OGDC 2014 - Vietnam Mobile Internet Overview by mWork Corp
1. VIETNAM MOBILE INTERNET 2014 â
A focus in smartphone game and comparison
to Chinese market
Andy Nguyen
July 19, 2014
1
Â
Presented
 in
 OGDC
 2014
Â
2. Vietnam: A Quick Look â End of 2013
2
Â
92.5M
Population
36.1M
Internet Users
20M
Active Facebook Users
134M
Active Mobile Subscription
Ranked 13 of 228 countries
Penetration rate 39%
Facebook Penetration 21.6%
Mobile Subscription Penetration 145%
18M
Smartphone Users
Smartphone Penetration 19.5%
3. May-2012 May-2014
Number of smartphones 6M 22M
Number of OTT users WeChat + LINE < 1M Zalo, LINE, Viber > 10M
Smartphone games publishers Less than 10 At least 50
Smartphone game market size Less than $1M monthly More than $10M monthly
What Changed In The Last 2 Years
3
Â
Within 2 years, the number of devices has grown almost 4 folds. So has grown rapidly
OTT applications and smartphone games market.
4. Vietnam
 Mobile
 Game
 Market
4
Â
1.5
Â
5
Â
8
Â
18
Â
28
Â
32
Â
35
Â
38
 233%
Â
60%
Â
125%
Â
56%
Â
14%
 9%
 9%
Â
0
Â
5
Â
10
Â
15
Â
20
Â
25
Â
30
Â
35
Â
40
Â
2010
 2011
 2012
 2013
 2014
 2015
 2016
 2017
Â
Number
 of
 smartphone
 user
 yoy
 growth
 rate
Â
(mil
 users)
Â
Number of Smartphone User in Vietnam
125% growth, reached 18M at the end of 2013!!! Expected to reach 28M with 56% growth
at the end of 2014. The growing speed is likely to slow down in following years as it has
covered most accessible and affordable users.
5. Vietnam
 Mobile
 Game
 Market
5
Â
80
Â
209
Â
382
Â
416
Â
466
Â
509
Â
549
Â
592
Â
161%
Â
83%
Â
9%
 12%
 9%
 8%
 8%
Â
0
Â
100
Â
200
Â
300
Â
400
Â
500
Â
600
Â
700
Â
2010
 2011
 2012
 2013
 2014
 2015
 2016
 2017
Â
Number
 of
 smartphone
 user
 Y-Ââo-Âây
 growth
 rate
Â
(mil
 users)
Â
(Source:
 eMarketer
 2014)
Â
Similar Pattern With China
The growth of smartphone users in Vietnam is very similar to the pattern of China but only 2
year later!!! Cheap Android devices provided by domestic brands has been the drive-force in
China. The same in Vietnam now.
6. 6
Â
3G Mobile Subscriber in Vietnam
38.1%
Â
30.7%
Â
28.5%
Â
2.7%
Â
MobiFone
Â
VieRel
Â
VinaPhone
Â
VietnamMobile
Â
12.75M
3G mobile subscribers
who actually used bandwidth
in July-2013
MobiFone has the biggest share
with 38.1%
Source: Vietnam Information and Telecommunication Ministry, July-2013
7. Country
 3G
 Data
 Plan
 Price
Â
Japan
Â
53$US
Â
(unlimited
 packet
 â
 SoWbank)
Â
China
Â
56$US
Â
(9GB
 packet
 â
 China
 Unicom)
Â
Indonesia
Â
25$US
Â
(3GB
 packet,
 speed-Ââmax
 1Mbps)
Â
Thailand
Â
52$US
Â
(10GB
 packet,
 speed-Ââmax
 384Kpbs,
 TrueMove)
Â
Vietnam
Â
10$US
Â
(3GB
 fast
 +
 no
 extra
 fee
 +
 speed-Ââmax
 8Mbps,
 VieRel)
Â
7
Â
3G Data Plan Comparison
3G Data Plan in Vietnam is much cheaper than other countries. The speed is 10-20X
times higher than neighbor countries like Indonesia and Thailand. A good condition
for mobile internet service to prosper.
