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Entering

Vietnam
Mobile
Market
2017
Dialogue

Top 10 mobile events of 2016

Mobile Device Trends

Mobile User Behavior Analysis

Vietnam Mobile Landscape


Top 10 mobile events of 2016
Bigo, a live-streaming mobile Monkey Junior (edtech)
1 app became a phenomenon in
Vietnamese young generation.
achieved international awards
in the field of education
6

Momo, a mobile payment firm


2 Samsung to permanently end
production of Galaxy Note 7
in Vietnam, lands $28M led by
Standard Chartered Bank
7

3 Pokemon Go reach nearly 9


million downloads in
Mobile game revenue to pass
PC for first time. 8
Vietnam.

Sam Media Company– a Lazada Vietnam announced its

4 mobile phone content provider


fined for cheating customers
GMV index $7.8M per day,
which set up a millstone for 9
Ecommerce Market in Vietnam.

Vietnam awards 4G licenses Vietnam listed in top 20 coun-


5 to the three biggest Telco. tries with the highest number
of Internet users.
10
Vietnam
Mobile Device Trends
2016
Vietnam Internet Users Demographic
TOP 20 INTERNET COUNTRIES - 2016
With the Highest Number of Internet Users

China 721.4

Total Population: 93M+ India 462.1

49M
United States 286.9

Active Internet Users: Brazil 139.1

Active Mobile Subscribers: 131.9M


Indonesia 132.7

Japan 115.1

Active Mobile Social Users: 38M Russia 103.1

97.2
Nigeria

Germany 71.7

Mexico 69.0

Bangladesh 63.2

United Kingdom 60.2

48% 52%
Iran 56.7

France 55.8

Philippines 54.0

Male Female Vietnam 49.0

Turkey 46.0

Gender Korea, South 45.3

Thailand 41.0

Italy 39.2

Source: Appota 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800
Vietnam 3G Usage
3G Subscription (YoY) (Million) 3G Subscription Breakout by Telco

8%
44
18% Viettel
Mobile
30 48%
Vinaphone
22
26% Other

2014 2015 2016

* Telco have been started launching 4G with big campaign. This would let the number of 4G subscription take off in 2017.

Source: Zing.vn
Smartphone Penetration
Smartphone penetration in urban areas

72%
55%
20% 36%

2013 2014 2015 2016


* Smartphone ownership in Vietnam is booming, with current penetration at 72% in urban areas and 53% in rural.

Source: Consumer Barometer Question: A2. Which operating system do you have on your smartphone?
Smartphone users, n=1000 TNS / Google smartphone apps research Vietnam
Using Mobile or Multiplatform?
Destop only Multi-Platform Mobile only

All User Millennials (from 18 – 34 years old)


Vietnam 69% Vietnam 88% (+19pts)
Malaysia 68% Malaysia 87% (+19pts)
Singapore 85% Singapore 91% (+7pts)

UK 71% UK 89% (+18pts)


USA 76% USA 94% (+18pts)
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

* Younger demographics heavy drivers of mobile adoption in Vietnam to compare with other countries

Source: Comscore
Smartphone OS Breakout
Smartphone Penetration by OS To compare with other countries in S.E.A

Southeast Asia
Country Android OS IOS
7%
Indonesia 94% 6%

Malaysia 82% 18%


25% Philippines 81% 19%

68% Singapore 58% 42%

Thailand 74% 26%

Vietnam 68% 25%

iOS
Android
Other Source: Appota Source: Asian Business Insight
Mobile OS trends 2016
2016 IOS Usage 2016 Android OS Usage
100% 100%

90% 90%

80% 80%

70% 70%

Android OS Usage
60%
IOS Usage

60%
OS 7 Jelly bean 4.1:4.3
OS 8 Kitkat 4.4
50% 50%
OS 9 Lollipop 5.0:5.1
OS 10 Marshmallow 6.0
40% 40% Nougat 7.0:7.1

30% 30%

20% 20%

10% 10%

0% 0%
1/1/16 2/1/16 3/1/16 4/1/16 5/1/16 6/1/16 7/1/16 8/1/16 9/1/16 10/1/16 11/1/16 12/1/16 1/1/16 2/1/16 3/1/16 4/1/16 5/1/16 6/1/16 7/1/16 8/1/16 9/1/16 10/1/16 11/1/16 12/1/16

Apple released iOS 10 on September 13th. Three months later, the Android Nougat was released at the end of August, and four months
operating system is deployed on about 84% of iOS devices. This later still has <1% adoption! This was explained by that because
means iOS users always have immediate access to the latest and Android is so fragmented by version, and adoption of the latest OS is
greatest operating systems released by Apple. slow, their only choice is to focus stability efforts on the Android
OSes with the highest usage.

