“VNG’s 2025 AGM: Betting on AI and Going Global for the Next Growth Cycle”

22 June, 2025

VNG’s Leadership Team

A New Name and Ambitious Goals

VNG aims high with a revenue target of 10,773 billion VND for 2025, a 19% growth from the previous year – the highest in the company’s history. Despite a projected net loss of 561 billion VND for the parent company, this still marks a 50% improvement from the 1,081 billion VND loss in 2024. Additionally, the company has renamed itself as “VNG Corporation” to enhance operational and business efficiency for the parent company and its core business units.

“We are proud to be a technology-driven enterprise since our inception. Moving forward, VNG will invest cautiously and persistently, leveraging our core strengths, prioritizing efficiency, and aiming for a swift return to profitability — with AI at the heart of our long-term strategy,” emphasized VNG’s Chairman, Le Hong Minh.

What’s in VNG’s Arsenal?

VNG is not a newcomer to the global stage. The group boasts a diverse ecosystem encompassing Game, Zalo, Zalopay, and enterprise solutions – each serving as a strategic pillar.

In the realm of AI, VNG is among the few Vietnamese enterprises investing holistically across infrastructure, platform, and application layers. Within a year, the company launched GreenNode – the first large-scale AI Cloud infrastructure in Southeast Asia – just six months after its inception. According to Mr. Minh, this AI project has already generated revenue and profits for the group, including the highest-value enterprise customer contract to date.

Within the same six-month period, Zalo developed the large-scale language model, KiLM, which is assessed to be on par with GPT-4 in terms of capabilities.

At the application layer, VNG offers numerous practical AI products and services. Approximately 20% of Zalo users, equivalent to 15 million people, engage with AI-related features daily. Zalopay integrates AI chatbot, voice agent, and personalized communication to enhance user engagement. Game studios are also employing GenAI in production and publishing processes.

The online gaming segment remains the vanguard of VNG’s internationalization strategy. As shared at the AGM, VNG is vigorously pursuing both game publishing and development in Southeast Asia, Taiwan, Hong Kong, and the US, while fortifying strategic alliances with global partners such as Riot Games, Roblox, Kingsoft, and NCSOFT.

Zalopay has also embarked on overseas trials, catering to students in South Korea and QR payment users in Singapore. Meanwhile, Digital Business is focused on serving large enterprises within the VNR500, offering AI solutions and traditional digital transformation platforms like Cloud.

According to VNG, the gaming segment currently derives 23% of its revenue from overseas markets, while the Digital Business segment garners 43% of its revenue internationally. Nonetheless, VNG must enhance the competitiveness of its core business segments to truly become “a global technology enterprise,” as envisioned. Scaling capabilities, product development velocity, and multi-market operational prowess will be pivotal in the next phase.

Event Attendees

Shareholder Perspective: Is the Outlook Enticing Enough?

Financially, VNG presents a brighter picture. In 2024, the group recorded consolidated revenue of 9,273 billion VND, with a net profit from business activities after adjustments reaching 302 billion VND, signifying a marked recovery from the 23 billion VND loss in 2023.

Delving into the operational structure, the online gaming segment remains the mainstay. The game publishing unit maintains its leading position in Vietnam with 74.3 million quarterly active users. In the game development arena, bookings from international markets surged by 37% year-over-year due to a market-specific product strategy instead of a blanket release approach.

VNG’s AGM Overview. Image: VNG

Zalo retains its dominance as Vietnam’s most popular messaging platform, with 77.8 million users. Notably, revenue from value-added services (VAS) is becoming significant. According to the company’s annual report, the VAS ratio doubled in 2024 compared to 2023.

The Zalopay payment platform, once considered a drain on resources, is edging closer to breakeven. The loss has narrowed year after year due to cost control, selective user expansion, and the provision of diverse microfinance services. VNG anticipates that Zalopay could reach breakeven by the end of 2026 at the earliest.

Overall, while there are aspects to monitor, especially the ability to translate strategy into stable cash flow, VNG’s core business segments exhibit a clear direction and are gradually reinstating their growth prospects in the eyes of shareholders.

Minh Tai

– 16:07 21/06/2025