Is digital music a lucrative business for artists in Vietnam?

When singer Hoa Minzy’s music video Bac Bling hit 100 million views on YouTube just a month after its release, she was expected to earn VND3.6-5.1 billion (US$144,000-204,000).

Still, the singer candidly admitted: “What I’ve earned from YouTube is nothing compared to what I’ve invested.”

In truth, a hit song on digital platforms operates within a far more intricate system than most realize, and artists must navigate an array of obstacles -- from copyright issues to the influence of new technologies.

A bumpy journey

The digital music industry typically revolves around three core phases: production, distribution, and promotion.

During the production phase, independent artists often manage a small team handling everything from songwriting to recording -- or they collaborate with a management company for strategic support.

For distribution, artists need to work with record labels or digital distributors to place their songs on platforms such as Spotify and Apple Music.

These partners handle metadata synchronization -- ensuring titles, artist names, and genres are properly registered so platforms can recognize and distribute the content accurately.

Promotion marks the final stage. 

With the rise of TikTok, the rules of promotion have changed: a 15-second catchy clip can spark viral trends and help gauge audience reactions even before a song’s official release.

Short-form content like remixes, behind-the-scenes footage, and covers are especially appealing to Vietnamese listeners.

Digital platforms also help expand market reach. 

For example, Spotify’s EQUAL campaign has allowed Vietnamese female artists like Dong Nhi to access international audiences.

According to the 'Vietnam Digital Music Landscape 2024: Transformation, Trends & Potentials' report by RMIT University Vietnam, the top three most-used platforms are YouTube, TikTok, and Zing MP3.

Streaming services let users either subscribe to premium plans to access licensed content on demand or stream for free with ads.

Spotify, for instance, pays roughly $0.003-0.005 per stream. 

But artists do not receive this amount directly. 

The platform retains 30 percent of the revenue, with the remaining 70 percent shared among copyright holders.

According to Ton Nu Nhu Ngoc, an expert in artist and digital music management, how each stream is monetized depends on various factors, including whether the user account is paid or free.

Revenue is first transferred to the distributor, who then shares it with the artist according to their contractual agreement.

“The revenue-sharing ratio between the distributor and artist depends entirely on the terms of their contract,” Ngoc explained.

“There is no universal formula.” 

Artists can opt for full-service packages covering production to promotion or choose only specific services. 

Depending on each party’s level of involvement, artists may receive between 10 percent and 70 percent of the track’s revenue.

In addition to digital streaming, artists earn income through live performances, exclusive product sales, and licensing music for ads or films.

According to data from Zing MP3 and Adtima, around 87.5 percent of loyal fans are willing to spend on exclusive products and services related to their idols, while 71.6 percent splash money on personalized stickers featuring their favorite artists.

Challenges ahead

Despite its momentum, Vietnam’s digital music industry still faces considerable hurdles.

According to Le Nguyen Tra My, a member of the Ho Chi Minh City Blockchain Association, there were around 80 lawsuits related to music copyright in 2024, many involving songs being used on platforms without the rights holder’s permission.

Alarmingly, about 80 percent of artists do not own the rights to their works due to either a lack of legal knowledge or having signed unfavorable contracts.

“Get a good lawyer” -- that’s Taylor Swift’s advice for anyone entering the music industry hoping for longevity.

In reality, many artists sign away their rights simply because they are excited to see their name in print, unaware that they may be giving up copyright or even intellectual property ownership.

“If you don’t have time or the capacity to study the law, hire a lawyer," an entertainment industry consultant advises.

"Never fully trust any individual or company that promises to take care of everything for you.”

According to Ngoc, talent shortages also plague the industry. 

Communications professionals may lack data analytics skills, business managers may not understand copyright law, and legal experts may be great at litigation but poor at contract negotiation.

Copyright issues are further complicated by the growing presence of AI. 

Music generated by AI is not clearly protected under current laws, raising the risk of plagiarism and legal disputes.

Dr. Nguyen Van Thang Long of RMIT University Vietnam noted: “Vietnam’s music industry has great potential, but many foundational issues remain unresolved.”

He pointed out that unprofessional conflict resolution and arbitrary contract breaches are still common. 

Stakeholders often lack awareness and respect for copyright and royalties. 

These are critical weaknesses that must be addressed for the industry to develop sustainably.