After one year, online games have become a very popular form of entertainment seeing strong development. Following this trend, many troubles have appeared. Thus, on March 10th, the Ministry of Culture and Information held a press conference to announce the 7th draft of the inter-ministerial circular to control online games for referendum.
Potentials of a new market
According to the Vietnam Software Association (VINASA), thanks to its quick development, the number of people using the Internet in Vietnam has reached 8 million, accounting for about 10 per cent of the population. With the widespread development of broad band Internet and the higher intellect of users, Vietnam is considered a potential market for online games. VINASA estimated that this market boom will come in such forms as online games through the Internet, mobile games through hand phones/smart phones, and games through broadcasting networks such as MTV, VTV, and HTV. The number of online games will increase, as will standards and variety of origins. The scale of the Vietnamese electronic entertainment market can reach a turnover of US$80-100 million.
Currently, three biggest suppliers of online games in Vietnam are with Herrcot, Risk Your Life II and Darcania; VinaGame with Swordman Online; FPT Communication Corporation with free version with copyright of PTV – Regaining Promised Land and MU. Besides this, a lot of other enterprises have tested and exploited these games. VASC hopes for an turnover of no less than US$1 million per year; VinaGame will reached VND80 billion of revenue. Apart from PTV and MU, FPT is now negotiating with South Korean and Chinese partners to purchase user rights for several other online games.
Goals of the entertainment market are to have 80 companies producing games, each one with at least one game in use with an average revenue of US$1 million. With this prospect, there are a lot of chances for development in the Vietnamese online games market.
Legal corridor for the development of online games
Creating a legal base for online games suppliers to exploit this market has concerned many line agencies. The online games service is a new business with high-speed development relating to cultural and socially sensitive elements. So it is necessary to have a strict state management from the outset.
According to Minister of Culture and Information, Mr Pham Quang Nghi, current responsibility to manage online games lies with the Ministry of Culture and Information (for contents and regulations) and Ministry of Post and Telematics (for technology and license issuance). “In our view, we oppose the extreme tendency to block all kinds of online games. We have to calculate both positive and negative sides of online games to find management solutions”. The Minister highlighted at the press conference to announce the 7th draft of the inter-ministerial circular to control online games.
Due to the draft, the Department of Culture and Information of provinces and central cities takes responsibility to check and approve contents and the scenario of online games in Vietnam. Online games suppliers have to own at least one domain including the national domain .vn and a Ministry of Culture and Information’s approval document to open electronic news websites.
After seven draft sessions, the circular to control online games has been finished with a high degree of unanimity of state management agencies and enterprises. Following this circular, publishers and service suppliers of online games need to have business licenses issued by the Ministry of Post and Telematics, an Internet application and contents license from the Ministry of Culture and Information. However, all enterprises will look for simple and quick procedures in licensing. The circular does not mention the taxation and tax rate for the online games business.
“Markets” to sell and buy goods supporting online games are flourishing with the increased numbers of game players. A variety of virtual websites and trade floors have been established and have come into effect. This is nothing new since “virtual assets” and “protection for virtual assets property rights” have become “hot” issues with different opinions from administrations, suppliers and players of online games. However, because Vietnam has no rule of law in this troublesome issue and no countries in the world have implemented the protection effectively, contents of protection for virtual assets property rights will be built in later after receiving ideas from relating sides.
Huong Ly
Vietnamese
