The report results by the data analytics firms, DataAI and AppMagic, was announced at Google Think Apps 2023 - the most significant event for app and game developers, studio & companies in Viet Nam organized by Google on July 20, 2023. More than 500 domestic developers attended the event.

Positive trajectory amid the global downturn

The DataAI and AppMagic's report also stated that Vietnam's game and application industry in 2022 grew 2.5 times the world average, and revenue increased by 20%, in the context of the global in this array for a 2% reduction.

"With 4.2 billion worldwide application downloads, Vietnam has risen to the 4th rank of countries with most application downloads globally," said Marc Woo - Director of Google Vietnam.

There are currently 93 domestic gaming and app development firms, between them have created 171 applications that have each found a place in the top 10 most downloaded apps on the Play Store, at least once. In a striking move, Vietnam has catapulted from the top 15 to the Top 5 countries globally for app downloads from 2019 to the first quarter of 2023.

Google: Vietnam Is A Burgeoning Hub for App Development

In 2022, the country saw a 20% increase in revenue from in-app purchases (IAP) in domestically developed apps, in stark contrast to a 2% global decline, VNS reported.

Another highlight is that: four Vietnamese app developers have been spotlighted among the Top 50 global companies, boasting new applications that have each garnered over 100,000 downloads in 2022. In particular, Falcon Global, ABI Global, Zego Global, and Rocket Studio have made the prestigious list.

More than 500 domestic developers attended the event on July 20 (Photo: toquoc.vn).

"Vietnam has emerged as a hub for top developers, cementing its reputation as a powerhouse in the application development industry," said a Google representative at the event.

Riding the global trend wave

While hosting a thriving technology sector, Vietnam faces many challenges. The DataAI and AppMagic report also points to a slowing momentum in download numbers, subdued growth in IAP revenue, and a decline in the estimated revenue per thousand ad impressions. On the other hand, a decrease in user engagement of 5% has been recorded up to mid-2023.

Speaking at the event, David Kim, CEO of DataAI also shared that in 2022, there were 255 billion new app downloads worldwide, with application demand increasing by 4% from January to May 2023. However, there was a decrease by 3% in the game segment. On the other hand, the application segment still grew by 8%.

In the game segment, he stressed that Vietnamese developers should focus on Hyper Casual like racing, sports and fashion games, which generate relatively high revenue.

David Kim, CEO of DataAI, spoke at the event (Photo: toquoc.vn).

As for non-game apps, in 2023, Vietnam needs to focus on applications such as social networks or photo, video, entertainment, and finance. Notably, tool-based applications have also grown by 14% compared to last year and there is room for growth in Vietnam.

“Trend in the app and games industry is recovering from the pandemic, and demand for non-game apps is increasing. However, developers need to apply new technologies such as artificial intelligence, and combine multiple business methods to create sustainability," said David Kim.

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