Source: Apteligent
Vietnam Android Screen Break out

qHD 540x960 14.23%

28.71% WVGA 480x800

Full HD 15.16%
1920x1080

HD 720x1184 15.78%
26.12% HD 720x1280

Source: Appota
SMARTPHONE
USERS’ BEHAVIOR

Vietnam
Mobile User Behavior
2016
Daily user’s behavior
Daily use and time spent with app categories
160 High use & longer engagement
Mins spent using

140 Social networking

120

100 Messaging,
communication
80
Games
Entertainment
Music & audio
Books, comics, magazines
60
Search
Education
40 Shopping
Productivity, tools, utilities Lifestyle
Travel and local News & weather
Finance
20
Transportation

0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Daily use

* Social networking and messaging have the highest use and occupy the most amount time; games also engage

Source: Question B5. Which of these categories of smartphone app do you use every day? Smartphone users, n=1000 Question B9. Thinking about a typical day, how much time do you
think you spend with these kinds of apps? Users of app category n=various (range from n=638 to n=980) TNS / Google smartphone apps research Vietnam
Impression by device through a daily time

% of each platform’s average


daily impressions by hour
Tablet

Desktop

Phone

LATE NIGHT EARLY MORNING DAYTIME LATE AFTERNOON PRIME


12am - 7am 7am - 10am 10am - 5am 5pm - 8pm 8pm - 12am
Average time spend online on web, mobile web and mobile app

Time using a web browser Time using a web browser on Time using apps on a smartphone,
on a computer a smartphone which need an internet connection

100 minutes 63 minutes 51 minutes


114 minutes

Source: Question: C1 How much time do you think you spent online? Question C2 And what percentage of your online time do
you think is spent in the following ways? Smartphone users n=1000 TNS / Google smartphone apps research Vietnam
On average, five new apps are installed each month

69%
+5% 68%
66%
63% 62% 62% 59% 58% 57%
55%
app
installed
each month
Games Social Messaging, Media & Search Music & Books, News & Education Shopping
networking comms Ents. Audio comics, weather &
mags e-comm.

Source: Question: B11. How often do you install new apps for these types of apps? Smartphone users,
n=1000 TNS / Google smartphone apps research Vietnam
Frequency of using app categories

Use daily Use regularly (but not daily)

Social networking 94% 4% Games 67% 10%


Messaging, comms 91% 4% News & weather 65% 14%
Search 87% 10% Shopping & e-comm. 43% 21%
Media & Ents. 73% 14% Travel and local 42% 21%
Music & Audio 72% 13% Books, comics, mags 39% 17%

* Social networking and messaging apps are used every day by almost all smartphone owners
2016 year of Messaging App

TOP MESSAGING APPS IN VIETNAM TOP MESSAGING APPS ACTIVITIES IN VIETNAM


Zalo 80%

Facebook 18 - 25 26 - 30 30 - 35 35+ Total


73%
Messenger Text messaging 82% 79% 80% 73% 80%
Send photos 57% 57% 62% 56% 58%
Viber 40%
Phone calls 53% 59% 59% 51% 56%
Skype 37% Video calls 40% 42% 39% 34% 40%
Voice messaging 25% 24% 17% 16% 23%
Line 18% Share feelings 21% 22% 22% 21% 22%
Read news 19% 22% 21% 27% 21%
Yahoo 11%
Share updates about friends, relative 19% 20% 25% 17% 20%
Chat rooms 18% 15% 15% 6% 6%
Tango 9%
What videos 12% 15% 13% 18% 14%
Wechat 5% Find friends / make friends 14% 13% 13% 18% 14%
Online shopping 10% 10% 14% 11% 11%
Whatsapp 4% Othes 3% 0% 5% 2% 2%

