Vietnam is tightening regulations on online games with the introduction of Decree 147/2024, which mandates stricter controls over unlicensed games and gambling apps distributed through Google Play Store and Apple App Store.

For years, unlicensed games - distributed across app stores by foreign entities - have created unfair competition for domestic game publishers.

These games, which bypass licensing, tax obligations, and local payment regulations, are easily accessible to Vietnamese players through credit cards and local payment systems.

Despite ongoing efforts by the Ministry of Information and Communications (MIC) to have unlicensed games removed, compliance from Google and Apple has been inconsistent. However, Decree 147 now provides a legal framework to enforce these actions.

Issued on November 9, 2024, Decree 147 stipulates:

Mandatory Compliance: Foreign app store providers must remove applications violating Vietnamese laws upon request by the MIC, the Ministry of Public Security, or other authorized agencies.

Licensing Requirements: Games must have specific approvals before being distributed: G1 Games: Requires a Decision to Publish from authorities; G2, G3, G4 Games: Requires a Notice of Publishing Confirmation.

Accountability: App store providers and game service companies are responsible for verifying and providing accurate information about game licenses.

Failure to comply with these regulations will lead to administrative penalties and technical measures to block content, services, or applications. These measures will only be lifted after violations are rectified.

According to La Xuan Thang, Director of Online Game Publishing at VNGGames, Decree 147 is a game-changer in curbing unlicensed games and gambling apps. He noted that app store providers can no longer evade responsibility under the pretext of unclear legal mandates.

“This levels the playing field for domestic and international game companies, fostering a fairer gaming market in Vietnam,” Thang said.

Tran Phuong Huy, Director of VTC Intecom, emphasized that effective enforcement of the new regulations is critical. He called for resolute action from regulatory authorities to ensure compliance by major app stores, which could eliminate unfair competition faced by local gaming companies.

The introduction of Decree 147 marks a significant step in Vietnam’s efforts to regulate its burgeoning online gaming industry. By enforcing licensing requirements and holding app store providers accountable, the government aims to protect local businesses, generate tax revenue, and eliminate unregulated gambling activities.

However, achieving these goals will require sustained effort, agility, and cooperation between regulatory agencies and industry stakeholders.

Le My