8. 8
Â
Where are 3G Mobile Internet Users?
Most 3G mobile internet users are
concentrated in Ha Noi, Ho Chi Minh.
Considerable number of them are in 2-tier
cities in Delta-river zone and Mekong-river
zones and Da Nang.
A small amount of users from small cities
and town across the coast.
Source: opensignal.com
9. 15.5M,
 70.5%
Â
3.3M,
 14.8%
Â
2.1M,
 9.5%
Â
1.2M,
 5.2%
Â
Android
Â
iOS
Â
Windows
 Phone
Â
Others
Â
(source: Mwork, May-2014)
9
Â
What Kind Of Smartphone Devices?
70.5%
is Android
until May-2014. Android takes the majority for existing
active smartphones in Vietnam. Second is iOS and
Windows Phone come next. It is not surprise if Android
will maintain or increase its share in coming years.
10. (source:
 IDC)
Â
$702
 $710
Â
$686
Â
$650
 $657
Â
$441
Â
$380
Â
$320
Â
$276
 $254
Â
0
Â
100
Â
200
Â
300
Â
400
Â
500
Â
600
Â
700
Â
800
Â
2010
 2011
 2012
 2013
 2014(e)
Â
iOS
 Android
Â
10
Â
Android Is Cheaper and Cheaper
The average sold price of a new Android device has steadily
decreased toward $200-$250 zone while iOS maintain at $650-
$700. No wonder why so many Android!!!
2.6X
Android is cheaper
than iPhone
11. 11
Â
Number of New Sold Devices
in Aug-2013. Among them, 65.7% of that are Android. Windows
Phone comes second with 19.5%. ASHA of NOKIA stills has its
share but declining softly.
Source: gfk 2013
586K
new sold
12. (source:
 Appota)
Â
12
Â
Waves of Cheap Android Smartphone
Since Feb-2014, Nokia started to sell Nokia X of Android OS at
superbly affordable price in Vietnam. Very well sold. Samsung, LG,
Asus, HTC ⌠also have new Android models with the price lower
than $130.
120$
LG
 Opcmus
 L1
 II
Â
Samsung
 Galaxy
 Y
Â
Asus
 ZenFone
 4
Â
HTC
 Desire
 200
Â
Samsung
 Galaxy
 Trend
 Lite
Â
Mobel
 S58
Â
Popular
 cheap
 Androids
Â
13. 61.2%
Â
4.6%
Â
13.5%
Â
5.2%
Â
15.5%
Â
Jelly
 Bean
Â
KitKat
Â
Ice
 Scream
 Sandwitch
Â
GingerBread
Â
Others
Â
(source:
 Appota,
 Dec-Ââ2013)
Â
13
Â
Android Devices by OS Version
61.2%
of existing Android devices
are Jelly Bean until
Dec-2013
14. (source:
 Appota)
Â
7.7%
Â
32.3%
Â
5.5%
Â
11.7%
Â
29.4%
Â
13.4%
Â
iOS
 7.1
Â
iOS
 7.0.4
Â
iOS
 6.0.X
Â
iOS
 5.1.X
Â
iOS
 6.1.X
Â
Others
Â
14
Â
iPhone Devices by OS Version
32.3%
of existing iOS devices
are iOS 7.0.4 until
Dec-2013
16. Vietnam
 Mobile
 Game
 Market
16
Â
(mil
 USD)
Â
Vietnam Mobile Game Market
 20
Â
Â
 60
Â
Â
 120
Â
Â
 210
Â
Â
 310
Â
Â
 360
Â
Â
 410
Â
Â
50%
Â
100%
Â
75%
Â
48%
Â
16%
 14%
Â
0%
Â
20%
Â
40%
Â
60%
Â
80%
Â
100%
Â
120%
Â
 -Ââ
Â
Â
Â
Â
 50
Â
Â
 100
Â
Â
 150
Â
Â
 200
Â
Â
 250
Â
Â
 300
Â
Â
 350
Â
Â
 400
Â
Â
 450
Â
Â
2011
 2012
 2013
 2014(e)
 2015(e)
 2016(e)
 2017(e)
Â
Market
 Size
 yoy
 growth
 rate
Â
Vietnam Mobile Game Market will reach $210M at the end of
2014, grow 75% comparing to previous year. The growing
speed will decrease in following years and reach $410M in 2017.
