TO DOWNLOAD THE FULL REPORT, PLEASE LEAVE YOUR EMAIL IN THE COMMENTS BELOW Hanoi, October 26, 2020 Appota Group - a digital entertainment technology company officially released Market report: "Mobile phones and applications in Vietnam in the first 6 months of 2020". The Vietnam Mobile Market Report in the first 6 months of 2020 is a publication produced by Appota's market research team, referring to the overall picture of the mobile phone and smartphone market in Vietnam. Appota hopes that with 9 years of experience in digital entertainment, "Report on Vietnam's mobile phone & application market in the first half of 2020" will bring valuable information to our readers, especially especially when the Covid-19 pandemic created a great influence on the above mentioned areas. The report made by Appota provides readers with the following main contents: - Mobile phone market overview - Game Mobile Market developments - Mobile advertising market - Electronic payment and e-commerce

1. VIETNAM MOBILE
& SMARTPHONE
APPLICATION REPORT
H1-2020
(LITE VERSION)
Vietnammobile&smartphone
applicationreportH1-2020
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2. TABLE OF CONTENTS
Executive summary
Vietnam - Country profile & economy
Mobile market overview
Mobile game
Mobile advertising
E-payment & E-commerce
Key highlights
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33
44
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Vietnammobile&smartphone
applicationreportH1-2020

3. FOREWORD
Vietnam Mobile Market report first half of 2020 is a publication
by Appota’s market research team which covers the current
state of the mobile market in Vietnam. This report focuses on
the mobile retail market, mobile gaming, mobile advertising
as well as e-payment and e-commerce market as of the first
6 months of 2020. We hope that with 9 years of experience
in the digital entertainment industry, our “Vietnam mobile &
smartphone application report, first half of 2020” will bring
valuable insights, especially when Covid-19 caused significant
impacts to the above industries.
Vietnam has been through 3 decades after “doi moi”, witnessed
significantdevelopmentintechnologyinfrastructure.Currently,
Vietnam has become a mobile-first country with high mobile
consumption especially in major cities and regions. Alongside
the growth of mobile usage, mobile-oriented business and
services such as mobile gaming, advertising and online
payment/shopping are emerging at a considerable rate to
meet the rising demand of the modern consumers in Vietnam.
Covid-19 and social distancing in Vietnam also accelerates
digitalization in many sectors, mobile-related businesses
became the new emerging markets and have seen many
changes in 2020.
Sincerely,
Appota Market Research Team

4. EXECUTIVE SUMMARY
The beginning of this paper provides
detailed information of the general
economic state of Vietnam and
the market share of smartphones in
Vietnam by various categories.
Mobile gaming was on the rise
in recent years, the Covid-19
pandemic played an accelerator role
in boosting the gaming industry.
Mobile gaming market in Vietnam
has seen an significant growth
in terms of users and usage as
gaming became a popular means of
entertainment during the quarantine
period.
Digital advertising and mobile
advertising in specific are rising
as one of the most efficient
advertising methods. Stable year-
on-year growth and high proportion
of ad spending each year made
mobile advertising slowly overtook
traditional advertising format.
E-payment and e-commerce show
the same upward trend during the
pandemic due to online shopping
for groceries, online food delivery is
the only safe method for consumers.
Government’s policies to push non-
cash payment also contributed to
the development of online payment
in 2020.
4 Executive Summary

5. VIETNAM
COUNTRY PROFILE
01.
Vietnam - Country profile 5

6. 6 Vietnam - Country profile
DEMOGRAPHIC
Year
2020
Population
97,330,000
Urban
population
36,700,000
~ 37.7%
Median
Age
32.5
Global
rank
15
YoY
Growth
876,000
~ 0.91%
Source: Worldometers
Source: World Population Review
GDP Per Capita: $2518 (Source: Indochina Research)
80% are 16-65 age group
25% are millennials (25-39 years old)
12% are Gen Z (above 16 years old)
These are the two highest mobile consumption group
Vietnam Population Pyramid 2020

7. 7Vietnam - Country profile
VIETNAM’S ECONOMY IN THE FIRST HALF OF 2020
Unit: Percentage (%)
Source: PWC
Revision of GDP growth forecast of selected countries
due to the outbreak of COVID-19
In 2019, Vietnam GDP growth was 7.02%.
In 2020, Vietnam was still able to keep a 1.81% GDP growth rate as of the
first half of 2020, this is quite an optimistic number in comparison with other
countries in Asia.
IMF, World Bank and ADB forecasted that Vietnam can still achieve a growth
rate of 3-4% by the end of 2020, while countries like Thailand, Japan are all
projected to have a negative GDP growth rate.

