Vietnam's OTT video market is on an unprecedented growth trajectory. Market research firm Statista predicts that revenue in the market will reach $545.80 million in 2024, with a compound annual growth rate of 7.26 per cent between 2024 and 2029, resulting in a projected market value of $774.70 million by 2029.

Many factors are driving the growth of the OTT video market. Specifically, Vietnam has a large and young population with a high internet penetration rate. Additionally, the Vietnamese government has been supportive of the digital economy and has implemented policies to promote the development of the OTT video industry. This includes the introduction of regulations to ensure a level playing field for both local and international players.

One of the key trends in the OTT video market in Vietnam is the rise of local content. Vietnamese consumers have shown a strong preference for local movies and TV shows, which has led to the emergence of local OTT platforms that cater specifically to this demand. These platforms are investing in producing high-quality local content to attract and retain subscribers.

According to the Authority of Broadcasting and Electronic Information, Vietnam is currently home to 35 firms licensed to provide pay television services and 20 firms offering OTT services. As the market continues to grow, both local and international players are vying for a larger share of the market. This has led to aggressive pricing strategies and the introduction of innovative features.

Among them, companies are looking to tap into paid OTT services, which have enjoyed rising popularity in the nation. Although many Vietnamese internet users still prefer freely accessible, advertising-based video on demand, more and more are willing to pay for higher quality and exclusive content, suggesting the continued growth of the subscription video on demand (SvoD) segment in the country.

As a result, partnerships and collaborations between local OTT platforms and relevant stakeholders are becoming more common as they seek to leverage each other's strengths and reach a wider audience.

On March 25, Vietnamese OTT application VieON announced a partnership with digital bank Cake by VPBank to launch their first co-branded credit card. It takes only two minutes to register online, and a card is issued instantly. Cardholders can begin using their virtual card right away, while the physical card will be delivered to their doorstep in a few days.

In addition, Vietnamese OTT platforms are looking to increase their market share by offering a convenient, fast, and safe payment channel to create a seamless experience for users. This is the reason VieOn decided to team up with Cake by VPBank, which has a customer base of 4 million.

The move is also part of VieON's efforts to keep up with the rise of paid OTT services in Vietnam. After four years of operation, VieON, developed by DatVietVAC Group Holdings, boasts a staggering 52 million devices in use, thanks to heavy investment in technology and content. To bolster growth, the platform is integrating with a cashless payment method to better serve tech-savvy young customers.

Huynh Long Thuy, deputy general director of DatVietVAC Digital Ventures, said, "The partnership is expected to bring dual benefits to customers of both brands. We believe that Cake by VPBank will bring modern, superior, and secure financial solutions to tens of millions of VieON's users. Meanwhile, Cake's users will also take advantage of attractive and civilised content from the entertainment app VieON."

In the same vein, Cake CEO Nguyen Huu Quang said, "For the first time, Vietnam's leading OTT platform launched a co-branded credit card in collaboration with a digital bank. The tie-up underscores Cake by VPBank's strong position and capacity in the finance-banking industry."

Another local OTT service provider, Galaxy Play, has cooperated with Vietnam's affiliate marketing platform AccessTrade to launch a refund shopping feature to connect film lovers with online shopping via mobile applications.

Meanwhile, FPT Play has also entered into a partnership with Singapore-based esports organisation Team Flash. This is the first time an OTT service provider has teamed up with an esports organisation to jointly produce engaging content, including videos, live streams, and both offline and online events.

It is clear that local OTT platforms continue to evolve and offer more diverse content and payment options. Thus, they are likely to further dominate the entertainment landscape in Vietnam.