Video game industry has become a highly promising business sector, attracting the attention of many companies in Vietnam. However, to operate effectively and legally, businesses need to fully understand the legal regulations related to providing online video game services. Complying with legal requirements not only helps businesses avoid legal risks but also enhances their reputation and competitiveness in the market.

This article will provide detailed information about the latest legal regulations for businesses offering online video game services, while also analyzing key issues that businesses need to be aware of to ensure legal compliance and sustainable development in the digital age.

1. Principles of managing online video games – Classification and conditions for release

The management of online video games in Vietnam is regulated in detail by Decree 147/2024/ND-CP, with specific principles and classifications aimed at ensuring transparency, safety, and legality in business operations. Below are the key points:

Classification of online video games, Online video games are classified into 4 main categories:

• G1 Games: Games that involve simultaneous interaction between multiple players through the company’s server system.
• G2 Games: Games that only involve interaction between the player and the company’s server system.
• G3 Games: Games that involve interaction between multiple players, but without any interaction with the company’s server system.
• G4 Games: Games that are downloaded via the internet, with no interaction either between players or with the company’s server system.

For new types of online video games that do not fall into the above categories, the Ministry of Information and Communications will propose management measures to be decided by the Prime Minister.

Conditions for releasing online video games

• G1 Games: Businesses must have: A license to provide G1 online video game services, A decision to release the G1 online video game.
• G2, G3, G4 Games: Businesses must have: A certificate to provide G2, G3, G4 online video game services, A confirmation of the notification of the release of G2, G3, G4 online video games.

Regulations for Foreign Organizations and Individuals, providing online video game services in Vietnam, including cross-border services:

• Establish an enterprise in accordance with Vietnamese law.
• Comply with the provisions of the Decree and regulations on foreign investment to conduct online video game service business activities.

2. Procedures for applying for a license to provide g1 online video game services

Conditions for licensing: Before applying for a license to provide G1 online video game services, businesses must meet the following conditions:

• Be an enterprise established in accordance with Vietnamese law, with the business sector of providing online video game services registered on the National Business Registration Portal; have a clear and reachable head office with an address and contact phone number;
• Have registered a domain name for providing the service;
• Possess sufficient financial capability, organizational structure, and personnel for managing online video games in line with the scale of the business;
• Have a technical system to connect payments with payment service providers and intermediary payment service providers as required by law, ensuring accurate and complete updates and storage, and allowing players to access detailed information about their payment accounts on the game application system (game account);
• Have a technical system that ensures the storage and full updating of player information in Vietnam, including: full name, date of birth, and mobile phone number in Vietnam. Implement account verification for players using a mobile phone number in Vietnam, ensuring that only verified accounts can participate in the game. In the case of players under 16 years old, the account must be registered by their parent or legal guardian with the parent’s or guardian’s information, who will be responsible for supervising and managing the player’s gaming time and content accessed by players under 16 years old. The system must also ensure the deletion of player information after the retention period expires as per regulations;
• Have a technical system to manage the daily gaming time (from 00:00 to 24:00) for players under 18 years old, ensuring it does not exceed 60 minutes per game, and a total of no more than 180 minutes per day for all games provided by the business for players under 18 years old;
• Have a technical system that ensures the continuous display of game age classifications for all games provided by the business when introducing, advertising, and releasing the games. The system must include a warning message stating “Playing more than 180 minutes a day may negatively affect health,” prominently displayed on the game forum (if applicable) and on the player’s device screen at regular intervals of 30 minutes during gameplay;
• Have a technical system that ensures the management of content exchanged and shared within the game and on the game forum (if applicable) in accordance with regulations;
• Have measures to manage player account content and information, ensuring full, continuous, and accurate storage and updating of information regarding the player’s use of the service, including: account name, service usage time, and relevant information about virtual items, virtual currency, and player rewards;
• Have a plan to ensure network information security, data security, service quality, and the rights of players;
• Have a contingency plan for equipment and connectivity, along with a data backup plan to ensure system safety in case of any incidents.

The duration of the license for providing G1 online video game services is as requested by the business, but it cannot exceed 10 years.

The application dossier for the license to provide G1 online video game services includes:

• Application form for the License.
• A valid copy (including a copy issued from the original register, a notarized copy, an electronic notarized copy, or a copy verified against the original) of the business registration certificate, investment registration certificate, or a valid copy of an equivalent certificate or license.
• A proposal for providing G1 online video game services, certified by the legal representative of the business or the head of the business requesting the license, including the following main contents:

The service provision plan, financial capacity, organizational structure, personnel, and technical capabilities for delivering the service;

An overall diagram of the service provision system, including the location of the equipment used to provide the service;

Information about the service provision system, including both the primary and backup components (name, function, and planned configuration of the equipment), ensuring service quality, network information security, and data security;

Data backup plan and contingency measures; plan to ensure the rights of players and the protection of player information;

Detailed information about the methods and scope of service provision (domain name, game distribution channels, IP addresses); the business’s connection to the Internet and telecommunications networks (company name, address, connection bandwidth);

Information about the anticipated connection with payment service providers and intermediary payment service providers.

Procedures for obtaining a License to Provide G1 online video game services:

The business submits one complete application for the license to provide G1 online video game services either directly or via postal services to the Ministry of Information and Communications (Radio, Television, and Electronic Information Department), or submits it through the Ministry of Information and Communications’ online public service system.

If the application is submitted through the Ministry of Information and Communications’ online public service system, a digital signature must be provided in accordance with the regulations on electronic transactions.

Within 20 days from the receipt of a valid application, the Ministry of Information and Communications (Radio, Television, and Electronic Information Department) will review the application and issue the license to provide G1 online video game services according to Form No. 30 in the Appendix attached to this Decree. In case of refusal, the Ministry of Information and Communications (Radio, Television, and Electronic Information Department) will issue a written response, stating the reasons for the refusal.

Time of writing: 09/12/2024

The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer  at  info@cdlaf.vn

You can refer for more information:

• Investors acquiring enterprise and financial risks to be aware
• Business Cooperation Agreement: Legal Risks You Should Know
• Summary of the latest legal regulations for News websites