8. 8 Vietnam - Country profile
VIETNAM’S ECONOMY IN THE FIRST HALF OF 2020
Unit: Percentage (%)
Source: QandMe
CPI Vietnam H1-2020
In average, CPI of the first half year of 2020 increased 4.19% compared with
first 6 months of 2019. CPI of June increased 3.17% vs. CPI of June 2019.

9. MOBILE
MARKET
OVERVIEW
02.
Mobile market overview 9

10. 10 Mobile market overview
MOBILE MARKET GENERAL STATISTICS 2020
Smartphone
Mobile penetration: 70% population ~ 150 million devices
Smartphone penetration: 45% ~ 50 million users, ranks 15
global
Broadband penetration (3G-4G): 53% smartphone users
Internet
70% population has internet connection
97% internet users connected via mobile
30% urban, 70% rural
Male: 52%, Female: 48%
Average time spent on smartphone: 4h/day
Source: Newzoo, We Are Social, QandMe

11. 14Mobile market overview
SMARTPHONE MARKET IN VIETNAM
The Vietnam smartphone market includes
many brands covering all price segments
from high-end to budget segment, which
provide a wide range of smartphone options
and thus making more consumers become
able to purchase a smartphone. Internet and
technologies infrastructure development
are making Vietnam a mobile-first market
as users now tend to use smartphones as
their top-of-mind device when it comes to
internet connection instead of PC/Laptop
or tablet. Advertisers and developers are
also optimizing and prioritizing their digital
products on smartphones.

12. 15 Mobile market overview
SMARTPHONE MARKET SEGMENTATION BY PRICE RANGE
Vietnamese’s average income is not yet high in comparison with other
Southeast Asian countries, therefore middle price smartphones are the most
popular choice when a consumer purchases a smartphone:
3-10 million VND is the best selling segment with SAMSUNG and OPPO
leading this segment, while high end segment from 10-20 million VND
is dominated by by SAMSUNG and APPLE. However, the retail sale
number only takes up to 5% to 10% of the total market.
Smartphone segmentation by price range on September 2019
Source: Appota Group
Unit: Million VND

13. 16Mobile market overview
OS MARKET SHARE
RETAIL MARKET SHARE BY BRANDS
Smartphone OS market share
June 2020
Retail market share by brands
Q1/2020
Source: StatCounter
Source: GFK

14. 17 Mobile market overview
MARKET SHARE BY ACTUAL NUMBER OF DEVICE
Source: StatCounter
Market share by actual device June 2020
In terms of device numbers, Apple’s iPhone is being used the most by
Vietnamese consumers specifically:
iPhone (38.55%), Samsung (27.64%), Oppo (10.47%), Xiaomi (9.47%), Huawei
(2.77%) and others.

15. 23Mobile market overview
VIETNAM MOBILE ECOSYSTEM
Foreign Publisher
Infrastructure
E-CommerceMedia
CarriersLives Streaming Platform
Mobile PaymentSocial Platform
Advertising & Marketing
Game Publisher

16. MOBILE
GAME
03.
24 Mobile game

17. 25Mobile game
MOBILE GAME MARKET SIZE
Source: Decision Lab
Gamers by gender Gamers by age groups
MOBILE GAME MARKET
Estimated: 40 million game mobile users by 2020,
take up to 80%of total gamers in Vietnam
Average time spent: 51 minutes/session

18. 26 Mobile game
Playing games: Device perspective
Percentage of internet users age 16 to 64
Smartphone
85%
PC/Laptop Tablets Console
50% 26% 9.1%
The emergence of smartphone made it the number one gaming device in
Vietnam with 85% of users chose smartphone for gaming, far ahead of PC/
Laptop or tablet, console.
Source: We Are Social (2020)
MOBILE GAME MARKET SIZE

