Vietnam’s gaming market needs more than just a 'pho restaurant'

To keep up with the booming gaming industry, Vietnamese developers must innovate by embracing stronger technology adoption while still forging a unique identity, and sometimes, that unique identity could simply be represented by a humble bowl of pho (noodle soup).

From a viral pho restaurant

The game “Quan Pho Anh Hai” (Anh Hai’s pho restaurant), created by a Vietnamese university student, was developed in just a few days, yet it quickly turned into an online sensation. Despite its negligible development costs, the game has the potential to generate substantial profit - an unusual business model in the gaming sector.

The online community has compared Quan Pho Anh Hai to Nguyen Ha Dong’s Flappy Bird, a simple, frustration-inducing mobile game that became a global craze more than a decade ago.

Flappy Bird's small production and operating costs but extremely high revenue (at one point reaching VND1 billion or $37,912 per day) made many people mistakenly believe that gaming was an easy path to wealth.

Even creator Nguyen Ha Dong once admitted he “got lucky.” Flappy Bird was suddenly chosen as content for roughly 200,000 YouTube videos, among thousands of new apps launched every day.

It took more than 10 years for Vietnam to witness a similar phenomenon. Clearly, only a very small number of independent developers (indie) achieve such luck.

For businesses, however, “waiting for luck” is never a strategy. Player preferences constantly shift, and technology evolves by the day - turning the gaming sector into an endless race.

A decade ago, Vietnam’s gaming market was dominated by a few domestic companies such as VTC Game, VNG, and FPT Online. Today, the landscape has changed: new names like Gamota and Funtap have emerged, along with hundreds of cross-border publishers via the App Store, Google Play, or Steam.

Global competition has nearly erased the home-field advantage of Vietnamese companies. Beyond revenue-sharing fees, companies must invest heavily in marketing, human resources, and payment infrastructure.

According to Le Quang Tu Do, director of the Authority of Broadcasting and Electronic Information, in 2023, Vietnam had around 200 licensed gaming companies, but only about 30 are actively operating.

However, at Vietnam Game Verse 2025, he also noted that for the first time, the event featured up to 100 booths, double that of 2024, attracting major multinational corporations from the U.S., South Korea, and China.

This demonstrates a vibrant yet highly competitive market. Some enterprises have withdrawn, while those remaining must adapt to survive.

Symbiotic ecosystems – An inevitable trend

Once famous for titles such as MU Online and Thien Long Bat Bo, FPT Online, a subsidiary of tech giant FPT Corp., has shut down all previously released games to pursue a new direction. Its website now lists only three service segments: branding solutions, marketing, and sales.

However, within the development strategy of its parent corporation, gaming remains a long-term business pillar. In May 2025, FPT Online signed a cooperation agreement with Funtap and Viresa to develop professional esports.

Meanwhile, FPT Telecom, another member of FPT, is upgrading its internet infrastructure to support training and competition, while launching FangTV, expected to become Vietnam’s leading esports livestream platform.

Choosing to stay in the gaming sector, VNG Corporation (VNZ), formerly VinaGame, has had to transform to fit the new landscape. Known for Vo Lam Truyen Ky (Swordsman Online) and as Vietnam’s first tech unicorn, VNG has built a complementary ecosystem instead of relying solely on gaming.

Financial reports show that VNG has invested around VND8 trillion ($303.3 million) in its subsidiaries and associates across multiple industries. Its four main business divisions include VNG Games, ZingPlay (online games), connection platforms (Zalo, Adtima, Zing MP3), Fintech (ZaloPay), and Digital Business.

Online games still generate the bulk of the company’s revenue. In its audited 2024 consolidated report, the gaming division recorded around VND6.5 trillion ($246.43 million) in revenue and VND1.1 trillion ($41.7 million) in profit - the only segment operating at a profit. Even so, this profit could not offset losses from other divisions, leaving the company with a consolidated loss of around VND324 billion ($12.28 million).

In 2025, some segments such as multimedia services and digital transformation began turning profitable, but gaming remains VNG’s spearhead. According to the reviewed financial statement for the first half of 2025, the company recorded a consolidated profit of VND403 billion ($15.28 million). The gaming division alone contributed VND576 billion (down 12% year-on-year), essentially covering losses of VND173 billion in other segments.

Another major player, VTC Multimedia Corporation, is also restructuring. It currently has three subsidiaries in game development and publishing - VTC Game, VTC Online, and VTC Mobile. Although VTC discontinued its digital TV channel earlier this year, it still owns a diverse ecosystem.

Several units support the gaming segment, such as VTC Pay (payments), VTC Comtech (technical infrastructure), VTC Media (communications), and notably, VTC Game Academy, which supplies workforce training for the gaming industry. These have helped VTC streamline operations and increase efficiency.

However, VTC’s 2024 business report indicates that gaming is facing difficulties. The market is highly competitive, with many cross-border foreign titles not effectively regulated. Additionally, licensing and marketing costs continue to rise.

Singapore-based Garena, affectionately nicknamed “Ga Ran” (Fried Chicken) by Vietnamese gamers, remains a “cash machine” for Sea Limited. Garena strengthened its brand through publishing and organizing esports tournaments for Free Fire, FC Online, and Arena of Valor (a SEA Games official event).

Sea Limited’s 2024 financial statements show that Garena’s global profit reached nearly $1.12 billion (up 21.5% from $921 million in 2023), continuing to be the group’s most profitable segment.

Its other divisions - Shopee and SeaMoney - recorded profits of $155.8 million and $712.2 million respectively in 2024. These e-commerce and fintech arms also support Garena with marketing and payment operations.

Of course, many gaming companies still operate independently without relying on a symbiotic ecosystem. However, aside from long-lived titles like Vo Lam Truyen Ky, Audition, or certain esports games, most mobile and PC games in Vietnam have short life cycles - typically 1.5 to under 5 years.

The constant influx of new games makes players easily switch to fresh products. Therefore, strategies that retain players through complementary apps and services offering added value beyond gameplay are emerging as the long-term direction for many companies.

Vietnam’s gaming issue is not about scale, but identity

According to research firm IMARC Group, Vietnam’s gaming market could reach $2.5 billion by 2033. Meanwhile, the Ministry of Science and Technology targets $1 billion by 2030, an impressive growth outlook if properly nurtured.

In an interview with Forbes Vietnam, Dr. Renusha Athugala from RMIT University noted that Vietnam’s gaming market is growing rapidly, but most games lack originality or distinctive ideas.

Most locally released games are imports, meaning profit retained in Vietnam is limited. Many publishers also choose safe paths - replicating proven concepts rather than pursuing original creativity.

This explains why a small, distinctly Vietnamese game like Quan Pho Anh Hai went viral - it evokes cultural familiarity and uniqueness, in contrast to the commercialized direction of many other titles.

Garena, in its 2025 strategic report, also emphasized the importance of incorporating local cultural elements into in-game events, especially in Mexico, Vietnam, and Indonesia.

According to Nguyen Ngoc Bao, CEO of VTC Multimedia Corporation, gaming is not only a potential tech sector for Vietnam but also a tool for cultural export. This presents a major challenge for Vietnamese companies in the next phase. They have succeeded as publishers of imported titles, but the market now awaits developers capable of producing truly distinct products.

Ultimately, whether it’s a local “bowl of pho” or imported “fried chicken,” only when technology meets cultural identity can Vietnam’s gaming industry achieve sustainable growth.