Lax management allows for illegal online games

Lax management allows for illegal online games

Lax management in the online game business in Vietnam has created a situation in which many local firms to cooperate with foreign partners for illegal game distribution in the Vietnam.

Game online management still out of control in Vietnam

In March 2014, inspectors from the Ministry of Information and Communications and the police became aware of certain cases in which a number of companies in Hanoi and HCM City worked with foreign partners to release illegal video games domestically.

The HCM City-based Afoo Ltd. Co. allegedly issued illegal games for a Chinese firm called Lemon Game Company.

Between September 2012 and May 2013, Afoo’s director was a Vietnamese national named Le Ngoc Anh Tue. The current the director is named Yang Zhuo and is Chinese. Yang is also a representative of Lemon Game Company.

Tue said that Afoo Ltd. Co. was really managed by Yang and that he is just a puppet.

In Hanoi, local agencies believe they discovered a Chinese company named Koramgame that helped a Vietnamese man, Nguyen Nam Tien, to set up three companies to issue illegal games. Tien directly signed contacts to hire servers from Vietnam Data Communication Company (VDC) and FPT.

Chinese companies normally pay their Vietnamese partners 22%-22% of their total revenues for the game in the local market.

In 2010, following public pressure over social evils caused by online games, the Ministry of Information and Communications halted the licenses for this business.

This has caused difficulties for local game companies such as FPT, VDC and VNG-Vinagame, but has given plenty of opportunities to foreign companies and those who sell illegal games.

At a meeting on online games held last year, experts and managers proposed the re-licensing local game companies, which they hoped would restrict the illegal games.

The government issued regulations saying that online games are expected to have some kind of legal framework under which to work so that the domestic industry could survive. However, to date, a guiding circular to that end has not been issued.

As a result, local game providers have not yet been allowed to issue games.

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