Vietnam Virtual Reality Market Outlook to 2030

Vietnam Virtual Reality Market Overview

• The Vietnam Virtual Reality Market, valued at USD 42 Mn in 2023, is driven by increasing adoption of VR technology across various sectors, including gaming, healthcare, education, and real estate. The gaming sector, in particular, has seen a surge in VR applications, with VR gaming studios and VR arcades becoming increasingly popular.
• The key players in the Vietnam VR market include Samsung Electronics, HTC Corporation, Sony Corporation, Oculus VR (a subsidiary of Meta Platforms, Inc.), and FPT Software. These companies are pivotal in driving technological advancements and increasing the accessibility and affordability of VR devices and software.
• In early 2023, FPT Software, announced a strategic partnership with Microsoft to develop and deploy VR solutions for enterprise training and remote collaboration. This partnership aims to enhance the productivity and efficiency of businesses by leveraging VR technology.

Vietnam Virtual Reality Current Market

• Ho Chi Minh City is the dominant region in the Vietnam VR market in 2023. This dominance is attributed to the city's robust technology infrastructure, high concentration of tech-savvy consumers, and significant investment in digital transformation projects.
• One of the primary challenges facing the Vietnam VR market is the high cost of VR hardware and the limited availability of localized VR content. In 2023, the average cost of a high-quality VR headset , which is relatively expensive for the average consumer. Additionally, there is a scarcity of VR content tailored to the Vietnamese market, limiting the technology's appeal and adoption.
• In 2023, the Vietnamese government launched a digital transformation initiative, emphasizing the adoption of advanced technologies like VR in public services and education. The Ministry of Information and Communications allocated USD 50 Mn towards developing VR content and infrastructure, aiming to integrate VR into the national education curriculum by 2024.

Vietnam Virtual Reality Market Segmentation

The Vietnam Virtual Reality Market can be segmented based on several factors:

By Product Type: In the Vietnam virtual reality market segmentation by product type is divided into hardware, software and services. In 2023, hardware reign as the most dominant sub-segment due to the continuous innovation and price reduction in VR headsets, making them more accessible to consumers and businesses. The entry of new players offering affordable VR devices also contributes to the segment's growth.

By Application: In the Vietnam Virtual Reality market segmentation by applications is divided into gaming, healthcare, education, real estate and others. In 2023, the gaming segment's dominance is due to the immersive experience VR provides, which enhances user engagement and interaction. The continuous development of VR games and the establishment of VR arcades also contribute to the segment's growth.

By Region: Vietnam Virtual Reality market segmentation by region is divided into north, south, east and west. In 2023, south's dominance is attributed to its advanced technology infrastructure and the presence of a significant number of VR startups and companies. The region's strong focus on digital transformation and innovation also contributes to its leading position in the market.

Vietnam Virtual Reality Market Competitive Landscape

• Oculus Quest 3 Launch: Oculus VR launched its latest VR headset, Oculus Quest 3, in Vietnam in 2023. The new device features advanced tracking and enhanced graphics, making it highly popular among gamers. Within the first month of its launch, over 10,000 units were sold, showcasing the strong demand for cutting-edge VR technology.
• HTC Corporation's New VR Platform: In early 2024, HTC Corporation announced the development of a new VR platform tailored for remote work and virtual collaboration. This platform is expected to generate over VND 120 Bn in revenue by the end of 2024, reflecting the growing importance of VR in the corporate sector and enhancing productivity and communication.

• Samsung's VR Innovations: Samsung Electronics introduced a new VR headset in 2023, which saw an increase in sales compared to the previous year. This product launch has strengthened Samsung's position in the market, contributing to the overall growth of the VR sector in Vietnam. The new headset is expected to generate additional revenue of VND 100 Bn by end of 2024.

Vietnam Virtual Reality Industry Analysis

Vietnam Virtual Reality Market Growth Drivers:

• Increasing Adoption in Education: In 2023, the Vietnam Ministry of Education and Training reported that over 1,000 schools across the country had integrated VR into their curricula. This initiative aims to provide immersive learning experiences, enhancing student engagement and understanding of complex subjects.

• Healthcare Innovations: The healthcare sector in Vietnam has seen integration of VR technology for medical training and patient therapy. In 2023, over 50 hospitals and medical institutions adopted VR for surgical simulations and rehabilitation programs. The deployment of VR in these facilities is expected to expand to 80 hospitals by end of 2024.

• Gaming Industry Expansion: The gaming industry remains a major growth driver for VR in Vietnam. The popularity of VR gaming is anticipated to attract an additional 500,000 gamers by the end of 2024, driven by the launch of new VR games and the establishment of more VR arcades in major cities like Ho Chi Minh City and Hanoi.

Vietnam Virtual Reality Market Challenges:

• Limited Localized Content: One of the main challenges in the Vietnam VR market is the scarcity of localized VR content. In 2023, only 20% of VR applications available were tailored to the Vietnamese market, limiting the appeal and relevance of VR technology for local users. Efforts to increase localized content are underway.
• Technical Barriers and Infrastructure: Technical challenges such as limited internet bandwidth and inadequate technical infrastructure pose significant hurdles for the adoption of VR. In 2023, only 60% of urban areas in Vietnam had access to high-speed internet capable of supporting VR applications.
• User Experience and Motion Sickness: User experience issues, such as motion sickness, continue to affect the adoption of VR technology. While advancements in VR technology aim to reduce these issues, it is expected that addressing motion sickness and improving user comfort will take several more years.

Vietnam Virtual Reality Market Government Initiatives:

• Investment in VR Startups: The government has established a fund of VND 500 billion to support VR startups and innovation hubs. In 2023, this fund facilitated the growth of 50 VR startups, providing financial support and resources to develop cutting-edge VR applications.

• Public-Private Partnerships: In 2023, the government initiated several public-private partnerships to advance VR technology in various sectors. One notable partnership involved the Ministry of Health collaborating with a leading tech firm to develop VR-based medical training programs, impacting over 1,000 medical students.

• Tax Incentives for VR Investments: To encourage investments in VR technology, the government introduced tax incentives for companies investing in VR research and development. In 2023, companies investing over VND 100 million in VR projects received significant tax reductions, resulting in increased corporate investment in VR technology.

Vietnam Virtual Reality Future Market Outlook

The Vietnam virtual reality market is expected to show significant growth driven by continuous innovation and increasing integration of VR technology across various sectors. The education sector, in particular, is expected to witness significant VR adoption, enhancing interactive learning experiences.

Future Market Trends

• • VR in Real Estate and Construction: The real estate and construction sectors are expected to leverage VR technology, providing virtual property tours and immersive architectural visualizations. This adoption will enhance customer engagement and streamline project planning, with major real estate developers integrating VR into their marketing and sales strategies.
  • Development of the Metaverse: The concept of the metaverse will gain traction in Vietnam, with VR technology playing a pivotal role in creating virtual worlds for social interaction, entertainment, and business. The development of the metaverse is expected to attract millions of users and generate substantial economic opportunities, supported by investments from both local and international tech companies.