Scenario: a Korean game studio runs servers in Singapore and lets Vietnamese users download its game from an app store, assuming it has ‘no operations in Vietnam’ and needs no local entity. That reasoning expired on 25 December 2024: Decree 147/2024/ND-CP expressly requires foreign organizations and individuals providing online game services to users in Vietnam — including cross-border provision — to establish an enterprise under Vietnamese law.
The G1–G4 ladder: classify your game correctly
Article 37 of Decree 147/2024/ND-CP divides online games into four groups, each with a different ticket for entry:
- G1 — multiple players interacting simultaneously via the company’s game server (typical multiplayer online games): requires a G1 online game service provision license and a release decision for each game.
- G2 — interaction only between player and company server; G3 — players interacting with each other but not with the company server; G4 — downloaded, no interaction: requires a G2/G3/G4 service provision certificate and a release notification confirmation for each game.
The practical point: G1 is the tightest tier because of its social-interaction intensity; many studios try to squeeze their games into G2/G3 to dodge the G1 license — regulators classify by actual interaction mechanics, not by whatever label the company chooses.
Mandatory local entity: no more cross-border grey zone
Article 37(4) of Decree 147/2024/ND-CP is the clause foreign investors most often miss: wherever the servers sit and whichever app store distributes the game, if the service reaches users in Vietnam, a Vietnamese enterprise must be established, complying simultaneously with foreign investment regulations.
The practical consequence is three parallel workstreams: (1) the investment procedure — setting up a foreign-invested enterprise that meets market access conditions; (2) the game license for the classified G group; (3) content compliance — Decree 147 bans games whose content or scenarios mimic casino-style prizewinning games or use playing-card imagery, to block disguised gambling.
The ‘capital ratio’ matters less than the license — and the early-marketing trap
No separate foreign ownership ratio is published for the games sector; the gate that decides whether a project runs is the service provision license plus the per-game release decision or confirmation. Investors should concentrate resources on game classification dossiers and content scripts rather than bargaining over equity ratios.
Another common trap: advertising the game (trailers, beta versions, social media promotion) before the release confirmation or decision is issued. Decree 174/2026/ND-CP (effective 1 July 2026) sets separate fines for this, with higher penalties for G1 than for G2/G3/G4 — marketing spend deployed before licensing can turn into fines.
Frequently asked questions
1. Servers abroad, downloads by Vietnamese users only — is a license needed?
Yes. The test is whether the service is provided to users in Vietnam; in that case a Vietnamese enterprise must be established and the license for the relevant G group obtained.
2. What is the practical difference between G1 and G2/G3/G4?
G1 requires a license (the higher tier) plus a per-game release decision; G2/G3/G4 need only a certificate and a release notification confirmation. Misclassification means applying for the wrong papers and redoing the process.
3. Is there a foreign ownership cap for game companies?
The underlying regulations publish no sector-specific ratio for games; investors comply with the general market access conditions and focus on the service provision license.
4. Can players trade virtual items among themselves?
No. The law prohibits enabling trade in virtual items, virtual currency or reward points between players, with heavier penalties where conversion into money or cards is involved.
5. What is the penalty for releasing a trailer before the game license?
Under Decree 174/2026/ND-CP, advertising a game without the release confirmation or decision draws fines, with higher amounts for G1 than for G2/G3/G4.
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- Exporting to the US from Vietnam: rules of origin and circumvention investigation risks
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