Vietnam’s electronic gaming industry has entered a new phase, as foreign investors from CPTPP nations can now own up to 100% of businesses in the sector, effective January 14, 2024. This shift is a significant departure from the previous 49% foreign ownership cap, which was a requirement under Vietnam’s World Trade Organization commitments.
The move aims to attract more foreign capital to a rapidly growing industry, reflecting Vietnam’s ambition to position itself as a regional leader in technology and digital services. This policy change, while opening doors to greater foreign investment, leaves one major uncertainty: the status of joint venture requirements, which remains unclear. The Ministry of Information and Communications is expected to provide further clarification on whether joint ventures will remain mandatory for certain activities or if the new regulations will fully liberalize the sector.
Industry experts are already predicting that this policy shift will lead to an influx of investment, particularly from companies looking to capitalize on Vietnam’s fast-growing tech infrastructure and large, young, tech-savvy population. The move to allow full foreign ownership will likely attract gaming giants, software developers, and investors eager to expand in Southeast Asia’s expanding digital economy.
Furthermore, this development is expected to enhance Vietnam’s position within the ASEAN region, where it has been increasingly regarded as an attractive destination for tech-driven investment. The broader implications could be felt across other sectors as well, with this change signaling Vietnam’s openness to foreign capital and its growing integration into global digital markets.
However, as investors wait for further regulatory clarity, cautious optimism prevails. The sector’s liberalization offers numerous opportunities, but the fine print concerning joint ventures and other regulatory requirements could shape the pace and extent of foreign involvement.
The Vietnamese government’s willingness to engage with international investors while maintaining a degree of oversight is indicative of a balanced approach to economic growth. As the global gaming market continues to expand, the coming months will reveal how these new regulations impact both local and international players in the industry.