$210M
in 2014
(source:
 Mwork)
Â
17. Vietnam
 Mobile
 Game
 Market
17
Â
(mil
 USD)
Â
Vietnam Mobile Game Market
3%
Â
17%
Â
61%
Â
79%
Â
90%
Â
96%
 98%
Â
0%
Â
20%
Â
40%
Â
60%
Â
80%
Â
100%
Â
120%
Â
0
Â
50
Â
100
Â
150
Â
200
Â
250
Â
300
Â
350
Â
400
Â
450
Â
2011
 2012
 2013
 2014(e)
 2015(e)
 2016(e)
 2017(e)
Â
Feature
 Phone
 Smartphone
 Smartphone
 Percentage
Â
The main drive-force of the expansion of mobile game market is
smartphone game. In 2014, 79% of the market share is forecast
to come from smartphone. From 2015, feature phone will account
for less than 10%.
79%
are from
smartphone
game in 2014
(source:
 Mwork)
Â
18. 220
Â
253
Â
291
Â
60
Â
120
Â
210
Â
0
 100
 200
 300
 400
 500
 600
Â
2012
Â
2013
Â
2014
 (e)
Â
PC
 Mobile
Â
(mil
 USD)
Â
18
Â
PC vs Mobile Games Market
Thank to its rapid growing, mobile games market in 2014 will almost equal to PC-
based game market in term of market size in 2012.
(source:
 Mwork,
 Casual
 Connect
 Asia
 2014)
Â
19. 19
Â
 785
Â
Â
 946
Â
Â
 721
Â
Â
 497
Â
Â
 304
Â
Â
 160
Â
Â
 80
Â
Â
 128
Â
Â
 321
Â
Â
 1,474
Â
Â
 2,869
Â
Â
 4,263
Â
Â
 5,160
Â
Â
 5,801
Â
Â
39%
Â
73%
Â
53%
Â
36%
Â
16%
Â
11%
Â
 -Ââ
Â
Â
 1,000
Â
Â
 2,000
Â
Â
 3,000
Â
Â
 4,000
Â
Â
 5,000
Â
Â
 6,000
Â
Â
 7,000
Â
Â
2011
 2012
 2013
 2014(e)
 2015(e)
 2016(e)
 2017(e)
Â
Feature
 phone
 game
 revenue
 Smartphone
 game
 revenue
 yoy
 growth
 rate
Â
(mil
 USD)
Â
Mobile Game Market: the case of China
The same story happens in China. In 2014, it is forecasted that more than 85% of mobile
game revenue are from smartphone games. The growth rate peaked itself in 2013 with
73% growth rate and gradually decrease toward 11% per year in 2017.
(source:
 iResearch
 2013)
Â
20. Vietnam
 Mobile
 Game
 Market
20
Â
4
 10
Â
50
 60
Â
15
Â
30
Â
150
Â
250
Â
0
Â
50
Â
100
Â
150
Â
200
Â
250
Â
300
Â
2011
 2012
 2013
 2014
 (e)
Â
Number
 of
 local
 game
 publishers
 Number
 of
 new
 game
 cRles
Â
(source:
 Mwork)
Â
Game Publishers and New Tittles
The market is growing but so the number of tittles. Not easy game
for all but the winners are promised to get big enough rewards.
The number of local game publishers does not increases much,
instead there will be the joining of foreign company who directly
publish to Vietnam market from overseas.
