VNG’s Ambitions and Challenges: ⁣A Long-Term Approach to Success

VNG’s financial investment reserve has seen a significant increase, from ⁢nearly VND3,650‌ billion at the beginning of the year to VND5,179 billion. This growth is likely attributed to the company’s investment in Zion, as mentioned⁣ in previous reports.

With a current capitalization of about 13 trillion VND⁢ (nearly 520 million USD), VNG’s ⁣market value is significantly lower than its peak of​ 2.3 billion USD.

Unfulfilled Ambitions and Challenges

Despite being a major technology force in Vietnam, VNG Corporation has not achieved​ many of its ambitious goals. The company failed‍ to ‌meet its loss reduction target⁤ in 2023 and was‍ unable to list ⁣its ⁢shares on the US stock market to ‌attract capital and drive further development.

VNG had initially⁤ planned to list internationally in ‍2023, following in the footsteps of⁣ billionaire Pham Nhat Vuong’s electric car ⁢company VinFast, which listed on the US Nasdaq. However, the company ⁤later withdrew its application.

Shareholder Structure and International Listing Plans

VNG Limited, a key⁣ shareholder of VNG Corporation,⁤ had filed ‍a ​dossier⁣ with the US Securities and⁤ Exchange Commission (SEC) in August 2023.‌ The company⁤ had ‌planned to offer Class A common stock to the public on​ the Nasdaq ‌Global Select Market, with the trading​ code VNG.

The shareholder structure of VNG Limited includes two Chinese‌ technology​ giants,‌ Tencent and Ant⁢ Group, as well as the Singaporean investment fund GIC. These entities hold a significant number of‍ shares in ‌VNG Limited, which in turn owns ‌49% of VNG Corporation.

Business Approach and Future Prospects

Unlike other companies, such as FPT Corporation, which ⁢has recorded strong​ increases in revenue and profit,⁤ VNG takes a longer-term approach to business. ⁣The company focuses on developing technology⁢ products ​that can drive long-term growth,​ even if ⁤they require ⁢significant investment and may not generate immediate ​profits.

Examples of​ such products include⁣ Zalo, Zalopay,​ and VNG Data Center. ⁤VNG has also been​ quick to⁤ adopt emerging technologies,‍ such as artificial intelligence (AI), through its cooperation ⁤with Nvidia.

While the effectiveness of ‍VNG’s big⁣ projects and ambitions is still to​ be‌ seen, many investors remain optimistic about the company’s⁣ long-term⁣ prospects. Will⁢ VNG be able to overcome its current challenges and achieve ‌its goal of “going global” in the next few years?