Vietnam VR & AR Market Outlook to 2028

Vietnam VR & AR Market Overview

• The Vietnam VR & AR market reached a valuation of USD 109 million in 2023, driven by increasing demand for immersive experiences in gaming, education, and retail, coupled with significant investments in technology and rising consumer interest. This growth is propelled by advancements in VR & AR technology, which offer enhanced user experiences and applications across various sectors.
• The market is characterized by key players such as Samsung, Sony, HTC, Oculus (Meta), and Lenovo. These companies are noted for their technological innovations, wide product portfolios, and extensive distribution networks, which have helped them establish a strong presence in the Vietnam VR & AR market.
• Hanoi and Ho Chi Minh City dominate the Vietnam VR & AR market. This dominance is attributed to higher tech-savvy consumer populations, better infrastructure, and the presence of numerous tech events and companies, which drive the adoption of VR & AR technologies in these cities.
• In 2023, Samsung announced the launch of its latest VR headset, the Gear VR Pro, aimed at the Vietnamese market. This development focuses on enhancing user comfort and graphics quality, part of Samsung's strategy to strengthen its market presence in Vietnam by offering cutting-edge VR.

Vietnam VR & AR Market Segmentation

By Application: The Vietnam VR & AR market is segmented by application into gaming, education, healthcare, and retail. In 2023, the gaming segment dominated the market due to the widespread popularity of VR gaming experiences. The immersive nature of VR has attracted a large number of gamers, leading to higher adoption rates. Companies like Sony and Oculus have significantly contributed to this segment with their advanced gaming VR headsets.

By Device Type: The market is segmented by device type into head-mounted displays (HMDs), handheld devices, and gesture-tracking devices. In 2023, Head-mounted displays dominated the market due to their extensive use in both consumer and enterprise applications. The popularity of devices like the Oculus Rift and HTC Vive, known for their superior user experience, has driven the dominance of HMDs in the market.

By Region

The Vietnam VR & AR market is segmented by region into North, South, East, and West. In 2023, the North region dominates the market due to the concentration of educational institutions and tech companies, coupled with government support for tech innovation, has led to higher adoption rates in this region. The region's strong infrastructure and investment in technology further bolster its dominance in the market.

Vietnam VR & AR Market Competitive Landscape

• Sony: Sony announced in 2023 that its PlayStation VR2 had surpassed 1 million units sold in Vietnam. This success is attributed to the strong gaming culture in the country and Sony's robust distribution network. Additionally, Sony is working on new VR content partnerships with local game developers, further enhancing its presence in the Vietnamese market.
• HTC: HTC opened a new VR innovation center in Ho Chi Minh City in 2023. This center focuses on developing VR solutions for healthcare and education, aiming to address local needs. HTC's investment in local talent and collaboration with Vietnamese universities highlights its commitment to driving VR adoption in the country.

Vietnam VR & AR Industry Analysis

Vietnam VR & AR Market Growth Drivers

• Rising Demand for Immersive Gaming Experiences: The growing popularity of VR gaming is a major driver for the AR & VR market in Vietnam. As of 2024, the gaming industry accounts for 65% of the total VR software market revenue in Vietnam, with popular VR games like Beat Saber and Half-Life: Alyx driving adoption.The increasing availability of affordable VR headsets and the integration of AR & VR into gaming platforms are creating new revenue streams
• Adoption of AR & VR in Enterprise Applications: Enterprises in Vietnam are increasingly adopting AR & VR technologies to enhance productivity, training, and customer experiences. As of 2024, the enterprise segment accounts for 35% of the total AR & VR market revenue in Vietnam.Companies in sectors like manufacturing, healthcare, and retail are leveraging AR & VR for applications such as remote assistance.
• Supportive Government Initiatives: The Vietnamese government has been actively promoting the development of the digital economy, including the AR & VR sector. In 2022, the Ministry of Information and Communications launched the "Digital Transformation Program" which aims to accelerate the adoption of emerging technologies like AR & VR across various industries.

Vietnam VR & AR Market Challenges

• Data Privacy and Security Concerns: In 2023, Vietnam introduced the "Law on Cybersecurity," which imposes stringent regulations on the collection, storage, and processing of personal data. This legislation is a response to growing concerns about data privacy and security, which have become critical issues as AR and VR technologies gain traction in the country. The law aims to enhance consumer protection and ensure that businesses comply with rigorous data management standards, thereby addressing public apprehensions related to these technologies.
• Limited Awareness and Adoption among SMEs: The adoption of AR & VR technologies among small and medium-sized enterprises (SMEs) in Vietnam is indeed limited. As of 2024, only 25% of SMEs have implemented AR & VR solutions in their operations. This slow uptake is attributed to factors such as limited awareness of the technologies and insufficient resources to invest in them. While larger enterprises are actively integrating these technologies to enhance their operations and customer engagement, SMEs are lagging behind due to these constraints

Vietnam VR & AR Market Government Initiative

• Digital Transformation Program: In 2022, the Ministry of Information and Communications launched the Digital Transformation Program aimed at accelerating the adoption of emerging technologies, including AR and VR, across various sectors in Vietnam. As of 2024, the government has allocated US$50 million to fund projects under this initiative, with the goal of enhancing the contribution of digital technologies to the economy. This program is part of a larger effort to integrate digital solutions into industries such as education, healthcare, and entertainment, thereby promoting innovation and improving service delivery.

Vietnam VR & AR Future Market Outlook

The Vietnam VR & AR market is expected to grow significantly by 2028, driven by technological advancements and the increasing adoption of immersive technologies across various sectors. The market's expansion will be supported by government initiatives, rising consumer interest, and continuous innovation in VR & AR applications.

Future Trends

• Expansion of AR & VR in Education and Training: In the coming years, the use of AR & VR technologies in education and training is expected to significantly increase in Vietnam. By 2028, educational institutions will likely incorporate immersive learning environments, enhancing student engagement and understanding of complex subjects.
• Growth of AR & VR in Healthcare: The healthcare sector in Vietnam is anticipated to see substantial advancements through the adoption of AR & VR technologies over the next five years. By 2028, hospitals and medical training centers are expected to utilize AR & VR for surgical simulations, patient education, and remote consultations.