Vietnam Introduces Stricter Controls on Online Games and Virtual Currencies

The Vietnamese government has introduced Decree 147/2024/NĐ-CP, which tightens regulations on online games and imposes stricter controls on unlicensed titles and gambling apps distributed via platforms like Google Play and the App Store.

According to Niko Partners, the decree, issued on November 9, 2024, takes effect from December 25, 2024, and aims to regulate the online gaming industry.

Key Provisions of the Decree

The decree mandates that foreign app store providers remove apps that violate Vietnamese laws when requested by authorized agencies. It also establishes comprehensive licensing requirements for online games. Games are categorized as:

• G1: Multiplayer games with a centralized server.
• G2: Server-based games without player interaction.
• G3: Games with player interaction but no server.
• G4: Offline or non-interactive games.

Each category has specific licensing requirements. For instance, G1 games require a Decision to Publish, while G2, G3, and G4 games need a Notice of Publishing Confirmation. Non-compliance can lead to administrative penalties and technical measures, such as blocking content until violations are resolved.

Virtual Currency and Content Restrictions

The order also enforces strict controls on virtual currencies and in-game items. Virtual items, units, and reward points can only be used for their stated purposes within the game and cannot be exchanged for cash, vouchers, or other tangible items. Additionally, trading virtual items between players is prohibited.

Content regulations are equally stringent. Games rated 12+ must exclude sexually suggestive material and combat scenes featuring realistic human characters or explicit violence. For all age groups, the decree bans any content deemed erotic or pornographic.

Time Limits for Minors

To curb gaming addiction, the decree imposes strict time limits for players under 18. Minors are restricted to 60 minutes per gaming session and 180 minutes daily across all game categories.

Impact on the Industry

Vietnam, with its 55.2 million gamers, is Southeast Asia’s second-largest gaming market. Despite its thriving industry, Vietnam has one of the most complex regulatory frameworks in the region. Decree 147/2024 replaces earlier regulations and reduces the time required for game licensing, benefiting foreign developers and publishers. However, it maintains Vietnam’s prohibition on cross-border online game services unless providers establish local offices.

The decree also introduces new payment system rules. Payment service providers, while no longer required to be based in Vietnam, must comply with local laws and ensure secure storage of transaction data. This change could attract foreign payment companies to the Vietnamese market.

Challenges Ahead

While the decree aims to streamline the gaming industry, some concerns remain. Critics argue that the current infrastructure may struggle to meet the decree’s requirements by the enforcement date. Additionally, stricter rules on in-game currencies and time limits could impact game developers, particularly those in the Web3 and NFT space.

Sources: Niko Partners, Vietnamese Government Decree 147/2024/NĐ-CP.