-playing game (IMMPROG), which generate royalties in the millions, US, and analysts have offered a development model where, first, games suitable for Vietnamese culture are imported from Republic of Korea and China, then from America, and are then developed locally.
Some are optimistic about the production of Vietnamese gaming using traditional stories and legends suitable for tactical and role-playing games, like An Duong Vuong Builds Citadel, Three Times Fighting Against Yuan-Mong, Son Tinh – Thuy Tinh, and Thach Sanh, already attracting devotees.
Before China’s online Vo Lam Truyen Ky was "Vietnam-ised", the game Dinh Bo Linh Quells Revolt by 12 Military Units, by Dinh Ba Truc, stood out as the first online game produced in Vietnam.
A hand from Sony
Last year Sony Ericsson agreed to install “Hanoi 12 Days and Nights”, by Vietnam’s Young Pen Group, on its P910 mobile phones, despite Young Pen’s team leader, Trinh Bao's observation that there is still a dearth of good historical stories for good game scripts.
Vinasa, for its part, proposes the example of Korea, which aims to become one of the three leading countries in the world for gaming by 2007. Online gaming in Korea has been a motive force encouraging the development of software, hardware, Internet infrastructure and services, and has increased broadband coverage.
Still, the market is very competitive and Vietnam must compete with countries where gaming and cinematographic industries have cooperated to produce scripts that can be used for movies and for video games.
Cost, as well, is a barrier. According to Vinasa’s chairman Truong Gia Binh, a complete game development system requires around US$1mil, exceeding the financial capability of many Vietnamese firms and the question remains, will gaming be the golden goose for Vietnam?
