A brief version of Vietnam Mobile Internet, focusing in mobile gaming with a comparison to China market that is presented by Mworks VN. note : vietnam has coming to 20m smartphones and projected mobile gaming revenue is looking at about 200m annually and subjected to grow at a fast pace with the fast adoption of smartphones. maybe looking at 10% YoY growth

1. VIETNAM MOBILE INTERNET 2014 –
A focus in smartphone game and comparison
to Chinese market (Short Version)
Andy Nguyen
Talked in Vietnam Mobile Day 2014
The
full
version
will
be
available
at
h3p://mwork.vn/report
a:er
9:00
am,
17
July
2014
1

2. Vietnam: A Quick Look At End of 2013
2
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. What Changed In The Last 2 Years
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
3
Within 2 years, the number of devices has grown almost 4 folds. So has grown rapidly
OTT applications and smartphone games market.

4. Number of Smartphone User in Vietnam
Vietnam
Mobile
Game
Market
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
4
1.5
5
8
18
28
32
35
233%
38
60%
125%
56%
14%
9%
9%
40
35
30
25
20
15
10
5
0
2010
2011
2012
2013
2014
2015
2016
2017
Number
of
smartphone
user
yoy
growth
rate
(mil
users)
covered most accessible and affordable users.

5. Similar Pattern With China
Vietnam
Mobile
Game
Market
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
5
80
209
China. The same in Vietnam now.
382
416
466
509
549
161%
592
83%
9%
12%
9%
8%
8%
700
600
500
400
300
200
100
0
2010
2011
2012
2013
2014
2015
2016
2017
Number
of
smartphone
user
Y-­‐o-­‐y
growth
rate
(mil
users)
(Source:
eMarketer
2014)

6. 6
3G Mobile Subscriber in Vietnam
38.1%
30.7%
28.5%
2.7%
MobiFone
Vie3el
VinaPhone
VietnamMobile
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
Japan
53$US
(unlimited
packet
–
So:bank)
China
56$US
(9GB
packet
–
China
Unicom)
Indonesia
25$US
(3GB
packet,
speed-­‐max
1Mbps)
Thailand
52$US
(10GB
packet,
speed-­‐max
384Kpbs,
TrueMove)
Vietnam
10$US
(3GB
fast
+
no
extra
fee
+
speed-­‐max
8Mbps,
Vie3el)
7
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
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%
2.1M,
9.5%
3.3M,
14.8%
1.2M,
5.2%
Android
iOS
Windows
Phone
Others
(source: Mwork, May-2014)
9
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)
$702
$710
$686
$650
$657
$441
$380
$320
$276
$254
800
700
600
500
400
300
200
100
0
2010
2011
2012
2013
2014(e)
iOS
Android
10
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
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)
12
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 $130.
120$
Popular
cheap
Androids
LG
Opdmus
L1
II
Samsung
Galaxy
Y
Asus
ZenFone
4
HTC
Desire
200
Samsung
Galaxy
Trend
Lite
Mobel
S58

13. 61.2%
5.2%
13.5%
15.5%
4.6%
Jelly
Bean
KitKat
Ice
Scream
Sandwitch
GingerBread
Others
(source:
Appota,
Dec-­‐2013)
13
Android Devices by OS Version
61.2%
of existing Android devices
are Jelly Bean until
Dec-2013

14. (source:
Appota)
7.7%
32.3%
5.5%
11.7%
29.4%
13.4%
iOS
7.1
iOS
7.0.4
iOS
6.0.X
iOS
5.1.X
iOS
6.1.X
Others
14
iPhone Devices by OS Version
32.3%
of existing iOS devices
are iOS 7.0.4 until
Dec-2013

15. Mobile Game Market
15

16. Vietnam Mobile Game Market
Vietnam
Mobile
Game
Market
120%
100%
80%
60%
40%
20%
16
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
(mil
USD)
20
60
120
210
310
360
410
50%
100%
75%
48%
16%
14%
0%
450
400
350
300
250
200
150
100
50
-­‐
2011
2012
2013
2014(e)
2015(e)
2016(e)
2017(e)
Market
Size
yoy
growth
rate
in 2014
(source:
Mwork)

17. Vietnam Mobile Game Market
Vietnam
Mobile
Game
Market
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%.
120%
100%
17
(mil
USD)
3%
17%
61%
79%
90%
96%
98%
80%
60%
40%
20%
0%
450
400
350
300
250
200
150
100
50
0
2011
2012
2013
2014(e)
2015(e)
2016(e)
2017(e)
Feature
Phone
Smartphone
Smartphone
Percentage
79%
are from
smartphone
game in 2014
(source:
Mwork)