Kakao Talk 3% % of responents in each group


Note: n = 1,200; via smartphone: respondents chose top 3
Other 6%

Source: Appota
2016 year of Messaging App
The messaging landscape

In-app SMS Messenger APIs Zalo APIs Line APIs

B2C CUSTOMER COMMUNICATION SOFWARE

HUMAN AGENTS BOTS, AI, INTELIGENCE

Messaging app now is just only to use with your friends and family, it extends to bill paid, shop-
ping, instruction and entertainment. In 2017, enabling technology: Context, identity, and AI will
help messaging apps to grow tremendously and even surpass Social Networks.
Vietnam Mobile commerce 2016
Comparing between Mobile commerce
and E-commerce YoY
USD (Million) E- Commerce App is used to
1.0 research and purchase

More than 31 % online


0.8 shopping is estimated to be
from apps

0.6 Food , are more likely to be


purchased via mobile rather than
from a laptop.

0.4
Lazada: 36% of market share is
the market leader
0.2

49% spend from 10 to 20 usd


0.0
2013 2014 2015 2016 Year

More than 30% shop 2-3 times per


Buying via PC month
Buying via mobile

Source: Euromonitor, VNG


Devices used for online Shopping
Lazada(B2C)
Devices used for Online Shopping 10m-50m Download
Buying via mobile

52%
Dominantly popular shopping site in Vietnam. The
Penetration (%) mobile app users get 50,000 VND at the time of app

47% installment and more promotions afterwards.

40% Chợ tốt(C2C)


1m-5m Download

31% 29% Able to trade among individuals. Cars and houses are
sold as well. Buyers contact the sellers through

25%
chatting, telephone, SMS and email. Payment and
delivery method is up to them.
23%
17% iCheck(Shopping App)
9% 6% 1m-5m Download
One of the many barcode-reading-apps. This app tells
2% you so much information about your products such as

1% fake/real, harmful to health, shops that have the


products etc.

Home PC Smart- Smart- Office PC Tablet Tablet


phone phone (browser) (app)
(browser) (app) Quà tặng Galaxy(Shopping App)
1m-5m Download
* Mobile commerce is gaining momentum is growing markets. In Vietnam, more consumers are beginning to One of the many barcode-reading-apps. This app tells
use their smartphones to make purchases rather than their conventional computers. PC-commerce is you so much information about your products such as
fake/real, harmful to health, shops that have the
shrinking at a slow rate, with the mobile space thriving as more retailers begin to offer mobile-centric services products etc.

Source: Q&Me
The way Vietnamese users pay for e-commerce
5%
8%
14% 4%
6%
85% of EC users choose cash on
10%
delivery as a payment method.

On the other hand, heavy users


use credit/debit cards and bank
85% 90% transfer more often, so consumer’s
76%
concern about purchasing may
lead to cash on delivery.

Also, high usage rate of cash on


delivery results in high order
All Heavy User Light User cancellation rate in Vietnam.
Cash on delivery Credit card/debit card Bank transfer

Source: Q&Me
Mobile Game 2016 Overview

Market size Vietnam YoY( Milion USD ) Vietnam Game Revenue to compare with
other countries in S.E.A

PC Game
Singapore
Mobile Game

Malaysia
22.7% 20.4%
400 Philippines

300
Indonesia
15.5% 20%
200 Thailand

7% 14.3%
100
Vietnam

2013 2014 2015 2016


* Total Revenue of BIG 6 S.E.A: 783.10 Milion USD
Mobile Game Publishing in Vietnam 2016
Võ lâm Ngôi Sao
truyền kỳ Liên Quân Thời Trang Tập Kích
Ỷ thiên 3D mobile Mobile 360mobi VTC

Top Successful
Mobile Game
in 2016

Top Publishers
in the market
Top Global Game Downloads

8.8M downloads 8.1M downloads 7M downloads

Vietnamese Gamers love to play trending global games. Pokemon: 8.8M downloads,
talking tom 8.1M downloads, Slithe.io with 7M downloads. However casual game
doesn’t work in Vietnam in term of revenue. (due to payment method and user’s
behavior).
Vietnam Mobile Ecosystem
Publisher Social Platform Media Carriers

Mobile Payment

Events
Advertising & Marketing
Tracking Service

Live Streaming Platform Infrastructure


Appota is the leading mobile platform provider for 3 segments trending
in the Vietnamese mobile market: Game Publishing, Advertisement, and
Payment. The company has more than 30 million users, and partners
with over 15,000 developers, advertisers, and merchants worldwide.

Subsidiary Companies:

gamota.com adsota.com appotapay.com

More information: www.appota.com