Southeast Asia’s music industry has benefited from social media’s global reach, but scaling it internationally will require stronger government regulation and a more specialized investment community, according to Esther Nguyen, CEO of Vietnam-headquartered entertainment firm POPS Worldwide. Speaking at the Fortune Southeast Asia 500 Summit in Vietnam on Nov. 3, Nguyen said the region still has significant ground to cover before its music sector can compete on a global scale.
South Korea Offers a Playbook
Nguyen pointed to South Korea as a model, noting that its success came from a coordinated approach involving government policies that support intellectual property, legal frameworks, international export support, and financial incentives. She stressed that a more robust investment community with deep entertainment and music expertise is also essential, citing Los Angeles, New York, and Tokyo as examples of markets where investors understand the industry well enough to help it grow.
The panel discussion also explored how South Korea’s cultural exports evolved. Kenny Ong, managing director of Sony Music for Malaysia, Singapore, and Vietnam, explained that K-culture—starting with K-dramas and food—paved the way for K-pop’s global rise. For Southeast Asian countries like Vietnam, he argued, the focus cannot be solely on pushing content; creating demand for the culture itself is equally important.
Fragmentation and Investment Gaps
Sujey Subramanian, APAC head of asset manager ICG, highlighted the fragmented nature of Southeast Asian markets as a major obstacle to scaling. Subramanian, who has personally invested in entertainment assets including large theme parks and music streaming platforms, noted that ICG’s typical minimum equity check is $50 million, making it difficult to find assets of sufficient scale in the region.
Despite these challenges, panelists identified opportunities for growth beyond recorded music. Ong noted that physical music products such as CDs, vinyl records, and box sets have been growing at double-digit rates in recent years. Merchandise and live experiences—including meet-and-greets and concerts—are also helping to boost artists’ profit margins.
Infrastructure and IP Enforcement
To capitalize on the rising popularity of live music, Southeast Asia needs to upgrade its physical infrastructure, according to the panel. Nguyen called for venues of varying sizes, from large arenas to mid-sized spaces holding 4,000 to 5,000 people and smaller venues around 2,000 capacity, so that artists in each country can grow and perform.
On the regulatory front, Nguyen acknowledged recent progress in Vietnam, where the government has been cracking down on pirated sites and pursuing bad actors. She cited an eight-year intellectual property case that was fast-tracked and resolved positively. While enforcement and interpretation of IP laws still need improvement, Nguyen said the direction is encouraging.
Overall, the panelists expressed optimism about the trajectory of Southeast Asia’s music industry, emphasizing that coordinated efforts across regulation, investment, and infrastructure will be key to unlocking its global potential.