The Unexpected New Chair of VNG: Unveiling the Mystery

On November 25, Le Hong Minh, the founder of VNG Joint Stock Company (stock code: VNZ), was appointed as the company’s Chairman of the Board of Directors and legal representative, effective immediately.

Mr. Le Hong Minh, born in 1977 in Hanoi, Vietnam, obtained a degree in Finance and Banking from Monash University in Australia. In 2001, he returned to Vietnam and began his career as a credit officer at Vina Capital Company.

In 2003, Mr. Minh and a few friends decided to open a gaming arcade with additional services. The following year, in 2004, he co-founded Vinagame Joint Stock Company, which was later renamed VNG Joint Stock Company in 2009.

Mr. Minh served as the Chairman of the Board of Directors and CEO of VNG from 2004 and was one of the company’s largest shareholders. In early 2023, he stepped down as Chairman, and Vo Sy Nhan took over the role.

However, on November 22, Mr. Vo Sy Nhan resigned from his position as Chairman of VNG’s Board of Directors due to personal reasons. He is currently the Executive Director of Empire City and co-founder and Executive Director of GAW NP Capital fund.

To comply with regulations for public companies, VNG approved the dismissal of Le Hong Minh from the position of General Director, effective November 25. The company is yet to announce a new General Director.

Currently, VNG’s Board of Directors comprises four vice-general directors: Kelly Wong, Vuong Quang Khai, Nguyen Le Thanh, and Raymond Tan.

In the third quarter of this year, VNG reported a loss of 11 billion VND after tax, a significant improvement from the 649 billion VND loss in the same period last year. This improvement is attributed to a gross profit increase of over 450 billion VND (a rise of more than 90% compared to the previous year) and a reduction in sales expenses of nearly 215 billion VND (a decrease of almost 30%). This marks the 12th consecutive quarter of losses for VNG.

In the first nine months of this year, VNG recorded a net revenue of 6,892 billion VND, a financial activity revenue of 120 billion VND, a loss of nearly 76 billion VND in associated companies, and other losses of 31 billion VND. As a result, VNG reported an after-tax loss of nearly 597 billion VND.

As of September 30, VNG’s total assets were 10,441 billion VND, an increase of nearly 9% from the beginning of the year. Short-term assets amounted to 4,628 billion VND, a decrease of nearly 16%, mainly due to a reduction in cash and cash equivalents of over 20%, totaling 3,054 billion VND, equivalent to a decrease of nearly 800 billion VND.

The company’s liabilities stood at 8,687 billion VND, an increase of nearly 2,000 billion VND. Short-term debt was 6,166 billion VND, a 15% increase, including financial debt and lease liabilities of 2,228 billion VND.

Despite 12 consecutive quarters of losses, VNG’s stock price closed at 369,000 VND per share on November 25. Earlier this month, the stock traded around 401,500 VND per share, the highest on the stock exchange. VNG’s record-high stock price was 1,434,700 VND per share.