With a population of more than 80 million, 65 per cent of whom are young, Viet Nam can very possibly be a huge market for the online game industry.

"The game market has developed a great deal in Viet Nam in recent years. In 2005, turnover for the market was around US$5 million, and last year, the figure was up to $30 million. This year, it might be $50 million," said Le Hong Minh, general director of VinaGame, a three-year-old company leading the market with three million customers.

It is estimated that there are around 1-1.5 million people who frequently play online games.

Young population

"There's a huge market with a big population and most of them are young. Along with this factor, the development of wide-band internet has been good for the industry," said Truong Hoai Trang, director of Viet Nam Data Communication Company's branch office in HCM City (VDC2), the biggest internet provider in Viet Nam.

In addition, online gaming is considered a great place for attracting advertising revenue.

According to a survey by the US-based Yankee Group, turnover for advertisement on online game sites will increase from $77.7 million in 2006 to $971 million in 2011. The price for advertising will rise from $30,000 to $1 million next year.

"In Viet Nam, advertising at online game sites is still in a trial period. Local enterprises should recognise that potential in developing their games," said Nguyen Duc Kien, director of the Quang Minh Technology and Communication Company.

"Online gaming has also contributed to educating the community," Kien added. He said that games transfer knowledge from one to another. All kinds of information can be incorporated into games, generating a huge effect.

Young industry

"The game industry in Viet Nam is very young and has only done business on delivery for foreign companies. We don't have our own game production industry," Minh said.

However, producing games is not simple. The industry in Viet Nam is suffering from a shortage of many important factors, including people quatified to be directors, writers or game makers and the necessary production technology.

"State management for online gaming is still a great challenge. How to mobilise the strength of online gaming but restrict the negative impact and ensure a healthy environment is really a hard question," Kien said.

He also mentioned the fact that there is a real market for 'virtual identities' and 'virtual lives' in gaming.

"Game producers have to figure out how to protect gamers' 'virtual assets' and provide security for their transactions," he added.

"Human resources is another problem that we need to address," Le Hong Minh added.

Into the future

"Increasing international co-operation is the answer to set up the game industry in the shortest time," said Truong Hoai Trang, director of VDC2 and vice chairman of the Viet Nam Software Association (Vinasa).

At the second International Software and Games Festival (ISAGF) 2007, which was held in HCM City earlier this month, 50 foreign enterprises from Singapore, China, Hong Kong, Thailand and Malaysia attended looking for investment opportunities in Viet Nam.

Of special note was the fact that companies from Deagoo City, Korea, had their own pavilion.

The general secretary of the Asian-Oceania Computing Industry Organisation (ASOCIO) and the chairman of Japan's Information Technology Association met with Vice Minister of Information and Telecommunications Nguyen Minh Hong at this time.

Along with looking for international co-operation, Vietnamese companies may have to develop other strategies, said Phil Tran of the Glass Egg Company, which has 12 years of experience in game processing for the US market.

"Viet Nam might have to take the other route to set up its game production industry, that being game processing," he said.

"From processing, local companies can learn management skills and technology usage as well as how to set up a good human resources base," Tran added.

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