250
new game tittles
will be published
in 2014
22. 22
Â
Market Share by Genre
3.8%
Â
31.2%
Â
11.3%
Â
17.3%
Â
23.4%
Â
4.3%
Â
8.7%
Â
23.6%
Â
6.1%
Â
15.4%
Â
17.8%
Â
6.6%
Â
24.3%
Â
6.3%
Â
0%
Â
5%
Â
10%
Â
15%
Â
20%
Â
25%
Â
30%
Â
35%
Â
Casual
 Card
 BaRle
 SLG
 MMORPG
 Turn
 based
 RPG
 Card
 &
 Board
Â
 Others
Â
China
 Vietnam
Â
It may amaze you but until May-2014, 23.6% of mobile games
revenue, including both feature phone and smartphone tittles, is
for casual games. As characteristic of casual games, even though
ARPU is lower, it can reach to a larger set of player. Avatar, Mobi
Army, Audition Mobile, Ten Ten and iGa contribute almost 70% of
the sector. Card & Board games hold the second big part with
24.3%. Card battles games are promising to increase its share in
2014.
23.6%
for casual games
23. 220
Â
253
Â
291
Â
60
Â
120
Â
210
Â
0
 100
 200
 300
 400
 500
 600
Â
2012
Â
2013
Â
2014
 (e)
Â
PC-Ââbased
 games
 Mobile
 games
 (mil
 USD)
Â
23
Â
PC vs Mobile Games Market
24. 4. Teen Teen - VTC
3. Au Mobile â VTC Mobile
Avatar HD â TeaMobi
5. iGa - SohaGame
24
Â
Top 5 Casual Games By Revenue
By Peak Monthly Revenue
2. Mobi Army - TeaMobi
1. Avatar - TeaMobi
25. 4. Tinh Binh â MC Corp
3. HĂĄn Mất2. Kiáşżm Hiáťp â VTC
25
Â
Top 5 SLG
By Peak Monthly Revenue
1. Máťng Hiáťp KhĂĄch
5. Tam Quáťc Chibi
26. 4. Ngáťc Ráťng Online - SSGroup
Äấi
 Minh
 Chᝧ
 -Ââ
 Emobi
Â
2. MĂŁnh TĆ°áťng - CMN 3. LiĂŞn Minh Anh HĂšng- VNG
26
Â
Top 5 Card Battle
By Peak Monthly Revenue
1. Äấi Minh Chᝧ - EMobi
5. Dota Card - SGen
27. 3. LiĂŞn Minh Tiáťn Sáť - Savi Game
4. Káşżt Giáťi - SGen
2. Vua Hải Tạc
5. Anh HĂšng Xấ ÄiĂŞu â SSGroup
27
Â
Top 5 Turn-based RPG
By Peak Monthly Revenue
1. Phong Vân Truyáťn Káťł - CMN
28. 4. Ải M᝚ Nhân - Mobvista
3. MĂŁnh ThĂş â ME Corp2. ThiĂŞn Thần Truyáťn â ME Corp
28
Â
Top 5 MMORPG
By Peak Monthly Revenue
1. Ngáť KhĂ´ng Truyáťn Káťł â SohaGame
5. ThiĂŞn Äáťa Quyáşżt â CMN
30. â˘âŻ Background
 in
 IT
Â
Â
â˘âŻ Studied
 and
 lived
 in
 Japan
 before
 coming
Â
back
 to
 Vietnam
 in
 2010
Â
â˘âŻ Worked
 as
 Venture
 Capitalist
 in
 CyberAgent
Â
Ventures
 in
 Hanoi
Â
â˘âŻ Currently,
 working
 in
 Mwork
Â
â˘âŻ Love
 SNS,
 mobile
 games
 (Elves
 Realm,
Â
MĂŁnh
 TĆ°áťng,
 Flappy
 Bird..
 Like)
Â
Â
Andy
 Nguyen
Â
Mwork
 Corp
Â
Co-Ââfounder,
 VP
Â
Â
Â
30
Â
A little bit about me
andy@mwork.vn
Â