19. 28Mobile game
IMPACTS OF COVID-19: MAJOR GAME PUBLISHERS CAN BE
ADVANTAGEOUS
More and more consumers spent time at home and increase their internet &
game consumption.
Staying at home during quarantine made gaming become a cost-effective and
engaging means of entertainment. Especially in Vietnam where most mobile
games are free-to-play and easy to approach with only a smartphone and
internet connection required.
In Q1/2020, the number of game downloads went up by 40%
Numbers of new users also increased by 30%
Game downloads statistics in
Q1/2020 vs. Q1/2019
Number of game mobile released
in Vietnam (Q3/2019 - Q2/2020)
Source: App Annie, Gamota, 2game.vn
Nguồn: App Annie Nguồn: 2game.vn

20. 29 Mobile game
IMPACTS OF COVID-19: MAJOR GAME PUBLISHERS CAN BE
ADVANTAGEOUS
Covid-19 caused an intermission in the game supply chain, which made the
supply of new game titles declined. Financial damages to publishers also
made their marketing and promotion activities under pending.
While demand for gaming as an entertainment increases, big titles from
publishers with strong financial bases can attract much more new users.
According to Reputa, 3 mobile game titles that are most played during Covid-19
pandemic are: Arena of Valor, Garena Free Fire and PUBG Mobile, all have
shown significant increase in the number of downloads.
In Q1/2020, titles such as PUBG Mobile, Arena of Valor and Free Fire
showed an average increase in number of downloads by 165%
compared to Q4/2019.
Number of downloads on iOS
Q1/2020 vs. Q4/2019
Number of downloads on Android
Q1/2020 vs. Q4/2019
Source: App Annie

21. Mobile game 31
APP STORE & GOOGLE PLAY RANKINGS
Top 10 games on Google Play (July-2020)
Top 10 games on App Store (July-2020)
Source: SimimlarWeb

22. 32 Mobile game
MOBILE GAME ECOSYSTEM
Game Publisher
Game developers
Payment
News/Media
Distribution
Stream/Broadcast
Mobile advertising

23. MOBILE
ADVERTISING
04.
Mobile advertising 33

24. 34 Mobile advertising
DIGITAL ADVERTISING MARKET
In 2020: Projected digital ads spending
311.22 million USD
Projected mobile ads spending 2020:
211 million USD
ranks 6th in Southeast Asia (IAB & eMarketer)
and accounted for the largest proportion of total
spending on digital advertising.
Source: eMarketer

25. 35Mobile advertising
DIGITAL ADVERTISING MARKET
(Unit: $ million)
(Unit: $ million)
Source: MMA Global, Adsota
Source: IAB & eMarketer
Mobile ad spending
Mobile Ad spend ranking in SEA region 2020

26. 38 Mobile advertising
CHANGES IN MOBILE ADVERTISING MARKET IN FIRST HALF
OF 2020
Under the impact of Covid-19, digital advertising became the most effective
means of advertisement as people have more free time at home and digital
usage were also on the rise.
Business have taken digital & promo route to
counter COVID-19 impact
Source: MMA 2020
of businesses responded that they increased their
digital media budgets during the Covid-19 pandemic.47%

27. 39Mobile advertising
THE GOLDEN AGE FOR APP DEVELOPERS
Global average downloads: 154,794 per app
Vietnam average downloads: 256,290 per app
Vietnam average download per app is 65% higher
than the global average
In Vietnam, CPI rate is inexpensive and showing declining trend. Under the
impact of Covid-19, app usage and downloads are still rising drastically. As for
developers, this is the golden period to launch their mobile applications and
reach Vietnamese app users.
Mobile Game App Cost per Install (CPI), by Platform, Vietnam

28. 43 Mobile advertising
VIETNAM DIGITAL ADS ECOSYSTEM
Digital Agency
Livestreaming Platform Social Platform
Influencer Marketing Platforims & Agencies
Social Listening ToolsMCNs

29. E-PAYMENT
E-COMMERCE
05.
E-payment & E-commerce 44

30. User profile (above 15 years old):
Bank account users
30%
Credit card users
4.2%
Debit card users
26%
Online-payment users
21%
Source: Decision Lab
E-PAYMENT
45 E-payment & E-commerce

