The Ministry of Information and Communications (MIC) recently held a seminar to review the management of online games.

 Online games attract young people

At the meeting, held on July 3, the fact that most online game companies issue games without proper licensing was mentioned. In the past games were subject to review before a license was granted, but current standards and discrepancies between agencies has made it difficult for game companies, causing them to turn to issuance of games without permission.

A number of online game company representatives have argued that the game industry is one of the fastest growing in the country. They noted that in 2012 alone, revenue of domestic companies reached about VND5 trillion (USD239 million), providing employment to 7,500 workers. The chairman of VTC Online Communications Company, Phan Sao Nam, said, "Policy about game content, including the amount of violence that should be allowed, has to be made clear for issuing licences."

Many of these companies complain of problems from complicated and unclear laws. Nguyen Van Khoa, Director of FPT Online, said they have incurred losses for two consecutive years and could face bankruptcy if the current situation isn't resolved. "Even we have resorted to illegally publishing games," he said.

Inspectorate for MIC, Nguyen Van Hung, said in 2011 and 2012, they fined 14 companies VND575 million for their violations.

Not only did the company issue games without permits, but several companies placed their main servers abroad to avoid domestic taxes, and some of them even shut down after collecting fees from users.

"Administrative fines have proven to be ineffective," Hung added.

The inspectorate urged that the MIC to quickly re-establish an appraisal council that would issue new games and clearer policies for the industry.

Deputy Minister of MIC Do Quy Doan said that the industry must be fostered and not hindered.

According to the MIC, they granted licenses to 117 online games, of which 44 have been shut down. The number of unlicensed games has skyrocketed, including thousands designed for browsers, mobile phones and other devices.