A brief version of Vietnam Mobile Internet, focusing in mobile gaming with a comparison to China market.

1. VIETNAM MOBILE INTERNET 2014 –
A focus in smartphone game and
comparison to Chinese market (Short
Version)
Andy Nguyen
June 27, 2014
1
The full version will be available at
http://mwork.vn/report
after 9:00 am, 17 July 2014

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. 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
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
1.5
5
8
18
28
32
35
38233%
60%
125%
56%
14% 9% 9%
0
5
10
15
20
25
30
35
40
2010 2011 2012 2013 2014 2015 2016 2017
Number of smartphone user yoy growth rate
(mil users)
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
80
209
382
416
466
509
549
592
161%
83%
9% 12% 9% 8% 8%
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014 2015 2016 2017
Number of smartphone user Y-o-y growth rate
(mil users)
(Source: eMarketer 2014)
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
3G Mobile Subscriber in Vietnam
38.1%
30.7%
28.5%
2.7%
MobiFone
Viettel
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$US
(unlimited packet – Softbank)
China
56$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, Viettel)
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%
3.3M, 14.8%
2.1M, 9.5%
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
0
100
200
300
400
500
600
700
800
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 $130.
120$
LG Optimus L1 II
Samsung Galaxy Y
Asus ZenFone 4
HTC Desire 200
Samsung Galaxy Trend Lite
Mobel S58
Popular cheap Androids

13. 61.2%
4.6%
13.5%
5.2%
15.5%
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
16
(mil USD)
Vietnam Mobile Game Market
20
60
120
210
310
360
410
50%
100%
75%
48%
16% 14%
0%
20%
40%
60%
80%
100%
120%
-
50
100
150
200
250
300
350
400
450
2011 2012 2013 2014(e) 2015(e) 2016(e) 2017(e)
Market Size yoy growth rate
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)

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

18. 220
253
291
60
120
210
0 100 200 300 400 500 600
2012
2013
2014 (e)
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. 19
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%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2011 2012 2013 2014(e) 2015(e) 2016(e) 2017(e)
Feature phone game revenue Smartphone game revenue yoy growth rate
(mil USD)
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)

20. Vietnam Mobile Game Market
20
4 10
50
60
15
30
150
250
0
50
100
150
200
250
300
2011 2012 2013 2014 (e)
Number of local game publishers Number of new game tittles
(source: Mwork)
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

21. 21
Major Mobile Gaming Companies

22. 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%
0%
5%
10%
15%
20%
25%
30%
35%
Casual Card Battle SLG MMORPG Turn based RPG Card & Board Others
China Vietnam
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. 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. 4. Tinh Binh – MC Corp
3. Hán Mạt2. Kiếm Hiệp – VTC
24
Top 5 SLG
By Peak Monthly Revenue
1. Mộng Hiệp Khách
5. Tam Quốc Chibi

25. 4. Ngọc Rồng Online - SSGroup
Đại Minh Chủ - Emobi
2. Mãnh Tướng - CMN 3. Liên Minh Anh Hùng- VNG
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
4. Kết Giới - SGen
2. Vua Hải Tặc
5. Anh Hùng Xạ Điêu – SSGroup
26
Top 5 Turn-based RPG
By Peak Monthly Revenue
1. Phong Vân Truyền Kỳ - CMN

27. 4. Ải Mỹ Nhân - Mobvista
3. Mãnh Thú – ME Corp2. Thiên Thần Truyện – ME Corp
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).