You've got some impact damage there. By the looks of it, the brake track is (also) bent inwards.

To what degree the rim NEEDS to be replaced depends on how it feels when riding.
"If it aint broke, don't fix it".

If you haven't noticed it while riding, well, then KEEP riding.

If it bothers you, rims can (sometimes) be bent back, both into round and flat.
Personally, I've always had to unlace - at least partially - to have good results with that. But some say otherwise.
For flat spots, I pull them out with C-clamps, a plank and a crude cradle. For out of true, I either lay them like a seesaw over a board and step on them or clamp them protruding over the workbench edge and heave.