Cross-Border Game Providers in Vietnam: Impact of Recent Actions by the MIC

The Ministry of Information and Communications (MIC) and its Authority of Broadcasting and Electronic Information division (ABEI) recently implemented various measures that have significantly impacted cross-border game providers in Vietnam. Most notably, the specific actions taken by the MIC and ABEI requesting that Apple and Google remove/delete unlicensed games in Vietnam.

The Consequences for Foreign and Domestic Game Providers

The actions of the MIC and ABEI have led to increased challenges and costs for cross-border game providers operating in the country. They have also limited the available channels and platforms for Vietnamese gamers, as well as restricting payment options. These actions now require cross-border game providers to establish a legal entity in Vietnam and seek the relevant approvals on content/censorship from the authorities to comply with Vietnamese regulations on offering online gaming services, as the experts from ECOVIS Vietnam OC Law in Ho Chi Minh City know.

The Impact

The overall impact has been to reduce the number of cross-border game providers operating in Vietnam and to make it more difficult for Vietnamese gamers to access these games. This has had a negative impact on the Vietnamese gaming industry, as it has reduced competition and made it more difficult for Vietnamese game developers to compete with foreign developers.

In addition to the direct impacts on cross-border game providers, there are also a number of indirect impacts. For example, there has been a decline in the number of Vietnamese gamers, as some have simply given up playing cross-border games due to the difficulties involved. This has had a negative impact on the Vietnamese gaming economy, as it has reduced the amount of money being spent on games.

The Rationale

The MIC and ABEI have justified their actions by arguing that they are necessary to protect Vietnamese children from harmful content and to promote the development of the Vietnamese gaming industry. However, many critics have argued that the actions are excessive and that they will ultimately harm the Vietnamese gaming industry.

Do you want to offer online games in Vietnam despite government restrictions? Speak to us.

Vu Manh Quynh, Managing Partner, ECOVIS Vietnam OC Law, Ho Chi Minh City, Vietnam

The Long-term Impacts

It remains to be seen how the long-term impacts of these actions will play out. However, it is clear that they have already had a significant effect on the cross-border gaming industry in Vietnam.

What Does this Mean for Cross-border Game Providers?

Cross-border game providers operating in Vietnam, or considering entering the Vietnamese market, need to be aware of the recent MIC and ABEI actions, which have made it more difficult and expensive to operate in Vietnam and limited the payment options available to Vietnamese gamers. Cross-border game providers that are not prepared to comply with Vietnamese regulations may find it difficult to continue operating in Vietnam.

What Does this Mean for Vietnamese Gamers?

Vietnamese gamers have also been affected. It has become more difficult for Vietnamese gamers to access cross-border games, and they have more limited payment options. Vietnamese gamers who are not willing to comply with Vietnamese regulations may find it difficult to continue playing cross-border games.

What Can Foreign Game Providers Do?

Cross-border game providers and Vietnamese gamers who are affected by the recent MIC and ABEI actions should consider taking the following steps:

• Stay up to date on the latest regulations and requirements
• Work with a local law firm to ensure compliance with Vietnamese regulations
• Consider using a payment processor specifically designed for the Vietnamese market
• Educate Vietnamese gamers about the recent changes and how they can continue to play cross-border games

The future of cross-border gaming in Vietnam is uncertain. However, cross-border game providers and Vietnamese game developers who are prepared to comply with Vietnamese regulations may be able to continue to operate in the Vietnamese market (see box for statistics).

For further information please contact:

Vu Manh Quynh, Managing Partner, ECOVIS Vietnam OC Law, Ho Chi Minh City, Vietnam
Email: quynh.vu@ecovislaw.vn

Nguyen Nhuan, Partner, ECOVIS Vietnam OC Law, Ho Chi Minh City, Vietnam
Email: nhuan.nguyen@ecovislaw.vn