31. 46E-payment & E-commerce
E-PAYMENT EMERGES UNDER THE IMPACT OF COVID-19
Demand for online shopping went up in the first half of 2020. Retailers adapt to
the changes caused by Covid-19 by transitioning from general trade channels
to online channels. E-payment became a safe and convenient payment
method.
Government policy also promotes cashless payment by decreasing the bank
transaction cost twice in 6 months.
In the first half of 2020:
Number of e-transactions Increased 76% YoY
Transaction value Increased 178% YoY211.2 billion USD
Smartphone transaction Increased 177% YoY472 million transactions
E-payment growth in the first half of 2020
Theo: State Bank Vietnam

32. 47 E-payment & E-commerce
E-PAYMENT EMERGES UNDER THE IMPACT OF COVID-19
During the pandemic: E-banking transactions in April went
from 15 " 30 million per day
NAPAS transactions growth in H1-2020

33. 49E-payment & E-commerce
E-WALLET MARKET RISES FOLLOWING THE EMERGENCE OF
E-PAYMENT
Comparing Q1 with Q2 in 2020:
Brands Increases in transactions
(Q2 vs. Q1 2020)
50%
36%
30%

34. 51 E-payment & E-commerce
VIETNAM E-COMMERCE MARKET
E-COMMERCE
Online shopping population 33.6 million 39.9 million 44.8 million
2017 2018 2019
Average spending per user 186 USD 202 USD 225 USD
Source: E-commerce whitebook August 2020
Year

35. Number of e-commerce transactions by devices
E-commerce websites traffic H1-2020
SMARTPHONE BECAME THE PRIMARY E-COMMERCE DEVICE
FOR TRANSACTION
SHOPEE IS THE ONLY PLATFORM TO GROW IN WEB TRAFFIC
DURING COVID-19
Smartphones became
the most common
device for e-commerce
transactions in 2019,
while PC/Laptop
declined drastically.
In the first half of 2020,
while all e-commerce
platforms saw a decline
in web traffic, Shopee is
the only player to show
an upward trend.
Source: Decision Lab
Source: Iprice Insights
Unit: Million visits
E-payment & E-commerce 52

36. 60 E-payment & E-commerce
Merchant
Service provider
E-Payment service
Logistic service
E-commerce platform
Credit issuer/banking payment
Payment service
Credit
Gateway
Brand
E-COMMERCE ECOSYSTEM
Small business owner

37. Key highlights 61
Key highlights
1. Vietnam ranks 4th in average
internet speed among ASEAN
Countries. Mobile internet speed
ranks 2nd right after Singapore.
2. On average, 69% of smartphone
consumption via official retail
channel in Vietnam are under 5
million VND.
3. During the pandemic,
healthcare, Covid-19 tracking
apps, conferencing apps,
entertainment apps (music,
movies...), mobile games, food
delivery are categories that
saw the most growth in app
downloads. TikTok, Zoom, NCOVI
are few examples.
4. The mobile game marketing
witnessed the significant growth
of big titles from major publishers
with strong financial bases.
5. Small and medium publishers
sufferers from the impact of
Covid-19, leading to the decline
in operations and marketing
activities, thus these publishers
could not fully take advantage of
the rising number of players.
6. Low CPI rate but high number
of app downloads shows that
spending on mobile advertising
in Vietnam is relatively more
effective than global average.
7. Reward videos is the most
effective ad format during
the Covid-19 era, especially
with mobile games on Android
platform.
8. General and local news became
a popular advertising channel as
people were visiting these sites
more often to update Covid-19
information.
9. Covid-19 is a key contribution
factor to accelerate e-payment
and e-commerce in the first half
of 2020.
10. Livestream e-commerce
became a new trend in online
shopping, thus new opportunities
openformicroinfluencersasthere
is rising demand for livestream
hosts.
Vietnam mobile & smartphone
application report H1 - 2020

38. 62
VISION
MISSION
Appota is the pioneering company in providing technology solutions and
digital entertainment content in Vietnam.
Appota believes in the power of the Mobile Internet Technologies. We aspire
to make mobile platforms that create opportunities and improve people’s lives
and experiences in developing nations.
LE Building, No. 11, Alley 71 Lang Ha, Ba Dinh District, Hanoi, Vietnam
CONTACT
(+84) 2435 191 618
marketing@appota.com
appota.com
Member Companies
Game publishing company
Gamota.com
Advertising services company
Adsota.com
Cloud solution company
Kdata.vn
Payment solutions company
AppotaPay.com

39. 39

40. Vietnammobile&smartphone
applicationreportH1-2020