Experts discuss app development at the "Future of Monetisation in Việt Nam" forum held in HCM City on Wednesday. – Photo Courtesy Yandex Ads

App developers in Việt Nam have numerous opportunities and great potential to maximise monetisation and expand their businesses in both Vietnamese and foreign markets, according to experts at the "Future of Monetisation in Việt Nam" forum held in HCM City on Wednesday.

Organised by Yandex Ads, the forum emphasised that Việt Nam's app industry has been thriving, playing a crucial role in driving digital transformation, fostering creativity, and creating new opportunities for the country's youth.

During the forum, experts agreed that Việt Nam's app industry is on the brink of significant growth, driven by government support, a young and tech-savvy population, and high smartphone penetration.

According to Statista, Việt Nam ranks fourth globally in app downloads, with an average of 10,000 downloads per minute and users spending four hours daily on apps. The country boasts 1,500 app publishers, many of whom have achieved international success in popular categories, especially gaming.

With an annual growth rate of 10.96 per cent and projected to reach revenue of US$1.7 billion by 2029, Việt Nam offers a fertile ground for app businesses to expand their reach.

Making a speech at the forum, Nana Phan, head of strategic partnerships of Yandex Ads in Southeast Asia, confirmed that, “Việt Nam has great potential with the largest number of app developers in the region.”

She emphasised that app developers can find ample opportunities to thrive in the local market and expand globally.

While there are many prospects for further development, app developers also face numerous challenges.

A survey entitled "Trends and Challenges of app monetisation in Việt Nam" by Yandex Ads, revealed that up to 64 per cent of app publishers feel they have insufficient training or resources in monetisation, with most relying on self-learning or online information.

Balancing user experience with revenue generation is a common hurdle for app developers, with challenges such as ad fatigue, user churn, and app quality maintenance affecting user engagement and revenue levels.

Talent shortage is another significant challenge, as highlighted by app publishers finding it difficult to recruit monetisation and growth experts, with an average recruitment time of four months to find a suitable specialist.

Time constraints are also a concern, with 40 per cent of publishers acknowledging they lack adequate time to work on documents, and one-third facing difficulties in payment control.

Moreover, determining monetisation strategies proves to be challenging for 65 per cent of app publishers, while many lack familiarity with international user behaviour, market regulations, legal frameworks, and cultural norms.

However, despite these challenges, ad monetisation remains a popular and effective method for boosting app business revenue, with 54 per cent of Vietnamese app publishers deriving half or more of their income from this strategy.

“Using tools, publishers can build and optimise systems to increase revenue from their apps, helping publishers ensure a sustainable and long-term revenue source while minimising human resources and operating costs which usually are required for maintaining the monetisation system,” added Phan.

According to Phan, to optimise user experience without sacrificing monetisation potential, publishers should consider factors like ad placement, frequency, and relevance.

Balancing these elements can help create a positive user experience while still driving revenue for app developers, she said.

In addition, experts suggested that as the trend of increasing revenue from apps continues to grow rapidly, innovations such as AI-generated ads, personalised content, and AI-supported revenue models will shape the future.

Vietnamese app publishers can stay ahead of these trends by seizing opportunities and collaborating with partners.

Hưng Lưu, growth marketing manager from MoMo, advised that before going global, developers should focus on developing in the domestic market first and seek support from experts and consultants. VNS