18. 253
220
291
60
120
210
0
100
200
300
400
500
600
2014
(e)
2013
2012
PC
Mobile
(mil
USD)
18
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)

19. 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.
19
Mobile Game Market: the case of China
785
946
721
497
304
160
80
128
321
1,474
2,869
4,263
5,160
5,801
39%
73%
53%
36%
16%
11%
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-­‐
2011
2012
2013
2014(e)
2015(e)
2016(e)
2017(e)
Feature
phone
game
revenue
Smartphone
game
revenue
yoy
growth
rate
(mil
USD)
(source:
iResearch
2013)

20. Game Publishers and New Tittles
Vietnam
Mobile
Game
Market
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.
20
4
10
50
60
15
30
150
250
300
250
200
150
100
50
0
2011
2012
2013
2014
(e)
Number
of
local
game
publishers
Number
of
new
game
d3les
(source:
Mwork)
250
new game tittles
will be published
in 2014

21. 21
Major Mobile Gaming Companies

22. 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.
22
Market Share by Genre
3.8%
31.2%
11.3%
17.3%
23.4%
4.3%
8.7%
23.6%
6.1%
15.4%
17.8%
6.6%
24.3%
6.3%
35%
30%
25%
20%
15%
10%
5%
0%
Casual
Card
Ba3le
SLG
MMORPG
Turn
based
RPG
Card
&
Board
Others
China
Vietnam
23.6%
for casual games

23. 4. Au Mobile - VTC
3. Au Mobile – VTC Mobile
Avatar HD – TeaMobi
3. goPET – MECorp
23
Top 5 Casual Games By Revenue
By Peak Monthly Revenue
2. Mobi Army - TeaMobi
1. Avatar - TeaMobi
5. Teen Teen – VTC

24. 2. Kiếm Hiệp – VTC 3. Hán Mạt
4. Tinh Binh – MC Corp
24
Top 5 SLG
By Peak Monthly Revenue
1. Mộng Hiệp Khách
5. Tam Quốc Chibi

25. 2. Mãnh Tướng - CMN 3. Liên Minh Anh Hùng- VNG
Đại
Minh
Chủ
-­‐
Emobi
4. Ngọc Rồng Online - SSGroup
25
Top 5 Card Battle
By Peak Monthly Revenue
1. Đại Minh Chủ - EMobi
5. Dota Card - SGen

26. 3. Liên Minh Tiền Sử - Savi Game
2. Vua Hải Tặc
4. Kết Giới - SGen
5. Anh Hùng Xạ Điêu – SSGroup
26
Top 5 Turn-based RPG
By Peak Monthly Revenue
1. Phong Vân Truyền Kỳ - CMN

27. 2. Thiên Thần Truyện – ME Corp 3. Mãnh Thú – ME Corp
4. Ải Mỹ Nhân - Mobvista
27
Top 5 MMORPG
By Peak Monthly Revenue
1. Ngộ Không Truyền Kỳ – SohaGame
5. Thiên Địa Quyết – CMN & Wasabi

28. BigKool
ZingPlay
iWin
Trà Chanh Quán - VMG
28
Hit Tittles: Board/Card Games
Trà Chanh Quán
Beme

29. • Background
in
IT
• Studied
and
lived
in
Japan
before
coming
back
to
Vietnam
in
2010
• Worked
as
Venture
Capitalist
in
CyberAgent
Ventures
in
Hanoi
• Currently,
working
in
Mwork
• Love
SNS,
mobile
games
(Elves
Realm,
Mãnh
Tướng,
Flappy
Bird..
Like),
dog
Andy
Nguyen
Mwork
Corp
Co-­‐founder,
VP
of
Investment
andy@mwork.vn
29
A little bit about me

30. 30
Disclosure
This presentation relies on data and insight from a wide range of sources including
public and private companies, announced news, market research firms and
government agencies. We cite specific sources where data are public. The presentation
also use non-public information and insight gained from external and internal experts
of mWork. We publish the report on an annual basis, but on occasion will release
updated report to highlight new trends. We would like to express my appreciation to
Dung Tran, Marty Nguyen and Hoan Do, my colleagues in mWork by giving advices,
providing data or helping to prepare the material.
mWork, founded in 2012, is currently the hottest growing start-up in Vietnam, is
currently a leading mobile internet group based in Vietnam, having many subsidiaries
which are actively playing and leading in mobile internet related sector including
mobile affiliate network (mwork.vn), mobile online payment (1pay.vn), game
publishing (Wasabi JSC), game development (Tofu Studio), offline mobile shop
synchronization platform (AppSync.vn), reward platform (gimi.vn).